Rethinking IT Asset Lifecycle for Global Businesses

View profile for Dipesh Malaviya

Regional IT Service Desk Manager | SAP S/4HANA Project Leader | Manufacturing Digitalization Strategist | Transforming IT into a Business Growth Partner

The IT Asset Lifecycle: Time for a Rethink In today’s global business environment, organizations face a recurring challenge: how to classify and manage IT assets across different geographies. In many regions, financial standards still define IT asset lifecycles as 5 or 7 years. While this approach works for traditional assets like infrastructure, machinery, or real estate, it does not reflect the rapid pace of technology. The reality is that most IT systems have an effective lifecycle of just 3–4 years. Beyond this point: • Hardware performance begins to decline. • Security vulnerabilities increase significantly. • Business agility and competitiveness are compromised. This creates a gap between financial asset models and the true technology lifecycle that organizations need to follow in practice. For global enterprises, the issue is magnified. The same IT asset may be considered financially “active” in one jurisdiction, yet operationally outdated and risky in another. The result is inconsistency, inefficiency, and in some cases, heightened exposure to threats. Why this matters • Security: Older systems are more vulnerable to attack. • Compliance: Misaligned lifecycles complicate cross-border operations. • Innovation: Relying on legacy infrastructure slows down transformation. Moving forward It may be time for organizations—and the wider business community—to revisit how IT assets are classified and valued. Aligning financial perspectives with the real-world technology lifecycle would: ✅ Strengthen cybersecurity. ✅ Protect organizations from unnecessary risk. ✅ Support innovation at the right pace. ✅ Create consistency across borders. Technology evolves every 3–4 years. Our frameworks for managing it must evolve too. This isn’t about discarding tradition—it’s about ensuring our business and financial models match today’s digital reality. D. Malaviya

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