[Info-vax] HPE Trims Back To The Core Enterprise Essentials

[Kerry Main]

> -----Original Message-----
> From: Info-vax [mailto:info-vax-bounces at rbnsn.com] On Behalf
> Of IanD via Info-vax
> Sent: 15-Sep-16 2:29 PM
> To: info-vax at rbnsn.com
> Cc: IanD <iloveopenvms at gmail.com>
> Subject: Re: [Info-vax] HPE Trims Back To The Core Enterprise
> Essentials
> 

[snip...]

> 
> That's the main difference I noticed with HP. They insisted on
the
> customer paying for every tiny item imaginable which in the end
> only drove up costs for our customer and they started doing
> more work for themselves - talk about embracing a negative
> feedback mechanism lol
>

The outsourcing model (same thing as public cloud btw) is based
on low balling the original estimates with heavily standardized
processes and flows. Then make your money over the long term (5-7
years) selling change requests or responding / supporting
non-standard technologies. It's usually calculated that Y1-Y3 are
small margin years (or money losing), but then the outsourcer
makes up the expected profits in Y3-Y7 with all of the new
projects, green fielding and ESPECIALLY change requests. 

Keep in mind that the change request processes, while necessary,
if not done in a lean, mean way, can smother a customer so much
that they just want to scream. Don't have a form completely
filled out properly?  Or not all of the 12 impacted stakeholders
have approved (even if risk minimal)? Too bad, the CR is declined
and you have to resubmit at next week's CAB (once a week
meeting). There goes a week delay in your project.

No outsourcing company would win any bid if they initially
proposed what it actually will cost to put in place a stable,
well managed environment.

When Customers state at the beginning how much they plan to save
over the 5-7 years, they never take into account how much they
will pay with new projects and/or change requests.

Been this way for decades and yet C level folks still seem to not
understand this. I suspect part of this is that the move will
allow them to make their bonuses, and they likely plan not to be
there in 7 years anyway (avg CIO life is 3-4 years).

One company that finally woke up is GM:
http://blogs.wsj.com/cio/2015/06/12/dun-bradstreet-appoints-gm-ci
o-randy-mott-to-its-board/
" Since joining GM in February 2012, Mr. Mott has reduced the
automaker's reliance on third-party vendors by bringing most of
its IT work in house. "Because we brought the [information
technology] work back in-house, we can take the lid off of what
is possible," Mr. Mott told the Journal.

He also built a private cloud, modeled after technologies and
processes pioneered by Google Inc. and Facbook, to run hundreds
of thousands computer simulations on cars and trucks before they
are built. Last month, GM announced that it would spend $1
billion to on a makeover of its engineering hub in suburban
Detroit. "To transform the company, you really need IT, which
touches all parts of the business," he said."

Regards,

Kerry Main
Kerry dot main at starkgaming dot com