Re: Suftware Subscription strikes again.

Eric,

Perhaps your VP of IS didn't do his homework up front. It is very possible HE 
is partially to
blame for not securing and locking in a fixed agreement with IBM from the 
get-go. I know several
people in key positions that this is what they do, and do very well. They will 
lock in X figure
over X amount per year in increases that is acceptable to both the customer & 
IBM.

 Believe me, I know this is not an issue you can bring up to him directly, as 
he will take it as
an attack on his abilities and responsibilities as part of upper management. 
(This is the "ugly"
administrative side of things!)

I am not at all defending IBM, but you've got to hand it to them, if they can 
get away with
charging you full boat, they will. The key word here is NEGOTIATION.  
Administratively, upper
management has a fiduciary responsibility to do this.

I don't know how much this will help you as far as job security is concerned, 
but perhaps it
will be something to look for in a manager should you find yourself in a 
position to look
elsewhere. I hope this isn't the case, but if it does go that route, it is 
something to
remember...

*All opinions expressed are strictly my own, damn it...*

Regards,

R. J. Serrano
rjs@pgsas400.com




----- Original Message -----
From: <eric.delong@pmsi-services.com>
To: <midrange-l@midrange.com>
Sent: Wednesday, March 08, 2000 5:38 AM
Subject: Suftware Subscription strikes again.


>
>      I just had a rather frightening conversatioon with the VP of IS. It
>      seems IBM wants to charge us $70,000 or so to maintain our licensed
>      programs on our three as400s. He says he'd be interested in finding
>      alternatives to the as400s and is ready to sever all ties with IBM
>      over this issue. Kinda gives me cold chills........
>
>      As I understand it, we purchased one year of SS when we upgraded to
>      the 640 and 170 last year. It seems as though this years charge for
>      maintenance has more than tripled, though it's hard to know for sure
>      as he was raving mad when he told me this. Assuming that this is the
>      case, how does IBM expect anyone to remain loyal, let alone satisfied
>      with the cost effectiveness of the AS400. Am I missing something, or
>      is IBM intentionally trying to drive loyal customers away kicking and
>      screaming.
>
>      I'm very concerned about this as my job here entirely depends on the
>      as400. Is there any relief on the SS pricing? What (if anything) can I
>      tell my boss to keep him from looking into a platform shift? Are the
>      charges he told me about correct, or could he have misunderstood the
>      account rep? YIKES!
>
>      I'm not too familiar with this aspect of the AS400, as I'm technically
>      inclined, not administrative. Any comments or suffestions would be
>      very helpful.
>
>      TIA
>      eric.delong@pmsi-services.com
>
>
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