Software: An asset or a liability?

Software: An asset or a Liability

All over the corporate world there is a mad rush to identify IT project ideas. Once a business process that can be automated is identified it invariably results in an implementation. Little thought seems to be set aside for ROI or the calculations are invariably flawed. Asking the project manager of the IT project to make these  calculations is like asking the cat to guard the milk! 

For an enterprise, the decision to develop a software solution is like going down a road with no return , a cul-de-sac. Let me explain... 

• There are large upfront acquisition/customization or development costs to any IT project. 
• Slippages and scope creep as well as unforeseen expenses and inflation add to this cost.
• Hardware/Hosting and other costs are upfront as well as ongoing, sometimes inflating
• People costs (ongoing and forever inflating)

While these costs may even be accounted for by a trained manager, there is little thought given to the ongoing maintenance overheads. 

Contrary to popular belief, Maintenance is NOT an option for software, it is an absolute necessity. The consequences of no maintenance include:

• Security Risks: in case underlying OS/DB and other components are not patched regularly with security updates. (Data theft and other irreversible consequences)
• Incompatibility issues in case some Software is not updated.
• Operational Failure
• Bugs
• Operational inefficiency

This also means that the enterprise must buy expensive maintenance contracts from the vendors of the OS/Database and other component makers. Feels like RANSOM? it is!!

So now...What can you do ?

• Ask tough questions about WHY the solution is a necessity to your enterprise.
• Who really benefits by its existence? 
• What is the quantum($) of the benefit?
• What is the duration of the benefit? (will this business process be obsolete anyway in 3-4 years)
• How often do your business processes change?
• How CONFIGURABLE is the software to process change?
• How portable is the solution in case you switch h/w and OS.
• What components comprise the IT solution? are there open source versions available
• What is the track record of the component makers.
• What is the maintenance history of the software components. (e.g. how many security patches were posted in the last year and what is the consequence of not patching)
• User interface: is it cutting edge or will it look outlandish in 2-3 years?

So think about these things before you jump in to your next IT project! Good luck!

-Milind Thombre

(Comments welcome)