The price tag for rebuilding IT infrastructures on Wall Street is expected to be approximately US$3.2 billion, according to a report released by TowerGroup, a financial services research company.
Spending for the full restoration of the securities trading firms that lost trading floors, offices, and systems in last week's bombing of the World Trade Center is expected to take place over the next 12 to 24 months, TowerGroup officials said.
Part of the $3 billion price tag will be $1.7 billion spent on hardware such as workstations for traders and salespeople, PCs, servers, minicomputers, storage devices, cabling, communication hubs, routers, and switches, Tabb said.
TowerGroup's calculations are based upon the need to replace 16,000 trading desks with flat-screen monitors at $52,000 apiece, and 34,000 workstations at a replacement price of $5,000 per desktop system, TowerGroup officials said.
The specialised desktop trading technology that has to be replaced often includes multiple monitors, extra memory, and state-of-the-art systems that support a variety of market data feeds and complex market activity analysis software as well as proprietary software used for competitive advantage.
Before new bricks can be laid, firms have had to relocate their personnel and set up disaster recovery sites in order to sustain their businesses.