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- RE: Why there's a software support and maintenance revolution underway
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"Labor going offshore. Check. No commodity costs. Check. Weak dollar helping results. Check"
Support labor is coming back onshore, because of problems with offshore (time, accents, experience, difficulty in keeping employees etc). This doesn't necessarily raise costs that much, but it doesn't help.
"no commodity costs" ? how do you think support is delivered ? It's delivered by people working in offices, heated and powered by commodities.
"weak dollar helping results" not if you're SAP.. each dollar you get is worth only 60c on the euro. This doesn't help a bit.
Here are a couple of reasons why support is getting more expensive:
1. complexity. In the old days, database support meant knowing how the database worked. Now it means knowing how it interacts with several different messaging systems, how its service-enabling interface works with SOAP and RESTful web services, etc etc.
2. increasing volume of support incidents. Each new copy of the software costs nothing. Each new support incident costs time and money. It's not only the vendors that are consolidating/being acquired, it's also the customers. Consolidation always produces layoffs in the name of efficiency. After this, product expertise is lost, and the survivors make heavy use of support for education and training.
3. Because the vendors can.. either you pay, or you bet your business on hoping nothing goes wrong. What's the alternative ? I really don't see customers being able to effectively fight the increasing costs. You'd need something like a union for that
- Posted by: dotkayk@... Posted on: 08/19/08 You are currently: a Guest | Members login | Terms of Use
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