1st May 2007 13:00
Micro Focus(R) (LSE.MCRO.L), a leading provider of enterpriseapplication management and modernization solutions, today calls onglobal organisations to acknowledge the true value of hidden IT assetswhen calculating the total value of the business. Results of researchby Micro Focus and KPMG highlight how leading companies do notdisclose the true value and potential of their current softwareapplication assets. Also today, Micro Focus announces that it hascommissioned INSEAD, a leading international business school, to studythe value of legacy IT assets and investigate approaches tocalculating their value. Both announcements were made at Micro FocusWorld, in Orlando, Florida, the first global forum dedicated to thearea of Enterprise Application Modernization. £ Micro Focus asked KPMG to research the disclosures made in theaccounts of a number of leading companies. Out of 70 corporationsacross six industry sectors, only six explicitly attribute any valueto technology assets in their annual accounts. £ "If businesses could find a way to show the fair value of their ITInfrastructure assets investors would be better informed," said PhilipAdler, Director, KPMG. "Businesses may well make different investmentdecisions when renewing their systems. Enterprises' foundations arebuilt on the assets they possess and IT assets are inherent throughoutany business." £ Micro Focus will be working with Soumitra Dutta, Professor ofInformation Systems at INSEAD, to develop the study into the valuationof critical IT application assets. The study will explore further theextent to which companies attempt to value IT assets, and also willinvestigate best practices in this area. Organisations will benefitfrom a study that provides actionable routes to calculate and show thevalue of these assets. £ "This is a fascinating area that merits further research," saidProfessor Dutta. "Companies in today's competitive business landscapeare striving to demonstrate value to shareholders and customers.INSEAD very much looks forward to working with Micro Focus to explorehow corporations today show the value of their technology assets, andassessing the opportunities for a more robust valuation of theseassets in the future." £ "This is a wake up call for companies across the globe," saidStephen Kelly, Chief Executive Officer, Micro Focus. "Companies ofteninvest hundreds of millions of dollars each year on applicationsoftware and yet the data shows that very few disclose any measurementsystems to establish value or otherwise. If the asset was cash, youcan bet the corporate CFO would receive weekly even daily updates. Ourresearch with KPMG clearly shows that valuable IT assets do notregister in corporate financial accounts. This implies largecorporates are flying blind. Working with INSEAD we will develop waysto help companies value these vital assets which lie at the heart ofevery business and drive operational performance." £ About Micro Focus £ Micro Focus provides innovative software that allows companies todramatically improve the business value of their enterpriseapplications. Micro Focus Enterprise Application Modernization andManagement software enables customers' business applications torespond rapidly to market changes and embrace modern architectureswith reduced cost and risk. For additional information please visitwww.microfocus.com. £ Micro Focus is a registered trademark of Micro Focus. All otherproducts and companies mentioned in this announcement are thetrademarks of their respective owners. Copyright Business Wire 2007Related Shares:
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