The Hardware / Personnel Cost Relationship: Separating Fact from Fancy

Abstract

Few MIS managers have not seen a diagram that depicts the relationship between falling hardware costs and rising personnel costs. This may be the most pervasive diagram in the DP industry, and the conclusions that are drawn from it vary —it has been cited in everything from justifications of user-friendly software to end-user productivity strategies. This article assesses the real relationship between hardware and personnel costs and shows that some very misleading conclusions are being based on this popularly perceived hardware/personnel cost relationship.

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Notes on contributors

William H. Inmon

William H. Inmon is a senior principal with American Management Systems in Denver. During his 17-year career in data processing, he has held a variety of support and management positions with a large bank, a major computer manufacturer, and an oil company. An acknowledged authority on data base management systems and fourth-generation languages, he is a frequent speaker at national and international conferences and seminars and a widely published author of books and articles in the information systems management field.