My machine room is worth WHAT?!?!

2007 Update:  Please see these 2007 updates to Oracle hardware architectures and the costs and benefits of server deconsolidation.

The rapid pace of improving hardware technology has an important influence on the landscape of the IT manager.  Hardware depreciates at an astonishing rate, and the CIO must understand how to maximize their hardware investment in the volatile world of Oracle database technology.

This article will examine the realities of hardware advances and show how the Oracle systems manager can make an intelligent decision about when to move to faster hardware platforms.

Your worthless machine room

Oracle system managers are often surprised to learn that their multi-million dollar investment five years ago is almost worthless. While the IRS tax rules allow for rapid depreciation of computer hardware, the real depreciation is often greater than the depreciable rate, and the manager must face the reality that their 2 acre machine room is practically worthless. Just look at the radical changes in the past few decades:

Many IT managers find that the cost of removing ancient 5 year old hardware from their data center outweighs the residual value.  See my notes on evaluating an Oracle hardware environment.

Read more about hardware upgrades here:


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