5460 Miles from Silicon Valley by Hans Peter Bech

Author:Hans Peter Bech [Bech, Hans Peter]
Language: eng
Format: epub
Publisher: TBK Publishing®

POSITIVE PROBLEMS

The coming millennium puts a lot of additional pressure on the demand for new IT systems. The unusual change of date carries a risk of computer-crashes, the consequences of which are difficult for customers to get their heads around. The market is further stimulated by the forthcoming introduction of the euro in a number of European countries. And finally, the rapid spread of the internet, which enables software-based optimisation of many business processes, gives everything an extra boost. The IT industry is enjoying good times.

At Damgaard Data, there are no restrictions on the issuing of new licences, but it’s different for the resellers. They have to bind consultants to the increasing number of projects – they can’t just be cloned. The strong demand creates a phenomenon, which the industry calls “positive problems”: it can be difficult to find enough people to help implement and operate the systems for the customers.

XAL projects, in particular, need highly skilled labour. As a rule, for every dollar paid for software licences, 15 to 20 USD has to be invested in consultancy support. The strongly increasing demand for skilled labour up to the turn of the millennium becomes a bottleneck for the completion of new projects by resellers, but it could also affect Damgaard Data. If partners have to politely decline projects, customers may have to choose a competitor instead and, thereby, Damgaard Data loses out on licence income as well as the subsequent long-term extension and subscription business. The lack of skilled labour is the main theme when Preben Damgaard is interviewed for Computerworld in November 1997.

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