Stop Outsourcing, Start Investing

Companies are constantly entrusted with sensitive information – from customer details to financial records and even proprietary data. If these were to fall into the wrong hands (through unauthorized access, data breaches, and threats to integrity or confidentiality), the results could be catastrophic.

This article will explore the advantages of bringing data destruction processes in-house for data centers, offering a cost-benefit analysis that highlights the potential for substantial time and financial savings. Additionally, we will also delve into the often-overlooked avenue of recycling e-waste recycling as a secondary income stream.

What is Electronic Waste, And How Do You Recycle E-Waste?

Electronic waste, commonly referred to also as e-waste, is discarded electronic devices and equipment that have reached the end of their operational life (or are just no longer wanted). This category can include a wide range of items, from old computers, mobile phones, televisions, and printers to other electronic gadgets.

Due to the increasing consumption of electronic devices and the rapid pace of technological advancements, e-waste has become a growing concern globally. In fact, the amount of e-waste we generate is expected to reach 74.7 million tonnes by the near future, growing at about 3.5% per year.

Recycling e-waste is crucial for several reasons, including:

• Environmental impact: Electronic devices often contain hazardous waste and toxic materials, including lead, mercury, and cadmium. Improper disposal of e-waste can lead to the release of these toxic substances into the environment, posing risks to ecosystems and human health. That is why it is recommended to remove batteries before shredding technology. 
• Resource conservation: Electronic devices can contain valuable materials such as gold, silver, copper, and rare earth metals. By recycling e-waste, we can reclaim these materials, diminishing the necessity for mining and extracting fresh raw materials destined for consumer electronics and various other applications. This is especially true if your shredding solution includes a magnetic separator to ensure metals are separated from data remains. 
• Data security: Effective e-waste recycling incorporates secure data destruction procedures to guarantee the irreversible erasure of sensitive information stored on electronic devices, thwarting potential data breaches and identity theft.

How E-Waste Recycling is Normally Carried Out

Certified and reputable recycling facilities conduct the process of e-waste recycling and typically follow these steps:

1. E-waste is collected from various sources, including individuals, businesses, and electronic waste drop-off points.
2. Once collected, everything is sorted based on the type of materials and components. This process helps identify items that can be refurbished, reused, recycled, or need to be shredded.
3. For devices containing sensitive information, secure data destruction methods are employed. This may involve erasing data using degaussing or physically destroying devices. Devices that are still functional or can be repaired are refurbished and, when possible, reused.
4. Non-reusable e-waste components are sent for recycling. This involves mechanically shredding the devices to separate materials like metals, plastics, and glass. These materials are then processed for further refining and reuse in manufacturing.
5. Any residual waste that cannot be recycled is disposed of in an environmentally responsible manner, adhering to local regulations and guidelines. Environmental responsibility extends beyond recycling, as organizations must consider the proper disposal of non-recyclable waste to mitigate potential harm to ecosystems and public health.

The Cost of E-Waste

We have clients who require security guards on site for third-party destruction and 24/7 CCTV footage of all data destruction. Hiring security, transportation, and cameras, all incur fees with outsourcing data destruction. The management of electronic waste involves both direct costs and indirect costs. Direct costs include collection, transportation, processing, recycling, certification, and disposal. For example, there are expenses related to setting up collection points, organizing transportation logistics, obtaining certifications for responsible e-waste recycling, and disposing of hazardous materials. 

Indirect costs, on the other hand, are often associated with the environmental impact of e-waste. These costs may include the potential long-term consequences of improper disposal, such as soil and water contamination, health hazards and damage to ecosystems, increased healthcare expenses related to conditions caused by exposure to hazardous materials, and lost opportunities for resource recovery.

While direct costs are more tangible and immediate, indirect costs emphasize the long-term consequences that can have a significant impact on both the environment and society.

A Cost-Saving Option: In-House Data Destruction 

In-house destruction has emerged as a cost-saving option for many industries, offering significant economic benefits and contributing to more secure and sustainable practices. Let’s quickly explore some of its benefits, shall we?

Benefit #1: Cost Savings

Initially, setting up an in-house data destruction facility may require an investment in specialized equipment. However, this upfront cost is often outweighed by the long-term savings compared to outsourcing services with an inevitable recurring cost. In-house data destruction eliminates recurring fees associated with third-party service providers. You are turning an OPEX into a CAPEX investment when you bring your data destruction in-house. 

In fact, vendors charge for on-site shredding and can charge anywhere from $9-$15 a hard drive, not including security or transportation. Depending on the vendor, you could be looking at tens to hundreds of thousands of dollars for an outsourced “shred event”. This contributes to significant operational cost increases over time, ruining your OPEX.  

Benefit #2: Time Efficiency

With an in-house data destruction setup, data centers gain the flexibility of performing secure data disposal at their convenience. This on-demand access helps streamline operations and saves valuable time. Eliminating the need to wait for external service providers also leads to faster data destruction processes, enhancing overall efficiency within the data center. This also helps clients adhere to policies around break-fixes and pulling drives to destroy them on a timely basis. 

We have clients who have SLA’s to destroy drives within 48 hours of being pulled from a rack. These clients came to us after years of outsourcing ITAD with stockpiles of drives they needed to destroy. Bringing our machines in-house allows them to stick to their SLA’s saving them time and money. 

Benefit #3: Enhanced Security Protocols

In-house data destruction affords data centers greater control over security protocols. This control is crucial for ensuring that sensitive information is handled and disposed of according to the highest industry standards. It is also possible to tailor security protocols to meet specific data center needs, creating a more robust and customized approach to data destruction. Eliminating the liabilities of third-party destruction services. 

Benefit #4: Recycling E-Waste for Additional Income

In-house data destruction allows data centers to take charge of the entire data lifecycle, promoting responsible e-waste management. Recycling e-waste aligns with environmental standards and showcases a commitment to sustainability. By partnering with reputable e-waste recycling facilities, data centers can turn the disposal of obsolete equipment into a secondary income stream. This not only helps offset initial setup costs but also contributes to a more circular and sustainable economy. Phiston has engineered the only all-media disintegrator that has a magnetic separator inside to allow for e-waste recycling.

Conclusion

Bringing data destruction processes in-house can be an excellent strategic move for data centers, as it offers a range of benefits that extend beyond cost savings.

While the initial investment may seem significant, the long-term advantages in terms of cost reduction, increased security, and environmental stewardship make in-house data destruction a compelling choice.

If you’re looking for reliable end-of-life media destruction options, Phiston Technologies can be your ally. Our machines are trusted by the largest tech companies in the world, including IBM, LinkedIn, Amazon, Facebook, and many others. Our patent designs ensure data is made 100% unrecoverable and is fully automated for use and safety.

At Phiston Technologies, we are committed to environmental responsibility and offer an excellent range of products for e-waste recycling and data destruction. For instance, our MediaDice® All Media Disintegrator A10 can deal with all types of media (including SSDs, HDDs, switches, and laptops), disintegrating them into 10mmx10mm pieces. What’s more important, though, is that our disintegrators have a built-in magnetic metal separator that allows the e-waste produced to be easily recycled.

Explore our full range of products or contact us today to find out how Phiston Technologies can help you deal with your e-waste.