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Technology Stocks : Information Architects (IARC): E-Commerce & EIP
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To: Jeffrey S. Mitchell who wrote (1760)8/12/1997 2:46:00 AM
From: tech   of 10786
 
Jeff, one question that has been bugging me for a while.

With the contracts they presently have, I think it would be fair to say that they may have about 1 billion lines of code they must convert. That is counting that DuPont will give them 1/2 of the project which should consist of 500 million lines. They also have two banks that should give them about 100 million lines each. Now if we say that the M.D. contract, the 3M and the other contracts will consist of another 200 to 300 million lines. I think that saying they currently have near 1 billion lines in the pipeline would be a fair estimate.

Now the figures you posted a while back had ALYD having a capacity of
220 million lines per year, using 22 teams with 5 people per team.

If those figures are correct, how are they going to complete almost 1 billion lines by the year 2000 ? I know that the simple answer is that they are in the process of adding more people and teams, but this 1 billion figure is a est. of current contracts. Every new contract they have is going to add to that figure.

We have 2 1/2 years left, and putting testing aside for the moment, that gives them the ability to do only 550 million lines with current capacity. It seems that they would have to more than double their current capacity to meet the demand of current projects alone.

With the world wide shortage of programmers and the fact that the price per body is increasing all the time, isn't this going to become a burden on their overhead ?

Now if we say it is not an issue because no one can test that much code right now anyway, then the problem is that there is no way that companies like duPont or other ones that have a huge amount of code will be done in time.

This further adds to the problem because I believe that initial testing takes about 3 to 4 weeks for the fist lines of code delivered and from that point it can be speeded up.

If everyone is able to only complete as much code as can be tested then it doesn't matter if ALYD has 1 billion lines worth of code or 10 billion. They will be paid on a "as you complete" basis and only be able to proceed as fast as testing will allow them.
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