Orphaned Software Assets

Options to consider when you have a de-valued or orphaned software asset on your hands.

How Does De-valuation of a Software Asset Occur?

It’s not uncommon to see distressed or “orphaned” software assets sitting inside large corporations – assets that have become de-valued and no longer serve the mission or needs of the company. Often, the asset is a software product that was added to the company’s portfolio as strategic acquisition but is underperforming.

Why is the asset not fulfilling its potential?

Most software acquisitions become subjected to a variety of destabilizing forces within the larger enterprise, many of them unforeseeable:

  1. Priorities and strategic plans change.
  2. Goals and definitions of success change, such as revenue recognition.
  3. Human Resources (skill sets) are dispersed across the company, creating a breakdown in focus – these skill sets typically include product management, R&D, QA, and product marketing personnel.
  4. The acquiring company has difficulty assimilating the software  business into its culture and organizational fabric.

For example:

After a period of protracted decline, the decision is often made to exit what is now characterized as an “orphaned” business. The decision? Either end-of-life (EOL) the business or partner with Dillon Kane Group on a lift-out strategy. In other words, do you want a hard landing or soft landing?

Hard or Soft Landing?