Linux vs. Microsoft TCO Comparison

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external consultants for both Windows and Linux, but this time we have allocated threetimes as much to the Linux consultancy in order to respond to feedback we received fromthe first version of this document.Total Cost of Specialist Windows Consultancy Services = $45,000Total Cost of Specialist Linux Consultancy Services = $135,000TrainingWe 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.Total Cost of Training $30,000All 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 36 of 44
Appendix 1Pricing Research MethodSoftware and HardwareTo retrieve software and hardware prices, we visited the official sites for the vendors cited.We then navigated the site or used web-based cost-calculators until a price was found forthe product required. Although this may have not been the cheapest price, we considerthat the price on the official site would be the most authoritative price and would be trulyindicative. We have provided all web addresses to these pricing web pages within thisdocument for your reference (see also Appendix 2) .When it came to Microsoft licensing agreements, the price of the software was taken fromthe vendor's site and if additional user licenses were needed, their price (once again takenfrom the Microsoft website) was added onto the cost of the product. We also includedMicrosoft's pricing for Software Assurance.Salaries, Services and MiscellaneousFor staff salaries, we researched the costs for both Linux and Windows platform staff viaonline staff recruitment and placement firms. For consultancy and miscellaneous costs,we chose a medium, industry-generic cost figure and applied it equally to both Linux andWindows costing models. We've also used a mid-level cost for business-grade ISPconnectivity, as indicated on our chosen ISP's pricing page.Pre-installed Operating SystemsMany organisations purchase workstations with software such as Windows XP or 2000Professional pre-installed. As the purchase price of the operating system (Windows XP,2000) is included in the purchase price of the workstation we have had to remove theOriginal Equipment Manufacture (OEM) licence costs from our calculations. As such, it isassumed that all server and workstation hardware is purchased with no operating systemlicense whatsoever, and that this operating system license cost is now to be included in ourcalculations as a separate line-item.A Note on Upgrading Older Windows Operating SystemsAs you by now would have realised, this study makes the assumption that the modelorganisation in question is implementing systems and application software from scratch.Many people will likely ask if this is a realistic model for making price comparisons, asmany organisations in the real-world would likely already have many older versions ofWindows (95, 98) operating systems and Microsoft productivity software (Office 95, 97)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 37 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 and 18: Applications, SalariesOffice Produc
Page 19 and 20: Internet ConnectivityService Charge
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: Salaries and Services CostsNetwork
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

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