Index
A
Accenture 64, 120, 214
accounting 37
activity-based accounting 19
Adabas D 107
ADP 202
Airbus 165
Alinean 60
American Express 121
AMR Corp. 35
AMR Research 58, 73
Andreessen, Marc 79
Antarctica 1, 10
Anteil 106
Apache Software Foundation 106, 108
application assembly 95
application integration 18
Applied Materials 76
Ariba 198
AS/400 20, 164
Aspen Technology 198
asset management
budget reduction, using 63
evaluation of equipment 69, 196
flat spending and 149
getting more from equipment 77?85
inventory 81, 87
spending drivers and 138
underutilization 4
asset utilization 176
asset/labor efficiency 179
ASTI Shanghai 120
ATG 57
AutoCAD 100
Ayala, Orlando 90
B
Baan 56
back-office functions 14
Balliet, Marvin 144
Bangalore, India 123
Barrett, Craig 211
BDNA 81, 87, 214
BEA (Bureau of Economic Analysis) 15?16, 32?33, 39, 70, 106
Bear, Stearns & Co. 57
benchmarks 65, 135, 184
Big Eight 17
blade computers 99
Bloom, Gary 79, 177
Boeing 127
Boo.com 36
Boston Consulting Group 17, 69
Boushy, John 163
BPCS 20, 74
BridgeQuest 120
British Telecom 64
Brooks, Frederick P. 39
budget cuts, potential 151
Bureau of Labor Statistics 129?130
business
benefits 63, 154
process reengineering 17?18, 122
processes 37, 139
semantics 97
technology integration and 160
business models
sellers 187
technology 200
technology companies 188
business value
determining 49
difficulty in deriving 42
establishing for all purchases 65?66, 182
of cost-effective IT management 171
of software 71
open source vs high-priced systems 3
selling strategies 207
Butler Group 56
C
CADAM 100
call centers
growth of 116?117
labor rates 122
capital equipment 69
capital goods spending 2
capital spending
by type 16
increases in 69?70
information technology 15, 24, 33
software 30, 32?33, 39
Carr, Nicholas 51, 86, 159, 183
cash flow from technology investments 191
CFO Magazine 8, 94
CFO Publishing 94
CHAOS Report 57
Chinese Software Industry Association 124
Chizek, Crowe 120
CIOs 8
Cisco 64
Citibank 121
Claydon, Tim 165?166
client-server technology 15, 17
COBOL 15, 24
communications networks 17
Compaq 166
competitive threats 114
Compiere 106
complexity 45?46, 91?93, 110
Computer Associates
broad suite of products 197
on-demand 194
open source software 106
revenues before 1990 24
systems management software 79
computer-aided design 100
Computervision 100
ComputerWorld 35
Conference Board 57
consultants 169
consumer technology 187
spending chart 200
content management 106
contract management 176
Corel 106
costs
controlling 150
cutting 161, 178?179, 187
general and administrative 190
overruns 40?41
reductions at JetBlue 167
software 189
Covey, Roger 21
CRM software
critical viewing of 56
failures 56
CRM software (continued)
Harrah?s and 162, 168
hosted 110
Microsoft?s package 104
online 201
purchases in 2002-2003 94
sales employees dislike of 157
Salesforce.com and 101
Crossing the Chasm 199
CSC 128
Cullinet 197
custom development 94
custom software.
See software, customization
customers
focus on 45
fulfillment/support of 204?205
references 34, 43
resource management for 22
service of 141
D
data mining 94
Datamonitor 56
Davis, Gray 72
Delivanis, Constantin 81
Dell 55, 121, 161, 188
Deloitte & Touche 34
demand management 140
demand optimization 162
departmental mindsets 184
Descartes Systems Group 193, 202
desktop applications 106, 108
Digital Equipment Corp. 16
distributed computing 14
distributed technology 18
Documentum, 106
dumb terminals 17, 90, 138
Dun & Bradstreet 24, 75, 197
E
easy-to-use solutions. See simplicity of solutions
eBay 16, 55
e-commerce 94
Eisenfeld, Beth 73
Ellison, Larry 137
EMC 79, 166
endurance 10
ERP (enterprise resources planning)
crippling of Hershey from 7
critical viewing of 56
deriving value from 42
emergence of 20?23
failures 57
horror stories about 35?37
justification 30, 48
lawsuit against 34
Motorola and 82
open source 106
selection 30
spending 14, 30
Symix company and 159
upgrades 94
excessive spending. See spending,
excessive
extended technology lifecycles. See lifecycles, extended technology
F
failure factors, business and technology groups 173
Federal Reserve Board 47, 51, 54
FedEx 54
financial services industry 161
Food & Drug Administration 140
Forrester Research 124
FoxMeyer Corp. 35?36, 157
freeware. See open source
Frontstep 159
G
GAO 142
Gartner Inc.
2003 survey of companies? software inventories 73
asset management 85
knowledge of IT failures 7
Microsoft capabilities chart prepared by 103
TCO chart prepared by 38
TES failure 56
Y2K 23?24
gas and oil industry 161
Gates, Bill 213
General Electric 121
General Motors 215
Generic CADD 101
Generic Software 101
Gore, W. L. 34
Gores Technology Group 21
government
jobs 204
regulations 140
requirements 139
Great Plains 104
Greene, Diane 80
Greenspan, Alan 47, 50
Gretzky, Wayne 170
Greyhound Lines Inc. 35
gross profit margins, software industry 189
Grove, Andrew 90
H
Hammer, Michael 17
hardware
as spending drivers for IT 138
management 177
rates of price declines 137
sales 146
spending cuts 143?144
Harrah?s
as role model 212
business value of IT 162
comparison with JetBlue 167
interest in IT reduction 3
IT spending 169
lack of focus 173
Path of Profits 160, 162?164
revenue generation of 167
taking advantage of Internet 36
Harvard Business Review 51, 86,
159, 183
Harvard University 52
HCL Technologies 123
Hershey 7, 35, 161
Hewlett-Packard 16, 64, 194
high-technology industries 161
Home Depot 34
human resources 34
I
i2 Technologies 35, 56?57, 76
IBM
CRM services 110
current challenges for 214
growth estimates of 11
iSeries for AS/400 platform 20
levels of services and costs 120
mainframe legacies 16
on-demand 194
open source software 105, 107
services 107
software revenues before 1990 24
system management software 79
IBM Federal Systems 128
IDC 137
iGate 117
Ilog 106
India 2, 4?5, 117, 121
Information Technology Association of America 118
information technology. See IT (information technology)
Information Work Productivity Council 64
InformationWeek 35
Infosys Technologies 120, 123
InfoWorld 34
integration 94?95, 138, 196
Intel 4, 64, 90, 123, 211
internal costs, spending cuts 143
international trade 140
Internet
as spending accelerator 23
company failures 36
integration 94
JetBlue booking over the 166
lessons learned from deployment 93
mechanism to decrease costs 93
protocols 94
return to centralized computing technology 90
web services 94
Interwoven 106
Intuit 101
inventory technology assets 174
investment strategies 14
IT (information technology)
as a commodity 51
budgets 9, 137, 141
buyers? advice 43, 65, 89, 112, 134
complexity 3, 17, 40
costs 117
employees 6
failures 35?36, 57
investments, tactical 183
managed 161
pricing 98, 138
seller cost models 6
seller risk 191
sellers? advice. See IT sellers? advice
specialists 204
successes 42, 55
utilization 80
IT employees
growth and 129?131
job losses 117?118, 124, 130?131, 144, 150
salaries 118
IT sellers
cost and revenue models 207
cost models 136
new sales models 193
offshoring 123
start-up survival guide 209
IT sellers? advice
cheaper solutions 114
downsizing 89
modification of cost models 214
offshoring 136
preparation recommendations 146?147
purchasing 45?46
IT spending
1990s results of 28
averages 58?59, 65
changing corporate behaviors regarding 36
drops in 11
future 216
growing the market 202
JetBlue?s 169
Motorola?s reduction in 83
new attitudes regarding 5
offshore 116
reaction to 141
relationship to productivity 171
responsible 144?145
rules for 149?151
top-out of growth in 132
triangle 27
J
Janeway, Bill 71
JD Edwards 199
JD Power & Associates 215
JetBlue
comparison with Harrah?s 167
doing more with less 3
IT spending 160, 169
Microsoft and 165?166
Path of Profits 165?167, 169
JetStream Group 75, 120?121
job/product redistribution 216
Jobs, Steven 213
K
Kalmar, Mike 76
Keane 120
Kheradpir, Shaygan 144
Knight, Philip 35
KPMG Canada 57
Kumar, Sanjay 186
KW International 128
L
labor
costs 4?5
spending cuts 143
Land?s End 36, 141
laptop computers 165?166
Larson B ice shelf 1
Laven, Mike 128
legacy technology
cost trends for 139
employment opportunities 204
integration of external-facing applications with 97
percent of transactions on 93
spending on 9?10
three types from the 1990s 16?17
LEGO 194
lifecycles
extended technologies 178
management 196
Lindows.com 106
Linux
companies using 84, 108
cost-cutting with 177
desktop solutions 108
hardware usage for 146
Microsoft vs. 109
replacement of Microsoft applications with 105
Sun Microsystems and 109
Lockheed Martin 128
Logicon 72
Loveman, Gary 163, 173
low-cost alternatives 98
M
mainframe computers 14, 16, 91, 102?103
maintenance
28 percent solution 74?75
big projects and 44
downsizing steps involving 87?88
legacy systems future and 139
as lever for future sales 147
Motorola?s reduction in contracts for 83
Malthus, Thomas 213
managed spending. See spending, managed
manufacturing software 39
Mapics 159
market focus 197
Massol, Vincent 119
McKesson Corp. 36
McKinsey & Company 17, 51, 58, 100, 124
Merrill Lynch 108, 144?145
Mesher, Art 193, 203
META Group 42, 56, 60
Microsoft
as software sales loss factor 146
as spending cutback factor 143
combating monopoly of 109, 115
corporate adoption 102
expansion into corporate solutions 5
IWPC and 64
JetBlue 165?166
.NET vs. Java 2 Enterprise Edition 98
open-source software and 106
pre-tax margins 189
revenue pressure from 214
SAP and 104
software revenues before 1990 24
spending drivers 139
suite of IT products 197
Windows purchases in 2002-2003 94
Microsoft Excel 31
minicomputers 14, 16
Mirchandani, Vinnie 75, 121
MIT 64
Moore, Geoffrey 199
Moore, Gordon 4
Morgan Stanley 8, 68, 73, 105
Motorola 3, 68, 81?85, 174
Mozilla 106
MSA 24
Mumford, Louis 211
MySQL 106
N
NASA 53
NASSCOM 125
Natarajan, Chandrasekaran 119, 177
National Bureau of Economic Research 52
National Snow and Ice Data Center 2
Navision 104
.NET 98
Netscape 79
New Economy 23
New York Review of Books 50
New York Times 109
Nike 35
Norfolk Southern Corp 35
Nucleus Research 57
O
office-automation 14, 16
offshoring
as spending driver 138
China 121, 126
cost reduction for buyers and sellers 5
education 125?126
fee reduction of providers 146
India 124
labor costs 119?120
potential problems 128
quality 122, 127
selective 149
small companies? use of limited 176
technology parks 123
U.S. companies 121
Ohioedge 106
oil and gas industry 161
on-demand 178, 194
OpenCMS 106
OpenLDAP Foundation 106
open-source products
as cheaper solution 113, 143
company references 108
desktop applications 108
effect on market of 4
growth in acceptance of 99
IBM and 107
impact on license fees 146
impact on price management 214
impact on software buying 102
Microsoft and 105
SAP and 107
Wal-Mart selling Linux PCs 109
operating systems 106
operational efficiencies 179, 196
operations, employment 204?205
Opsware 79
Oracle
challenge for 214
employees in India 123
failures of 56
growth of 195
increased margins 189
IT products 195
maintenance overcharges 75
Microsoft and 104
Motorola and 82?83
open-source software 106
revenues in 1990s 22
State of California 72
wages in 1990s 25
order management 34
Organisation for Economic Co-
operation and Development 52
organizational walls 184
Otis Elevator 121
outsourcing 128, 149, 196
overbuying 70, 84
overcapacity 70, 80, 87, 142
overspending 86
Oxford Health Plans Inc. 35
P
P&G 34
path of IT spending, optimal 185
Path of Pennies 155, 158, 168, 175, 183
Path of Problems 155, 157, 176
Path of Profits 160, 170, 172
Path of Propaganda 156
PCAnywhere 200
Pegasystems 106
PeopleSoft
acquisition of JD Edwards 199
lab and development center in India 123
lawsuit against 34
revenues in 1990s 22
SAP and 30?31
service 197
wages in 1990s 25
personal computers (PCs)
AutoCAD and 100
cost trends for 99, 138
extending lifetime of 146
replacement of dumb terminals with 17, 90
personal productivity applications 17
Pets.com 36
pharmaceutical industry 161
Pivolis 119
Plattner, Hasso 104, 186
porting 18
PostgreSQL 106
power companies 77
price optimization 162
Procter & Gamble 121
procurement 168
product cannibalization 100
production/deployment 215
productivity
definition 49?50, 62
function of information technology 131
growth in 2003 171
IT generated 53?54
labor 50
measurement 54, 61
Motorola 81
multifactor 51
relationship to IT spending 50
studies related to information technology 51
productivity paradox 50
project costs 22
project management 43
project/program management occupations 204
Prudential 121
Q
QAD 26
QRS 198
Quicken 101
R
R&D costs 189?190
radio-frequency identification 213
railroads 92
Red Hat 106
Redshaw, Toby 68, 82, 174
regional consultants, employment opportunity 204?205
retail industry 161
return on investment. See ROI (return on investment)
revenue enhancement 140
revenue generation, Harrah?s 167
risk 43, 67, 184, 192
Roach, Stephen 68
Robbins-Gioia 57
ROI (return on investment)
business success and focus on 140
calculations of 65
dot.com losses 36
Harrah?s and 162
lack of convincing metrics for 50
on new software 48
Path of Propaganda and 156
rules for flat spending and 149
savvy needed regarding 3
spending driver cost trends of 139
technology vendors, damning
studies on 57
RosettaNet 97
Russia 5
S
sales and marke
endowment to IWPC 197
G&A expense 190
general ledger functionality 7
inattention to price, results of 214
Indian workforce 123
open source 106?107
PeopleSoft and 30?31
pricing 72
problems with 78
revenues in 1990s 22
wages in 1990s 25?26
Sarbanes-Oxley 140
Satyam Computer Services 123
Saugatuck Technology Inc. 94, 203
Schick, Kevin 24
SCM (supply chain management) 7, 56?57, 76
SEC 21
security 94, 97
SEI-CMM 116, 127
selling
employment opportunities 204?205
subscription-based 6
service automation 140
service-based applications 96
services
business model 209
costs 190
potential offerings 196
pricing 146
provided by software companies 195
spending cuts 143?144
Shackleton, Ernest 10
shelfware 70, 73
Siebel 56, 110
simplicity of solutions
cost advantages 202
importance of 46
increased desire for 4
movement towards 91, 109?113
Salesforce.com and 102
service-based architecture 96
vendors success with 199
Skadra, Joseph 21
Sloan School of Management 64
Smith, Adam 12
Snap-On 35
Snow, C.P. 185
SOAP 178
software
ability to change 18
cost 159
cost of programming 25
customization 39, 169
development 96
documentation 19
internally built 24, 32
languages 19
management 178
programming, offshore savings 122
sales 146
shrink-wrapped 199
spending 16, 30
spending cuts 143
upgrades 10, 19
value of 200
solutions, simplicity of. See simplicity of solutions
Southwest Airlines 165
spending
averages by industry 156
components 154
discipline 173
European companies 158
excessive 69
managed 161
minimal 158
shifts 147
slowdown 148
styles 154, 161
See also IT spending
SPI Technologies 120
SQL Server 104
SSA (System Software Associates) 20, 27, 74
standard costing 19
standards 91?92, 112, 138, 166
Standish Group 57
StarOffice 107, 109
Steele, Jim 201
Stolle, Bryan 56
storage management 177
Strassmann, Paul 52, 60
strategic sourcing 143?144, 176
subscription-based pricing 101, 143, 146
subscription-based software 203
Sun Microsystems 16, 99, 106?107
supplier cost reduction 215
supply change management. See SCM (supply change management)
SUSE 106
Sybase 104
Symix 159
Symphony Technology Group 189, 209
system performance 78
systems management 78
T
target markets 187
Tata Consultancy Services 119, 123, 128, 177
TCO (total cost of ownership) 38, 105
technological innovation 140
technology
benefits, seller?s responsibility 207
business efficiency 180
low-cost 112?113
management 145
Teradata 164
The Next New Thing 12
timesharing 101, 110
total cost of ownership. See TCO (total cost of ownership)
Toyota 215
Tri-Valley Growers 35
TurboTax 102
Two Cultures, The 185
U
U.S. Department of Commerce 53
U.S. Department of Defense 142
U.S. Department of Energy 77
Unigraphics 100
Unisys 166
United Parcel Service 54
United Technologies Corp. 121
Universal Oil Products LLC 35
University of Colorado, Boulder 2
Unix
cost-cutting measures 177
eBay and 16
ERP systems and 20
for medium workloads 103
hardware capacity utilization by 146
Harrah?s and 164
legacies from 1990s 17
V
Veritas 79, 177
Verizon Communications 144?145
Vignette 106
VMware 80, 99, 214
Voice Over Internet Protocol (VOIP) 165?166, 212?213
W
W.W. Grainger Inc. 35
Wadhwani, Romesh 189, 191
wafer-scale hardware technology 99
Wall Street Journal 29, 34?35
Wal-Mart 161
Warburg Pincus 71
web servers 108
web services
benefits 96
building and integrating applications using 112
extension of hardware and software life with 178
impact on costs 5, 138
remedy for software inflexibility 18
Webvan 36
Whirlpool 34
wholesale industry 161
Windows 94, 103, 146
Windows NT 20, 80, 164, 177
Winnebago Industries 108
Wipro Technologies 123, 188
wireless 213
Wood, David 121
X
Xerox 64
XML 5, 97, 178
Y
Y2K 42, 48, 74, 160
Yourdon, Edward 116?117
Z
Zope, 106