Linux vs. Microsoft TCO Comparison

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Red Hat Enterprise Linux Solution vs Microsoft SolutionMicrosoftRed HatSavingsPercentageSolutionEnterpriseAchieved bySavedLinuxUsing OpenSolutionSourceExisting hardware& infrastructure isused $1,066,712 $781,279 $285,433 27%New hardware &infrastructure ispurchased $1,366,883 $1,111,450 $255,433 19%Linux vs Windows TCO Comparison$1,400,000.00$1,300,000.00$1,200,000.00$1,100,000.00$1,000,000.00$900,000.00$800,000.00$700,000.00$600,000.00$500,000.00$400,000.00$300,000.00$200,000.00Standard LinuxRed HatEnterprise LinuxMicrosoft$0.00Using Existing HardwareUsing New HardwareThroughout this document all prices are in US$ for ease of conversionto your currency, and correct as of 2004-09-16.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 6 of 44
IntroductionIn early 2002, Cybersource undertook a study into the differences in total cost ofownership between Linux and Open Source software on the one hand, and Microsoft'soperating systems and applications on the other. Total cost of ownership is a measure ofthe total costs which each technology platform will incur for an organisation deployingthat platform.In late 2004, Open Source Victoria (OSV), an industry cluster promoting open standardsand open source in business, government and education, requested an updated andimproved version of that initial document. This is part of a documentation set that OSV ispreparing to assist organisations considering the adoption of Linux and open sourcesolutions.This TCO comparison will be available online from now on at:http:// www.cybersource.com.au /about/linux _vs_windows_ tco _ comparison.pdfThis report is segmented into a number of sections Firstly, we cover the reasoning andmethodology of the study itself. We also undertake a literature review, briefly examiningother TCO studies which have arisen since we published our previous study.We will also discuss research which has been undertaken recently looking into the costs ofmigration from Windows to Linux. Whilst this study isn't intended to provide acomparison of the costs of migration, we consider this to be a topic of broad interest, sooffer what information we have found.Additionally, we look at research which discusses the usability differences between Linuxand Windows. This has bearing on calculating the costs of migration of staff from oneplatform to the other, as well as for calculating work efficiency differences between thesetwo platforms.How We've Tipped the Scales In Microsoft's FavourCybersource is known throughout the industry as a provider of Linux and open sourcesolutions. There may therefore be a perceived bias towards these platforms. To counterthis, we have prepared a totally transparent and open model where every single cost andassumption is documented and referenced. However, we've gone even further. We'vetipped the scales markedly in Microsoft's favour. We've done this in four ways.There exists survey research 1 by the Robert Frances Group which indicates that it takes82% fewer resources to support Linux systems than Windows systems. If we applied theseresults to our model, expenses for the Linux side of the ledger would drop markedly. Sowe don't include them.We have not included the costs of malware; viruses, spyware, worms, keyloggers, adware1 http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2907876,00.htmlAll 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 7 of 44
Page 1 and 2: Linux vs. WindowsTotal Cost of Owne
Page 3 and 4: Table of ContentsDisclaimer........
Page 5: oth the altered state of the IT ind
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 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

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