Posts Tagged ‘mitigation’

PMs: Get a handle on your software costs

August 31st, 2010

In my previous post for project managers working on mainframe upgrade projects, I recommended that you have your vendor (IBM, Mainline Information Systems, etc.) provide you with a list of your current mainframe configuration and the proposed mainframe configuration so you can:

  • Review the current and the new configurations for accuracy
  • Question any apparent discrepancies
  • See what features are being “carried forward” to the new mainframe and verify that they should be carried forward and that the required quantities are correct
  • See what features are not being “carried forward” and verify that this is part of the plan, not an omission
  • See what new features have been added (i.e., features on the proposed mainframe that are not part of the current mainframe)

The next step I suggest is to check on (or review again) possible price changes for your software.  IBM or Mainline can provide you with an estimate of your IBM software charges on the new machine.  This is done using a tool called the Workload Pricer (WLP).

The best approach is to have your vendor pull the latest software inventory for your machine and input the data into WLP.  Then, your vendor will model that software against your current machine.  The results should match what you are paying today.  It’s important to get this step right, because you are creating a baseline against which to compare other options.

Once the baseline is right, then the vendor can add a new machine to the model and tell WLP to estimate software costs on that machine.  (You can also model various hardware alternatives that way, too, which probably has already been done during the marketing phase).

Three key things to keep in mind:

  1. You will have some products that carry a monthly license charge (usually called “mlc” products).
  2. You may have some products that have a one time charge (OTC) plus an annual subscription and service charge (S&S).
  3. You may have third party products that will also be affected by an upgrade.

The WLP model will estimate your IBM MLC and OTC/S&S charges for the new mainframe.  It will not estimate third party prices; you will need to contact those vendors directly.

From a PM standpoint, you mainly want to know that you have a complete list of the software products running on the machine and that potential price changes have been explored.

One of the great things about an IBM mainframe upgrade is the “technology dividend” which basically says that a new machine of comparable power will have lower maintenance and software costs than the machine it is replacing.  Combined with a year’s warranty on the new machine, these dollar savings go a long way toward financially justifying the purchase of the most current technology.

Quick recap – at this point:

  • You know all of the hardware features on your current and proposed machines and you’ve reviewed them for accuracy
  • You know all of the software running on your current machine, along with price estimates for how the upgrade may increase or decrease your software costs

The key is risk mitigation – avoid any surprises.

Don Appleby has served since 2004 as an adjunct assistant professor at the University of Alabama at Birmingham where he teaches in the Information Engineering and Management Program. He has over three decades of professional experience in the information technology industry. Prof. Appleby is retired from IBM.Thanks to ProfAppleby.com for this article.

Oil Spill In the Gulf – A Project Manager’s Worst Nightmare or Time to Shine?

May 12th, 2010

Don’t get me wrong, the oil spill in the Gulf is one of the worst disasters our country has seen since hurricane Katrina (Especially since Seagrove Beach on Highway 30-A is one of my favorite places in the world). However, I have to wonder what I would thinking if I was the project manager assigned to digging that well. Hopefully with such a high dollar project, risk mitigation would have been at the forefront of my mind. I must have had the thought of “The well could explode, killing everyone, and creating a monumental contamination problem; thus causing loss of life, costing millions— if not billions— and damaging our companies reputation beyond belief” on my risk register. Or maybe I didn’t, maybe this was one of those unknown-of-unknowns that is the reason we set aside a management reserve. Though, I seriously doubt the customary ten percent is going to cover it this time.

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So hindsight is 20/20 and the point is not whether I could have predicted this situation and put an appropriate mitigation strategy in place. But what if I were the person responsible for working on this team in the Gulf and this disaster happened all of a sudden? I would now have one of the largest scope additions ever. How would I proceed? Well, when you are losing two hundred thousand gallons of oil a day you have to act fast. I would probably want to establish a command center where I could have joint operations with various government agencies, industry partners, and volunteers (staffed around the clock). With such a complicated problem to solve I would immediately need to identify the world’s leading experts and get them on my team, the human resource plan would be very important. Another key aspect of planning for this situation would be an amazing communications plan. The coordination amongst such a large team alone would be mind boggling, but the need to get information to the public about our progress would be essential.

What would you do if you were the project manager in this situation? Would you rise to the occasion and do all that you could to help the situation? Would you give up, change your name, get plastic surgery, and move to another country? Let’s hope that we never find ourselves in this type of situation.

Seriously I wish the best to all of those involved in the cleanup effort. I hope that they can act fast and apply strong project management in order to minimize the impact to our precious environment.