The recent AI boom has thrust data center processing into the spotlight. HOBI’s Director of Operations, Don Simms, recently took center stage on the HOBI Conversations podcast to discuss major industry changes, the data center ITAD process, what’s required for a zero-data-breach record, operational challenges, and more. With decades of experience in the tech industry, Simms has amassed a well of knowledge on operational efficiency, data security protocols, and overcoming data center hurdles.
Then vs. Now: Biggest Industry Changes
The ITAD industry is one of the fastest-changing sectors in technology and corporate services, and continues to evolve alongside the rapidly growing technological landscape. When asked in a recent interview about the biggest change he has witnessed so far, Simms explained the one thing that has stood out to him: increased client education.
“Just looking at the whole industry, one of the things that has kind of fascinated me is just how the clients over time have become more sophisticated, more and more educated on what we’re doing. Obviously, we’re looking at data security; we’re looking at the environment, doing things the right way, environmentally. We were always doing the right thing, but the clients seemed to be less educated. Today, you’ve got a very educated client base. They understand what you’re doing. They understand your processes. They understand your certifications. They understand what needs to happen and what the risks are. And so it’s good for us, it’s good for the industry, but it’s also challenging,” said Simms.
While not having to explain every process to clients feels like a breath of fresh air, it also means higher standards and more scrutiny. Clients now know the right questions to ask; they know what’s at stake, and they’re more involved in the process rather than just handing off their equipment without a care.
According to Simms, one of HOBI’s biggest changes is its intelligent routing system. “You trust your people, but you’re still relying on people.” HOBI’s routing system guides the operators through the steps for every kind of item that comes in the door, reducing room for human error.
“And as time goes on, we’ve implemented systems in place that don’t take the place of the people, but they just aid the people in doing the job correctly.”
Data Security: ITAD’s Steadfast Constant
One thing that has remained consistent throughout the years is integrity in every aspect of the process—having a transparent, communicative team that adheres to rules and regulations to ensure that every part of the process complies.
“When you look at data security, for example, we make sure nothing goes out of this building without a verified erasure record, or we have physical destruction so that data cannot escape. That’s been something just since the day I walked in here that was pounded into my head is that we don’t cut corners when it comes to data security.”
From Pickup to Resale: The ITAD Process
IT asset disposition is often viewed as a single process, but what many companies do not consider is that ITAD is actually multiple sub-processes under one ITAD umbrella. From pickup to resale, assets undergo rigorous sorting, testing, grading, and erasure before they’re ready for final disposition.
Weighing is often the first step, and more important than many might think. During the interview, Simms discussed how HOBI works to mass balance.
“If we received eight thousand pounds or eight thousand and fifteen pounds, when we complete that load, we need to account for eight thousand fifteen pounds from an environmental perspective, and also just making sure that we’ve tracked that.”
After assets are weighed, they undergo the triage process and are sorted into categories, including data center servers and racks. Next, devices move onto the erasure portion, where hard drives are completely wiped of all data. HOBI offers mobile device management services including asset remarketing. Mobile devices are graded, repaired, refurbished, and resold. Devices that are not in working condition are recycled. Any hard drives that cannot be erased are destroyed via shredding technology.
Data Center ITAD and The AI Influence
Because of their size, data center decommissioning can feel intimidating, but the data center disposition process doesn’t have to be that daunting. If server racks arrive intact, they are dismantled and servers are processed as individual devices.
Now that AI data centers are flooding the scene, data centers are being decommissioned at a higher rate to accommodate the new changes and AI requirements. Some companies may find themselves retiring a full data hall rather than just a few racks, which can feel overwhelming on a large-scale project.
“Getting the requirements up front is essential,” Simms explained, “Just making sure you understand what the client wants and that it’s very clear.”
Data center ITAD requires working with knowledgeable partners and making sure everyone is on the same page throughout the process. Some clients are heavily involved and provide a list of assets and directions for each, while others want you to make that list and follow up on decisions. Communication is key, especially when working in data centers, and pinpointing the person who can provide the most information helps streamline the process.
34 Years, 0 Data Leaks: Reaching HOBI’s Level of Data Security
HOBI boasts an impressive 34-year record with no data leaks, and according to Simms, the most critical part of achieving this goal is the systemic safeguards in place. HOBI’s developers created a robust intelligent routing (IR2.0) system that enables them to make changes and rewrite programs to meet specific client needs while functioning as a safeguard to protect against data leaks.
“At every step of our process, our system is looking for the verified erasure record, and if that doesn’t exist for some reason, the system stops,” Simms explained, “We want systematic processes so there’s no way that unit can even make it to the end of the production line, much less in the inventory, much less out the door if it does not have an erasure record. So systemic systems to monitor are the only way.”
Increased Risks of a Poor Decommissioning Plan
IT asset decommissioning should be planned for a smooth, streamlined process, but this is especially critical for data center decommissioning. As the holders of all enterprise and employee data, one misstep can result in increased data security risks, logistics delays, and rapid value depreciation, which means decreased ROI.
“Obviously it’s faster and smoother if everything goes according to plan, but we all know plans have exceptions; things happen. The last thing we want to do is not take some equipment out that we’re supposed to take or even worse, take something we’re not supposed to take. So that communication, just clear communication, step by step. This is what we want, this is what we want done, this is what we don’t want done.”
Bracing for The Future by Leveraging AI
Data centers are a growing challenge, and with the addition of AI, that challenge will continue to evolve. Many ITAD facilities are utilizing AI as a proactive tool to improve operational efficiency, material flow, and accuracy.
“Anything around data center work is a challenge, and understanding the speed and just catering to that massive client base is a challenge. Like a lot of ITADs, we’re implementing AI for better accuracy and faster processing of materials. We’re implementing AI throughout our process and making a lot of headway there. It’s coming pretty fast and working very well.”
Watch HOBI Conversations EP. 5 now for BTS insight into industry hurdles, data center operations, and how AI is helping improve the ITAD process.