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Anatomy of a Cost Overrun
I recently conducted an informal survey of some cloud integration companies and found something deeply troubling. Aside from “cookie-cutter” or formulaic quick-start projects, more than 70 percent of cloud consulting engagements involving new customers resulted in either a 10 percent cost overrun or a change-order. The bigger the project, the more likely the overrun.
You can blame it on stupid consultants or bad estimation or nutty customers or sunspot activity, but blame does no good. Something is going wrong here, and it’s causing a lot of heartburn. A root cause of any cloud overrun is mis-set expectations: customers believing that meeting their requirements will be simpler than
it is and vendors unwilling to clearly state what
it really will cost... Read More...
Has Your Cloud Consultant Gone Crazy?
You may not have noticed it, but cloud implementation consultants have been acting increasingly stupid over the last couple of years. If you think this doesn't affect you and your project, think again.
Unless you are doing all your system configuration and implementation work internally, you’ll be depending on consultants to get your cloud projects done. When consultants start doing dumb things, your project will be at risk. Even if they get your project done right, if they can’t make a profit they’ll eventually have to bail on you.
So, let’s start at the beginning—markets. We all operate in competitive markets, and we all depend on proper operation of those markets. If a market is unhealthy, most participants will not do well. You’ll see it first in the vendors (who start acting more and more desperate), but it will show up on the client side as well (in the form of project failures). I’m here to tell you that the market for cloud consulting services is not healthy, even though it is growing like mad.... Read More...
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