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The New Normal: Protected Asset or Disposable Inventory?

The accounting department classifies software development work as a capital expense. That means, at least according to accounting, new software represents new capital investment that should increase productivity. This highlights a big divergence in the way accounting views software versus the way we should look at it.

We used to have a saying, “KLOCs kill.” The more lines of code, the more risk you have. As your system gets bigger it gets more complicated and difficult to work with. Code has a carry cost... you have to keep maintaining it. It has obsolescence risk. Undeployed code is exactly like unfinished automobiles: nobody pays you for it. Maintaining it is a liability not an asset. Excess code is a boat anchor that will weigh you down until you drown.

The New Normal: Minimize Risk by Maximizing Change

I once worked for a startup called "Totality." Our business was outsourced web operations for companies that either didn’t want to invest or lacked the skills to build and staff their own24x7 operations center. We handled all the production management, change management, incident management—essentially the entire ITIL (IT Infrastructure Library) suite of processes.

During my time at Totality, we observed that nearly 50% of all our software outages happened within 24 hours of a software release. Since we were on the hook for uptime, but not new features, our response was obvious: Stop touching things!