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Licensing agreements like this always make me wonder how companies are supposed to handle the accounting for depreciation on hardware. Since the license isn't t

Licensing agreements like this always make me wonder how companies are supposed to handle the accounting for depreciation on hardware. Since the license isn't transferable, the effective resale value of the expensive hardware you just bought is zero as soon as you open the box.

ocdtrekkie 6y ago
I think Cisco's in-house refurbishment center might be an option, it's the only way you can legitimately buy used Cisco hardware. (I also feel like we should give a shoutout to HP/Aruba in this thread. No support contract needed, they straight-up warranty and support most of their network hardware for like 100 years.)
- pnutjam 6y ago
  I believe the have "advanced replacement" where they will cross ship warrantied items instead of waiting until they receive the bad one to send the good one. However, I think that ends at the EOL of the item. Usually when they stop manufacturing it.
- kazen44 6y ago
  Mind you aruba is not in the same playing field as cisco. These conveluted license schemes are mainly designed for the higher end datacenter and connectivity hardware. (And with that hardware comes support). It's the same reason optics are whitelisted (how bullshittish that might be). If you are a datacenter or L1 IXP, spending a couple of grand on licenses is nothing compared to the cost of running the rest of the infrastructure. Not to mention you need the support when shit really hit's the fan. My experience with aruba's support has been lackluster, while both cisco and juniper offer excellent support in my experience. (at a cost ofcourse).
PeterisP 6y ago
Accounting depreciation for assets is not directly related to resale value. Depreciation is intended to be an allocation of the purchase price across the whole expected usefulness term of that asset, it reflects the notion that in this year you "used up" some portion of an asset that will last for more years, so it makes sense to allocate just a part of the total cost to this year's cost of doing business. The intended purpose of that asset is to serve your business, not to resell it, so the fact that nobody would would buy that asset does not matter.

ocdtrekkie 6y ago

I think Cisco's in-house refurbishment center might be an option, it's the only way you can legitimately buy used Cisco hardware. (I also feel like we should give a shoutout to HP/Aruba in this thread. No support contract needed, they straight-up warranty and support most of their network hardware for like 100 years.)

pnutjam 6y ago
I believe the have "advanced replacement" where they will cross ship warrantied items instead of waiting until they receive the bad one to send the good one. However, I think that ends at the EOL of the item. Usually when they stop manufacturing it.
kazen44 6y ago
Mind you aruba is not in the same playing field as cisco. These conveluted license schemes are mainly designed for the higher end datacenter and connectivity hardware. (And with that hardware comes support). It's the same reason optics are whitelisted (how bullshittish that might be). If you are a datacenter or L1 IXP, spending a couple of grand on licenses is nothing compared to the cost of running the rest of the infrastructure. Not to mention you need the support when shit really hit's the fan. My experience with aruba's support has been lackluster, while both cisco and juniper offer excellent support in my experience. (at a cost ofcourse).

PeterisP 6y ago

Accounting depreciation for assets is not directly related to resale value. Depreciation is intended to be an allocation of the purchase price across the whole expected usefulness term of that asset, it reflects the notion that in this year you "used up" some portion of an asset that will last for more years, so it makes sense to allocate just a part of the total cost to this year's cost of doing business. The intended purpose of that asset is to serve your business, not to resell it, so the fact that nobody would would buy that asset does not matter.