Prof. Appleby's Blog

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.

In this YouTube video, Guy Kawasaki presents the 10-20-30 rule that I referred to in my previous post:

The YouTube video below features Guy Kawasaki discussing venture capital.  If you are relatively new to the subject, and are interested in it, I think you’ll enjoy the video and benefit from his insights.

In parts 2 and 3, Mr. Kawasaki offers advice on the use of PowerPoint when presenting to venture capitalists. He offers his 10/20/30 rule:

• Have ten slides
• Plan to speak for 20 minutes
• Use 30 point font

He also suggests the content that the ten slides should contain:

1. title (company name and contact information)
2. problem – what are you trying to solve?
3. solution – how do you solve it?
4. business model – how will you make money
5. “underlying magic” – intellectual property, unique knowledge, etc.
6. marketing and sales – what is your plan?
7. competition – what you can do that they can’t; what they can do that you can’t
8. team – listen to his comments on this
9. projections – what are your metrics and how will you get there?
10. status and time line – where are you today?

For parts 2 and 3, check YouTube for:

Guy Kawasaki on Venture Capital (pt 2)
Guy Kawasaki on Venture Capital (pt 3)