Raytheon Software Procurement Model
Client: Raytheon Corp.
Team: Ellen Cieszkiewicz, Chuck Haley, Heather Schofield
Faculty advisor: Dr. Richard Barr Year: 2008
Documents: Final report, final presentation
Raytheon supplies its customers, mainly the government, with programs they utilize for important projects. It is Raytheon’s job to not only purchase these programs but also keep them regularly updated. Some of the software vendors that Raytheon purchases licenses from include but are not limited to Sun Microsystems, Adobe and Oracle. Needed is a means of optimizing the licensing plan, which might save hundreds of thousands of dollars annually.
Prior to initiating our project, Raytheon had a limited way of tracking which different programs need maintenance of the same software at a given time. For example, Project A and Project B may both be using Oracle. If Oracle needs maintenance at the same time in Project A and B there is currently no way of tracking that. In order to save the company money by buying these licenses from the different vendors in bulk, Raytheon needs a system to do so. Each of the vendors offers different discount levels that enable Raytheon to save money when they buy at certain quantities.
The model we have created takes into account theses discounts over a one year period and maximizes savings. The model also considers the different projects that need the same software maintenance and schedules the buying of maintenance so that discounts can be utilized to their maximum potential. Our group has found that by using the mathematical model we have created and the data supplied to us that money can be saved in purchasing renewal licenses and maintenance.