16 Aug 2010
The recession may be receding, but most minds are still focused on the tight economic times ahead. As a result, many organisations are either considering downsizing or already have, leading to changes in the demands placed on IT departments. Downsizing can make IT resources, from desktop PCs to infrastructure resources, surplus to requirements. Evidently, these resources will have to go somewhere: left alone, they will continue to cost the organisation money in management time, space and power.
Planning what to do with surplus resources is vital. Trimming away extraneous assets will make the department leaner and more agile and provide maximum return from any downsizing.
The first part of any plan should be a comprehensive audit and asset register of every device and licence on the company’s infrastructure, as well as its uses and who “owns” it. With this knowledge, the IT department can determine the value of every piece of equipment. It may turn out that resources standing idle are more suited to the organisation’s needs than those that are in use. For example, a server might be being used by a department unaffected by downsizing. However, it delivers inferior performance compared with newer equipment used by a downsized department.
Once this analysis is complete, the IT department should ensure that only the most cost-effective and reliable technology is used, redistributing resources and hardware.
Truly surplus assets can be retired and decommissioned. Before doing this, checks should be in place to ensure that powering down seemingly idle equipment does not remove a lynchpin of the network. Removed equipment can be traded in or resold directly, helping recoup its cost.
There will inevitably be some equipment that has no value to the business or in resale. While parts could be sold on or kept for maintenance, the rest must be disposed of at an authorised centre in line with all relevant regulations, including the Waste Electrical and Electronic Equipment Directive.
Planning how to handle IT resources is vital. By taking stock of all assets, IT departments will have the knowledge to ensure surplus assets are being used in the most effective way, whether that is being given a new role or disposed of in the most profitable manner.
Mark Nutt is general manager at Morse
Indeed, as a significant number of companies undergo periods of change and downsize, "by taking stock of all assets, IT departments will have the knowledge to ensure surplus assets are being used in the most effective way". And building a robust, centralised asset register is vital in this process.
While many UK organisations appear highly confident of the value of their corporate assets, claiming 95% accuracy of the asset register, in reality at least 20% of assets no longer exist and another 40% are so poorly described that they can?t be matched to any physical asset. And this problem is only exacerbated during periods of significant change, such as the need to reassess IT resources and consider asset disposal during downsizing.
An accurate asset register not only tracks the whereabouts of valuable assets, but can aid decisions by senior management regarding the most cost-effective deployment of resources. Having a real-time value of an asset can inform maintenance programmes by helping provide information about that asset?s usable life to the business, and therefore support upgrade and disposal plans, determining where financial investment is best placed.
And when it comes to disposing of IT assets, an up to date asset register linked to a document management system can provide a clear audit trail of asset sales and disposals, helping comply with WEEE Directive requirements also.
If businesses are to truly turn downsizing to their advantage, investment in an accurate and robust asset register based on an easily accessible software platform is a must.
Karen Conneely
Real Asset Management
Posted by: Karen Conneely 27 Aug 2010
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