Originally published on the OSDN under the title, IT and the "Hotel California
Over the years, the lyrics of the Eagles song "Hotel California" has spawned more wacky interpretation than any song other than the Beatles’ "Lucy in the Sky with Diamonds." Most theories focus on tame stuff, like satanism. I think the song is about something really horrific: the IT industry.
While I never really liked the Eagles, as an IT industry person I have to admit that I’m very impressed with their ability to prognosticate. When they released "Hotel California" in 1976, open systems, let alone open source, was hardly a force in the world. Yet here we are, 27 years later, and references to beasts that cannot be killed despite repeated stabbings with steely knives are more potent and relevant than ever.
Of course, from an IT perspective, the most important lyric in this song – now lodged in my head (and probably yours, too; sorry) – is this one:
"Relax," said the nightman, "We are programmed to receive. You can check out any time you like, but you can never leave." Felder/Henley/Frey
For a variety of technical and organizational reasons, the reality of technology is that, once used, it is nearly impossible to get rid of. Calling it "open" or even "open sourced" may placate this ugly truth, but it doesn’t make it go away.
In IT, we have been programmed to receive. And only a concerted, professional effort will allow us to successfully wield steely knives against the stuff we no longer want anything to do with.
Enter the VP of GRS
The effort begins at the institutional level. Extricating any technology is hard, but achievable – with the right level resource commitment. Doing so while various high-profile suppliers and internal stakeholders are acting to undermine the effort is nearly impossible.
The job of "Getting Rid of Stuff" – the moniker for those without a scatological bent – is not easily handled by a low-level person. Too many minefields have to be navigated. It requires a senior champion: a VP of GRS, most likely working directly out of the office of the CIO.
A VP of GRS has a relatively simple job description: work closely with IT, procurement, and controller personnel to reduce the costs to the firm of specialized information technology resources and technology-related contracts.
Specialized resources, in the form of marginally valuable product prerequisites, dated but automatically renewed software maintenance contracts, escalating support costs on older equipment, unique skills no longer in house, etc., can easily costs firms tens of millions of dollars a year, while providing limited economic benefit. Recovering these costs is the primary mission for the VP of GRS.
To generalize, a VP of GRS and team performs five activities:
- identifies problem technologies, based on parameters like cost, actual or potential supplier lock-in, scale and scope of use, and the likelihood that a relationship with a supplier will degrade;
- works with operations and technical architecture to establish executable migration plans for problem technologies, including evaluating compatibility among alternative technologies;
- works with contracts to minimize "other" costs of technology, like stupid product prerequisites or minimum purchasing commitment levels;
- executes plans to get rid of stuff, usually acting in a program management capacity with development, infrastructure, and business personnel; and
- measures and communicates aggregate benefits and savings accruing from the GRS program.
We Haven’t Had That Spirit Here
Sometimes GRS attention is targeted to specific items, like an old application-specific, minicomputer-based CAD plotter hidden in a closet that can cost hundreds or even thousands of dollars a month to maintain. Other times, bigger hulks are targeted, like a database contract that grows like it was hit with gamma rays.
Getting rid of stuff is not necessarily an all or nothing proposition. Sometimes it’s a matter of balancing spending commitments with actual usage. During the last economic expansion, for example, many firms signed bloated enterprise software contracts in anticipation of significant business growth that ultimately wasn’t realized. The VP of GRS might take the lead on recalibrating and renegotiating license holdings and support costs. This is tricky business, given the growth pressures facing many enterprise software suppliers, but it can mean literally millions of dollars in savings.
Selective outsourcing also can be a useful tool for getting rid of stuff – without having to suffer through the pains of stuff actually going away. Sometimes an outsourcer can generate support economies, for instance, that can lead to lower total costs. Of course, outsourcing comes with its own set of steely knives that all too often end up being pointed at the customer.
Cost savings are not the only benefits of a well run GRS program. Infrastructure simplification can be a major source of value, given that simpler usually leads to more adaptable in the IT world. And adaptable in the IT world usually leads to greater business agility.
Not surprisingly, aligning an IT architecture function with the GRS effort can speed returns from both efforts. Too often, architecture is not positioned as an active function, but in an advisory capacity. The result is that IT architects lose credibility and frequently are used primarily help justify the buying of marginal stuff. With a GRS orientation, though, architecture is made more active and can focus more on infrastructure simplification and technology reuse.
A GRS program doesn’t have to be big or force a reorganization to be successful. It does have to be focused and led at senior levels. The costs usually are measured primarily in terms of disruption and politics. However, the benefits often are measured in terms of both millions of dollars in savings and superior levels of business flexibility.