September 17, 2009

SURVIVING BETWEEN INCOMPATIBILITIES ROI ON AMC INVESTMENTS ON SOFTWARE

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Most common challenge for a large enterprise is how to get best out of their Investment on Annual support (AMC) on their Software applications, Database, Operating system and hardware. Being a large organization, objective is to be update on their Annual Maintenance Plans to entitle latest versions, patches and comply. However being locked with lot of incompatibles among the versions products and their ability to support and port on latest version of associated systems the biggest looser is the enterprise in terms on investment or ability to exploit the benefit of new versions.

Vendors are generally slow in responding to port their systems in latest versions and lot of critical issues involved in regular updates, enterprise is always on the receiving end in spite of investment. To list a few Desk Top Operating systems, Server operating systems, Database, ERP applications, Mailing, Back up, Security, Enterprise Portals and extended enterprise applications.  In most situations Least the common denominator is the oldest version which is compatible to the associated applications.

It is time to rethink on these investments which are major component of IT Budget, it requires a rational approach between the vendors and the Enterprise to see that how the investment is justified and manage the echo system. Here are the few ideas to explore.

Third party Auditor play active role in compatibility related audit prepare a ROI calculator on AMC investments.

Vendors can give an option to skip the AMC or Discount the AMC if the Enterprise is not going to deploy the latest version yet to be complying and update with the AMC plan.

All vendors can identify their echo system applications and publish a compatibility compliance listing the dependencies for the benefit of their customers.

Any other innovative methods of pay per use or pay for deployment help to keep the enterprise AMC investments low and get ROI on investment.

As large enterprises are the major revenue contributors for these Solutions vendors it is time to rethink and help them to get best of both worlds.

Filed under: Enterprise, Software, Technology


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