I should elaborate on something in my previous comments. A software vendor 
contacted me offline and made an excellent point which perhaps I didn't 
state clearly enough.

The scenario I am describing is vendor-agnostic and hyper-generalized. 
That is, I'm *not* trying to describe the exact practices of any 
particular vendor(s) in any particular country(ies). I'm not even trying 
to describe what IBM does specifically. (I'm quite sure I didn't describe 
IBM's practices. Remember, I don't speak for IBM.) Vendor practices (IBM's 
included) can and do differ in material ways from the hypothetical and 
generalized scenario that I described.

What I was trying to do is give some flavor of the additional questions 
and considerations that might arise. The exact financial implications and 
contract terms are *highly* situational. That's why it's really important 
to develop a few different business cases and iterate through a few times, 
to refine the business case model. The better models even include what's 
called "sensitivity analysis." For example, the sensitivity analysis might 
help determine that a doubling of the price of electricity would not 
fundamentally change the business decision in favor of Case #1B, but a new 
government requirement for encryption would, favoring Case #2C. These are 
the "what if?" models that are so useful to make a reasonable business 
decision.

Good models should also encompass all IT. This isn't just about a 
mainframe.

OK, I hope that elaboration helps.

- - - - -
Timothy Sipples
Consulting Enterprise Software Architect
IBM Japan, Ltd.
[email protected]

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