Comments on: Horribly expensive hardware http://www.katescomment.com/horribly-expensive-hardware/ Thoughts on British ICT, energy & environment, "Cloud", and security from Memset's MD Sat, 28 Jan 2012 11:21:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: uberseehandelhttp://www.katescomment.com/horribly-expensive-hardware/comment-page-1/#comment-5 uberseehandel Thu, 03 Aug 2006 08:52:02 +0000 http://www.katescomment.com/wordpress/?p=9#comment-5 You have put your finger on a very valid point. Manufacturers often go over the heads of their customers, to their customers' customers. Selling their brand the same way BMW or Ralph Loren project themselves. In some cases this works, especially if the service provider is not quite on top of the job and the customer 'fits' a standard package. The customer also gets bragging rights in the bar after 18 holes on Saturday morning. If I have a crap service provider and have to get something to work then the big ticket and reputation suppliers probably have a solution which can be cobbled together. As you say it won't be cheap and it won't be as good as it could be. But the job will be done, the system will function and scarce management resources can turn their attention elsewhere. And I think the suppliers know this. If SuperSizeMe Consulting picks up a major new client that needs a mega system, they have zero interest in delivering a cost effective solution. From day one they are planning for cost over-runs. They want to employ 40 programmers when 3 would do a better job, they make margin on all the hardware supplied, either directly or indirectly. These consultancies measure their success by their fee income, not by the efficacy of the systems they provide. They even employ a project management methodology (typically P****) that ensures that problems are resolved in a manner that increases costs whilst justifying the over-run. And the customer is so confused by this that they demand such project management methodologies be employed! These large consultancies train so many of the ICT practitioners who go on to run their own organisations, SuperSizeMe becomes a way of life. As you point out, it doesn't have to be that way. Small teams of knowledgeable professionals can deliver for orders of magnitude less than the industry standard solution providers. The big problem the customer has is telling the real thing from the flakes. And therein lies the rub. It isn't all bad however, I was reviewing exit strategies for the project I'm beginning on right now, and I realised that the over priced suppliers suddenly lose their sinister qualities and become knights in shining armour as they become suitors for the new company. All those excessive profits get put to good use, buying our lean efficient technology. And a little bird told me that even knights in shining black armour are still 'flavour du jour'! You have put your finger on a very valid point.

Manufacturers often go over the heads of their customers, to their customers’ customers. Selling their brand the same way BMW or Ralph Loren project themselves.

In some cases this works, especially if the service provider is not quite on top of the job and the customer ‘fits’ a standard package. The customer also gets bragging rights in the bar after 18 holes on Saturday morning.

If I have a crap service provider and have to get something to work then the big ticket and reputation suppliers probably have a solution which can be cobbled together. As you say it won’t be cheap and it won’t be as good as it could be. But the job will be done, the system will function and scarce management resources can turn their attention elsewhere. And I think the suppliers know this.

If SuperSizeMe Consulting picks up a major new client that needs a mega system, they have zero interest in delivering a cost effective solution. From day one they are planning for cost over-runs. They want to employ 40 programmers when 3 would do a better job, they make margin on all the hardware supplied, either directly or indirectly. These consultancies measure their success by their fee income, not by the efficacy of the systems they provide. They even employ a project management methodology (typically P****) that ensures that problems are resolved in a manner that increases costs whilst justifying the over-run. And the customer is so confused by this that they demand such project management methodologies be employed!

These large consultancies train so many of the ICT practitioners who go on to run their own organisations, SuperSizeMe becomes a way of life.

As you point out, it doesn’t have to be that way. Small teams of knowledgeable professionals can deliver for orders of magnitude less than the industry standard solution providers. The big problem the customer has is telling the real thing from the flakes. And therein lies the rub.

It isn’t all bad however, I was reviewing exit strategies for the project I’m beginning on right now, and I realised that the over priced suppliers suddenly lose their sinister qualities and become knights in shining armour as they become suitors for the new company. All those excessive profits get put to good use, buying our lean efficient technology. And a little bird told me that even knights in shining black armour are still ‘flavour du jour’!

]]>