Adam:

 

I fully understand your point about cost vs. value.

 

If I'm going to buy a new pair of shoes for $650, those shoes had better
be some damned good shoes.  They better match all my existing suits, be
extremely comfortable, and last a heck of a long time so that I realize
a full return on my investment.

 

Let me put it to you this way.  In my teenage son's circle, the current
"hot thing" is Polo collared shirts.  No other collared shirt will
do-not Lacoste, not Nautica, not Tommy Hilfiger, not even Chaps.  It has
to be Polo with the little guy playing Polo emblem on it.  When I shop
for my son, I notice these shirts run for $70-$100 apiece.  I then look
at very similar Nautica shirts and notice they run $40-$60 apiece.

 

Here we have a case of comparable quality, design, cut, colors, shapes,
and sizes.  What's the difference? The little emblem.  That's it.  So in
this case does the, "You get what you pay for," argument hold water? No,
of course not.  I personally prefer the quality of Nautica over
Polo...and they're less expensive.  So I ask my son, "Why do you have to
have Polo?" he answers, "Because it's what everyone wears."

 

How does this apply to Remedy? In many environments, folks have existing
Remedy applications that work great, satisfy requirements, AND DO NOT
REQUIRE ADDITIONAL USER LICENSES! The standard ARS licenses are all you
need.  But the sales push for ITSM drives management to believe it's
something they need-just the same way that little Polo emblem drives
teenagers to believe they need Polo shirts.

 

I ask repeatedly, what are we getting for the investment?

 

Norm

 

 

________________________________

From: Action Request System discussion list(ARSList)
[mailto:[EMAIL PROTECTED] On Behalf Of Adam D Pederson
Sent: Thursday, June 28, 2007 2:45 PM
To: [email protected]
Subject: Re: ITSM Licensing Question

 

Hey Norm:

 

I'd agree that it is a somewhat aggressive licensing ratio, and in your
case was used purely for illustrative purposes.  That said, I have
customers who easily get 8:1 with world-wide time zone spanning
implementations.  I don't find it to be unreasonable if you have done a
serious exercise of separating your floating and fixed users and have a
geographically distributed staff.  With centers of support in Europe,
Asia and US you can leverage economies of scale with floating licenses
that you could never hope for with a geographically, and temporally,
co-located staff.

 

I agree with David that ITSM can get to be a very expensive proposition,
and there are alternatives for many organizations both inside and
outside of the BMC product families that are less expensive.  I
personally am a big fan of his ESS Suite.  I think for many companies it
is a great fit, and the licensing model is really great as well.
However, I still believe that for some companies ITSM is the right way
to go.  The SRM module adds enough functionality that I think that
organizations that are interested in it will be able to find a way to
justify the cost and reach a reasonable ROI.  It just might take a
little BPR to make it fit smoothly.

 

In the interviews around his leaving office, Tony Blair mentioned that
he's worn the same pair of shoes to every Prime Ministers' Questions
that he's been to as PM.  His statement about those shoes (which would
cost new about $650) was that 'cheap shoes are a false economy.'  I
think that the same thing can be said of Service Management tools.  We
shouldn't be focusing solely on the cost, but on the value for money.
If a tool last 18 years (as have Tony's shoes) then we've made a good
purchase even if we paid a premium over a cheaper solution that wouldn't
have lasted that long for us.  Just my $.02.

 

Regards,

 

Adam Pederson

Mobile: +1 925 895 9500

Email:  [EMAIL PROTECTED]
<mailto:[EMAIL PROTECTED]> 

 

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