Linux vs. Microsoft TCO Comparison

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junior support person. We will base the salary costs on numbers produced by onlineplacement and search firm figures. The staff chosen to fill the roles will be trained andexpert in either of our competing Microsoft or Linux platforms.Installation and Configuration CostsAs we will have in-house staff trained in our platforms of choice, we will be using theirexpertise to design, build and configure our network, servers and workstations. The costsof doing so will be covered by their annual salaries.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 18 of 44
Internet ConnectivityService ChargesThe monthly Internet connectivity bill will be likely to vary greatly based on both usageand the country in which our example organisation is located. Some countries haveexpensive dial-up or timed local connections, others have high broadband connectivitycosts. Rather than look for the lowest cost or highest cost, we will settle on an Internetservice plan from a mid-tier provider, in a mid-level cost country.Consultancy feesAs with most organisations that sustain an IT infrastructure, our example organisation willhave the sporadic need to invoke industry-sector experts to fulfil requirements which falloutside the knowledge boundaries and skill-sets of the organisation's core permanent staff.It is once again difficult to provide an accurate cost for these required services, but arealistic figure of US$45,000 over the lifetime of this TCO model has been specified, andapplied to the Microsoft 16 solution. We have however decided to apply a different coststructure to the Linux environment.In the first version of this document, we received feedback along the lines that Windowsplatforms would be easier and less costly to acquire external support for, as they have beenin widespread use for a longer period of time. Our experience disputes this, but for thepurposes of responding to these requests, we have weighted external consultancy fees forLinux differently than for Windows.For both the Standard and Enterprise Linux solutions a figure of triple the allocation (to$135,000) of the Microsoft consultancy fee will be used. In the case of the EnterpriseLinux solution this will be above and beyond the consultancy and support incorporatedalready with the Enterprise Linux products.TrainingWe will allocate US$30,000 for training for our organisation's staff over the lifetime ofthis TCO model. With this budget allocation, they will be trained for increasedcompetence in either of the Microsoft Windows or Linux open source platforms bycommensurate commercial training firms.16 Although the Microsoft Software Assurance program includes some support, that level of supportexplicitly excludes support that is “more proactive and consultative in nature” - Microsoft clientsrequiring those services are advised by Microsoft to obtain a Premium Services support contract.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 19 of 44
Page 1 and 2: Linux vs. WindowsTotal Cost of Owne
Page 3 and 4: Table of ContentsDisclaimer........
Page 5 and 6: oth the altered state of the IT ind
Page 7 and 8: IntroductionIn early 2002, Cybersou
Page 9 and 10: A Note on MethodologyWhen the first
Page 11 and 12: Kusnetzky) in a interview published
Page 13 and 14: A Look at Migration CostsOne of the
Page 15 and 16: Total Cost of OwnershipHardware, Pl
Page 17: Applications, SalariesOffice Produc
Page 21 and 22: Windows Platform SolutionFor our Wi
Page 23 and 24: Linux Platform Standard SolutionFor
Page 25 and 26: Product Price (USD) Comments16 CPU
Page 27 and 28: MicrosoftWindowsLinux(Standard)Linu
Page 29 and 30: Software Licence CostsThe following
Page 31 and 32: Linux Enterprise Solution Software
Page 33 and 34: 245 x Generic WorkstationsIBM Think
Page 35 and 36: Salaries and Services CostsNetwork
Page 37 and 38: Appendix 1Pricing Research MethodSo
Page 39 and 40: Appendix 2Software Pricing Resource
Page 41 and 42: Appendix 3Hardware and Services Pri
Page 43 and 44: under.Linux, according to IDC (http

Linux vs. Microsoft TCO Comparison

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