21 REASONS WHY REFURBISHED IT IS THE FUTURE

“Why aren’t all businesses using refurbished IT as Google does?” This is a question that our team frequently ponders. The response is that many IT experts are unaware of the advantages of refurbished technology. However, this trend is shifting. Due to difficulties in meeting demand from manufacturers during the pandemic, more companies have started to opt for refurbished IT for high-quality options. From delivering a performance that’s equivalent to new systems to warranties that surpass those of the manufacturer, there are numerous reasons why refurbished tech is becoming increasingly popular. Check out our top 21 reasons in this blog post.

1 | REFURBISHED IT EQUIPMENT HAS BEEN SHOWN TO PERFORM JUST AS WELL AS NEW EQUIPMENT
Refurbished servers and IT components perform just as well as brand-new ones, which has been a pleasant surprise for our clients. A study conducted by the University of East London in 2020 revealed that the energy and performance of CPUs, server RAM, and data center storage were the same between a new and refurbished server of the same model and manufacturer.

The findings of the research align with industry standards. Google has been using refurbished servers since 2015, saving over $1 billion in operational expenses thanks to its energy efficiency. According to Google, there is no difference between refurbished and new inventory and both are considered to be the same. (Source: Circular Economy at Work in Google Data Centers by Ellen MacArthur).

2 | IMMEDIATELY AVAILABLE STOCK
The outbreak of Covid-19 highlighted the significance of having readily available inventory for modern companies. As the need for remote-working IT solutions increased rapidly, there was a huge demand for laptops in early 2020, leading manufacturers to fall short of meeting it. As a result, organizations turned to purchase refurbished laptops of good quality.

Refurbishment experts keep IT equipment in their engineering facilities for quick access, eliminating long wait times for manufacturing. REF Group has a large global inventory of over 225,000 servers, storage devices, networking solutions, PCs, and laptops from 150+ brands such as HPE, Dell, and IBM, allowing for fast shipping. Despite the increase in global demand for IT in 2020, manufacturers reported losses.

3 | IMPRESSIVE WARRANTIES
When purchasing from reputable refurbishment companies, warranties can match or surpass those of the original equipment manufacturer. This gives peace of mind that the IT devices will perform just as well as new ones. REF Group offers a strong three-year warranty on all of our IT systems and components, demonstrating our confidence in their performance.

4 | LOWER RMA RATES THAN THE MANUFACTURER
The notion that refurbished IT equipment has a high rate of defects and returns is false. In fact, REF Group has a lower RMA (Return Merchandise Authorization) rate compared to the manufacturer. This is partially due to the Bath Curve, which shows that failures occur more frequently when using new devices for the first time. Since refurbished devices have already been used, their failure rate is likely to be lower. This is also supported by reason #5.

5 | EXTENSIVE TESTING
The original equipment manufacturers usually perform limited testing on IT equipment, but refurbishment companies carry out comprehensive testing to guarantee the optimal performance of each device. Ref Group follows a strict 25-step recertification process, which involves a thorough examination of each component and secures data deletion to prioritize reliability at all stages.

6 | REFURBISHED UPGRADES CAN MAKE PREVIOUS GENERATIONS OUT-PERFORM NEW
During 2020, sales of refurbished IT equipment rose while manufacturers reported declining revenue for server and storage equipment. This can be attributed to the high demand for IT upgrades, which was the top reason for budget spend in 2020. This trend is expected to continue in 2021 as remote working solutions continue to be upgraded, making now an ideal time to choose cost-effective and high-performing IT upgrades.

For reason number 6, we go back to the University of East London’s innovative study. The second phase of the experiment involved adding refurbished server memory to a Gen9 server. The updated Gen9 offered better performance compared to a Gen10 server from the same manufacturer and model.

Contrary to the conventional wisdom that advises “regular refreshing with new,” this latest research demonstrates that refurbished IT upgrades can be a more efficient choice.

7 | ACCESS TO IT EQUIPMENT IS NO LONGER AVAILABLE THROUGH THE MANUFACTURER
When manufacturers discontinue a generation of technology, organizations must decide between purchasing newer equipment or upgrading their existing technology via the secondary market. Replacing with new is ideal for high-performance computing to utilize the latest features, but most organizations don’t require the most costly technologies.

Our clients often opt for older, refurbished generations of technology to save on the cost of upgrading to newer models. We have a wide range of IT systems and components, including the latest and oldest server generations, to meet the needs of any organization.

8 | ZERO CONFLICT WITH EXISTING SYSTEMS
If your company opts for refurbished IT hardware for upgrades, it will be fully compatible and will not clash with your current system.

9 | SIGNIFICANT COST SAVINGS
The most frequently cited reason for buying refurbished IT equipment is to cut costs, which is especially relevant in today’s climate where IT managers are expected to achieve more with limited budgets.

Purchasing refurbished IT systems and components from quality refurbishment companies often results in significant cost savings compared to buying from original equipment manufacturers (OEMs). For instance, the refurbished IT solutions provided by Ref Group to Torbay Council cost 52% less than the OEM price, allowing for budget reallocation to other areas.

However, cost reduction is not the top reason for choosing refurbished IT equipment. According to a survey conducted by us during the Covid-19 pandemic, the majority of our new customers chose refurbished servers and other IT devices because of their reliable stock availability, not just for the lower cost.

10 | MAXIMIZED FLEXIBILITY
Flexibility plays an important role in IT procurement. Every organization has unique IT needs, whether upgrading remote work systems or updating large data centers. Refurbishment specialists often offer a range of options including new, refurbished, and third-party devices at the component level. The ability to create hybrid IT solutions by combining new, refurbished, or third-party devices offer a great way to effectively use your IT budget and meet all your technical requirements.

11 | FREE CONFIGURE-TO-ORDER SERVICE
If you desire added versatility, consider creating refurbished servers tailored to your specific IT requirements. Our team offers a Configure-to-Order service with no-cost configurations and fast deliveries. If you have any used servers, we can also implement them and utilize the components.

12 | EXCELLENT DATA SECURITY
Refurbished equipment must also comply with data regulations, not only the businesses selling their data-bearing devices. Therefore, it’s essential to select a reputable company that completely erases data when purchasing refurbished laptops, PCs, or data center equipment. To determine the security of a company, look for industry certifications such as the International Organisation for Standardization (ISO) 27001, which proves that the company follows the highest data protection standards.

REF Group has achieved a high level of sustainability and environmental responsibility by being one of the few companies globally to receive the new SUSTAINABLE ELECTRONICS REUSE & RECYCLING (R2) v3 STANDARD by SERI. The certification shows that the company follows the highest security and safety standards for the recycling of end-of-life equipment.

13 | EXTENDED SUPPORT AND PRODUCT LIFETIMES
With a refurbishment specialist, managing your IT life cycle becomes easy. From upgrading your current system to selling your old hard drives or buying refurbished laptops, there is a range of services to maximize your IT budget. Services such as IT Asset Disposition and IT Rentals are available. Additionally, the specialist will buy and refurbish your used IT equipment, which is an economical and environmentally-friendly option for keeping quality devices in use.

14 | CHEAPER MAINTENANCE CONTRACTS
OEM maintenance agreements are much pricier than those from third-party providers, but Ref Group offers a more affordable alternative. The cost of OEM maintenance contracts increases significantly after the initial three-year warranty period, potentially as a means to push customers toward purchasing new equipment.

15 | BETTER FOR YOUR IT ENVIRONMENT
According to Gartner, there will be 120 million new servers coming online from 2019-2023. As the global data center market is projected to increase by 500% in the next decade, this number could rise even further unless a more sustainable approach to IT hardware provision is adopted.

Research from the University of East London suggests that the traditional approach of refreshing the latest generation for increased energy efficiency may not be the best approach. Recent trends in CPU performance show that maximum capacity efficiency is declining and even decreasing in idle mode. This means that older, refurbished servers can actually be more efficient than new ones, given that servers typically spend the majority of time in low-power mode. These findings are crucial for IT infrastructure managers to consider.

16 | STOP MINING FINITE MATERIALS
The production of electronic devices, without proper reuse and recycling, is detrimental to the environment. The manufacturing process results in significant emissions, depletion of finite resources, and environmental degradation. Servers, storage devices, and networking equipment contain a significant proportion of critical minerals that are expected to be depleted in the near future and are often obtained through illegal mining. With data centers projected to consume a substantial portion of the world’s electricity by 2024, it is crucial to find solutions that keep electronic devices in use and reduce the need for new production.

17 | REDUCED E-WASTE
Purchasing refurbished not only decreases the demand for new production, but it also decreases electronic waste. Annually, over 50 million tons of e-waste is discarded in landfills, which the World Economic Forum states are equivalent to the weight of all commercial aircraft ever built. This number is expected to continue growing.

The high rate of IT refresh is a major contributor to the increasing e-waste problem. IT equipment, such as servers, is often replaced after only three years of use. Additionally, instead of properly erasing data and refurbishing the used hardware, it is often discarded or shredded. To address this issue, more attention is needed on secure IT Asset Disposition (ITAD) and data erasure services.

Creating a circular economy through the reuse of existing resources can reduce e-waste and its environmental impact. An example of this is Microsoft’s new Circular Center, which will recycle and reuse old servers, as part of its goal to achieve zero waste by 2030.

18 | FULLY COMPLIANT WITH WEEE REGULATIONS
Certified refurbishment experts adhere to the 2013 Waste Electrical and Electronic Equipment (WEEE) regulations, guaranteeing that once the devices have been restored and used, they will be recycled in an environmentally responsible manner instead of being discarded in landfills.

19 | REDUCED SUPPLY CHAIN CARBON FOOTPRINT
The servers contain large quantities of steel, aluminum, and plastic, which are major contributors to global industrial greenhouse gas emissions. According to Dell’s research on the carbon footprint for its products, the carbon impact of mining, production, and transportation of a server before it is used is around 1,200 kg CO2e for a tower server, 1,300 kg CO2e for a rack server, and 1,750 kg CO2e for a blade server. By choosing to upgrade and extend the lifespan of servers, organizations can reduce the carbon impact per unit and improve their carbon accounting.

20 | BACKED BY INDUSTRY-LEADING RESEARCH
The market for refurbished IT equipment is thriving due to new and exciting research emerging in the field. Findings from academics provide confidence in the high quality of refurbished products and highlight the benefits of using them. The Circular Economy in the Data Center Industry (CEDaCI) project is an example of industry-leading research, bringing together IT professionals, academics, and manufacturers to answer long-standing questions in the industry and promote further reuse of data center equipment. In 2020, the European Parliament supported the Right to Repair, allowing people to repair and reuse their IT devices rather than paying expensive manufacturer fees or replacing them with new ones. Similar initiatives are underway in Australia and the US, as governments around the world advocate for a more circular approach to technology.

21 | A PERSONALIZED EXPERIENCE
When partnering with a refurbishment expert, fast response times are guaranteed. You will have a dedicated account manager who will be there to talk about your unique IT needs and provide impartial advice on a variety of IT hardware.

ABOUT US
REF Group is a seasoned provider of sustainable IT solutions with a proven track record for years in the industry of purchasing, refurbishing, and selling IT hardware. They are proud of their circular business model and offer hassle-free sustainable solutions. With locations across the US, Asia Pacific, and Europe, Ref Group provides exceptional customer service and fast delivery, shipping 99% of orders the next day. Their certified refurbished IT equipment is just as reliable and efficient as new gear. Explore their extensive selection of refurbished laptops, desktops, servers, storage, and networking gear, or reach out to their knowledgeable team for help.