>Date:    Wed, 20 Feb 2008 13:53:14 -0500
>From:    "Thompson, Steve" <[EMAIL PROTECTED]>
>Subject: Re: Price of CPU seconds

I have argued for many years that charge-back should *not* include CPU 
seconds or any other resource measure.  Charge back by service.  $.50 per 
transaction.  $.20 per policy.  $500 per bed per month.     

The service provider still needs all the SMF/RMF data and skilled people 
to interpret the data, but that is only to determine the costs -- not the 
prices.  I can't imagine a retailer in any other business pushing their 
separate wholesale costs into their customers faces the way our industry 
does.   It was several decades ago when a hospital administrator asked me 
what an EXCP was.  He had an invoice in his hand where one of the line 
items was for several million EXCPs.  I had an *a-ha* moment when he said 
that "All my other suppliers charge me for how many beds there are in my 
hospital".         

Charging by service is always repeatable, and it allows the provider to 
take advantage of new technologies to reduce cost without clearing it or 
explaining it to the users.  Budgeting for the users is much easier.  You 
can supply loss-leader applications like Websphere to one or two users 
without having to charge them for several Giga-bytes of main storage.  And 
and and. 

Tom Russell 

"Stay calm.  Be brave.  Wait for the signs." -- Jasper FriendlyBear
"... and remember to leave good news alone." -- Gracie HeavyHand

----------------------------------------------------------------------
For IBM-MAIN subscribe / signoff / archive access instructions,
send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO
Search the archives at http://bama.ua.edu/archives/ibm-main.html

Reply via email to