Got Legacy?

Sacramento Techies – we will replace your system for 1/10th the cost or I will eat your mainframe

August 8, 2008 · 9 Comments

According to the Sacramento Bee, there are some big legacy software problems in the State of California! One of their legacy beasts, the payroll system in this case, is so unwieldy that it can no longer respond to necessary, legislated change in a timely manner.

“Democratic state Controller John Chiang said Monday it would take at least six months to reconfigure the state’s payroll system to issue blanket checks at the federal minimum wage of $6.55 per hour, though Schwarzenegger insists such a change should occur this month.”

No wonder there is a gap between what the Governator expects and what the people in the trenches are telling John Chiang. How could it possibly take “at least six months” to make such a trivial change?

Well it may seem crazy, but the estimate doesn’t surprise me. I’ve seen that kind of crazy many times:

  • Adding a check-box to a DMV system written in PL/1: 6 months and $100,000.
  • Changing the sales tax rate from 6% to 5%: 9 months and $150,000.

Par for the course when your computer system is written in a “Vietnam-era computer language.” Love that turn of phrase! :) Shows how bad legacy systems can really get. But it’s not all COBOL’s fault. It’s extremely difficult to prevent computer systems in general from getting worse over time, in the face of constant change. It’s a kind of progressive fossilization that turns nearly any system into a rats nest over 20 or 25 years. We have already had requests to look at systems written in Visual Basic and even Java!

So why are these systems not “upgraded” before they get too hard to change?

“California has tried to modernize its payroll system throughout the past decade, dating back to former Controller Kathleen Connell. It has faced numerous delays as state legislators have avoided investing the $177 million it now will cost.”

One Hundred And Seventy Seven Million Dollars!!! That’s like the annual GDP of a small country. That’s like buying a bright-red Lamborghini for almost two thousand bureaucrats!

"I eat mainframes for breakfast"

This estimate is ridiculous. The article says that this system has “tens of thousands” of lines of COBOL code, making it very small by modernization standards. A few million lines would be more typical. And Gartner suggests that replacing a legacy system can be done for maybe twenty dollars a line. So if the payroll system in question has say 100,000 lines, and Gartner is right, it would be a two million dollar project. So the estimate in this article is inflated by… by… I can’t even compute it in my head… 8850%.

I suppose I can’t blame the incumbent technology people for making estimates like that. We have lived through an era that has “proven” that modernizing a legacy system is an incredibly risky venture. So just like they taught us in Computer Science school, project estimation always involves tripling the initial (science-based) estimate and then adding one to the unit of measure, i.e. 2 weeks becomes 6 months, 4 months becomes 12 years, etc. Better to make the project financially impossible than incur the risk of failure.

So I challenge the technology people in the California government. If we can’t re-architect that system for one-tenth of the current estimate, I will eat your mainframe.

- Tom Metzger, Director of Sales Support @ MAKE

Categories: General Modernization
Tagged: , , , ,

9 responses so far ↓

  • Sean Patzer // August 8, 2008 at 11:19 pm | Reply

    Interesting article, but I found the focus to be a little bit myopic. The estimate is not around “just the payroll system” but also includes architecting and testing the ancillary systems that are supported by or support the payroll system. Things like the Human Resource system could be an independent system that relies on the payroll system. How about the GL system that also ties into the payroll system? I suspect, by mentioning only two, we can begin to see the scope of the issue of properly testing interfaces. I would also suspect with the legacy of this system, that the interfaces are what I would call a kludge. Thus we have additional time to implement a replacement.

    Then again, I may not know what I am talking about, but it is easy to blast the governmental IT organization without knowing the basis for their time estimates on updating their system.

  • grayhoose // August 8, 2008 at 11:20 pm | Reply

    can you say prevailing wages?

  • tmetzger // August 8, 2008 at 11:27 pm | Reply

    Hi Sean. I’m talking about the all-in estimate, interfaces to adjacent systems included. TLM (our little methodology) treats this as a first-class part of the project, because of course it is always necessary when replacing the beating heart of an organization. You didn’t mention data modernization, but that is also included in my challenge.

  • Stas // August 9, 2008 at 2:13 am | Reply

    You probably haven’t worked for the government… or have been very lucky to work with a branch where things were moving. The problem is not technical and not even managerial. It is a system problem. Any sufficiently large government structure forms very rigid system that actively resists any change. This is the most significant factor driving up the costs.

  • jeremy // August 9, 2008 at 7:20 pm | Reply

    Fast? Low Cost? Doesn’t sound like he’s worked for the government, indeed.

  • tmetzger // August 9, 2008 at 9:27 pm | Reply

    MAKE has done projects for lots of public sector clients. We use our methodology to execute the project, generally with a partner like IBM or EDS. We rely on the government only for initial discovery, some collaboration on design, approvals, and acceptance testing. Consequently we can insulate the project from a culture of foot-dragging if it exists (and of course it sometimes does).

  • cozumelkid // August 9, 2008 at 9:35 pm | Reply

    How about a copy of QuickBooks?

  • James Taylor // August 14, 2008 at 7:06 pm | Reply

    how about doing what worked with the DMV system and just modernizing the core logic to use a business rules management system? Most of the system does not need to change all that often, just the rules….

    JT
    Author of Smart (Enough) Systems

  • The COBOLATOR. Oh my… « Got Legacy? // May 8, 2009 at 10:31 pm | Reply

    [...] Battle THE GOVERNATOR and stop him from paying his employees? [...]

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