Question : Depreciation - Residual Value of Server Hardware & Software

Hello Experts,

I have some server hardware that I am considering selling, and I am trying to assess its residual value.  Is there a generally accepted rate of depreciation that can be applied to assess computer hardware and software’s residual value?  This is not for tax purposes, but for re-sale.  Any insight that you could provide would be appreciated.

Without getting into specific details, here is a basic description of what I am trying to value (it was purchased new a year and a half ago):

Dell PowerEdge 2950 (Xeon Processor E5430 / 16GB RAM / PERC6I SAS RAID, 2X4 INT 256,X6 / etc.)
PowerVault 114T LTO4 tape drive with Tapes
Windows Server 2008 Enterprise licenses
Exchange 2007 licenses

Thank you for your input.

SmoothFellaToo

Answer : Depreciation - Residual Value of Server Hardware & Software

Everything holds value differently.  I would suggest trying to look up similar spec systems on ebay and what they sold for.  Then decide is it more important to get rid of at your asking price or do you want to get what you can and just get rid of it.

Off the top of my head, I'd say $4,000-$5000 isn't unreasonable for that...  but it can be difficult to get as your potential bidders aren't going to be too many (I don't think, because they'd potentially have to need Server Enterprise, Exchange, and a tape drive.  You might sell it without the licenses... or list it with a price for the hardware only and let the software be a bit of a bonus.  (bidders who understand what they are getting would likely be willing to up the price by $2000 or more as I believe Enterprise sells for $3000).  And you probably can't sell enterprise separately as I suspect it's an OEM version.
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