What Originally Drew People to the IBM Midrange Platform, and What Will it Take To Do That Again?

As I spend my normal 20 minutes after a busy day looking through Linked In posts and comments that LI thinks I'm interested in, I see a lot of the same thing.

Bickering.  Fighting.  Self-Righteousness.

So, I thought I'd spend just a few more minutes penning a blog entry.

When my career first started, I was lucky enough to get an internship at a local Clinic in which they used the AS/400 and RPG.  I believe they were on V2R3 as a matter of fact.

I really wanted the COBOL job, though.  But RPG was fate, I guess.

I fell in love with it.  Sure, it wasn't what I was used to having self-taught myself BASIC at the age of 8 or 9 on a TRS-80 Color Computer and then playing with languages such as Ada, Modula-II, C, etc in college.  What was this RPG?  Assembler Code?

But, once applied to real world situations I saw the genius behind it.  It actually got things done.  I quickly became comfortable with what really was nothing more than another syntax to learn.

I remember back in the days of News400 and Midrange Computing magazines (of which I was lucky enough to be allowed to write for!). People were excited to be on the platform.  We were excited in sharing our accomplishments, and we were excited to wait for the next issue when we were again given tips to help us in our everyday job.

We all got along.  We defended our platform with every last breath.

Then came the first name change.  Then another.  Then another.

It was with these name changes that I started to hear inklings of "The AS/400 is dead" or "RPG is dead".

Yes, maybe the name "AS/400" was dead in the eyes of IBM.  But not to those of us who love the platform for what it is, not what it's called.

I try very hard to always call it the IBM i (or the current name).  But that is just nomenclature.

Just like we Americans call tissues "Kleenex", this wonderful midrange machine and operating system that seemed like it could do it all was forever branded an AS/400, or at least until the die hard platform lovers are no longer in the picture.

Maybe 30 years from now we will only hear wild tales of this so called AS/400 that actually allowed work to get done.  Back before the internet.  Back before Facebook, Twitter and Linked In.  Back when real work was done.

But to he point...

What made the machine popular?  How did IBM sell those first few machines, and how did it catch on?

Instead of scaring others away with the bickering, lets try and remember why we love the machine like we do, and find out what made it great in the first place.

But, judging from the comments on this site, it appears things haven't really changed for over 11 years.

Is Net 90 The New Norm for Payment Terms (or, Are Small Businesses Now Banks?)

I've been running my small business now for over 20 years.  One thing I'm finding is that payment terms are changing... changing in the sense that the customer is making their own rules.

The main trend seems to be customers setting their own payment terms.  This is something I have not seen in the past very often, but it is becoming much more frequent.  And the main problem is the length of the terms they are asking for.

Even in the case where our quotes and invoices clearly state "Net 30" for the terms (which we feel is much more than fair), we see POs come in with Net 45, Net 60, Net 90 or even higher.

"We even have received a payment from one customer that gave themselves a discount for paying in less than 45 days.  They actually gave themselves a discount."

We even have received a payment from one customer that gave themselves a discount for paying in less than 45 days.  They actually gave themselves a discount.  This was straightened out in the end, but this really got me thinking...

If I walk into McDonalds, order a Big Mac, eat it and then walk out and tell them "I'll pay you in 90 days".  Or better yet, if the total was $5, I can't give them $3 because I paid before my own decided payment terms of net 90.

I think this pattern of having companies not only set their own terms, but lengthening those terms to over 30 days says a lot about the actual state of the economy.

In a sense, when payment is held for many days, the small business and provider of the product is, in a sense, becoming a bank.  The customer is literally borrowing money for that time period from the business or vendor at zero percent interest.  But at the same time, while that money is being "floated", they are making interest on it in most cases.

I'm sure if we, as small business owners with our payments held "hostage", started adding on late fees, finance charges, and/or charging interest that may help a little with the expedience of payment, but then you will need to hire another part time employee just to chase down these fees as well.  And then the "games" begin making business transactions so complicated it is just silly.

Filling out multiple vendor setup forms with duplicate information on each (as well as providing a W9) tells me that there really is a need that could be met by setting up an electronic vendor setup and payment system.  When 7 out of 10 companies request all of this information on paper whether it is faxed or scanned an emailed, it makes me think how far behind accounting really is in this digital age.

It's almost as if we are still treating the AP department like they are handwriting checks.  Add that on top of most wanting to float the payments for more than 30 days and I could see how it may be virtually impossible to print a check in less than 60 days to begin with.

When I get my bills, I pay them before or the day they're due.  Why should this be any different?

I'd love to hear from other small business owners seeing this same trend, and how you're dealing with it, if at all.

IBM i Legacy Modernization and the RPG Programmer

There has always been a lot of talk about "Modernization" in the IBM i community.  

With all the new technologies in the world, some becoming available to the IBM i, there's no shortage of subject matter.

Most of this legacy modernization in the IBM i world is directed at RPG programmers, as it always has been.

As an overused example, years ago we were told if we don't learn Java we would be flipping burgers.  

A few years after that we were pushed to use EGL.

Now we're told that we need to learn PHP, Perl, Ruby, Node.js or some other new language that has been (or will be) "ported" to the IBM i.

In the coming years, what will be next?  What will it be that will "replace" RPG, only to end up not replacing RPG?

The Reactions

With each of these new technologies we get a range of reaction from our community.  

Some take the "You must do this or you will fail!" route.  

Others suggest you can keep your current RPG applications, but any and all new development should be done with this new latest and greatest technology.

Finally, some see that these new technologies can be a great addition to your programming arsenal and can be used if and when appropriate.  (This is the camp I fit in for the most part.)

So I have to ask, have we reached the point where RPG is no longer useful, or that we've done all we can do with it?  I don't believe this to be the case at all.

What is "Modern"?

Before we can get into what Modernization means, we should probably define it.

Yep, there's the problem.  Modern is in the eye of the beholder.

Modern to an RPG/III programmer could be free-format RPG.  

Modern could be being able to convert your spooled files to PDF and emailing them.

Modern could be replacing all of your copied and pasted code with ILE subprocedures.

But when an RPG programmer looks at the latest craze in development, do they think "modern" or "unnecessary for the most part"?  After all, they're working on the IBM i.  A machine that can do it all.

Most RPG programmers create and maintain applications to get the job done.  This normally means  applications that crunch numbers (AP, AR, Inventory, etc), perform reporting and keep businesses running.   Not glorious by any means, but very necessary.

Interfacing an inventory application with Twitter or a Blog is the last thing on most application programmer's minds.  

So "what is modern" is a hard question to answer depending on your point of view.  

This is probably why the use of the term "Modernization" is popular... there's no definitive answer to what "modern" is.  We can just label anything (except RPG it seems) as modern.

Why Target RPG Programmers?

It seems that the modernization message is mostly targeted at RPG programmers.  But saying this targeting is being done deliberately would be unfair.  

The fact is that RPG programmers just happen to make up the vast majority of developers on the IBM i.  Because of that, industry leaders, writers and pundits, by default, have an audience of mostly RPG programmers.

Do we really believe that all of these technologies are being ported to the IBM i so that RPG programmers will be forced to drop RPG and use them?  

No!  In fact, it's quite the opposite.  I feel IBM is pushing new technologies to draw a new crowd of developers to the hardware using something they are comfortable with as "bait".

Think of it this way.  If Microsoft ported RPG to PCs, do you think VB, C# or .Net programmers would argue among themselves saying "you have to modernize and start using RPG!"  

Of course not.  To quote Violet Crawley, "That's preposterous!"  (But, it would be pretty cool!)

So why then are RPG programmers being targeted for these new technologies instead of those working on other hardware platforms?  

Could it be the leaders and pundits in our world are just sharing their ideas with their standard audience base with whom they are most comfortable?

Reach Out!

I challenge the leaders and pundits in our industry to this:

Instead of trying to convert or shame the RPG programmer into using the latest and greatest technology that they focus your energies on those on other platforms!  

Step out of your comfort zone!

Extend your audience base to those outside the IBM i world and try to win them over!  

Sell the IBM i as the "do it all system" it is instead of trying to convert RPG programmers to the language of the day.

Converting RPG programmers to use the flavor of the month won't make IBM any more sales to grow our community.

But getting programmers from other platforms to switch to the IBM i will.

When Product Support Becomes Education

I've been an Independent Software Vendor (ISV) for over 20 years now providing IT solutions for the IBM i community (known previously as the AS/400, iSeries, System i, etc).  

As with any product or solution, support is one of the biggest selling points, and to me, one of the most important offerings from an ISV.  That's why we always strive to give the absolute best support possible.  Especially nights, weekends and holidays (when most IT professionals are doing upgrades and enhancements).

But when does support for your product stop being support, and start to become support for the hardware, the OS, or even fall into the category of "education"?  

For example, a customer just installed new hardware and calls support because email isn't working.  The email client they are using is your software which they transferred from another machine.  

The support call ends up being a 2 hour crash course educating your customer or client on some basic topics such as how mail routers, DNS servers and  TCPIP work, and how to set them up properly.  Most likely these things were set up on the old hardware by someone else, and not set up on the new hardware.   

Is this type of support expected?  Should it be billable?  If so, do you just refuse to help if they don't want to be billed?  

The reason I pose this question is over the past 20 years I've personally dealt with thousands of customers all over the world.  Within that group there is also varying degrees of education and technical know-how.

On one end of the spectrum there are those that take a piece of software, download it, install it and get it working.  I rarely hear from them (except for enhancements requests, which we love to get!)

On the other end of the spectrum there are those that need assistance creating a job log, adding a library to a library list, importing SSL Certificate Authorities and everything in between.

There is a line where product support becomes "education" and probably should be a billable event.

I would be curious to hear from other successful ISVs who include support with the cost of their product on how you handle similar situations.

I also would be curious to hear what customers expect from ISVs in the same situation.

Nexus State Sales and Income Taxes - Taxation Without Representation?

Recently my small business (which is located only in Minnesota) was audited by the state of Wisconsin to see if my company has "nexus" in their state.

What is "nexus"?  No, not a mobile device from Google...

According to the Supreme Court of the United States (SCOTUS) it is that a company has a "significant presence" in that state.  In other words, an office, a warehouse, employees traveling to the state to make sales, etc.

You may have heard of the "Amazon Tax".... yep, there is a relation here.

This definition of nexus is being overridden and redefined by some states.  Texas, New Mexico, and even before that Wisconsin which seems to have implemented their own rules and laws referencing nexus.


Wisconsin in particular states that because you simply sold something, anything, to a customer in Wisconsin you have nexus.  This means any tangible or intangible good or service.  Even a software license key, as in my case.

In my research I've found it virtually impossible to find a list of states and their nexus definitions.  According to one state I've spoken with any competent tax accountant should already know this information.

Well, if the information isn't easily available, how are they to know?

How Did This Happen?
From what I can tell it's because it's easier to chase down one company that sells to thousands of people or companies than those thousands of people or companies who should be reporting and paying the "sales and use" tax on their own.

An individual or a company buys something from out of state.  They are not charged sales tax.  By law, this purchase is supposed to be reported on the purchaser's taxes and sales and use tax paid on the item(s).

Of course, not many do this.  So when an individual or company gets audited by the state they reside in these issues are found.  The state sees that the purchase was made from a company that is not located in their state so they immediately go after them, usually starting off with a "friendly" looking nexus questionnaire.

If that state's definition of nexus is like that of the state of Wisconsin, you'll be on the hook.  Not only for that year or the sales they found, but for every sale in every year previous to the current back to when the state decided to define nexus in a way that benefits them. 


Why Does Nexus Matter?
For most, it doesn't.  But, for small businesses, mainly web-based, we are being targeted by states we have no physical presence in and being told we have to:

1. Collect, report and remit sales taxes for sales made to customers in that state
2. Pay individual income tax on the sales made in that state (this is very grey area, and each state uses some very odd calculations on state sales vs. percentage of all sales to figure this... in other words, what ever is in their favor)
3. If you haven't been doing this, pay late fees, interest, penalties and not to mention fees that your accountant will charge to do all this paperwork

So not only should you be prepared to spend a lot of money on this issue, but time as well.  And if you're a small business owner you know how precious time is.

Collecting sales tax alone for each state (which remember is divided into counties that have their own tax rates, special assessments, etc) alone is a daunting task.  Anyone who uses Quick Books knows that setting up tax rates and tax groups for one state alone is a formidable task... now imagine doing that for 3 states... or 50.

In addition you must monthly, quarterly or yearly (depending on how the state sets you up) report and remit the sales tax for each state.

Ugh.

My Personal Story
My personal story dealing with nexus taxes, while still ongoing, has caused much hair loss and alcoholism (well, maybe that was already there... let's just say you may want to invest in Johnny Walker stocks if this keeps up.)
 

 First I received a nexus questionnaire from the state of Wisconsin.    I consulted with my accountant and he said to fill it out and send it back.  So I did.

I then received a letter that said "yep, you have nexus in Wisconsin...  here are the tax forms for sales taxes for your business as well as personal income tax for 2009-2014... complete them." 

So, what I did was go back into my records and find all my Wisconsin sales back to 2009.  I gave that to my accountant and he was able to figure out the Wisconsin state income tax due as well as file ammended returns for the state of Minnesota (where I reside).

In other words, what I got to do was pay Wisconsin $xxx.xx amount and get that same amount as a refund on my Minnesota state taxes.  (Minus fees to file state tax forms for 6 years for 2 different states...)

Next I had to contact each customer I sold products to that resided in Wisconsin to find out if they paid the sales and use tax on the purchase.  Thank goodness most did. 

I attribute that to the fact that these are real people that don't mean harm, mean to follow the laws, and are still good people  They are not politicians just looking for a quick buck, even if it means spending ten to get that one.

So, all the paperwork gets sent into the state of WI.  All the payments and penalties are paid.  Whew... thank God that's over... or is it?

A few weeks later I get a letter regarding the sales tax.  It was another bill for penalties and late fees (that I thought I had already paid).  Nope, these were separate mainly because of the late filing.

A couple weeks after that I get one regarding my personal income tax.  Again, late fees, penalties and a couple years where they changed some of the income reportings that my accountant had done (which will require MORE ammended returns to MN).

For both of these last situations I was given one week (yes, 7 days) to pay the balance on these fees.  If that isn't bullying I don't know what is.  A week is not nearly enough time for me to consult with my accountant.  But that's probably what they're counting on.

The Bright Side?
The bright side to this may be that the income tax you pay to a state that claims you have nexus in can be deducted from the income you will pay for the state you live in.  That means you're not paying taxes twice to two different states on the same income.

This also means much more paperwork, so you're still spending more on your accounting fees. 

For this entire fiasco (which is still ongoing) I haven't received my accountant's bill yet.  And I dread it.


Guess what, Scott Walker... you'll never get my vote.  Then again, even though I'm paying income tax in Wisconsin that won't matter unless you manage to make it to the presidency... since I can't vote locally in your state.

How is that not taxation without representation? 

The Bigger Picture
This is just another example of how the tax code, federal, state and local, has gotten so out of hand that it's impossible to comply with (much less be aware) all the rules.

I really hope a fair or flat tax happens, but why would it?  It would only be of  benefit to us, the people, not the "political class" that has grown too comfortable spending our money.

11/16/2015 Update:
I have received letters from the state of Wisconsin regarding the appeal letters my accountant wrote up.  They were basically pleas to ask that the 2nd round of interest and penalties be waived since we were unaware of this law.

Of course, the request was denied and I was only given 30 days to pay from that point.   Of course, again not enough time to consult with my accountant.

I am mailing the checks for payment today speaking with my accountant and deciding going to court won't be worth it.  But, I assume I'll be assessed more late payments since it's past their 30 day limit.  (Remember, the original time frame was 10 days... 10 days to get support from a tax accountant for something like this... that's insane...)

When any government entity starts looking for ways to tie the hands of small business and rob them with outrageous fees and penalties because they pass laws that suit THEM, not their constituents (or in this case, neither.. just a small business from  a neighboring state) we know that something must be up with their own finances.

I've visited Wisconsin many times, and love the state.  The people are wonderful.  I've always called in "Minnesota, but prettier!"

But this whole event has left a terrible taste in my mouth (even worse than the one that was already there dealing with the Federal Tax Codes).

I hate to think what may be coming down the pipeline if Wisconsin (or any other state) is truely successful in this type of new age thievery.

Internet Sales Tax Bills, Nexus, and Everything else Wrong with the World.

Rarely to I get "pollitical"... and I hope this isn't taken as such.

But myself and my company were recently affected by these nexus/interent sales and use tax laws in a very negative way.  And we don't see it getting better.

I've been doing a lot of reading and this one hits home, so I thought I would share.

This was in response to this post:

http://dailysignal.com/2015/06/23/whats-wrong-with-the-latest-internet-sales-tax-bill/

My reply (on Google Plus only because to reply on the website to post you have to have a Facebook account, which I destroyed over 3 years ago at the same time I smoked my last cigarette after 30 plus years...  guess which was easier...)

States are already forcing small out of state businesses without a "real nexus" to collect and pay sales tax on their sales.   Can we find a list of these states... nope.  We just wait for the letter from the state with a questionnaire and let them decide if they feel we have nexus in their state or not.

For some states, that simply means the very fact that someone from their state purchased something from you, you have nexus.  Pretty convenient... for the state, but not for the small business owner.

If a federal law is passed that makes this process "easy" it may be a better thing.

Or it may be moot as it seems state laws override federal laws.

There are too many pundits making comments on these things vs those of us that are being affected by the already outrageous state laws that override the rulings of the SCOTUS and defining "nexus" in a way that suits them best.  Not in a way that encourages small business.

When a state such a Wisconsin sees that individuals and companies in their state are not claiming sales and use tax on items they purchase from out of state, they then go after the companies that sold it to them.

Ask me how I know.  Ask me if it's fair.  Ask me after paying thousands of dollars in income and sales taxes to Wisconsin, not to mention the penalties and accountant fees how I really feel.   Then ask me if I get to vote in Wisconsin.  Nope.  How is that not Taxation Without Representation?

Which brings me to a bigger point.  The entire tax code itself has turned into a 10000 headed monster that is just too complex.

Something needs to change.  And pundits, politicians, organizers and lawyers on either side of the fence that have never worked a real job or ran a real business are NOT the people we should be electing.

Please! No More QDLS!

Change is hard.  Some more than others.

But, I really don't understand why we as IBM i programmers, users, and administrators still are using the QDLS file system for anything.

I do understand that years ago it was easy to map a drive to QDLS, but we should be past that now and using NetServer to be able to treat our IBM i file system, including the IFS, as a network share in it's entirety.

QDLS has a few limitations that don't allow it to work with today's more complex applications.  The main two are:

8.3 File naming (yep, just like Windows 3.x).  
This means the maximum size of a file name can be 8 characters with a 3 character extension (unless IBM "fixed" this, which would have been as useful as fixing an old wooden wagon wheel to put on your Bently)

It doesn't allow multi-threading.  
This is important for any application that uses a file in the IFS (such as a Java application).  It just doesn't work.

With the rest of the IFS available without these limitdates why some stick to using QDLS, especially for new applications, is beyond me.  

We in the IBM i community do have that popular saying "if it isn't broke, why fix it".  To a point I agree with this.

But, I propose that anything using the QDLS file system these days IS broken.