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Buying, Supporting, Maintaining Software and Equipment

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Table of Contents

INITIAL PRODUCT ACQUISITION Equipment and Application Acquisition Introduction Application Selection Dictates Hardware Selection Background Application License Acquisition Going Naked Operating System Acquisition Acquisition Model: Direct from the Original Equipment Manufacturer Platforms as Monopolies Multiyear Commitments Operating System and Machine Code License Lock-Ins Strategic Partnerships The Win Room Credible Competition Acquisition Model: Channel Partners and Authorized Resellers Competition between Partner or Channel Sources Controlling Discounts Selecting Partners Acquisition Model: Wholesale Distribution Gray Market Counterfeit Acquisition Model: Retail and the Internet Retail Service Plans Internet Buying Acquisition Model: Used Equipment Summary Notes Initial Support and Maintenance Introduction Maintenance in the Digital World Hardware Maintenance Software Maintenance for OS and Applications Consumables Defect Support Hardware Maintenance Redundancy, Self-Healing, and Fault-Tolerant Gaming the Service Level Agreement Software Maintenance Serviceability Disaster Recovery and Backup "Appliances" and "Black Boxes" Summary Notes Hardware Warranty Models Introduction Limits and Purposes of Hardware Warranties Precontracted Parts and Labor Warranties Accounting for Prepaid Service Agreements 90-Day Parts and Labor Warranties and 12-Month Parts Warranties Self-Repair Parts Only Original Equipment Manufacturer Depot Repair Labor User Depot Repair Time and Materials Transaction Volume Sensitive Warranty Models Preventative Maintenance Scheduled Maintenance Summary Notes Software Warranty and Support Models Introduction Initial Acquisition Software Warranty Functions Copyright and Piracy License Audits Maintenance Pricing Treatment of Upgrades and New Releases Patch Management Controlling Maintenance Pricing Going Naked Independent Support Switching Systems Software Vendors Summary Notes Finance and Accounting Issues for Maintenance and Support Introduction Initial Purchase Tangible Assets and Intangible Software Lending and Leasing Internal Accounting Manufacturer (Original Equipment Manufacturer) Captive Leasing Ease of Contracting Operating Lease Treatment Residual Value Licensed Software and Residual Value Tethered and "Black Box" Products End of Lease Issues Summary Notes POSTWARRANTY SUPPORT AND MAINTENANCE Responsibility for Defect Support Introduction Software Defect Support Types of Patches Hardware Defect Support Logic Flaws (Hardware or Machine Code) Updates versus Upgrades Defect Support of Component Failures Engineering Change Levels Remote Diagnostics Summary Notes Postwarranty Hardware Maintenance Introduction Limitations of Warranty Voiding Warranty Purpose of a Warranty Carry-In Warranty Warranty Pricing Original Equipment Manufacturer Postwarranty Support Independent Service Organizations Downside of Independent Service Organization Offerings Parts Warranties Machine Code and Embedded Software Self-Repair Automotive Repair: Converging Issues Five Requirements for Repair Diagnostic Tools, Diagnostic Software, and Error Codes Tools Documentation Service Parts Machine Code Summary Notes TECHNOLOGY PRODUCT DETAILS Machine Code and Embedded Software Introduction Defining Machine Code Machine Code Divides Hardware from Software Tangible Asset Limbo Functions of Machine Code Machine Management and Access Control Feature Activation Service Access and Setting Passwords Maintenance Access Control Feature Validation Diagnostic Routines and Error Reporting Remote Diagnostics Configuration Access Control Feature Activation Repair Issues Consumer Issues Copyright Issues: Digital Millennium Copyright Act and World Intellectual Property Organization Copyrightable Code Litigation and Legislation End-User Litigation Competitive Attacks Legislative Efforts Summary Notes Service Parts Introduction Proprietary Parts Commodity Parts FRAND/RAND Parts Original Parts Plug Compatible Parts Remanufactured Parts Refurbished Machines Gray Market Parts Counterfeit Parts Used Parts Obsolete Parts Summary Notes Service Restoration and Support Process Introduction Reporting Call Centers and Ticketing Systems Nonticketed Events Specialist Hand Off Severity and Call Triage The Service Level Agreement Service Entitlement Database Diagnostics Specialist Handling Technicians Closing Tickets Categories of Repair Monitoring the Service Level Agreement Reverse Logistics Return Merchandise Authorization Monitoring Summary Building Blocks of the Machine: What Breaks and Why Introduction Basic Hardware Components Circuits Semiconductors Simple Semiconductors: Transistors, Resistors, and Diodes Integrated Circuits Chips Capacitors Printed Circuit Boards Power Supplies and Fans Batteries Controllers External Connections Central Processing Units Specialized Processors Memory Channels Reliability Issues of Components and Materials Summary Notes Repair Issues by Product Type Introduction Printed Circuit Boards Central Processors Environmental Damage Manufacturing Defects Machine Code Peripherals Tape Drives Disk Drives Solid State Disks Output Devices Networking Devices Displays Accessories: Cabinets, Frames, and Connectors Cabinets, Frames, and Connectors Summary Notes CONTROLLING PRODUCT LIFE Building Blocks of Using the Machine: Software Layers Introduction Software Layers Top Layer Content and Media Applications In-the-Box Applications Commercially Developed Applications Homegrown Applications Customized Applications Horizontal and Vertical Applications Mobile "Apps" Programming Languages Operating Systems Patching Peripheral Drivers Security Patches Systems Software (Accessories and Utilities) License Forms Systems Software Support Machine Programming Machine Languages, Programmable Language Code, Assembler, and More Accounting for Software Ownership of Embedded Software Licensed Software and Residual Value Purchase, Rental, and Leasing of Software Summary Notes Software Support Issues Introduction Developer Control Source Code Perpetual License License to Use/Right to Use Rental Pay for Use Open Domain Version-Level Tracking Product and Version-Level Conflicts Software Maintenance Jailbreaking Application System Hardware Dependencies Configuration-Dependent Licensing Models Usage-Based Licensing Models "Black Box"-Type Products Virtualization Cloud and Software as a Service Summary Notes Support Restrictions to Control Purchases Introduction Advantages for Vendors Account Control Wolves in the Hen House Tactic: Controlling the Request for Proposal and Award Tactic: Monolithic Purchases Tactic: Strategic Partnerships Tactic: Trimming the Vendor List Tactic: License Audits and Compliance Tactic: Return to Service Premium Planned Obsolescence Tactic: Require New Versions to Access Routine Functions Tactic: Manipulate End of Support and End of Service Life Tactic: Refuse to Allow Transfer of Equipment, or Prepaid Support Contracts to Secondary Buyers Tactic: Restricted License Transfer, or Software Maintenance Contract within the Enterprise Tactic: Refusal to Transfer Licenses or Maintenance Contracts to a Secondary Market Buyer Tactic: Refusal to Allow a Used Market for Licensed Products Fear, Uncertainty, and Doubt Without the Vendor Maintenance Agreements, the Equipment Will Fail at Higher Rates More Costly Service Contracts Result in Better Service Fear of Complexity Multivendor Conflicts Hardware FUD Physical FUD Physical Obsolescence Fear of Losing Defect Support Confusing Hardware Defect Support with Software Defect Support Fear of Inadequate Skills Fear of Counterfeit Parts Summary Note Business Intelligence for Support and Maintenance Introduction Uses of Analytics System Availability Total Cost of Ownership Basic Measurements Sources of Analytics Manufacturers Hardware Maintenance Providers Anecdotal Sources Self-Evaluation Software Failure Rate Useful Life Tolerances and Specifications Future Proofing Summary End of Service Life and Obsolescence Introduction Defining End of Service Life Sweating Assets Practical versus Physical Obsolescence Refresh and Replacement Programs Failure-Based Refresh Programs Warranty-Based Refresh Programs Rolling Refresh Programs Bring Your Own Device Service Parts for the Long Haul Secondary Markets Principle: Used Equipment Is the Best Source of Parts outside the Manufacturer Service Desk Principle: Broken Machines Do Not Sell Unless Repairable Recycling and Repurposing Used Equipment Sales Donations and Employee Sales Recycling Summary Notes Index

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