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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.

46 of 203 comments (clear)

  1. I cheer when I read stories like this by Anonymous Coward · · Score: 3, Funny

    I love it when sales folks write checks that their ass's can't cash.

    1. Re:I cheer when I read stories like this by Frosty+Piss · · Score: 4, Funny

      I love it when sales folks write checks that their ass's can't cash.

      What does that even mean?

      --
      If you want news from today, you have to come back tomorrow.
    2. Re:I cheer when I read stories like this by TWX · · Score: 5, Insightful

      I'm sure that the salesmen have long-since cashed any bonuses they received from landing the contract and moved on to other companies.

      --
      Do not look into laser with remaining eye.
    3. Re:I cheer when I read stories like this by Anonymous Coward · · Score: 3, Interesting

      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.

    4. Re:I cheer when I read stories like this by Anonymous Coward · · Score: 5, Funny

      Well, I can add that to the list of things I used to wonder about and wish I never found out.

    5. Re:I cheer when I read stories like this by MightyMartian · · Score: 2

      A large majority of Texans and Albertans think having a cowboy hat makes you a cowboy.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    6. Re:I cheer when I read stories like this by CanadianMacFan · · Score: 3, Funny

      That's crazy talk. You need the boots and belt buckle too.

    7. Re:I cheer when I read stories like this by l0n3s0m3phr34k · · Score: 2

      the Brits have a similar term, "all pants and no trousers". I wonder what side of the new companies this will hit; HEP or HPI. I'm guessing HPE, since we're already loosing 30,000+ more jobs might as well pile it even higher.

    8. Re:I cheer when I read stories like this by TWX · · Score: 3, Interesting

      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.
    9. Re: I cheer when I read stories like this by Khyber · · Score: 2

      "Don't forget a lifted pickup truck with a gun track."

      That's Mississippi. Texans don't use gun racks. We open carry and FUCK YOU *BLAM* your ass is dead.

      Only idiots need to reach behind themselves to defend themselves.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    10. Re: I cheer when I read stories like this by Darinbob · · Score: 2

      That's too Texan. Further west we use turquoise or silver.

    11. Re:I cheer when I read stories like this by arglebargle_xiv · · Score: 2

      the Brits have a similar term, "all pants and no trousers".

      Aussies have a similar saying, "all dingo and no wombat". Of course you need at least a dozen Fosters and half a bottle of Bundy for that to be funny.

    12. Re:I cheer when I read stories like this by germansausage · · Score: 4, Funny

      Three biggest lies of a Cowboy :
       
      I won the buckle in a rodeo.
       
      The truck's paid for.
       
      I was just helping the sheep over the fence.

    13. Re: I cheer when I read stories like this by Bing+Tsher+E · · Score: 3, Funny

      I've been tempted to hang a big pair of tin snips off the hitch of my Ford Ranger. Problem is, those guys with the big metal nuts or the hitch ball sack take that shit serious.

    14. Re: I cheer when I read stories like this by FranTaylor · · Score: 3, Interesting

      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.

    15. Re:I cheer when I read stories like this by DNS-and-BIND · · Score: 2

      Please don't mix in New Zealand sheep shagger jokes with cowboy jokes. It's like confusing Chinese with Japanese, it's just embarrassing for the person who does it.

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    16. Re: I cheer when I read stories like this by dunkelfalke · · Score: 4, Funny

      Why do you Texans shoot other people's donkeys for no reason?

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
    17. Re:I cheer when I read stories like this by XxtraLarGe · · Score: 2

      And their CEO now wants to be President of the United States.

      You mean the one who says marijuana can't be legalized, because she buried a child due to drugs, except that the child was her 35 year old step-daughter, was an alcoholic and was addicted to prescription drugs? Age and cause of death don't make it any less tragic, but it also doesn't support her opposition to drug legalization.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    18. Re:I cheer when I read stories like this by mrchaotica · · Score: 2

      GP is using synecdoche to express his schadenfreude.

      Paraphrased, it means "I love it when salespeople reveal themselves to be assholes by over-promising things they can't deliver."

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    19. Re: I cheer when I read stories like this by shaitand · · Score: 2

      Not if she is attractive.

    20. Re:I cheer when I read stories like this by HornWumpus · · Score: 2

      This is EDS we're talking about. Their salespeople would quit.

      They don't believe their own bullshit. Know that the people trotted out during contract negotiation will be nowhere near the project, which will be staffed by recent college graduates with low GPAs in liberal arts.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  2. NGEN is next by Anonymous Coward · · Score: 2, Interesting

    Posting AC because I'm not fired yet. The Navy just moved up the recompete on NGEN, and the deal was one base year, 4 option years... what a joke. Meg knows this contract is losing money and wants to lose it to let go of all the US Citizens and their expensive security clearances. I'd be surprised if they even bother making a realistic bid for the USAF contract.

    1. Re:NGEN is next by turbidostato · · Score: 2

      "Meg knows this contract is losing money and wants to lose it to let go of all the US Citizens and their expensive security clearances."

      What an antipatriotical act! Wait... unless Meg doesn't give a damn about US Citizens and it's simply the case about going out of a contract that's losing money! That would be pure capitalism in action, the soul of USA and therefor the most patriotical act anyone could take!

      Oh... I feel a bit confused now...

  3. Re:TIming Tidbit by BenJeremy · · Score: 3, Informative

    The deal was brokered with EDS, which was then purchased by HP.

    The CEO was Michael H. Jordan at the time. Blame #23.

  4. Re:Carly Fiona by Anonymous Coward · · Score: 2, Funny

    I'm Fucking NOBODY, and I'm glad to have your vote, citizen. Together we can put America on an upward trajectory!

    This is slashdot. I'm pretty sure most of us are fucking nobody. ;)

  5. Oooh by Greyfox · · Score: 2

    That explains it. I'm guessing their "solution" was to throw Ctrix at the problem and call it a day.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  6. Re:So, uh... by roc97007 · · Score: 5, Insightful

    At 50 million bucks, why didn't they emulate the old machinery or port the code to an interpreter running on a modern system? Off the top of my head, that sounds like the most reliable ways to duplicate exactly an old system.

    That's a great question, and the answer is, IBM Z-series business unit has, bar none, the most aggressive, talented and ruthless customer retention team in the world. You're right, there's no sane reason why a mainframe application can't be emulated at least for a stopgap measure. But you'll find that there are a score of legal, political and business reasons why you won't be allowed to do that.

    Moreover, you'll find that it's just impractical to port the application to any other reasonable platform. Even though your smartphone probably has more guts than the '60's era mainframe you're trying to get off of, actually making the cutover is very VERY difficult, for a variety of reasons, few of them technical.

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  7. In all fairness by roc97007 · · Score: 4, Interesting

    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.
    1. Re:In all fairness by FranTaylor · · Score: 2

      in all fairness, getting off the mainframe is very VERY difficult, for a large number of reasons.

      you would expect that companies that do this for a living would understand this problem and bill appopriately

    2. Re:In all fairness by Tablizer · · Score: 2

      in all fairness, getting off the mainframe is very VERY difficult

      True, but HP should have known this based on experience with other mainframe projects or via research on similar projects by other companies. The contract should be public info, and they can hire industrial spies. They have no excuse for not knowing that off-mainframe projects in general are difficult. A start-up, I can understand.

      But in general any line-of-business platform that has decades of domain logic built into it will be difficult to migrate. A lot of institutional logic is encoded in the stack (COBOL, JCL, file structures, databases, etc.)

      Perhaps some long-term design planning earlier can simplify the project per being "migration friendly", but few think and plan that far ahead. There's no net incentive in a typical org to look more than about 5 years down the road. When you got management breathing down your neck to finish a project, you are pressured to get it done now rather than clean.

      Mainframes are not that bad after-all. They're reliable and stable, even though the hardware costs more. Just write new projects in new languages & techniques if you fear you won't be able to find mainframe-specific techs in the future. No matter what language/stack you choose, it will likely be obsolete in a decade or two anyhow.

    3. Re:In all fairness by bloodhawk · · Score: 2

      I have been involved in several mainframe migrations. It is hard, requires a lot of planning and testing but it is quite doable. Having said that if HP bid a price to do it and failed their is no "in all fairness", they signed up to do, got paid to do it, they are responsible to do it, their is no excuse of it was too hard! If it is too hard for them then they didn't do due diligence or executed poorly.

    4. Re:In all fairness by roc97007 · · Score: 2

      I have been involved in several mainframe migrations. It is hard, requires a lot of planning and testing but it is quite doable. Having said that if HP bid a price to do it and failed their is no "in all fairness", they signed up to do, got paid to do it, they are responsible to do it, their is no excuse of it was too hard! If it is too hard for them then they didn't do due diligence or executed poorly.

      I agree that from a technical standpoint, getting off the mainframe is (or should be) quite doable. The issues I've seen were mostly not technical.

      I'm conflicted, because, --let's face it-- I want to see HP burn in hell. Just pointing out that in my own experience the chances of success in this kind of endeavor are very small.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    5. Re:In all fairness by Major+Blud · · Score: 3, Informative

      "At 50 million bucks, why didn't they emulate the old machinery or port the code to an interpreter running on a modern system?"

      The hardware isn't an issue with IBM mainframes, even their newest Z-Series implementations are mostly backwards compatible with the 1960's era System/360. I'm pretty sure the cost of new hardware would have been cheaper than porting their software over to a completely new hardware platform and language.
      https://en.wikipedia.org/wiki/...

      " But (reluctantly...) in all fairness, getting off the mainframe is very VERY difficult,"

      Having worked on well over a dozen projects to do just that, this post is 100% on-point, although my success rate has been much better, on projects that span half-a-decade :-) I'm working on one right now to port a COBOL/IMS system over to .NET and SQL Server that has been in the works for over 2 years.

      The hardware platform isn't the biggest hurdle (although expensive, it's bullet-proof reliable). The biggest challenges boil down to three things:

      1) Business rules coded in languages long considered obsolete (COBOL, JCL, IMS databases) by people who either retired or died decades ago.
      2) Data that has been severely polluted over the years, such has having fax numbers in an address field, lookup codes that have been deleted, (although the data remains in place, causing broken referential integrity), etc etc.
      3) Business rules that are done more for tradition. A user may have been instructed to do a process a certain way, but no one is sure what the reasoning is for doing it. It may be a valid reason; but that reason was discovered years ago by someone (either retired or dead), forgotten, and has just been done for traditions sake. In cases like this, it's hard to make a case to carry a process like that over to the new system, but it can't just be ignored either.

      I'm simplifying #3, but you'll probably get the idea. I think that these three problems could crop up in ANY software system that has been in use for 40 years, regardless of the hardware platform or the programming language. As much as we try to mitigate planning for the future use a system, very few people in our industry really expect the software we write to be in use 40+ years from now. I think Y2K is a pretty good example of that too :-)

      --
      If you post as Anonymous Coward, don't expect a reply.
    6. Re:In all fairness by west · · Score: 4, Insightful

      A user may have been instructed to do a process a certain way, but no one is sure what the reasoning is for doing it. It may be a valid reason; but that reason was discovered years ago by someone (either retired or dead), forgotten, and has just been done for traditions sake. In cases like this, it's hard to make a case to carry a process like that over to the new system, but it can't just be ignored either.

      This, a thousand times. Nothing like finding two pieces of completely inexplicable code and cleaning them up. One speeds up processing by 2%, and you're the hero. The other turns out to have most of code flow of Western civilization running through it, and now you've just brought on the Long Night.

  8. Actually no. 3 years AFTER Carly, HP bought EDS by raymorris · · Score: 2

    Actually , no. HP wasn't involved this deal until three years after Carly left. In 2005, EDS made the contract with the state. The same year, Carly left HP. Three years after that HP bought EDS in 2008.

    So trying to put this on Carly is a lot like blaming George Bush for Obamacare.

  9. Re:Carly Fiona by FranTaylor · · Score: 2

    She made a shitload of money.

    The skill set required to accumulate profits is not the same as the skill set for running a country.

    In business you can write off bad investments. In government you can't write off states and cities that are a financial drag.

  10. Re:Carly Fiona by Ol+Olsoc · · Score: 2

    The skill set required to accumulate profits is not the same as the skill set for running a country.

    In business you can write off bad investments. In government you can't write off states and cities that are a financial drag.

    If I'm not mistaken, Fiorina's plan is to buy Canada, and lay off all the Canadians, in order to make money. No use getting rid of a game plan that worked for ya in the past.

    --
    The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
  11. Re:How stuff like this tends to happen by Neo-Rio-101 · · Score: 2

    The next step will be to replace all the offshored workers with PERL scripts.

    --
    READY.
    PRINT ""+-0
  12. Re:TIming Tidbit by arth1 · · Score: 4, Insightful

    Jobs of political power should never be held by those who seek them. Let them be filled through random draws, with voting taking place after the appointment to see whether they stay in office.

  13. Re: Carly Fiona by Ol+Olsoc · · Score: 2

    s/make money/make her money and leave the shareholders, er, citizens with a big mess after she leaves office/

    When she was fired, after making that mess, she got a 21.4 million severance package. Imagine making more money for being shitcanned than most of us will make in our lifetime.

    --
    The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
  14. Re:TIming Tidbit by Darinbob · · Score: 3, Informative

    No love for Carly, but HP has been in death throes for some time. Back in the 80s they had everyone take a forced vacation day every other Thursday, which was the first I heard of that sort of practice, and the locals were surprised and concerned that such a giant company needed to take such action. HP had gone previously through a lot of growth spurts and had bought up new properties to expand into. But it started dwindling away after that point. Most of the original HP businesses were ejected ever time, making it really difficult to continue calling it a "tech" company. Carly was just one in a line of executives involved in the dismantling of the institution.

  15. Scope of the task is *LARGE* by tlambert · · Score: 5, Informative

    in all fairness, getting off the mainframe is very VERY difficult

    True, but HP should have known this based on experience with other mainframe projects or via research on similar projects by other companies.

    (1) The contract was made by EDS. HP had nothing to do with it, other than having acquired EDS.

    (2) The migration is not just off the mainframe (a VMS system), it's onto a web-based platform instead, so they can get rid of both the mainframe, and the extra VT320 emulator they have to run to talk to the thing.

    (3) Getting the same functionality and security of of a non-VMS system is a rather difficult endeavor, even if you use FLASK Linux or a similar purportedly secure computing platform, and add a bunch of them together and try to pretend "it's the same as a mainframe". Of all systems one can get off easily, VMS is not one of them, since it's so much better designed than most modern systems.

    Scope of the task is *LARGE*

    It's a doable proposition, but it would likely take (expensive to hire) 40+ year olds with experience in both sets of technology, along with people capable of parsing "business rules" out of languages like COBOL, FORTRAN, BLISS, and VAX (or DEC Alpha) assembly language, and whatever the heck else it was coded in at the time it was first deployed (depends on what they meant by "aging mainframe" in 2005).

    These people would also have to be either very sophisticated in working over a "Chinese Wall" arrangement with another group doing the new systems development (not a development model most younger coders are familiar with, since you mention "interface contracts" and "unit testing" and "branch path analysis" to most of them, and they blink at you as if you've just taken a polyjuice potion and turned into Mad Eye Moody). Alternately, these old farts would need to have *also* kept current on new technology to allow them to be able to do both sides of the task.

    So, you are talking expensive people in their mid 40's to mid 50's to get the job done.

    Guess who were the first people let go or offered early retirement packages, to improve the profit-per-employee ratio for EDS to get the highest valuation in the acquisition by HP? Guess who were let go or offered early retirement as "cost reduction" measures in the four or five rounds of that HP has gone through since then?

    It's a doable job, but I don't know of a company in the EDS (HPE now) or IBM Global Services space right now that wouldn't just start over an "fix business rules problems as they come up", rather than providing an equivalent (but now web based) system. I don't know experienced people in either of those two, since they've jettisoned all their expensive (talented) old people and replaced them with cheap (untalented) recent grads or offshoring.

    If you think that's an unfair comparison on talent ... if you were a talented college grad, would *you* go to work at a company which is in the throes of a 30,000+ person layoff (something IBM did earlier this year, BTW: HP is a "late bloomer"), and in the process of spinning out the division you'd be working in? Or would you take that offer from Uber/Facebook/Twitter/Google/[anyone but IBM or HP] instead?

    They are likely going to have to hire someone and PM it themselves. States are notoriously bad at that (and at spending money on their own people, as opposed to being willing to spend a lot of money on a contractor company) -- look at how Oregon and Oracle are arguing about the [still] nonfunctional Oregon State Healthcare Exchange to see what comes of hiring your own [unqualified] PM and "doing it yourself".

    My cousin, Mark, could do it. Sadly, he is disabled now.

    I could do it; so could a dozen or so people I could name off the top of my head (Wes Peters, for one). Sadly, we are all sane now.

    They are pretty screwed; they are going to have to do a "second system syndrome" version of things, or settle with HP/HPE and pa

  16. Re:TIming Tidbit by FranTaylor · · Score: 2

    HP made boatloads of money selling overpriced systems: HPUX, Tru64 and VMS. Porting away from these systems is a nightmare, and so they had a lot of "captive" customers. They made grand announcements that they were going to unify all three operating systems and they would all be supported essentially forever. It was all horse-shit. They basically stopped development on all three systems. For a number of years there was no word. I think this is when the customers figured out that they were being taken for a ride. They ported to Solaris and AIX and Linux. Now HP has no customers and no business and no future in the unix market.

  17. Re:Fiorina will be spanked during next debate by Tablizer · · Score: 2

    P.S. Obamacare sucks.

    P.S. Death from illness sucks more

  18. Changing Requirements?? by DidgetMaster · · Score: 2

    Did the project fail because of incompetence on HP's part...or did the customer (the government in this case) keep changing the scope and requirements so often that it was impossible to actually do what they wanted? I know nothing about the details of this particular case, but either condition (or both) would not surprise me as the cause for the failure.

  19. Re:TIming Tidbit by unixisc · · Score: 2

    Carly's purchase of Compaq was what sunk HP. Actually, it should have been obstructed by the AntiTrust regulators since it was indirectly HP acquiring DEC, which was one of their few competitors. There were 2 layers of digestion - Compaq digesting DEC and HP digesting Compaq - that caused those layoffs that sunk Carly's CA Senate campaign when those Boxer ads ran.