Secure Quorum: The Hidden Costs of Software

The Hidden Costs of Software

Gerard Ibarra, PhD

Secure Quorum

The Effects of Choosing a SaaS solution without Thinking about the System as a Whole

Preface

Five things that we will cover Systems Thinking System Life Cycle Learning Curve Bathtub Curve Using a Checklist

We need some background information in order to help us

understand some of the hidden costs found in software

Think about a system view

“A system is an assemblage or combination of elements or parts forming a complex or unitary whole such as a river system or transportation system;…”

(Stein, J., ed., Random House Dictionary of the English Language, New York: Random House Inc., 1966, cited Blanchard, B. S. & Fabrycky, W. J. 1990, p.1.)

sub system

system

And you can have even larger and

more complex Systems

larger system

HR Company system

Look at an Emergency Communication System (ECS)

ECS: Is defined herein as any system that is organized for the primary purpose of supporting one way and two way communication of emergency messages between both individuals and groups of Individuals (http://en.wikipedia.org/wiki/ Emergency_communication_system).

System Life Cycle

The life cycle of a system consists of many

phases that are different from system to system. The basis of the total life cycle cost of a system is to recognize the various phases in the system life cycle and to sum them across all phases to obtain the total cost.

Hazelrigg, G.A. (1996). Systems Engineering: An Approach to Information-Based Design (New Jersey: Prentice Hall), 270.

Selection

Acquisition

Deployment

Support

Upgrades

Retirement

Replacement

Consider the learning curve

“The time required to produce a unit of output is reduced by a constant factor when the number of units produces is doubled.” “This applies only to when the sequence of activities is continuous.”

Babcock, D. L. (1996). Managing Engineering and Technology: An Introduction to Management for Engineers (New Jersey: Prentice Hall), 228 and 230.

Experience

Now is NOT the time to figure out how to use your emergency communication System (ECS)

Experience

Do not forget the bathtub curve

Burn In Useful Life Wear Out

Finance & Accounting will be impressed

True costs of software

“Too often we become fixated on the technical performance to meet the customer’s expectations without worrying about the downstream costs that contribute to the total LCCs of a system.”

((Farr, J.V. (2012). Life Cycle Cost Considerations for Complex Systems. Systems Engineering – Practice and Theory, Prof. Boris Cogan (Ed.), pp. 127-128, ISBN: 978-953-51-0322-6, InTech).

Given is the Purchase Price

Not so clear Product Research Request for Information (RFI) Request for Proposal (RFP) Legal Review: MSA, SOW and SLA Integration

More hidden costs

Training Learning Implementation

Support Maintenance Re-Certification

Litigation Down-time

And there is more… Reliability Changing Requirements Subcontracting Software & Hardware Updates

Getting it right

1. Systems Thinking 2. Life Cycle 3. Learning Curve 4. Bathtub Curve

5. Checklist

Purchase Price

Research

RFI and RFP

MSA, SOW & SLA

Integration

Training

Learning

Implementation

Support

Maintenance

Re-Certification

Litigation

Downtime

Closed/Lost

Business

Reliability

Changing

Requirements

Subcontracting

Software &

Hardware Updates

You can see a video of this presentation at: http://bit.ly/135sKFc.

To learn more about our other webinars on Systems Thinking or How to Choose the Right Software, visit our contact page at www.securequorum.com.

Thank You

Gerard Ibarra, PhD

Secure Quorum

www.securequorum.com

Secure Quorum: The Hidden Costs of Software

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