Research: Two in five global organizations waste more than $100,000 a year storing useless IT hardware

Jan 24, 2019

More than half of these hardware hoarders have been cited 1 or 2 times in the last 24 months for failing to comply with data protection laws

ATLANTA and LONDON — January 24, 2019—New research launched today by Blancco Technology Group (LON: BLTG), the industry standard in data erasure and mobile device diagnostics, outlines the staggering cost to global organizations of old, outdated IT equipment cluttering up data centers. A survey of 600 data center experts from APAC, Europe and North America reveals that two in five organizations that store their data in-house spend more than $100,000 storing useless IT hardware that could pose a security or compliance risk.

Astonishingly, more than half of these companies (54 percent) have been cited at least once or twice by regulators or governing bodies for noncompliance with international data protection laws. Fines of up to $1.5 million could be issued for HIPAA violations due to storing data past its retention date, with that number multiplied by the number of years each violation has been allowed to persist.

Blancco’s exclusive study, The High Cost of Cluttered Data Centers, produced in partnership with Coleman Parks, reflects the extent in which global organizations are paralyzed by fear of reputational damage. This is primarily the risk of sensitive data that is stored on old IT hardware of being breached or misused. Put simply, organizations are opting to spend vast sums of money storing these devices, contrary in many cases, to data protection laws and regulations, rather than entrusting them to data erasure experts for wiping before reuse.

“Global organizations are unnecessarily wasting vast sums of money from noncompliance and onsite storage fees – charges that could be easily mitigated,” said Fredrik Forslund, Vice President, Enterprise and Cloud Erasure Solutions at Blancco. “This points to a huge lack of education within the sector about what to do with hardware that is faulty or has reached end-of-life. Organizations are letting this hardware pile up in fear of data leakage, resulting in loss of efficiency, increasing capital costs, possible noncompliance and potential security risks.”

The global data center industry remains gripped by a lack of time and resources to complete comprehensive data privacy processes. This remains one of the key reasons why organizations, particularly those that own their own data centers and store all data onsite, are keeping IT assets past their useful lives.

Other key global findings include:

Key North America findings include:

Key UK findings include:

“It’s not surprising that more than half of all respondents rated the RMA return process as ‘quite’ or ‘extremely’ difficult. Current processes being followed are archaic, inefficient and desperately in need of automation. In some cases, organizations feel compelled to waste more resource wiping each drive individually,” Forslund said. “Organizations are sitting on IT assets that are having an extremely damaging impact on their business – even if most organizations consider themselves to be mitigating risk by holding on to them.”

For full analysis, you can read the full The High Cost of Cluttered Data Centers report here:


The primary research was commissioned by Blancco Technology Group and conducted by Coleman Parkes in December 2018. The sample comprised 600 data center experts from 600 organizations divided equally between the UK, the United States, Germany, Canada, Japan and China and covering six vertical markets: healthcare, public sector, pharmaceutical, financial services, retail and telecommunications.

About Blancco Technology Group

Blancco is the industry standard in data erasure and mobile device diagnostics. Blancco data erasure solutions provide thousands of organizations with the tools they need to add an additional layer of security to their endpoint security policies through secure erasure of IT assets. All erasures are verified and certified through a tamper-proof audit trail.

Blancco data erasure solutions have been tested, certified, approved and recommended by 18 governing bodies and leading organizations around the world. No other data erasure software can boast this level of compliance with the rigorous requirements set by government agencies, legal authorities and independent testing laboratories.

Blancco Mobile Diagnostics solutions enable mobile network operators, retailers and call centers to easily, quickly and accurately identify and resolve performance issues on their customers’ mobile devices. As a result, mobile retailers can spend less time dealing with technical issues and, in turn, reduce the quantity of NTF returns, save on operational costs and increase customer satisfaction.

Additionally, Blancco Mobile Diagnostics solutions empower mobile processors, 3PLs, Recyclers and Repair & Refurbishment Operations to easily, quickly and accurately process used mobile devices to identify any issues and determine overall value. By incorporating Blancco Mobile Diagnostics, mobile processors automate processes, deliver intelligent routing based on device attributes and increase overall efficiency, while driving incremental revenue and profitability.

For more information, please contact:

CCgroup for Blancco Technology Group (UK)
Abbie Godward / Adam Millar
T: +44 (0) 20 3824 9214

CCgroup for Blancco Technology Group (US)
Lori Scribner
T: +1 619 798 0043

Blancco Technology Group
Liz Adams, Global Marketing Director
T: +44 (0) 7725 010 412