Transcript
Linux vs. Windows
Total Cost of Ownership Comparison
An examination of the purchase and total operational costs of running an enterprise on Linux and Open Source software in comparison to Microsoft's Windows computer system platforms
This document was originally created by Cybersource Pty. Ltd in 2002. An update was subsequently funded by Open Source Victoria in 2004. You are free to re distribute it as widely as you wish, as long as it remains intact. You are also free to use, within your works, segments of the document under a fairuse clause.
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Disclaimer
The information contained herein represents Cybersource's initial commentary and analysis and has been obtained from sources believed to be reliable. Positions taken are subject to change as more information becomes available and further analysis is undertaken. Cybersource and Open Source Victoria disclaim all warranties as to the accuracy, completeness or adequacy of the information. Neither Cybersource nor Open Source Victoria shall have liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. It is recommended that enterprises considering a migration to, or implementation of, an Open Source solution undertake their own Total Cost of Ownership and Return On Investment evaluations, specific to their requirements, prior to any such implementation. This document can therefore be considered a firstpass template for such a sitespecific evaluation.
Acknowledgements
Cybersource gratefully acknowledges the support of Open Source Victoria in preparing this updated version of the Linux vs. Windows TCO Comparison document. Open Source Victoria is an industry cluster, funded by the State Government of Victoria, Australia. Open Source Victoria consists of over 80 Victorian firms and developers which provide services and technology related to Free and Open Source Software (FOSS.) Open Source Victoria offers marketing, advocacy and information referral services, and aims to raise the profile of FOSS in Victoria and work with other similar organisations across Australia. For more information visit: http:// www.osv.org.au /
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Table of Contents
Disclaimer...................................................................................................2
Acknowledgements.......................................................................................2
Executive Summary....................................................................................4
TCO: Summary of Results............................................................................5
Introduction.................................................................................................7 A Note on Methodology..............................................................................9 Alternative Studies....................................................................................10 A Look at Migration Costs.........................................................................13 Total Cost of Ownership...........................................................................15
Hardware, Platforms...................................................................................15 Applications, Salaries..................................................................................17 Service Charges.........................................................................................19 Windows Platform Solution.........................................................................21 Linux Platform Standard Solution...............................................................23 Linux Platform Enterprise Solution.............................................................24 Scenario 1: All New Hardware....................................................................26 Scenario 2: Pre-Existing Hardware.............................................................28
Software Licence Costs............................................................................29
Hardware Specification and Costs..............................................................32 Salaries and Services Costs.......................................................................35
Appendix 1................................................................................................37
Pricing Research Method............................................................................37
Appendix 2................................................................................................39
Software Pricing Resources........................................................................39
Appendix 3................................................................................................41
Hardware and Services Pricing...................................................................41
Appendix 4................................................................................................42
Information and References for Linux ........................................................42
About Cybersource...................................................................................44
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Executive Summary
There has been significant interest in the broader business community regarding the difference in the Total Cost of Ownership (TCO) between the Linux and Open Source solutions on one side and Microsoft's proprietary Windows solutions on the other. Microsoft software is licenced to users on a feeforproduct basis, whereas most Linux and open source applications are available free of charge. There are, however, installation and support costs to consider. We will take all such costs into consideration in the models we present. While it is difficult to qualitatively analyse all of the TCO factors at play, it is possible to produce a reasonable firstpass quantitative estimate for the instantiation and operation of a complete computer environment and network infrastructure for a smalltomedium organisation, to illuminate the TCO differences between these two competing platforms. To that end, we have modelled an organisation with 250 computerusing staff, an appropriate number of workstations, servers, Internet connectivity, an ebusiness system, network cabling and hardware, standard software, and salaries for IT professionals to establish and support this infrastructure and technology. We've also added IT training for the staff along with expenditure items for ancillary IT systems and external consulting staff to assist in making it all work. We ran the model with two options: firstly, purchasing brand new hardware and network infrastructure explicitly for establishing this organisation's computer systems; and secondly, using preexisting hardware and infrastructure. We also simulated the IT expenses over a 3 year period, mimicking the operational lifespan of many corporate computer systems, and amortising the purchase and installation costs over that period of time. Throughout this comparison, we will be presenting the raw data as well as the explicative methodologies used in the determination of the overall costs. While we have taken care and effort to present a holistic analysis, we are mindful that no organisation is likely to operate with the exact parameters presented here, and we therefore recommend the use of the document as a guide only. Consider this document as a primer which you can use to generate an enhanced TCO model specifically tailored for your organisation, by removing those line items which don't make sense for your site and adding additional costs which are specific to your organisation. Further, while this document makes express use of technology and services found within the IT industry, it is intended for an audience of nonIT executives within small to medium sized organisations.
What's New
We've expanded and improved this version of the TCO document in many ways, to reflect
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both the altered state of the IT industry and to enhance the validity and reality of the model. We add Microsoft's Software Assurance, which didn't exist three years ago, we've increased the level of expenses for external support and we've included training expenses for the first time. Additionally, since various industry players have begun to claim that Linux is no longer free of cost because some enterprise Linux suppliers have enacted mandatory support contract agreements, we have also added one of these suppliers into our comparison. Therefore, from this version on, we compare and contrast standard Linux, Red Hat Enterprise Linux and Microsoft platforms. We've also expanded the number of ancillary expenses, including such items as printers etc., to better reflect business realities.
TCO: Summary of Results
The final results are summarized in the tables below. One compares the TCO difference between Standard Linux (namely the one that isn't acquired with a prepaid support contract) and Microsoft's platform. The second compares Red Hat's managed Enterprise Linux and Microsoft's platform. Both models include costings for deployment on either a site's existing equipment or through a complete hardware refresh.
Standard Linux Solution vs. Microsoft Solution
Microsoft Solution Linux Standard Solution Savings Achieved by Using Open Source Percentage Saved
Existing hardware & infrastructure is used New hardware & infrastructure is purchased
$1,066,712
$682,090
$384,622
36%
$1,366,883
$1,012,260
$345,623
26%
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Red Hat Enterprise Linux Solution vs Microsoft Solution
Microsoft Solution Red Hat Enterprise Linux Solution Savings Achieved by Using Open Source Percentage Saved
Existing hardware & infrastructure is used New hardware & infrastructure is purchased
$1,066,712
$781,279
$285,433
27%
$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 $200,000.00 $0.00 Using Existing Hardware Using New Hardware
Standard Linux Red Hat Enterprise Linux Microsoft
Throughout this document all prices are in US$ for ease of conversion to your currency, and correct as of 20040916.
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Introduction
In early 2002, Cybersource undertook a study into the differences in total cost of ownership between Linux and Open Source software on the one hand, and Microsoft's operating systems and applications on the other. Total cost of ownership is a measure of the total costs which each technology platform will incur for an organisation deploying that platform. In late 2004, Open Source Victoria (OSV), an industry cluster promoting open standards and open source in business, government and education, requested an updated and improved version of that initial document. This is part of a documentation set that OSV is preparing to assist organisations considering the adoption of Linux and open source solutions. This TCO comparison will be available online from now on at: http:// www.cybersource.com.au /about/ linux _vs_windows_ tco _ comparison.pdf This report is segmented into a number of sections Firstly, we cover the reasoning and methodology of the study itself. We also undertake a literature review, briefly examining other 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 of migration from Windows to Linux. Whilst this study isn't intended to provide a comparison of the costs of migration, we consider this to be a topic of broad interest, so offer what information we have found. Additionally, we look at research which discusses the usability differences between Linux and Windows. This has bearing on calculating the costs of migration of staff from one platform to the other, as well as for calculating work efficiency differences between these two platforms.
How We've Tipped the Scales In Microsoft's Favour
Cybersource is known throughout the industry as a provider of Linux and open source solutions. There may therefore be a perceived bias towards these platforms. To counter this, we have prepared a totally transparent and open model where every single cost and assumption is documented and referenced. However, we've gone even further. We've tipped the scales markedly in Microsoft's favour. We've done this in four ways. There exists survey research1 by the Robert Frances Group which indicates that it takes 82% fewer resources to support Linux systems than Windows systems. If we applied these results to our model, expenses for the Linux side of the ledger would drop markedly. So we don't include them. We have not included the costs of malware; viruses, spyware, worms, keyloggers, adware
1 http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2907876,00.html
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etc. Every research point we have found suggests that this cost is essentially and predominantly a Windows platform cost, resulting in billions lost by business every year. The current list of viruses in the wild2 includes not a single Linux virus. Additionally, Dell recently released information that up to 90% of its Windows customers suffer from spyware and other malware infestations, resulting in one of that vendor's biggest support headaches. None of these costs have been allocated to the model we use for Windows. We have also not included the substantial costs which arise when systems need to be pre emptively rebooted or worse, crash, resulting in unscheduled downtime. All our research indicates that Linux rarely if ever suffers such problems and open source platforms on the whole are extremely robust. In fact, none of the most robust systems tracked by research firm Netcraft UK3 are Windows. All are open source platforms. System downtime costs can be astronomical, and if included in our model, would have resulted in further degradation of the Windows overall cost position. Finally, because Microsoft has claimed that introducing Linux into an environment will lead to increased reliance on external consultants, we have tripled the amount budgeted for such requirements on both the standard Linux and Red Hat Enterprise Linux models. In reality of course, this is unnecessary.
A Note on Red Hat Enterprise Linux
Much has been made in the press that Linux and open source are now becoming commercial. This is incorrect. Linux and open source have always been commercial. Open source licences like the GPL are not anticommercial, they are antilockin. Linuxvendor Red Hat's current offerings are as open source as standard Linux therefore. What you obtain when you pay for Red Hat Enterprise Linux is enterprisegrade support. It's your organisation's choice which model and which support premium you procure.
2 http://www.wildlist.org/WildList/RTWL.htm 3 http://uptime.netcraft.com/up/today/top.avg.html
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A Note on Methodology
When the first version of this TCO document was released, it was, to our knowledge, the first publicly available comparison of ownership costs between Linux/open source platforms and Microsoft's platform. The scenario policies we outlined were twofold. Firstly, to provide an even comparison, we assigned equivalent costs for all expenses unless corroborated research indicated otherwise. Secondly, we proposed a putative organisation which could form (by extension) the basis of most any other organisation. By doing this, we provide the platform from which readers can adapt this TCO model to their own smalltomedium sized organisation. Our sample enterprise houses 250 computer using staff members. In theory, it should be possible to take this sample and halve, it, double it, quadruple it, or multiply it by 10. In other words, to scale it to your own organisation's dimensions, There will be a point where your organisation's size will mean that a linearinterpolative approach to sizing will not necessarily work, but only you will be able to determine on where that point is, based on your understanding of your cost structures and IT requirements. When you reach that point, simply add those extra costs into this model as line items. Similarly, remove existing costs when you know that they don't apply to your situation. What makes this particular TCO study important is that we explain, in sometimes droning detail, each and every step of our analysis. We also provide sources to every stipulated line item cost, for both Linux/open source and Microsoft Windows platforms. To our knowledge, no other TCO model sampling does this. We hope to achieve two things by proffering this level of detail. Firstly, we want to dispel any notion that this study is in any way dubious. For each and every data point, you, the reader, are able to confirm our own research, results and conclusions. This provision marks the separation between hocuspocus reports and science. We don't expect you to trust us. We expect you to either verify or refute our findings. Secondly, by providing a detailed but generic model, we hope to provide you with the basis for your own TCO model. Simply take what we have provided and morph it into something which better befits your on organisation's requirements. The core, the hard work if you will, has been done already and awaits your patronage. As an organisation considering the TCO differences between Linux and Windows, you should ultimately not trust anyone's TCO study but your own. We provide you the basis for making this a reality. Finally, if, for whatever reason, you feel that our model is lacking in any way or doesn't provide a realworld implementation of a smallmediumenterprise computing infrastructure, we want you to tell us why. Contact Cybersource directly via
and speak your mind.
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Alternative Studies
Whilst Cybersource was perhaps the first to produce a TCO comparison of Linux and Windows, others have since followed. Each of these uses a different methodology. Each therefore can be considered orthogonal data points, if their methodology and raw data can be validated. It would thus be instructive to find at least two out of the group which give similar endresults. This could act as a form of confirmation for those two (or more) which offered similar such final results. Much like Science insists on the confirmation of methodology and results. We believe that at least one of the following studies confirms our study's results, thereby adding weight to the final numbers.
Robert Frances Group
The Robert Frances Group (RFG) conducted a survey to try and determine TCO comparison between Windows and Linux. Senior research analyst Chad Robinson found there were significantly lower labour costs for Linux, which allowed it to deliver a lower TCO compared to Windows. Quoting a ZDNet article about this research: In the survey, Linux admin salaries were slightly higher than Windows admins, with Linux at $71,400 per admin, and Windows at $68,500 per admin. But Linux admins took care of an average of 44 servers and Windows admins an average of 10. So the salary per processing unit was Linux, $12,010, and Windows, $52,060.4 Issues As yet, we haven't established our position on the veracity of this report's methodology and conclusions. We welcome input from readers on this matter,
IDC Windows vs Linux TCO report
In November of 2002 International Data Corporation was commissioned by Microsoft to prepare a TCO report contrasting Linux and Windows. This report, titled “Windows 2000 5 Versus Linux in Enterprise Computing” is available for you to download and read. Issues Cybersource has several issues with the IDC report. For starters, links and references to raw data are not provided. We are unable to confirm or invalidate the summary results which IDC sets forth in its report. Additionally, we noted the following comment by one of the report's authors (Dan
4 http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2907876,00.html 5 http://www.microsoft.com/windows2000/docs/TCO.pdf
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Kusnetzky) in a interview published in BusinessWeek magazine of March 20036. “One of the study's authors accuses Microsoft of stacking the deck. IDC analyst Dan Kusnetzky says the company selected scenarios that would inevitably be more costly using Linux.” If the report had indeed been following preselected scenarios stipulated by Microsoft, with no references to underlying methodology and raw data, then this should be borne in mind by any readers of the report.
Yankee Group's TCO & Migration Comparison
Laura DiDio from The Yankee Group published a supposedly independent TCO analysis in April 2004 titled "Linux, UNIX and Windows TCO Report, Part 1." This report7 was claimed to be a survey undertaken of 1,000 Clevel managers in IT positions in various organisations. The report's results were that the large majority of respondents believed that Windows still offered them better TCO. Issues There are a number of serious issues with this study. According to an analysis done by the IT legal investigative resource Groklaw, the reports' author used online ballots and survey tools to extract information from the respondents. The approach of using online surveys has generally been discredited as an invalid tool for such research. Secondly and more importantly, Ms. DiDio sourced her respondents from the Win2KNews mailing list operated by Sunbelt Software, a Microsoft Partner. This list and its operator cannot be judged as impartial for the purposes of providing an unbiased sampling pool. “Located in Tampa Bay, Florida, Sunbelt Software is the first and one of the largest providers of "bestofbreed" Windows NT, 2000/2003 utilities, supplying the tools necessary to support a Windows NT/2000 infrastructure. Working in partnership with innovative software developers, Sunbelt Software produces leading edge utilities and provides mainframe quality technical support. Sunbelt Software Inc. is a member of the 2001 Inc. 500 list of America's fastest growing companies. . . . "Sunbelt is a Microsoft Gold Certified Partner interested in what Windows network administrators need to solve their NT/2000 problems.
6 http://www.businessweek.com/magazine/content/03_09/b3822610_tc102.htm 7 http://download.microsoft.com/download/6/b/7/6b7c5fa1fcc9434eb1e6 5025b7f97786/YankeePart1.pdf 8 http://www.groklaw.net/article.php?story=20040324085956154
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We are constantly surveying NT/2000 administrators to determine which utilities are most in demand, and we then release bestofbreed solutions, leveraging the Internet as our primary marketing medium. Our client list contains over 90% of the Fortune 1000." Such information must be kept in mind when reading through this report.
Soreon/Research & Markets TCO Comparison
This is perhaps the first major independent study contrasting Linux against Microsoft software. The upshot is that Linux was shown to have a lower TCO by upto 30%. What makes this study of particular importance was that data was collected from interviews conducted with 50 different enterprises. This translates into a realworld demonstration, rather than just another model. Published by Soreon/Research and Markets the report9 (titled “Saving Cash: A Comparison of Open Source and Proprietary Software”) presents a detailed TCO calculation of Linux and open source software and Microsoft software. It offers case histories, studies into licensing costs, wage and training costs, etc. Out of the list presented, this study is perhaps the most clearly and openly independent. The firm which produced the report expressly establishes its methodology and offers its results. Interestingly out of all the various TCO studies presented here to provide a contrast to ours as a separate data point, this independent research closely matches our own results, thus providing some corroborative value.
9 http://www.researchandmarkets.com/reportinfo.asp?cat_id=0&report_id=227601
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A Look at Migration Costs
One of the most common questions we were asked when the first version of this TCO study was published, concerned the costs of migration from Windows to Linux and open source. Many readers were using the Microsoft Windows platform and associated applications and had followed our TCO model to reach a conclusion that adopting Linux would indeed result in lower ongoing TCO. What they sought were answers to questions on the ease and cost of migration to Linux. Whilst the focus of this TCO report is not to calculate the costs of migrating from Microsoft Windows to the Linux platform, we have undertaken initial research into this subject, which we will touch upon briefly here. We will also prepare a more comprehensive analysis to be published as a separate Windows to Linux Migration Cost report in the coming months.
Migrating to Open Source 90% Less than Upgrading Microsoft
To tide us over until that more comprehensive analysis is undertaken, we have found a recently released independent study by the Dutch government. In that report10, the researchers found that migrating to an open source desktop productivity platform was 90% less expensive than migrating to the new version of the Microsoft productivity platform. This included accounting for all the costs of migration, such as retraining, redevelopment of macros and addon applications, any conversion costs for existing documents etc. As this is only a single data point, it would be impossible to rely on the results as a template for all Microsofttoopen source migrations. However, it is independent research, undertaken by a public sector organisation which has no vested interest in either Microsoft's nor Linux's position in this matter. This research was also based on a large scale migration, involving over 2000 desktops. Certainly within the realm of organisational size we are considering in this TCO, There is another important point to consider when modelling your organisation's cost of upgrading to a newer version of Microsoft products versus the cost of migrating to Linux and open source. Most organisations will likely factor in the costs associated with a single upgradeversusmigration cycle. By this we mean an organisation calculating the cost of upgrading to the next version of the Microsoft product versus migrating to Linux, rather than including the subsequent upgrades as well. Many of the costs of upgrading to newer versions of Microsoft platforms (licences, software assurance etc.) have to be borne again and again. Most of the costs of migrating to Linux are borne once, during the initial migration. Any subsequent upgrades for that Linux platform occur with no licence costs nor software assurance costs. Therefore, to provide a more realistic appraisal and model of this scenario, you should include two or
10 http://europa.eu.int/ida/en/document/3434/469
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three full refresh lifecycles, stretching over a period of 510 years. Therefore rather than an upgrade versus migration, you contrast costs of an upgradeupgradeupgrade versus migrationupgradeupgrade process.
Usability Issues
Another factor which many correspondents raised on the release of the first version of this document, was the relative usability of Microsoft platforms and Linux. Our research into the topic found a study11 undertaken by industry analysts Relevantive. According to a PC World12 article on the study: "The researchers studied how easily two groups of users could perform tasks using the different operating systems. One group consisted of 60 users between 25 and 55 with computer skills but no prior experience with Linux or Windows XP. They tested the preconfigured open source software according to various criteria, such as the ease of creating and administrating new and existing files, copying CDs, and performing some basic office tasks, such as composing a text and sending an e mail." Also, the study calculated that the time difference to undertake these sets of activities between the two platforms, only differed by on 8%. Finally, the report concluded with: "80 percent of the Linux users believed that they needed only one week to become as competent with the new system as with their existing (presumably Windows Ed) one" According to the report therefore, average Windows users should be in a position to display competence and equivalent comfort with Linux after perhaps a week's usage. Such factors should be costed by any firm looking to migrate across from Windows to Linux desktops.
11 http://www.relevantive.de/Linux_e.html 12 http://www.pcworld.com/news/article/0,aid,111871,00.asp
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Total Cost of Ownership
Hardware, Platforms
In our analysis of the costs of installing and running IT for an organisation of 250 users, we will look to include the following purchase, installation and operation cost items:
New Workstation Hardware [optional]
We will run with two separate models. The first model will involve our postulated example organisation acquiring totally new workstation hardware. For our purposes, we will seek currentgeneration, middletier workstations, from a top of the line, internationallyrecognised computer firm, which supports both Microsoft and Linux13 platforms. We will also run another costing model, where it will be assumed that no additional workstation systems are needed and that our example organisation will rely on preexisting, insitu workstations for its users.
New Server Hardware [optional]
As with the workstations, in one model, we will acquire the necessary server hardware to accomplish our business needs, and in the other model, we will use the example organisation's alreadyacquired server hardware. The hardware will be sized and specified for the tasks assigned to each server, including Internet connectivity and security, email, e commerce, file and print serving and database serving. The hardware will be costed from the prices published by an internationallyrecognised computer firm, which supports both Microsoft and Linux platforms. Our second model will use preexisting servers, with no new acquisitions necessary.
New Network Infrastructure [optional]
All the user workstations and servers need to be linked via a viable network infrastructure. Rather than costing this item through specific hardware, cabling and installation costs, we will introduce a figure of US$100 per computingunit to connect to this infrastructure. This will be required for the first model, in which we are constructing a computer network from scratch. In the second model, we will assume this infrastructure exists, and our staff can simply plug the computing nodes into it.
Platform Software
All our workstations and servers will need an operating system in order to be able to perform any real functions. This, like the hardware, has a cost of acquisition, installation
13 Vendor hardware will actually be expected to support POSIX compliant Open Source operating systems, including Linux, NetBSD and OpenBSD.
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and support. The workstation system software will provide the necessary functionality for all the example organisation's staff to login, use a currentgeneration Graphical User Interface to navigate to applications and provide baselevel networking and accesssecurity functionality that is IT industry bestpractice of the present day. The server system software will provide all the necessary standard functionality required by most comparablesized organisations, including file and print sharing, email, Internet connectivity and acceleration through a broadband connection, Server security (authenticated login), Internet security (perimeter firewall technology), internal knowledge management server, external ecommerce solution, as well as the prerequisite network infrastructure and support technologies needed by this list of services; i.e. SQL database servers, Domain Name Servers, etc. The cost of the operating system will be primarily calculated based on any perseat and permachine license costs as garnered from information provided by the operating system vendors themselves. Additionally, Client Access Licences, if any, will also be added.
Microsoft Software Assurance
One important new platform provision from Microsoft is called Software Assurance. Microsoft customers acquire this valueadd as a way to open the door to support and upgrade facilities. Software Assurance is calculated at either 25% of the purchase cost per annum for Microsoft server products or 29% of the purchase cost per annum for Microsoft desktop products14. In order to comply with Microsoft's bestpractice requirements for our sample organisation and to ensure the right to future upgrades, we've included Software Assurance in our model.
Red Hat Enterprise Linux
While users are able to obtain the same software for minimal or no cost, some organisations may prefer to obtain the branded enterprise support from a tier1 Linux vendor such as Red Hat Inc. We have therefore included this option as one of the models in this updated TCO report. Red Hat provides a managed system updating service, along with various other support platforms15. Other Linux vendors, such Novell, also provide similar packaged Linux support solutions which can also be used in determining ownership costs.
14 http://www.microsoft.com/licensing/programs/sa/faq.mspx 15 http://www.redhat.com/software/rhel/
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Applications, Salaries
Office Productivity Applications
As with users in other organisations, our users will perform most of their daily computer related tasks on office productivity applications. Included in this are programs like a word processor, spreadsheet, Internetenabled email, web browsing, and related functions. Our applications need to interoperate with de facto industry standards, which means that they need to be able to comfortably open and save Microsoft Office file formats, use Internet communication protocol standards, as well as WorldWide Web Consortium (http://www.w3c.org) HTML and XML document standards. For costing our Windows platform solution, we will use primarily Microsoftproduced productivity applications and cost the solution based on the prices published by the vendor. For our Linux solution, we will use the new OpenOffice.org productivity suite (codeveloped by Sun Microsystems) along with the Mozilla Firefox web browser (co developed by Netscape, an AOL company) for viewing webpages and Thunderbird for email. The full details of these applications are provided in the following pages and from the relevant web sites (see Appendix 2 for URLs).
Line of Business Software
Almost all organisations require some custombuilt, or predeveloped industryspecific lineofbusiness applications for purposes such as accounts, billing, customer management and payroll. As each industry uses often different and differently costed instantiations of this type of software, it is difficult to give exact prices for our example organisation. For our purposes, we will allocate a reasonable costing for the sum total of this software, to both our Linux and Microsoft platform comparisons, to produce fair and equitable results.
Specific Technical Applications
Most organisations that use computer workstations have groups, such as small numbers of technical or specialist staff, which require and utilise specific technical applications, for such needs as desktop publishing (including generation of Adobe® PDFs), computer graphics manipulation or software development. Once again, as our example organisation cannot represent all possible industries, we will include a proportionally small number of workstations, equipped with this style of software, to provide a more realistic model.
Staff Salaries
Any organisation of a comparable size to our example organisation, requires IT services, provided either by an inhouse team, or outsourced to a service provider. We will cost the salaries and sundry expenses of having a team of 3 permanent staff, and include this in our analysis. The staff will comprise a senior, systemslevel person, a midtier generalist, and a
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junior support person. We will base the salary costs on numbers produced by online placement and search firm figures. The staff chosen to fill the roles will be trained and expert in either of our competing Microsoft or Linux platforms.
Installation and Configuration Costs
As we will have inhouse staff trained in our platforms of choice, we will be using their expertise to design, build and configure our network, servers and workstations. The costs of doing so will be covered by their annual salaries.
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Service Charges
Internet Connectivity
The monthly Internet connectivity bill will be likely to vary greatly based on both usage and the country in which our example organisation is located. Some countries have expensive dialup or timed local connections, others have high broadband connectivity costs. Rather than look for the lowest cost or highest cost, we will settle on an Internet service plan from a midtier provider, in a midlevel cost country.
Consultancy fees
As with most organisations that sustain an IT infrastructure, our example organisation will have the sporadic need to invoke industrysector experts to fulfil requirements which fall outside the knowledge boundaries and skillsets of the organisation's core permanent staff. It is once again difficult to provide an accurate cost for these required services, but a realistic figure of US$45,000 over the lifetime of this TCO model has been specified, and applied to the Microsoft16 solution. We have however decided to apply a different cost structure to the Linux environment. In the first version of this document, we received feedback along the lines that Windows platforms would be easier and less costly to acquire external support for, as they have been in widespread use for a longer period of time. Our experience disputes this, but for the purposes of responding to these requests, we have weighted external consultancy fees for Linux 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 Enterprise Linux solution this will be above and beyond the consultancy and support incorporated already with the Enterprise Linux products.
Training
We will allocate US$30,000 for training for our organisation's staff over the lifetime of this TCO model. With this budget allocation, they will be trained for increased competence in either of the Microsoft Windows or Linux open source platforms by commensurate commercial training firms.
16 Although the Microsoft Software Assurance program includes some support, that level of support explicitly excludes support that is “more proactive and consultative in nature” Microsoft clients requiring those services are advised by Microsoft to obtain a Premium Services support contract.
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Miscellaneous
This category will provide a catchall, for any and all unforeseen or forgotten budgetary allocations which duly arise in realworld IT environments.
Detailed Software Solutions
Over the next several pages we will outline the core software components of our two competing platform technologies: Microsoft® Windows and associated desktop and server software and applications, and Linux/Open Source and associated desktop and server software and applications. By way of explanation of the purpose of the servers, the file and print servers are included to provide corporate filesharing facilities. The mail server is used by all users to send and receive Internetstandard email. The Intranet server is used to provide the organisation's knowledge repository, portal and groupware requirements, all backended by an SQL database. The firewall provides advanced perimeter defence against Internet crackers.17 The proxyserver is used to provide webcache and download acceleration functionality. The Internetvisible ebusiness/ecommerce server provides the clientrequired communication facilities and webpublishing to satisfy our organisations webmarketing communications needs, also backended by a production SQL server.
17 The firewall can be extended to incorporate advanced traffic management (traffic shaping) and more advanced security features such as the inclusion of a Virtual Private Network (VPN).
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Windows Platform Solution
For our Windows platform solution, we have selected the following operating systems, backoffice technologies and office productivity tools.
Product Symantec AntiVirus Corporate Edition Windows Server 2003 Microsoft Internet Information Server (web server) Microsoft Commerce Server 2002 Microsoft ISA 2004 Microsoft SQL Server Microsoft Exchange 2003 Microsoft Visual Studio .Net 2003 Windows XP Professional Microsoft Office Standard
Price (USD)
Supplier
Symantec
Comments
Price is per license when ordered in quantities of 100 to 250.
$37.90 Microsoft $3,999.00 Free Microsoft Bundled with Windows 2003 Server. 32bit Enterprise, includes 25 CALs
$19,999.00/CPU
Microsoft
Price is for enterprise edition. Requires Microsoft SQL.
$1,499.00/CPU
Microsoft
Standard edition. Enterprise edition not yet available. Retail price for Enterprise version. Despite the price, this is actually cheaper than a server and CAL based solution. Requires Windows 2003 Server. Enterprise edition. Enterprise Architect version.
$19,999.00/CPU
Microsoft
$3,999.00 plus $67.00/CAL
Microsoft
Microsoft $2,499.00 $299.00 (per user) Microsoft
Microsoft $399.00
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Product Microsoft Software Assurance Program for Servers Microsoft Software Assurance Program for workstations Photoshop CS Acrobat Standard
Price (USD)
25%/year
Supplier
Microsoft
Comments
25% of initial purchase price per year.
29%/year
Microsoft
29% of initial purchase price per year.
$649.00
Adobe Adobe
$299.00
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Linux Platform Standard Solution
For our standard Linux platform solution, we have selected the following open source backoffice technologies and office productivity tools.
Product Linux boxed sets (options)
Price (USD)
Comments
Linux distributions suitable for being servers and workstations. Only one copy needed. Where possible prices have been obtained from the distributor.
Alternatively, you can download many of these for free from the Internet.
Debian 3.0 (stable) Fedora Core 2 Mandrake 10.0 Bundle Slackware 10.0 SuSE 9.1 Professional Apache (web server)
$16.99 18 $15.99 19 $84.90 $39.95 $89.95 Included with Linux distributions or free download. Included with Linux distributions or free download. Included with Linux distributions or free download. IPTables included with Linux distributions or free download. Included with Linux distributions or free download. Included with Linux distributions or free download. State and packet based filtering. PF provides greater functionality (including traffic shaping). An efficient and extensible web server used on more than 67% of the Internet.20
Squid (proxy server) MySQL or PostgreSQL IPTables (firewall)
Sendmail or Postfix (mail server) KDevelop (IDE)
18 Price obtained from reseller (freesoftwarecdr.com). 19 Price obtained from reseller (freesoftwarecdr.com). 20 Figure obtained from netcraft.com.
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Product GIMP (graphics) OpenOffice (productivity suite) OSCommerce (e commerce system)
Price (USD)
Included with Linux distributions or free download. Included with Linux distributions or free download. Available from: http://oscommerce.com/
Comments
Standard file formats include Star, Open & Microsoft Office files, plus can generate PDF files.
NB: As Linux is generally taken to be immune from viruses in general, and from Windows viruses specifically, we have not added any virusscanning software to this list.
Linux Platform Enterprise Solution
For our enterprise level Linux solution, we have selected the following open source back office technologies and office productivity tools. The primary difference between the Enterprise Linux solution and the standard one is the incorporation of an ongoing support contract with the Linux vendor. The Red Hat Enterprise Linux solution is based on an annual subscription model and three (3) years' worth of annual subscriptions will need to be included in the cost. Product Red Hat Enterprise Linux: Price (USD) Comments
Red Hat Enterprise Linux Workstation (WS), Enterprise Server (ES) and Application Server (AS) editions available. Difference of types (basic, standard or premium) tend to reflect level of support offered by Red Hat. $179.00 (per annum) $299.00 (per annum) $349.00 (per annum) $799.00 (per annum) $1,499.00 (per annum) $2,499.00 (per annum)
RHEL WS (basic, x86) RHEL WS (standard, x86) RHEL ES (basic, x86) RHEL ES (standard, x86) RHEL AS (standard, x86) RHEL AS (premium, x86) SuSE Enterprise Server 9: 2 CPU edition
$389.00
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Product 16 CPU edition Apache (web server)
Price (USD)
$939.00 Included with Linux distributions or free download. Included with Linux distributions or free download. Included with Linux distributions or free download. IPTables included with Linux distributions or free download. Included with Linux distributions or free download. Included with Linux distributions or free download. Included with Linux distributions or free download. Included with Linux distributions or free download. Available from: http://oscommerce.com/
Comments
An efficient and extensible web server used on more than 67% of the Internet.
Squid (proxy server)
MySQL or PostgreSQL
IPTables (firewall)
State and packet based filtering. PF provides greater functionality (including traffic shaping).
Sendmail or Postfix (mail server) KDevelop (IDE)
GIMP (graphics)
OpenOffice (productivity suite) OSCommerce (ecommerce system)
NB: As Linux is generally taken to be immune from viruses in general, and from Windows viruses specifically, we have not added any virus scanning software to this list.
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Scenario 1: All New Hardware
Scenario 1 incorporates the purchasing of brand new hardware and network infrastructure explicitly for fulfilling our example organisation's computer systems requirements The scenario is based on a network of 250 users, all requiring standard office productivity solutions, email, Internet services & SQL data access as well as a small number of specialist technical/developer workstations. Based on a 3year period, the model aims to mimic the operational lifespan of most corporate computer systems, and amortise the purchase and installation costs over that period of time. The Hardware Requirements for this Network are outlined below.
245 x Standard Workstations 3 x Developer Workstations 2 x Graphics/Design Workstations 1 x Mail Server
–
1 x Proxy/Firewall Server 1 x Intranet & SQL Server 1 x EBusiness Server (incl. SQL & Webserver)
5 x File/Print Server
Microsoft Windows Hardware Workstation Server Printers Network Infrastructure TOTAL Hardware Costs Software Platform Software Office Productivity Applications Specific Technical Applications Microsoft Software Assurance TOTAL Software Costs
$110,741.00 $275,444.50 $24,111.00 $7,615.00 $25,900.00 $330,170.50
Linux (Standard)
Linux (Enterprise)
$275,444.50 $24,111.00 $7,615.00 $25,900.00 $330,170.50
$275,444.50 $24,111.00 $7,615.00 $25,900.00 $330,170.50
$89.95
$99,279.00
$173,146.00
$0.00
$0.00
$9,393.00
$0.00 N/A
$0.00 N/A
$211,432.00 $504,712.00 $89.95 $99,279
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Microsoft Windows Operating Costs Staff Salaries Internet Connectivity Consultancy Fees Training Miscellaneous TOTAL Operating Costs TOTAL COSTS Open Source Savings % of Total Cost
$444,000.00 $18,000 $45,000 $30,000 $25,000 $532,000 $1,366,883
Linux (Standard)
Linux (Enterprise)
$474,000.00 $18,000 $135,000 $30,000 $25,000 $682,000 $1,012,260 $345,623.00 25.94%
$474,000 $18,000 $135,000 $30,000 $25,000 $682,000 $1,111,450 $255,433.00 18.69%
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Scenario 2: PreExisting Hardware
Scenario 2 is based on a network of 250 users using preexisting hardware, with all users requiring standard office productivity solutions, email, Internet services & SQL data access as well as a small number of specialist technical/developer workstations. Full staff salary costs, Internet connectivity, IT consultancy and Miscellaneous costs are also factored into the calculations. Based on a 3 year period, the model aims to mimic the operational lifespan of most corporate computer systems, and amortise the purchase and installation costs over that period of time. Microsoft Windows Software Platform Software Office Productivity Applications Specific Technical Applications Microsoft Software Assurance TOTAL Software Costs Operating Costs Staff Salaries Internet Connectivity Consultancy Fees Training Miscellaneous TOTAL Operating Costs TOTAL COSTS Open Source Savings % of Total Cost
$444,000 $18,000 $45,000 $30,000 $25,000 $474,000 $18,000 $135,000 $30,000 $25,000 $474,000 $18,000 $135,000 $30,000 $25,000 $110,741 $90 $99,279
Linux (Standard)
Linux (Enterprise)
$173,146
$0
$0
$9,393
$0
$0
$211,432
$0
$0
$504,712
$90
$99,279
$562,000 $1,066,712
$682,000 $682,090 $384,622 36.06%
$682,000 $781,279 $285,433 26.75%
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Software Licence Costs
The following information is essentially an update of the research in Cybersource's Linux vs Windows Pricing Comparison. Prices are supplied for all standard office productivity solutions, email, intranet and Internet services, ecommerce & SQL data access. A small number of specialist technical/developer workstations are also needed. Our requirements include:
245 x Standard Workstations 3 x Developer Workstations 2 x Graphics/Design Workstations 1 x Mail Server
–
1 x Proxy/Firewall Server 1 x Intranet & SQL Server 1 x EBusiness Server (incl. SQL & Webserver)
5 x File/Print Server
Microsoft Solution Software Cost
Product License Symantec AntiVirus Corporate Edition MS Windows Server 2003 MS Internet Information Server MS Commerce Server 2002 MS ISA Standard Server 2004 MS SQL Server MS Exchange Server 2003 MS Windows XP Professional MS Visual Studio .NET Enterprise Architect 2003 MS Office 2003 Adobe Acrobat Standard Adobe Photoshop CS Additional MS Windows Server 2003 Client Access Licenses Quantity
250 copies 9 copies 2 copies 1 copy 1 copy 1 processor license 1 copy 250 copies 3 copies $7,497 250 copies 2 copies 2 copies 25 licenses $1,675 $99,750 $598 $1,298
Price (USD)
$9,475 $35,991 $0 $19,999 $1,499 $19,999 $3,999 $74,750
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Product License Additional MS Exchange Server 2003 Client Access Licenses Microsoft Software Assurance Program for Servers Microsoft Software Assurance Program for workstations Total:
Quantity
250 licenses
Price (USD)
$16,750
25.00% of $99,912.00 per year for 3 years 29.00% of $181,997.00 per year for 3 years
$74,934
$136,498 $504,712
Linux Standard Solution Software Cost
Product License Linux distribution (e.g. SuSE 9.1 Professional) Apache (web server) Squid (proxy server) MySQL or PostgreSQL (database) IPTables (firewall) Sendmail or Postfix (mail server) KDevelop (IDE) GIMP (graphics) OpenOffice (productivity suite) OSCommerce (ecommerce system) Total: Quantity
Only 1 copy required. $89.95 Provided with distribution. Provided with distribution. Provided with distribution. Provided with distribution. Provided with distribution. Provided with distribution. Provided with distribution. Provided with distribution. Only 1 copy required (free download). $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $89.95
Price (USD)
All prices are in US$ for ease of conversion to your currency, and correct as of 200409 16.
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Linux Enterprise Solution Software Cost
The Red Hat Enterprise Linux solution is based on an annual subscription model. Product License RHEL AS (premium, x86) RHEL ES (standard, x86) RHEL ES (basic, x86) RHEL WS (standard, x86) RH Desktop Satellite Starter Pack RH Desktop Extension Pack22 Apache (web server) Squid (proxy server) MySQL or PostgreSQL (database) IPTables (firewall) Sendmail or Postfix (mail server) KDevelop (IDE) GIMP (graphics) OpenOffice (productivity suite) OSCommerce (ecommerce system) Total: Quantity
1 copy21 3 copies 5 copies 5 copies 1 pack $40,500 4 packs $42,000 Provided with distribution. Provided with distribution. Provided with distribution. $0 Provided with distribution. Provided with distribution. $0 Provided with distribution. Provided with distribution. Provided with distribution. $0 Only 1 copy required (free download). $0 $0 $0 $0 $0
Price (USD)
$0 $7,191 $5,235 $4,485
$0 $99,279
21 Normally costs $2,499.00, but a copy is included with the Red Hat Desktop Satellite Starter Pack. 22 Licensing for 50 extra users
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Hardware Specification and Costs
1 x Mail Server
IBM xSeries 335, Part Number 8676G2X
• • • • • • • • • •
Processor: 1x(Std.) xSeries 3.2GHz 533MHz 1024KB L3 Cache Xeon Memory: 1024MB PC2100 CL2.5 ECC DDR SDRAM DIMM Maximum Memory: 8GB Storage: 80GB EIDE 7200rpm Hard Drive Maximum Storage: 200GB Optical Drive: CDROM Drive Internal 24X10X (Variable Speed) Ethernet: Dual Integrated 10/100/1000 Mbps Ethernet Power: (1x) 411W Power Supply Peripherals: IBM Keyboard and Mouse Operating System: Costs removed from published price to provide an OSneutral figure
Total Cost: $2,679.00
1 x Proxy / Firewall Server
Same specifications as mail server.
Total Cost: $2,679.00
5 x File / Print Servers
Same specifications as mail server.
Total Cost: $2,679.00 x 5 = $13,395.00
1 x Intranet and SQL Server
Same specifications as mail server.
Total Cost: $2,679.00
1 x EBusiness Server
Same specifications as mail server.
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Total Cost: $2,679.00 Therefore, total cost of Server Hardware = $24,111.00
245 x Generic Workstations
IBM ThinkCentre M Series M50 8187E8U
•
Processor: Intel Pentium 4 Processor at 2.8GHz with 512KB L2 Cache and 533MHz Front Side Bus Memory: 512MB SDRAM Monitor: IBM ThinkVision L170 Monitor Hard Drive: 40GB EIDE 7200rpm Hard Drive Optical Drive: 48X Max CDROM Drive Graphics: (Std.) Intel Extreme Graphics 2 Audio: (Std.) SoundMAX Cadenza Ethernet: Intel PRO/100 Gigabit Ethernet w/Wake on LAN IBM Keyboard and Mouse Cost of Operating System removed from final price
Total Cost: $1,097.10 x 245 = $268,789.50
• • • • • • • • •
3 x Developer Workstations
Same specifications as standard workstations, but with 1024MB of RAM and 64MB DDR NVIDIA GeForce 4 MX 440 AGP 8X ATX video card..
Total Cost: $1,331.00 x 3 = $3,993.00
2 x Standard Workstations
Same specifications as developer workstations.
Total Cost: $1,331.00 x 2 = $2,662.00 Therefore, total cost of workstation hardware = $275,444.50
1 x Multifunction Printers / Copiers / Fax / Scanners
HP Officejet 7410 “Allinone”
• • •
Colour thermal jet Scanner Photocopier
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• •
Facsimile network connected
Total Cost: $499.00 x 1 = $499.00
4 x High performance duplex laser printer
HP Laserjet 4250dtn
• • •
Black and white, high speed laser network connected duplex printing
Total Cost: $1,779.00 x 4 = $7,116.00 Therefore, total cost of printing hardware = $7,615.00
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Salaries and Services Costs
Network Infrastructure Specification and Costs
Network Infrastructure is calculated as the cost of equipping one computer, whether it be a workstation or a server, with a connection point on a port or a switch, appropriate cabling and a wall socket, as per current industry bestpractice. Research has shown this turns out to be approximately $100 per computer. Therefore, network infrastructure is calculated as the number of computers multiplied by $100.
Total Cost of Network Infrastructure 259 x $100 = $25,900.00
Staff Salary Specifications and Costs
Staff for both our Windows platform model and our Linux/Open Source environment were sourced from online placement agency firms (such as Dice.com and Mojolin.com). We performed a search using some of the core technologies required for both platforms, and itemised three core staff members for our example organisation. We require a Senior systems administrator and coordinator, reporting to our example firm's executive management. We also require a midlevel generalist, and a junior helpdesk support staffer. Ancillary or specialist technical services will be provided by external consultants. Windows Platform Permanent Staff Salary for Senior Systems Admin @ $66,000.00 perannum for 3 years = $198,000.00 @ $46,000.00 perannum for 3 years = Salary for Midlevel Systems Admin $138,000.00 Salary for Junior Support Admin
@ $36,000.00 perannum for 3 years = $108,000.00
Total Cost of Windows Platform Permanent Staff = $444,000
Linux Platform Permanent Staff Salary for Senior Systems Admin @ $71,000.00 perannum for 3 years = $213,000.00 @ $49,000.00 perannum for 3 years = Salary for Midlevel Systems Admin $147,000.00 Salary for Junior Support Admin
@ $38,000.00 perannum for 3 years = $114,000.00
Total Cost of Linux Platform Permanent Staff = $474,000
Specialist Consultancy Services Most organisations need specialist external IT consultancy services and the same applies for our example organisation. Previously we have allocated the same funds for sourcing
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external consultants for both Windows and Linux, but this time we have allocated three times as much to the Linux consultancy in order to respond to feedback we received from the first version of this document.
Total Cost of Specialist Windows Consultancy Services = $45,000 Total Cost of Specialist Linux Consultancy Services = $135,000
Training We will allocate US$30,000 for training for our organisation's staff over the lifetime of this TCO model. With this budget allocation, they will be trained for increased competence in either of the Microsoft Windows or Linux open source platforms by commensurate commercial training firms.
Total Cost of Training $30,000
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Appendix 1
Pricing Research Method
Software and Hardware
To retrieve software and hardware prices, we visited the official sites for the vendors cited. We then navigated the site or used webbased costcalculators until a price was found for the product required. Although this may have not been the cheapest price, we consider that the price on the official site would be the most authoritative price and would be truly indicative. We have provided all web addresses to these pricing web pages within this document for your reference (see also Appendix 2) . When it came to Microsoft licensing agreements, the price of the software was taken from the vendor's site and if additional user licenses were needed, their price (once again taken from the Microsoft website) was added onto the cost of the product. We also included Microsoft's pricing for Software Assurance.
Salaries, Services and Miscellaneous
For staff salaries, we researched the costs for both Linux and Windows platform staff via online staff recruitment and placement firms. For consultancy and miscellaneous costs, we chose a medium, industrygeneric cost figure and applied it equally to both Linux and Windows costing models. We've also used a midlevel cost for businessgrade ISP connectivity, as indicated on our chosen ISP's pricing page.
Preinstalled Operating Systems
Many organisations purchase workstations with software such as Windows XP or 2000 Professional preinstalled. 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 the Original Equipment Manufacture (OEM) licence costs from our calculations. As such, it is assumed that all server and workstation hardware is purchased with no operating system license whatsoever, and that this operating system license cost is now to be included in our calculations as a separate lineitem.
A Note on Upgrading Older Windows Operating Systems
As you by now would have realised, this study makes the assumption that the model organisation 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, as many organisations in the realworld would likely already have many older versions of Windows (95, 98) operating systems and Microsoft productivity software (Office 95, 97)
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onhand, with which to procure upgrades with. This may be true, but our mission is to present a 'greenfields' company licensing costing, where these preexisting systems aren't available, in order to accentuate the licensing differences and thus make them amenable to study and discussion. Further, information at hand indicates that Microsoft is abandoning upgrades to current generation technologies from versions more than one iteration old, so the 'minimise costthrough upgrade' approach will cease to exist for many organisations interested in current generation software technology from Microsoft. Finally, it is also worth mentioning that Microsoft's various licensing agreements are often being modified and replaced, so the long term validity of a licensing scheme such as volume licensing is unknown.
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Appendix 2
Software Pricing Resources
Adobe
http://store.adobe.com/store/products/master.jhtml?id=catAcrobatStnd http://store.adobe.com/store/products/master.jhtml?id=catPhotoshop
Microsoft
http://www.microsoft.com/licensing/resources/default.mspx http://www.microsoft.com/windowsxp/pro/howtobuy/pricingretail.mspx http://www.microsoft.com/windowsserver2003/howtobuy/licensing/pricing.mspx http://www.microsoft.com/exchange/howtobuy/enterprise.asp http://www.microsoft.com/office/editions/howtobuy/compare.mspx http://www.microsoft.com/sql/howtobuy/default.asp http://www.microsoft.com/commerceserver/howtobuy/production.asp http://www.microsoft.com/isaserver/howtobuy/default.asp
Symantec
http://nct.symantecstore.com/0001/mup.html http://nct.symantecstore.com/0060/632662_savcorp_wsns.html
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Linux and other Free and Open Source Software
http://www.redhat.com/software/rhel/purchase/index.html http://www.redhat.com/software/rhel/desktop/ http://www.freesoftwarecdr.com/shop/product_info.php?products_id=135 http://www.freesoftwarecdr.com/shop/product_info.php?products_id=139 http://www.freesoftwarecdr.com/shop/product_info.php?products_id=91 http://store.mandrakesoft.com/index.php http://www.novell.com/products/linuxprofessional/pricing.html http://www.suse.com/us/business/products/server/sles/pricing.html http://store.slackware.com/cgibin/store http://www.openbsd.com/orders.html
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Appendix 3
Hardware and Services Pricing
IBM Workstations and Servers
http://www.ibm.com/products/us/ http://www 132.ibm.com/webapp/wcs/stores/servlet/ProductDisplay?productId=8666927&storeId=1& langId=1&catalogId=840 http://d02xms011.southbury.ibm.com/ibm_us/Pricer.jsp?cntry=840&base=8187E8U&lang =en_US&wiz%3Actrl%3A509%3A=psg_monitor_thinkvision_6734AC0_United_States
HP Printers
http://h10010.www1.hp.com/wwpc/us/en/sm/WF05a/1897223844441063512019f51 391193.html http://h10010.www1.hp.com/wwpc/us/en/sm/WF25a/1897223625123626314638f51 412144.html
Internet Service Provider Costs
http://www.pacific.net.au/broadband/premium/ http://business.netspace.net.au
First Staff Salary Locator
http://www.dice.com/
Second Staff Salary Locator
http://www.mojolin.com/ NB: All links were working and correct as of 20040923
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Appendix 4
Information and References for Linux
Red Hat Linux
http://www.redhat.com
MandrakeSoft
http://www.mandrake.com
SuSE Linux
http://www.suse.com
Slackware
http://www.slackware.com
Debian
http://www.debian.org
OpenBSD
http://www.openbsd.org While it is unlikely that Linux needs an official introduction to anyone in the Information Technology arena, we include a small section of information here on Linux and Open Source software for our readers from other industries. Linux, like Windows XP, is an operating system. Unlike other operating systems however, it is software not written and published by any single vendor. The closest analogy we can offer by way of a conceptual overview, is that Linux and Linux development is closely mirrored by the Internet and the Internet industry. Linux, like the Internet, had evolved in the hands of technologists over many years before the mainstream business world was made aware of its existence. Also, like the Internet, Linux is in continual development by thousands of organisations worldwide, and tens of thousands of software and systems professionals. Finally, like the Internet, Linux is not presently owned by any single organisation, or can ever be owned by any single organisation. This situation is enforced by the open source license that Linux is released
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under. Linux, according to IDC (http://news.com.com/21001001253320.html?legacy=cnet) figures tracking it's growth over the past few years, is the fastest growing operating system platform in the industry. In 2001 it accounted for around 27% of all server installs, second only to Windows. IDC predict that this will increase to 29% of all servers, not just new installations, by 2008 (http://www.infoworld.com/article/04/06/17/HNidclinux_1.html, http://www.novell.com/linux/truth/index.html). The Berkeley System Distribution (BSD), and particularly OpenBSD, may need a little more of an introduction. As the name suggests, this platform has its origin at the University of California, Berkeley campus. This version of UNIX may have had more of an uptake in the professional world, but in the early '90s its future was cast in doubt due to a legal dispute between UCLA and AT&T. While this matter was ultimately resolved in BSD's favour, the court case did keep many people and businesses from deploying the operating system. During that period Linus Torvalds created Linux. BSD has since developed into numerous implementations, of which the most well known are NetBSD, FreeBSD, and OpenBSD. NetBSD provides the greatest support for different hardware types. FreeBSD focuses on x86 architecture and being more “userfriendly.” While OpenBSD focuses on security above all else. Open Source is a term used to indicate the development and licensing model under which Linux, BSD, and many thousands of other platform, productivity and business software are now being produced. In short, the advantages of this style of development are reduced costs of software acquisition (in most instances, the software is free of cost and requires no license fees) and of equal importance, it offers freedom to business users with respect to their rights of use of the software. More information can be found at http://www.opensource.org/ and http://www.fsf.org/. Which leads us directly into the reason why Linux provides such a strong showing as a competitor to Microsoft Windows in terms of purchase and licensing costs: it's free. The more users you have using Linux and related technologies, the more you save.
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About Cybersource
Cybersource, founded in early 1991, is the second longest running open source solutions company in the world. We have been demonstrating the better value, security and robustness of open source technologies to our clients since then. We also produce products like: The Safe Internet Computer: The Safest Way to Use the Internet. The Small Business Linux Server: the best value small business server on the market and 75% less expensive than the Microsoft alternative. Datasafe: Stores copies of all your documents. Easy and direct access to all past revisions. Cybersource Trim Client; All the advantages of a Thin Client with none of the disadvantages. http://www.cybersource.com.au/ Phone: +61 3 9621 2377 Email: [email protected]
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