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By N2H

DOWNSIZING

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DOWNSIZING

Computer technology tends to move quickly and constantly the performance price ratio keeps improving all the time. This means that computer applications which were once placed on a mainframe computer can be placed on networked pc infrastructure at a lower cost. However, organizations tend to adapt to changes rather slowly and so some businesses applications will be running on system configurations that are no longer the most effective for such applications.

What is usually referred to as downsizing is the current stage of a very long term trend; that of developing smaller and hence more distributable hardware platform to have software systems.

Downsizing is the name given to the practice of placing business application systems on smaller machines than the ones they have been running on previously.

It usually implies the migration of a system or a set of systems from a mainframe or minicomputer to a minicomputer or a networked pc infrastructure.

Downsizing seems to be quite favorable applying across all business and system areas, suggesting a greater perceived value of smaller hardware platforms. Cost savings are generated by taking advantage of the higher price/ performance ration of smaller machines.

The downsizing trend is also culturally in line with the business trend towards the flatter leaner organizations.

Downsizing is not necessarily an all-or-nothing proposition e.g. a PC network is often used to provide friendly front-end access to existing legacy systems. This is a case semi-downsizing which creates easier to use infrastructure.

Rightsizing:

A related term is regularizing which is best defined as being the process of choosing between platforms, i.e. The process of selecting the correct or most appropriate hardware platform for a given business application.

Merits of Downsizing

• Increased Flexibility: Increased flexibility brings about business responsiveness and an improved climate for innovation.

• Downsizing also brings about distribution and greater user involvement.
• We can take advantage of pre-packaged applications. Pre-packaged software is cheaper and more reliable and they reduce workload thus applications can be implemented sooner.
• It becomes possible to account for IT costs at departmental level.

Demerits:

• Risk of undersizing the system
• Headaches associated with dealing with multiple vendors and different products
• Increased demand for end user skills transfer an on-going
• End user workload is likely to increase
• High initial capital outlay
• High technical complexity, this is more likely if there is a total migration to a new multivendor hardware, software infrastructure = high risk.
• Dilution of central control and management of IT resources.

Essential consideration in downsizing/right sizing:

• Consider the culture of the personnel to undertake the project
• Consider the cost implications in detail and capital investment, recurrent costs, any hidden costs
• Volume of data : current and expected future volumes
• Level of security of data desired
• Organizational culture
• Decide on the fate of old hardware platform.
  

• Examine the staff issues: IT staff issues; end-user staff issues
  

• Do not always belief/vendors who claim that their systems are open
  

• Always seek independent consultations from other users, consultants etc
• Ensure proper alignment of the project with the information systems place and the business goals.
• Make a budget provision for the for the unforeseen adaptation costs
• Prefer to be risk-averse. Experiment with the smaller/less important projects first.

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