PracticePeople In PracticeNew York IT rebuild estimate hits $7bn

New York IT rebuild estimate hits $7bn

The staggering cost of rebuilding New York IT infrastructures continues to escalate, with estimates stretching from at least $3.2bn (£2.18m) to a possible $7bn-plus.

Financial services research firm TowerGroup puts a ballpark figure of $3.2bn on the cost of replacing securities firms’ technology destroyed in the World Trade Centre disaster.

Of that sum, $1.7bn will be spent on hardware; the other $1.5bn would cover software and services needed to install and connect the network, operating system and applications infrastructures, TowerGroup said.

Larry Tabb, Towergroup’s vice-president, securities and investments research, said: ‘We believe that 30,000 securities positions, trading, research and operations were destroyed in the World Trade Centre buildings.’

He also estimated another 15,000 to 20,000 positions will need to be replaced in adjacent buildings such as the World Financial Centre and the Bankers Trust building.

A partial inventory includes 16,000 trading desks at approximately $52,000 each, and 34,000 general PC workstations at a replacement cost of $5,000 each.

TowerGroup officials estimate that around 8,000 Intel-based servers and about 5,000 Unix servers were lost at an approximate replacement cost of another $370m.

It is anticipated that another $1.5bn is required to put the systems together.

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