Home|All Posts| Blog

Interact publishes Circular IT research in European Journal of Business and Management

Rich Kenny | Dec. 1, 2024

Interact publishes Circular IT research in European Journal of Business and Management

Bridging the Storage Supply Gap with Refurbished Drives

The exponential growth of global data has sparked unprecedented demand for storage capacity, outstripping manufacturing capabilities. The research provides a compelling solution: refurbished storage drives.

By integrating circular economy practices, refurbished hard disk drives (HDDs) and solid-state drives (SSDs) can help bridge this storage supply gap while reducing environmental impact.

 

The Context: An Exploding Data Landscape

The sheer scale of the global data surge is staggering. Between 2010 and 2022, the active storage base grew more than 53 times. By 2035, it is expected to increase by over 475 times that level.

Despite advancements in technology and manufacturing, the storage industry struggles to keep pace. Traditional models of production and disposal fall short in meeting demand while contributing to significant waste and carbon emissions. The circular economy emerges as a promising option addressing these challenges through reuse, refurbishment, and recycling.

 

Economic Potential of the Circular Economy in Storage

The research underscores the economic value of reusing storage media:


  1. Cost Efficiency: Refurbished drives are 50%–80% less expensive than new ones, making them a viable alternative for enterprises seeking to manage operational costs.

  2. Market Demand: The secondary market for storage devices offers a substantial opportunity, valued between $11 billion and $23 billion, depending on reuse rates.

  3. Complementary, Not Disruptive: The adoption of refurbished drives does not cannibalize the market for new devices. Instead, it addresses emerging use cases with different workload and performance requirements.

 

HDDs and SSDs in a Circular Economy

HDD Market Outlook

HDDs remain the most cost-effective option for bulk storage due to their lower cost per terabyte compared to SSDs. Although SSDs are preferred for high-performance applications like generative AI, HDDs dominate in large-scale data lakes and video surveillance. This market segmentation ensures continued demand for HDDs, particularly in the enterprise sector.

SSD Market Outlook

SSDs are popular due to their performance and energy efficiency. Despite market fluctuations, the enterprise segment and AI-driven workloads drive robust demand. For refurbished SSDs, the economic value remains high even years after their initial deployment, making them a lucrative option in scenarios of market undersupply.

Key Challenges to Adoption

While the potential of circular storage is clear, certain barriers must be addressed to unlock its full benefits:


  1. Data Security: Ensuring secure erasure and sanitization is paramount. New standards, like the IEEE 2883-2022, offer robust frameworks for sanitizing storage devices while retaining their reuse potential.

  2. Quality and Reliability: Lack of standardized health metrics for refurbished drives creates uncertainty in the secondary market. Establishing benchmarks for device health and lifespan will build confidence among buyers.

  3. Industry Education: Many businesses default to destroying used drives due to concerns about reliability and data breaches. Increased awareness of modern erasure techniques and circular practices is essential.

 

Environmental Impact and Sustainability

Refurbished drives significantly reduce the environmental footprint of storage:


  • Carbon Savings: HDDs and SSDs have different carbon profiles. Increasing the areal density of HDDs reduces CO2 emissions per terabyte, while refurbishing SSDs offsets the high carbon cost of manufacturing new NAND flash devices.

  • Material Conservation: Circular practices reduce the need for raw materials, mitigating environmental degradation and resource depletion.

 

Recommendations for Scaling Circular Storage Solutions

The study outlines practical steps for expanding the adoption of refurbished storage drives:


  1. Standardization: Develop industry-wide benchmarks for assessing the quality and reliability of refurbished devices.

  2. Policy Support: Encourage regulations that promote reuse over destruction, including incentives for businesses adopting circular storage solutions.

  3. Innovation in Sanitization: Invest in advanced erasure technologies to ensure data security without compromising the reuse potential of drives.

  4. Market Awareness: Educate stakeholders about the economic and environmental benefits of circular storage, fostering trust in refurbished products.

 

Conclusion

The transition to a circular economy in storage is not just a sustainable choice but an economic imperative. Closing the gap between reusable drives (87%) and those actually reused (10%) requires collaboration across industry, policy, and technology. By embracing refurbished HDDs and SSDs, the storage industry can meet the surging demand for data capacity while promoting sustainability and resilience.

The road ahead is challenging but promising. With the right policies, technologies, and awareness, refurbished drives can revolutionize data storage, proving that sustainability and innovation go hand in hand.

 

You can read the full paper at:

https://www.researchgate.net/publication/386171676_Data_Explosion_Circular_Solution_How_Refurbished_Drives_Can_Bridge_the_Storage_Supply_Gap

Or download the paper in our resources section:

https://interactdc.com/resources/