Nobody like to see their portfolios being devalued as fast as it has been in these last few months. While I do not work for a financial company, I do work for a company which does consider financial sector as one of the markets that it caters. However that's not the point of my blog entry.
My point is at this time many financial companies are trying to figure out the true value of many securities and assets that it owns. Also at the same time they are trying to offload assets to generate cash to be viable. Well most companies are selling off assets to gain cash in returns. IT Departments will also impacted or "told" to re-evaluate their Asset Value to figure their worth.
So what are the assets that you put value in the IT Department in times like this? I put the value as the best price that I can sell it to a buyer in current condition. (After all there are bargain hunters in this economy who are putting in billions of dollars in deals right now)
Anyway things assets that IT Departments typically have are as follows
- Skills (in terms of People)
- Shelves (in terms of hardware racks with server, switches,etc)
- Software CD & Licenses
Fortunately Skills and Shelves (Hardware) have a re-sale value and depending on how much you have you can still a generate cash from it. However I am not sure on how the IT put value on the Software CDs & Licenses that it owns. Does it have a resale value? After all you did pay millions for these licenses in the first place? It better have some resale value.
I hope the financial institutions are already re-evaluating their strategies on investing something that has a resale value instead of Proprietary Expensive Software which cannot be resold in times like this to stay in business.