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Will removing the hard drives from old MFDs adversly affect the resale of used equipment?

June 25, 2010

Recently We have pulled a number of hard rives out of our customers old equipment. We refer to this as our hard drive surrender program. Some customers just don’t care what security options you can provide, they want to keep their hard rives. I get it, because it is the most secure option, and gives the customer the greatest comfort level, but also gives them the greatest responsibility (to properly dispose of the hard rives they keep).

Speaking to my operations manager removing a hard drive from an MFD renders these MFDs all but worthless for the secondary wholesale market. Of course we can only do this (without replacing the hard drive) on equipment that our customers own outright (in other words, NOT LEASED).Otherwise the Leasing Company, who actually owns the equipment will WHACK your customer with an outrageous charge to restore there MFD to working condition.

How will this affect the resale of used equipment, whether wholesale, or refurb’d equipment. How will it effect the sale of new equipment? This will definitely diminish the amount of used equipment on the market in three to five years. It will take that long to get through a lease cycle before the impact will be fully felt by the market place, but it will be felt.

Not sure how many MFDs are having their hard drives pulled before they are being decommissioned but it IS happening on a number of them, maybe 20%, maybe 30%, maybe only 10%. While the impact is yet to be felt it will be felt.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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5 comments

  1. I have seen much the same thing. In general I think we will see customers fall into three categories. Over time I think more and more customers will migrate up the levels with few at level one and more specifying both level two and level three.

    1. Security? We don’t care about no stinkin security. These folks think that they have nothing to hide, and anything that could possibly be on their machines when it comes out of the other end of the wholesale channel does not worry them.

    2. Use built in MFP security. This includes data overwrite, HDD encryption etc. I see the need for this as being during the MFP contract. A customer wishes to have some security standard in place for the term that the device is actually installed in the organization.

    3. Put the hard drive in my hand. I already get more requests for this than any other security measure. This is always a question when the contract is coming to term. The customer does not care what you or the manufacturer says the HDD security does, or what you may be willing to certify by signing a sheet of paper. The only way they can be sure that they are protected against a lawsuit on potential data leaks is to hold the hard drive in their hands before the machine goes on a truck. Given what a single law suit would cost a customer (and possibly the dealer/manufacturer) if a mistake in wiping a drive is made, this is what anyone with a IT security officer is going to use as the default standard from today on. If this means they have to buyout to keep because that cost is lower than buyout to return with a replacement HDD, they will buy the machine, pull the drive, destroy the drive and drop the machine in the dumpster. I see an increasing percentage of the market moving this direction.


  2. The problem of the Harddisk is first of all a design failure, as it is known upfront that machines have a second life after 36 – 60 months. and should be pre-owner data free.

    I am sure that the sales guy did not told the custmer that the last 20.000 pages where stored on the harddisk. He should have (he didnt know it eiher). The manufacturer is responsible for the technical design!

    The lease conditions are also an pre-arrangement beteen the vendor and lease company as the customer has to accept preset conditions.

    In my opiniun the vendor could have known this all upfront and could have take actions. They did not and now he has to fix it afterwards. So call xerox, ricoh, canon and others…


    • VINCE+JOHAN KOSTERS…

      THIS IS A DIRTY BIG PROBLEM!!!!

      INDEED, HOW *HARD* IS IT TO DESIGN A COPIER/MFD THAT CAN OVERWRITE AS FACTORY DEFAULT?!?

      I WATCHED ON YOUTUBE HOW SHARP COULD OFFER AS A $500 ADD-ON A UNIT OR FACILITY TO AUTOMATICALLY OVERWRITE THE HDD…

      IF I HAD MY WAY, I WOULD OFFER THIS AS STANDARD…FOR…
      FREE!
      UNLESS THE CUSTOMER WANTS THE MFD TO REMEMBER THE MATERIAL…

      WHATEVER!

      WHAT IS THIS “MONEY TALKS” BUT “NO PASSION”
      ATTITUDE THAT HAS GRIPPED THIS INDUSTRY?!?!

      WE HAVE INDEED! SEEN MANY “COPIER-CASUALTIES” IN RECENT TIMES…

      THIS ISSUE (HDD SECURITY) HAS TO BE ONE OF THE MOST
      DIRE CONSEQUNCES OF THE ABOVE MENTIONED “ATTITUDE”, WHICH NEEDS TO BE ADDRESSED SOON, OTHERWISE THESE “INEFFICIENCIES” WILL…COST…SOCIETY…

      INCALCULABLY!!!


    • VINCE+JOHAN KOSTERS…

      THIS IS A DIRTY BIG PROBLEM!!!!

      INDEED, HOW *HARD* IS IT TO DESIGN A COPIER/MFD THAT CAN OVERWRITE AS FACTORY DEFAULT?!?

      I WATCHED ON YOUTUBE HOW SHARP COULD OFFER AS A $500 ADD-ON A UNIT OR FACILITY TO AUTOMATICALLY OVERWRITE THE HDD…

      IF I HAD MY WAY, I WOULD OFFER THIS AS STANDARD…FOR…
      FREE!
      UNLESS THE CUSTOMER WANTS THE MFD TO REMEMBER THE MATERIAL…

      WHATEVER!

      WHAT IS THIS “MONEY TALKS” BUT “NO PASSION”
      ATTITUDE THAT HAS GRIPPED THIS INDUSTRY?!?!

      WE HAVE INDEED! SEEN MANY “COPIER-CASUALTIES” IN RECENT TIMES…

      THIS ISSUE (HDD SECURITY) HAS TO BE ONE OF THE MOST
      DIRE CONSEQUNCES OF THE ABOVE MENTIONED “ATTITUDE”, WHICH NEEDS TO BE ADDRESSED SOON, OTHERWISE THESE “INEFFICIENCIES” WILL…COST…SOCIETY…

      INCALCULABLY!!!


      • SORRY RUDI…

        I FORGOT TO ADD YOU INTO THE ABOVE POST…

        RECTIFIED.



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