KruseCom Erases Hard Drives for Warranty Replacement
Wall Street brokerage firms employ massive data arrays. During one consulting session, KruseCom discovered that one brokerage was spending $40,000 per month on replacement hard drives for EMC data arrays.

On an annual basis, about 10% of hard drives “fail”. Actually, most of these drives don’t really fail. They simply alert the system that they are starting to fail or may fail. When a drive sends a fail alert, the standard practice is to pull that drive and hot-swap a new drive in its place.

Still within the warranty period, these drives could be returned to the Original Equipment Manufacturer (OEM) for free warranty replacement. However, this brokerage firm placed set a higher priority on data security than on replacement costs. Unwilling to risk sending drives with data back to the OEM, the brokerage had established a policy of destroying any pulled drives.

KruseCom’s parent company proposed a test of secure certified data overwrite with certification and indemnification. In our proof-of-concept trial project, we demonstrated that we were able to successfully overwrite 75% of these “failed” drives. Instead of destroying the drives, the brokerage was able to return them to the OEM for free replacement, saving $500 per drive.

Going forward, the brokerage established a secure storage closet in which to stockpile loose failed drives. On a regular scheduled KruseCom field engineers would travel to the brokerage to provide secure onsite data destruction, and then manage warranty returns for the benefit of the brokerage firm.

Moral of the story: Don’t Unnecessarily Destroy Capital Assets

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