For decades, IT leaders have operated under an unspoken requirement: every few years, rip and replace. Servers, storage, networking – when the next upgrade cycle arrives, they roll out the latest technology. It’s a rhythm as predictable as the seasons, writes Alex McMullan, CTO International at Pure Storage.

But here’s the problem: that model is obsolete. It’s costly, wasteful, and fundamentally at odds with the demands of modern IT. Yet many CIOs still treat hardware as a fixed capital expense, rather than opt for an evolving, service-driven model. As regulatory, financial, and environmental pressures mount, the question isn’t whether IT leaders will need to abandon this legacy mindset – it’s how soon they’ll be forced to do so.

At the same time, a cultural shift is underway. The younger generation is redefining consumption habits – reviving ‘old’ technology like vinyl records, repurposing ‘vintage’ clothing, and generally embracing reuse over waste. We’ve already adopted the rideshare and Airbnb mindset, where ownership takes a backseat to access and utility. Now, that same consumer mindset is influencing business decisions, particularly in IT. 

The comfort of legacy thinking – and the cost of inertia

IT departments have long been conditioned to own infrastructure. There’s a sense of control in seeing physical assets on the balance sheet. But this approach locks organisations into high upfront costs, long depreciation cycles, and unnecessary waste; when more efficient, flexible models are already proving more beneficial.

In reality, most IT teams don't use infrastructure to its full potential. Many refresh cycles are based on arbitrary timelines, rather than actual performance or business needs. Consider this: when organisations switch from a traditional hardware ownership model to a subscription-based infrastructure service, they can cut energy usage, reduce e-waste, and significantly lower costs – all while maintaining access to the latest technology. In applying this method, they use infrastructure to its full potential at all times – without the risk of unexpected stoppages or hitting full capacity – because the system expands as the need arises.  

So why are so many CIOs clinging to the past?

One reason is cultural inertia: the ingrained belief that ownership equals reliability. Another is procurement structure; budgets are still set up to fund large, periodic capital expenses rather than ongoing, scalable services. But this mindset is becoming a liability. IT leaders who continue to operate in this outdated mode will soon find themselves trailing their competitors in efficiency, sustainability, and cost-effectiveness.

This is where the circular economy comes in. It’s a simple concept when applied to consumer goods: taking something that has already sustained a useful life and either breathing new life into it, repurposing it, or refreshing it so it can be used in a modern way. The same principle must apply to IT infrastructure. Customers shouldn’t be able to tell if something has been reused – it should be as good as, or better than, a brand-new product. That expectation needs to be built into the business mindset. CIOs must demand more from vendors so that infrastructure isn’t built around wasteful rip-and-replace cycles that send viable technology to landfill. 

Regulations will make sustainability a business imperative

Governments worldwide are tightening regulations on e-waste, energy use, and sustainability. France’s right-to-repair law mandates product longevity. Australia’s “Circular Economy Framework” aims to double circularity by 2035, and Europe’s revised Product Liability Directive extends manufacturer accountability beyond initial sale. CIOs who ignore these shifts risk rising compliance costs and reputational damage. Those who embrace the circular economy in IT will thrive. 

Stop thinking like an owner – start thinking like a renter

We’ve already seen massive industry shifts toward subscription-based consumption models in consumer and enterprise sectors. People don’t buy DVDs anymore, they stream content. They don’t purchase vinyl or CD collections, they subscribe to a music streaming service. They don’t buy expensive software licenses, they use SaaS.

Yet when it comes to IT infrastructure, many CIOs still default to ownership models.

The logic of IT as-a-service is clear:

  • Always-on access to the latest technology; no waiting for refresh cycles
  • Cost efficiency; pay for what you actually use, rather than overprovisioning
  • Sustainability benefits; reusing and repurposing components instead of generating e-waste

Jevons Paradox: why AI will expose the flaws

Many CIOs assume that as IT becomes more efficient, energy demands will decrease. This is a dangerous miscalculation. Jevons paradox shows that greater efficiency often increases demand. AI is proving this: despite energy-efficient hardware, its soaring workloads are driving power consumption higher.

The data storage problem CIOs keep ignoring

Circular IT isn’t just about reusing hardware, it’s about maximising its useful life. Smarter storage strategies can extend infrastructure longevity and reduce unnecessary refreshes:

  • Intelligent tiering keeps inactive data in sustainable storage environments, reducing strain on primary systems.
  • Automated lifecycle management prevents unnecessary data migrations that degrade hardware. 
  • Infrastructure optimisation prioritises durable, upgradeable storage systems designed for long-term efficiency.

As data volumes surge, consider cold storage, as innovation in this field is becoming critical to sustainable IT. Technologies like Cerabyte are redefining cold storage; delivering long-term sustainability without endless hardware replacements. 

 The hard truth: if you’re still doing hardware refreshes, you’re falling behind

CIOs are being pushed toward a modern sustainability strategy, starting with reporting and then transitioning toward implementing operational changes to support that strategy towards net zero; either they break free from legacy IT consumption models, or they get outpaced by competitors who do. Buying an asset that runs at 25% efficiency means it cost that company 4x what it should have done

The subscription model isn’t the future – it’s already here. The organisations that embrace the circular economy in IT will unlock cost savings, agility, and sustainability benefits. Those who cling to the old refresh cycle model? They’ll be left struggling with spiralling costs and mounting regulatory headaches.

The shift to circular IT isn’t just about technology; it’s a culture and mindset change at the highest levels. Boards and C-suites need a long-term vision to build and enhance, rather than replace and discard, with consumption, efficiency and waste mitigation becoming part of the regular board discussion

Consumers no longer ask, “Who else has used this?” – whether it’s a rented outfit, or refurbished tech. They care about what it delivers in the future. But in IT, transparency is still lacking. You can inspect a coat for wear and tear, but how many IT vendors are open about how their technology is renewed and ready for use again? Businesses need visibility into the lifecycle of their infrastructure - because sustainability can’t be hidden behind a spec sheet. 

So, the question for CIOs is simple: Are you building an IT strategy for the future or just refreshing for today? 

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