Michigan Sues HP Over Decade Long, $49 Million Incomplete Project
itwbennett writes: On Friday, embattled HP was hit with a new lawsuit filed by the state of Michigan over a 10-year-old, $49 million project that called for HP to replace a legacy mainframe-based system built in the 1960s. Through the suit filed in Kent County Circuit Court, the state seeks $11 million in damages along with attorney's fees and the funds needed to rebid and re-procure the contract.
This is part of why my company pays only half of sales commissions up front and the rest on project completion. 100% at the end would be better, but then nobody would work for us.
Wow, the LAST thing I want to do is take HP's side in ANY argument. But (reluctantly...) in all fairness, getting off the mainframe is very VERY difficult, for a large number of reasons, not the least of which IBM's commitment to preventing that from happening.
In the decades I've been in IT, I've seen three fairly large companies make a concerted effort to get off the mainframe. All failed. One ended up upgrading the mainframe. One ended up renting mainframe time from ISSC. One is still trying, years later.
I don't know what happened in this particular case; maybe HP saw this as a cash cow they could milk for several years, due to the fact that the industry expectation of success is so low. But there is a possibility that HP saw this as a genuine business opportunity, and didn't realize until later that it just wasn't possible.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
I wonder if Fiorina will use this in her bid for the Whitehouse... "I know the inner-workings of how badly government can run, in my time with HP I saw how Michigan wasted ten years in trying to implement a new computer system!"
Do not look into laser with remaining eye.
The distributor who actually sold the printers, won HP's "distributor of the year" award. HP had a 41% market share in a country where they were forbidden to do business. It's beyond incredible that nobody at HP wondered about where all those printers went to.