The $600,000 Toilet Seat

September 16, 2009 at 1:03 pm by Dennis Linnell

Toilet seatI like to think of Information Technology (IT) as a means of improving efficiency. Every now and then, however, things go awry and wind up costing a lot of money. In federal procurement, the canonical example is the 1983 “$600 toilet seat,” which, adjusted for inflation, returns to the news every decade or so. You are about to see history repeat itself.

Let’s drop in on Senate hearings in 1994, to find out what happened to that toilet seat from 1983:

Senator GRASSLEY: The Defense Department wants you to believe that they are making dramatic changes in the way things are purchased, particularly spare parts. I think the most outstanding example is the $600 toilet seat of 1983. And we thought that we had that problem taken care of and, 16 [sic] years later, the $600 toilet seat was costing $1800.

Today InfoWorld reported that federal CIO Vivek Kundra unveiled a new General Services Administration (GSA) initiative called Apps.gov. That initiative is supposed to solve a common problem of federal IT procurement:

Kundra said that the government could save a lot of money by using many of the Web-based and cloud technologies that are already available to consumers. It costs the U.S. Transport Safety Administration (TSA) $600,000 to set up a blog, he said. By contrast, consumers can get a Blogger account free.

“If in our lives, we can go online and provision Webmail within a matter of minutes, why must the government spend billions and billions of dollars on information that may not be sensitive in nature?” he said.

Good question. I sure hope this TSA blog, which DOES run on Blogger, cost taxpayers a lot less than $600,000 to set up. The TSA blog could be a showcase of how government agencies use inexpensive consumer technology to accomplish their mission.

But will any savings materialize? How much, do you think, will the government pay to set up a blog in 2020?

Update: The InfoWorld article quoted above doesn’t quite convey the full context of Mr. Kundra’s remarks. His speech, formerly on YouTube, but now removed, was worth watching.

By the People

September 15, 2009 at 4:00 pm by Dennis Linnell

This must-see speech by Carl Malamud at O’Reilly’s Gov 2.0 Summit just scratches the surface of opportunities for sharing with “the people” information locked up at all levels of American government. I agree with his premise that the Internet’s potential for opening up government is vast. Yet contrary to populist rhetoric from our leaders, since 9/11/2001 government has shifted openness into reverse gear. Just try to visit any federal worker at her office or request a document under the Freedom of Information Act (FOIA) and you’ll see what I mean. For data, analogous barriers prevail, albeit more subtle.

Mr. Malamud isn’t just talk: he pioneered the publication of U.S. Securities and Exchange Commission (SEC) data on the Web. Should he make headway in opening up our court records, my hat is off to him. Bravo, Mr. Malamud.

Free

August 15, 2009 at 5:35 pm by Dennis Linnell

Free book coverChris Anderson’s latest book, Free, and Malcolm Gladwell’s recent bestseller, Outliers, offer contrasting visions of success. Mr. Gladwell writes that success comes from hard work – at least 10,000 hours of challenging practice – combined with being in the right place at the right time. Mr. Anderson embraces the contrary thesis that economist Milton Friedman’s favorite expression, “There ain’t no such thing as a free lunch” is “deeply, almost head-scratchingly” wrong.

Consider the Free economic paradigm:

[S]omebody’s paying, but it’s probably not you; indeed the costs may be so distributed that we individually don’t feel them at all.

I tend not to prize goods I don’t pay for. After spending $80 to rent a seat at the concert hall, I cherish every second of undivided attention to music. Had I invested over 10,000 hours of blood, sweat, and tears to master the cello – as Slava did – I’d appreciate Dvořák’s brilliant Cello Concerto even more. Downloading a free song, on the other hand, gets no skin in the game. If the first few seconds fail to entertain, the song drops with a thunk into the digital trash bin. Music appreciation degrades to sound bites instead of deep contemplation. No investment, no engagement, no feeling, no value.

Free hypes the glittering generality that a near-zero marginal cost of distributing information will lead to an era of abundance, using the sci-fi term “post-scarcity economics.” This ridiculous oxymoron ought to remain in the realm of fantasy because allocating scarce resources is precisely the point of economics. For pirated songs, photos of inebriated teens on Facebook, or silly tweets on Twitter, there is no scarcity, so economics does not rule. Readers might overlook one nugget of fool’s gold like “post-scarcity economics,” but Free is a mother lode of contradictions and tautologies.

Mr. Anderson does a yeoman’s job surveying the societal, technological, financial, and marketing basis of free goods. He recites many familiar anecdotes, quotes, and history lessons. Insights on trends in the computer, network, and media industries seem apt and even farsighted. I’d rate the book’s distillation of the Free business models a paragon of clarity.

Yet Free is no outlier. Unlike Mr. Gladwell, who starts with a premise that resonates, Mr. Anderson fights an uphill battle, ultimately failing to convince that a free lunch is on the path to success.

Dr. Obama Strikes a Nerve

July 27, 2009 at 4:49 pm by Dennis Linnell

TonsilsPresident Obama’s comment about greedy doctors during last Wednesday’s press conference strikes a nerve because it relates not only to medicine, but to any profession, including my own.

You come in and … your child has a bad sore throat or has repeated sore throats. The doctor may look at the reimbursement system and say to himself, ‘You know what? I make a lot more money if I take this kid’s tonsils out.’

This line of thinking is ethically repugnant to me and every professional I know. Money isn’t a factor. The client’s interests always come first.

Beating Twitter At Its Own Game?

June 29, 2009 at 9:38 am by Dennis Linnell

WSJ Front PageToday’s Wall Street Journal (WSJ) Letters to the Editor section contains this profound missive:

LOL!

Susan Pfund
Oakdale, Minn.

That whole letter clocks in below Twitter’s 140 character limit. Why pay $155 for an annual WSJ subscription when you can browse any random Twitter stream and get LOLs, with a few bonus OMGs thrown in, all for free?

Oracle Acquires Sun

April 22, 2009 at 6:26 pm by Dennis Linnell

I rooted for IBM to acquire Sun Microsystems, praying for a bright future for Java and MySQL. IBM understands open source software better than any major computer industry player. But the antitrust risk of the combined hardware business seems to have reared its ugly head. So the deal was off.

The Oracle transaction startled me. Yet this insightful analysis by InfoWorld’s Neil McAllister foretold Oracle’s move. Namasté, Mr. McAllister.

No Wonder College is So Expensive

December 19, 2008 at 12:04 pm by Dennis Linnell

Knowing that college tuition and fees have grown faster than inflation for most of the past twenty years, I sometimes wonder how effectively the money is spent. A 2002 lawsuit alleged that Princeton University misspent part of the Robinson family’s $35 million (in 1961 dollars) gift, intended to train graduate students to serve in the federal government. The suit produced over 170,000 pages of documents and 120 days of depositions, including testimony from four Princeton presidents. A recent Wall Street Journal article quantifies callous waste:

Both sides said they settled in large part to avoid legal fees that already totaled roughly $40 million apiece…

Why didn’t either side recognize sooner that $80 million could have been better spent on education? Princeton president Shirley M. Tilghman’s depiction of this episode as “a tragedy” hits the bullseye.

Illumination on CFL Longevity

April 15, 2008 at 12:11 am by Dennis Linnell

Compact fluorescent lampAs I’m a sucker for just about every consumer technology that comes down the pike, I had to try Compact Fluorescent Lamps (CFLs) in my new house when they first appeared on the consumer market in 1995. I quickly discovered that the expensive (about $25 in today’s money) bulbs were not very bright, so I installed them in relatively inaccessible places like the basement crawl space, hoping that the manufacturer’s claims of long life would come true. Alas, the bulbs died young. Not recognizing the environmental hazard, I tossed the dead bulbs in the trash and forgot about them.

Fast forward ten years: I found CFLs at Costco for less than $3 per bulb. The manufacturer, Feit Electric, specifically claimed 8 times the lifetime of a 60 watt incandescent lamp. Do the math: 8 x 1,000 hours = 8,000 hours (11+ months, operating continuously). So I bought a pack and paired some of them with double-life (2,000 hour) incandescent lamps. Guess which lamps failed first: incandescents or CFLs?

Yup, another disappointment for me, the Green wannabe. Was it an industry conspiracy or was I just unlucky? Now Consumer Reports shines light on this dark enigma in its May, 2008 issue. Since 8,000 hours is a long time, CR’s tests aren’t finished. Still several brands have passed the 7,600 hour mark. But Feit Electric ESL13T bulbs “failed between 3,300 and 3,900 hours.” I would have been happy if my Feit Electric bulbs (not the same model) had lasted even that long.

Moral of the story: if you want to buy a long-lasting CFL, brand and model matters. Before plunking down hard earned cash, read Consumer Reports to find a bulb that’s likely to be reliable. So now I’ve got a pack of dead CFLs, each containing 3 to 5 milligrams of mercury, making them toxic waste. Anybody want to take these bad boys off my hands? I can’t get rid of them!

The Internet SLA Scam

October 10, 2007 at 10:35 am by Dennis Linnell

LemonMany bloggers, including respected author Nicholas Carr, recently applauded Amazon for offering a Service Level Agreement (SLA) for its S3 storage service in response to competition from Nirvanix. Though SLAs have long proved an effective technique for managing corporate information technology, in Web infrastructure the SLA is nothing more than a scam that only a used car salesman could love. (Thanks, Paul D. Cocker, for the lemon.)

See what the Amazon SLA offers:

we commit to 99.9% uptime, measured on a monthly basis. If an S3 call fails … this counts against the uptime. If the resulting uptime is less than 99%, you can apply for a service credit of 25% of your total S3 charges for the month. If the uptime is 99% but less than 99.9%, you can apply for a service credit of 10% of your S3 charges.

Sounds great, doesn’t it? Let’s calculate “99% uptime,” which is the same as 1% downtime. A month has 43,830 minutes, so your site will be down 1% of that time, 438 minutes, or over 14 minutes per day on average. Suppose just 14 minutes of downtime occurs during your daily peak period. How will that downtime impact your revenue? Will being able to “apply for a service credit of 25%” compensate you for lost income, troubleshooting time, and unhappy customers?

Now consider the worst case of having all 438 minutes of downtime occur in one big failure during, say, the peak selling hours of the day after Thanksgiving. Then what recourse do you have? The dirty little secret is that the SLA protects the infrastructure provider, not the customer.

Amazon’s 99.9% uptime commitment means average daily downtime of 1.4 minutes. To put this statistic in perspective, I hosted a website for family and friends at a data center that, according to my measurements, delivered slightly worse than 99.9% uptime over a 3 month period. The number of complaints I received and the time I spent dealing with downtime astounded me. Do you think the infrastructure provider graciously provided me the 100% refund to which I was entitled according to its generous SLA? Think again.

I would have been fired for delivering 3 months of 99.9% availability back in the 1980s when I managed a corporate data center.

Web SLAs today are no better than the “9/90 warranty” my father offered years ago on his used car lot. If you shopped carefully, you could buy an awesome car at my dad’s store, but the warranty was only good for the first 9 seconds or 90 feet, whichever came first.

Turning Watchful Eyes into Money

July 15, 2007 at 10:49 am by Dennis Linnell

Tracking a personal Gulfstream IV jetIf you’re like me, you strive for a low profile while traveling. You want to avoid the watchful eyes of every nosy Tom, Dick, and Harriet as you fly the Gulfstream to London to visit the tailor. Alas, there is precious little privacy left. Once your inquisitive comrades know the tail number of your personal aircraft, your life is an open book. They can track your jet’s every move on FlightAware. (Photo credit: albspotter.)

But money can still buy happiness. By filling out a simple form and paying a mere $720 annual fee to FlightAware, you can conceal your plane’s whereabouts from the prying eyes of the site’s users. How nice of FlightAware to provide this helpful service. They didn’t invent the hush money business model, but they’ve certainly done a great job translating it to Web 2.0.

I wonder how long it will take government to catch on to this. After all, you can look up on the local property tax site the value of my neighbor’s house and even the size of her swimming pool. The tax man could easily whip up a form that would shake me down for a pretty penny to remove data about my house from the tax site. Ain’t Web 2.0 grand?