Ed Gould writes:
>Reasonable advice. One thing I would like to toss in before you
>consider multi year contracts. *KNOW* your past usage and have a
>reasonable idea of anything coming down the pipe line (new
>applications) *BEFORE* getting into a multi year contract (with
>anyone). I have seen at least twice in my life time a company that
>did the multi year contract and really getting burned money wise
>because they were stuck in a contract. They did not want to hear
>about items that either the SEC was mandating or new applications
>coming down the pipeline that were really cpu intensive applications.
>The management was not talking to the other side of the house. I
>would suggest that you be careful about entering into long term
>contracts (we saw the cost of CPU's) tumbling as well as DASD cost
>tumbling. Sometime it makes sense to enter into long terms contracts,
>more often maybe not, IMO.

I agree with this general principle, although my specific frustration was
related to a specific situation.  That is, you're buying (or upgrading to,
or leasing) a new machine, ergo you can confidently predict you're going to
run it at *some* baseline level for years.  (Otherwise, why are you getting
the machine?)  Just tell IBM *Software* that, and seriously investigate an
ELA (or other agreement which incorporates ELA-type terms) so you can quite
probably get some cool new OTC for your System z.

An ELA certainly doesn't have to coincide with a hardware purchase to make
sense, but the situation I describe is *generally* a particularly easy
case.  (ISV machines like Mikos's are special cases, of course.)

- - - - -
Timothy Sipples
IBM Consulting Enterprise Software Architect
Specializing in Software Architectures Related to System z
Based in Tokyo, Serving IBM Japan and IBM Asia-Pacific
E-Mail: [EMAIL PROTECTED]
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