Linux vs. Microsoft TCO Comparison

and support. The workstation system software will provide the necessary functionality forall the example organisation's staff to login, use a current-generation Graphical UserInterface to navigate to applications and provide base-level networking and access-securityfunctionality that is IT industry best-practice of the present day. The server systemsoftware will provide all the necessary standard functionality required by mostcomparable-sized organisations, including file and print sharing, email, Internetconnectivity and acceleration through a broadband connection, Server security(authenticated login), Internet security (perimeter firewall technology), internal knowledgemanagement server, external e-commerce solution, as well as the pre-requisite networkinfrastructure and support technologies needed by this list of services; i.e. SQL databaseservers, Domain Name Servers, etc.The cost of the operating system will be primarily calculated based on any per-seat andper-machine license costs as garnered from information provided by the operating systemvendors themselves. Additionally, Client Access Licences, if any, will also be added.Microsoft Software AssuranceOne important new platform provision from Microsoft is called Software Assurance.Microsoft customers acquire this value-add as a way to open the door to support andupgrade facilities. Software Assurance is calculated at either 25% of the purchase cost perannum for Microsoft server products or 29% of the purchase cost per annum for Microsoftdesktop products 14 . In order to comply with Microsoft's best-practice requirements for oursample organisation and to ensure the right to future upgrades, we've included SoftwareAssurance in our model.Red Hat Enterprise LinuxWhile users are able to obtain the same software for minimal or no cost, someorganisations may prefer to obtain the branded enterprise support from a tier-1 Linuxvendor such as Red Hat Inc. We have therefore included this option as one of the modelsin this updated TCO report. Red Hat provides a managed system updating service, alongwith various other support platforms 15 . Other Linux vendors, such Novell, also providesimilar packaged Linux support solutions which can also be used in determiningownership costs.14 http://www.microsoft.com/licensing/programs/sa/faq.mspx15 http://www.redhat.com/software/rhel/All text material Copyright © 2002, 2004 Cybersource® Pty. Ltd. (http://www.cybersource.com.au/).All trademarks are the property of their respective trademark holders. Document Build: 291 Page 16 of 44