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Australian TCO Study: Linux Wins Again

An anonymous reader writes "An updated Linux vs Windows TCO study has found that a 250-seat company can end up saving 36 percent if it were to equip its users with the open source operating system and applications that run on it."

26 of 396 comments (clear)

  1. Probably a load of rubbish by superskippy · · Score: 4, Insightful
    Benchmarks are usually pretty unreliable and fudgeable anyway, but I think these TCO studies are the pits. I certainly don't believe them when Microsoft pays for studies to tell me that they are the best, so I don't see why I should pay any attention when an open source company (gasp) endorses open source solutions. Like all benchmarks, how good something is depends on circumstances individual to your situation, and TCO statistics surely must be more sensitive to individual circumstances than most.

    Note for slashdot bias fans: "Linux wins again" is actually in the story in the link, rather than a bit of spin on the part of everyone's favourite news site :)

    1. Re:Probably a load of rubbish by mu-sly · · Score: 2, Insightful

      Benchmarks are usually pretty unreliable and fudgeable anyway, but I think these TCO studies are the pits. I certainly don't believe them...

      Ahh, but you've missed the point slightly: PHBs love statistics to "prove" things.

      Most geeks already know the score, but TCO benchmarks aren't aimed at us, they're aimed at the PHBs. We can bang on about "freedom" as much as we like, but until someone has "proved" it will cost less, the PHBs won't give a damn!

  2. Tired of all this... by ip_fired · · Score: 3, Insightful

    I'm tired of all this TCO crap. I know that they are just doing it to offset some of the "studies" that Microsoft has funded, but I wish linux groups would focus on something else.

    In fact, I wish Microsoft would focus on something else. It's funny, but *cost* isn't something that seems to be a strength of MS. They should focus on their strengths (like consistent interface that everyone knows, massive hardware support, number of applications available, good multimedia support, etc). They have a lot going for them. Why do they always focus on the thing that they don't have going for them!!!!

    --End rant.

    --
    Don't count your messages before they ACK.
    1. Re:Tired of all this... by erikharrison · · Score: 4, Insightful

      Listen to me very very carefully.

      TCO is all that matters.

      Say it again kids.

      TCO is all that matters.

      A company makes a product. Technology is a means to an end. TCO is the TOTAL cost (in cash, lost sales, employee time, overhead) of the technology.

      TCO includes: the cost to initially purchase the software, the cost in lost time as users and admins to learn new interfaces, the cost in paying employees in maintaining the system, the cost in purchasing obscure or less capable hardware supported by the technology, the cost in lost time in porting/writing/purchasing applications to run in the environment, and on and on.

      TCO is NOT cost of purchase + cost of support. And it is also always an estimate because of so many variables it must encompass - that's why there are so many studies about TCO. It's an ambiguous metric.

      TCO is all that matters, TCO is all that matters, TCO is all that matters.

    2. Re:Tired of all this... by erikharrison · · Score: 2, Insightful

      Yes!

      Thanks for getting it. It's a totally incalculable measure, and as such, all these already biased studies are meaningless, except as marketing.

      But when you tell your boss that you run Linux because it has higher uptime, you're translating from "This makes my job easier" - aka employee speak - to "This makes production cheaper" - aka management speak, also known this week as TCO.

      We can change the TLA all we want, and MS, and Sun, and OSDL, and IBM, and anyone else playing the game will, whenever it suits them. We can talk licencing price, support cost, usability, learnability, training costs, yadda yadda, but it all means "How can I change these numbers and the perspective to make it look like my competition's product makes it harder for my customers to make _their_ products."

      TCO remains the holy grail of metics - unattainable, but ultimately what everyone wants to know, regardless of what we are calling it this week. It's how MS beat Apple - commodity hardware beat proprietary, the TCO was smaller.

      Never loose sight of it.

    3. Re:Tired of all this... by Bert64 · · Score: 2, Insightful

      Because ms have always competed on price, against novell netware and propriatory unix microsoft always was the cheap option. They offered inferior products at a cheaper price, and never even tried to pretend their products were better, they were just cheaper.
      Now their competition is still superior, as it always has been, but it's now cheaper too.. Microsoft can no longer offer a cheap crap solution, theyre offering an expensive crap solution but theyre trying to hold on to the advantage they used to have because that's easier than actually competing on product quality..
      Aside from that, they realise from their own experience that customers dont give a shit about product quality, all they care about is cost, and microsoft can't compete with free.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  3. Beware of spurious precision! by MoralHazard · · Score: 4, Insightful

    Skippy has a point, but...

    TCO studies are just standard business cost estimation models, with assumptions chosen by the authors of the study. Most of the models are pretty good, in theory, with sound reasoning and empirically-supportable construction. If they didn't work, or if they tended to provide misleading results when applied properly, why would businesses use them at all?

    The problem is with the assumptions. Give me any financial model, from cost estimation to marketing models to arbitrage scenarios, and I can plug assumptions into it that will give any result you want. The models are fine, but the results are "the pits", as it were, unless the assumptions are carefully and honestly chosen.

    This isn't to say that a TCO model, even with well-chosen assumptions, can provide an incredible amount of precision, but it CAN provide accuracy of result. That's what REALLY pisses me off about this article--they're quoting numbers to a whole percent, when it's pretty obvious that the precision of the result isn't anywhere near %10. If the article is to be believed, they're using intentionally pessimistic assumptions in order to bias the study against F/OSS, and still coming out with F/OSS on top. They're acknowledging that they can't bring supportable, precise assumptions into it!

    So really, the study is saying "F/OSS is cheaper than MS by a good margin, but our precision is shitty enough that our actual number doesn't mean much. It might be %37 cheaper, it might be %80 cheaper, or it might be %1 cheaper--but we're pretty sure it's cheaper."

    I guess it's like that old joke, where the museum guest asks the tour guide "How old are these dinosaur bones?" The guide says "The bones are 2 million and 10 years old." The guest, astonished, exclaims "That's amazing! How can we know the age so precisely, when it's that old?"

    The guide responds, "Well, it was 2 million years old when I started working here, and I've been working here for 10 years."

  4. Re:Netcraft confirms it... by RAMMS+EIN · · Score: 4, Insightful

    Seriously, they really may be. They are mostly so powerful because their dominance has been self-sustaining. Everyone uses Word and Internet Explorer, because everyone else uses them, and documents are made with no concern for people with different software preferences. Word and IE tie people to Windows.

    But the tide is changing. IE marketshare is falling. According to some reports, about a fifth of surfers use alteranitve browsers. That gives serious reason to make websites that work with other browsers (yes, that means you, gmail).

    People are increasingly eager to abandon Windows. It's funny that lately, many of my non-CS friends have started learning to work with Linux, and it's mostly the people who think they can handle their computers who stick to Windows.

    Of course, there are still applications that will tie people to Windows. However, if people actually attempt to switch, they will learn which applications and file formats cause problems, and be more open to using alternatives. I've seen this happen in several places.

    Now, all this is not to say that Microsoft will go down (I personally believe they will at least survive, if not prosper). However, now that their dominance is starting to slip, there are serious opportunities for competitiors to establish themselves in the market.

    And they're trying. The other day, I heard a Novell ad advocating open source on the radio. Even if they are the only one now, where one leads, others will follow.

    What would really kill Microsoft's deathgrip would be if a competitor not only did the same things better, but also offered features that Microsoft doesn't. Two examples would be efficient use of metadata (a la BeOS; this is being worked on by all camps) and truly interactive web applications (like XAML promises; Java and XUL are just not good enough).

    --
    Please correct me if I got my facts wrong.
  5. Re:What about a larger company by bhima · · Score: 2, Insightful
    You know, because I work for big Pharma, I think about this every time one of these studies comes out.

    However, after to speaking with a few of the higher up IT guys at various trade shows and other events where we accidentally windup in the same room. I have concluded money has very little to do with us using Microsoft products. Rather it's other things like: PHB's (almost by definition) aren't highly technical people but maintainers of the status quo, "No one ever got fired for buying Microsoft", and most importantly the incredible inertia of big companies like ours

    In summary: Despite the wide usage of FOSS in R&D it would take something on the scale of Nuclear War to draw enough attention & create the motivation it would require to make the change from Microsoft to anything else for the Desktop and most servers and Old 'Enterprise level' UNIX for the important stuff.

    --
    Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.
  6. Re:Crap by Minna+Kirai · · Score: 2, Insightful

    Given all the bias in their study, I can't assume 36% is even close to the real number.

    Correct, 36% is far lower than the real number. This is a GOOD thing, so why are you complaining?

    In any moderately complex field, you can't get everyone to agree that the same assumptions are true, and yet you can't even attempt to make predictions without selecting some assumptions to work from. So you take your pick, tell people what you chose, and if they disagree with your result, they can adjust it accordingly.

    Consider the problem of the world's dwindling oil supply. People don't agree on how much oil exists underground, or how fast consumers will burn it. But I can make a generous assumption about quantity (twice what the USGS says) and stingy about usage (no increase over current rates), and compute that we run out in 100 years. Since any other likely assumptions will give a worst number, this "bad best case" prediction is a fine starting point to discuss long-term plans.

  7. Re:What about - so why not IBM still? by sien · · Score: 2, Insightful

    So why aren't we still using IBM products if no one ever got fired for buying them?

  8. Re:What about a larger company by richie2000 · · Score: 3, Insightful
    maintainers of the status quo, "No one ever got fired for buying Microsoft", and most importantly the incredible inertia of big companies like ours

    I remember when that saying went "No one ever got fired for buying IBM" and it's really not that long ago... Things change. Always have, always will.

    --
    Money for nothing, pix for free
  9. linux has it's own supportability issues by rich42 · · Score: 3, Insightful
    I like Linux - but there's a lot of hidden support costs...

    take setting up a new website:

    "oh - there's a GUI tool for that... if you installed the right package... did you pick gnome or KDE?... X isn't starting? it might just be easier to modify the .conf file with Pico... don't have that? try vi - httpd.conf should be under /etc/httpd - unless you..."

    Any idiot (like myself) can fumble through doing this stuff on Windows.

    Security? Go to Windowsupdate.com once a month and install all the patches. I wish I had as straight forward a solution for my Linux boxes.

    don't get me wrong - I want to see open source crush microsoft - it's just there's some significant work that needs to be done on the usability / supportability front.

    1. Re:linux has it's own supportability issues by philippeqc · · Score: 4, Insightful
      I like Linux - but there's a lot of hidden support costs...

      A TCO is about all the cost. Installation, configuration, operation.


      "oh - there's a GUI tool for that... if you installed the right package... did you pick gnome or KDE?... X isn't starting? it might just be easier to modify the .conf file with Pico... don't have that? try vi - httpd.conf should be under /etc/httpd - unless you..."

      Yes, X can be a pain to start if it is not already configured. To release that job from the beginning users, many distributions now have hardware detection tools and configure X for you. I invite you to check most popular distributions that have been released since 1999.

      On the other hand, I'm quite curious if you ever had to deal with a MS-Windows computer that crashed during the loading of the graphic card driver/window server/window manager. On GNU/Linux you have to use one of the many editors, surf for some references and write the proper parameters to a file. On MS-Windows, my own experience is that searching for information will mostly lead you to "my graphic card is not working" kinda-post, no extra help, that the only editor is EDIT, and that you have to be very lucky for the problem to be located in a file that EDIT can open and modify without totally destroying (ie: binaries are out of the question). Most knowledgeble MS-Windows user have an answer about this. Re-install.

      Maybe its just me, but I prefer the option of 45 minutes from browsing for the information to the end of the problem, vs sitting in front of the computer for 1 hour(OS) 1 hour (Office Suite) 3 hours (archiving utility, acrobat, IM client and other favorite miscalineous utilities) watching the progress bar slowly moving.


      Any idiot (like myself) can fumble through doing this stuff on Windows.
      Any idiot (like yourself) can do EXACTLY the same in GNU/Linux. Many GNU/Linux distributions target idiots just like yourself. Just to name one, Mandrake has a full set of utilities that will allow you to click your way to the configuration of your dreams.

      And Webmin that will allow you to configure your machine from a browser.
      And you still have access to the configuration files through text editors.


      Security? Go to Windowsupdate.com once a month and install all the patches. I wish I had as straight forward a solution for my Linux boxes.

      Security? make a cron job that check the security updates every night on your computer, and install them for you. You dont even need to go to some web site. You dont even need to wait a whole month to fix a hole.

      Cron is too complex for you, again, just click your way to an updated system. Many distributions will inform you by email of every security update available, based on the software you have on your machine. Which mean you keep your OS _AND_ your applications up to date and bug free, rather than your OS and office suite.

      Again, cron is a bit old school. I'm betting is most distribution do not offer you a clickable way to tell the update system to run at regular interval, its a matters of weeks before you see it.


      don't get me wrong - I want to see open source crush microsoft - it's just there's some significant work that needs to be done on the usability / supportability front.


      I think you have listened to one too many bad opinion and are due to actually try it on your own. Go to www.distrowatch.com and get yourself a desktop distribution. I am saying desktop as you seem font of having kde/gnome and X. A desktop distribution would (Fedora/Mandrake/Suse/LInspire/many other) include hardware detection and configuration of the X server for you.

      Try it up, its not longer 1999. And next time your system decide to play a trick on you, you will have an other option than watching countless progress bar as your only fix.

      -ph
  10. Re:Um by megrims · · Score: 2, Insightful

    I think you need to remember, that, 10 year olds are versatile. The average business professional is set in their ways, and doesn't like change. That's why they work in the office, and not elsewhere. They don't think anything like a 10 year old. Very few 10 year olds are locked into their systems.

  11. Re:Netcraft confirms it... by Bush+Pig · · Score: 2, Insightful

    TFA stated explicitly that Open Source _is_ cheaper, by quite a margin.

    --
    What a long, strange trip it's been.
  12. Re:Retards do what other do by skubeedooo · · Score: 2, Insightful
    TCO is only useful as an internal evaluation tool

    No, it is most useful as an internal evaluation tool. A company with limited resources (ie all companies) may not want to research every new technology to see if they could lower their TCO by implementing it. They might want some kind of reason to believe it is cheaper before they commit to spending on an internal evaluation. This doesn't mean that an external TCO evaluation is the only one they will have.

  13. Re:Is that a surprise? by pe1rxq · · Score: 4, Insightful

    Windows: Press CTRL+ALT+DEL, type your username (if not filled in automaticly) and type your password.

    Linux: Type your username (if not filled in automaticly) and type your password.

    Training: 10 seconds: 'This is the new login screen'

    Windows: Click on some world or web or 'e' icon to get internet explorer, use urls, home, back and forward buttons.

    Linux: Click on soome world or web or wathever icon to get an Firefox window, use urls, home, back and forward buttons.

    Training: 20 seconds: 'Click on this icon instead of the old one (the one that says INTERNET), further browsing is the same.'

    Windows: Click on the word icon and type your text, click on the excel icon and fill your sheet.

    Linux: Click on the swriter icon and type your text. Click on the scalc icon and fill your sheet.

    Training: again pointing out the new icons.

    We just covered the training for 90% of all desktop users. They simply don't know or need more.
    It gets interesting when you get to the artists or the real power users but they are generally a minority or have enough brains to figure most out themselves.

    Further you can swap fileservers, dns, proxies, printservers and webservers in you company wihtout this 90% even noticing.
    For this 90% training is mostly comforting them to make sure they don't panic when they hear something is going to change.

    Jeroen

    --
    Secure messaging: http://quickmsg.vreeken.net/
  14. Re:Um by computertheque · · Score: 2, Insightful

    Children have the urge to learn and to try new things, for no other reason then they don't worry about a bad outcome, because any outcome is thrilling to them.

    Case in point is videogames. A child is definately going to pick up how a videogame works without any prior experience easier than a 30+ year old who has never touched them.

    This is not to say that being cautious is terrible, but in this situation it is prohibitive to change.

  15. 36% TCO. BFD by tootlemonde · · Score: 4, Insightful

    TCO is a PHB metric. Managers who don't understand the role of technology in their organization view technology as a necessary evil and want to keep the cost as low as possible.

    Before looking at TCO, managers should looks at:

    • how much IT increases productivity
    • how much IT cuts costs in other parts of the company
    These metrics are notoriously hard to measure while TCO is mostly contained within the IT budget and so is easier to calculate. An astute office politician can claim some benefits just by reducing his IT costs while ignoring the effects on the rest of the organization.

    However, the big gains are outside IT. If IT offers a mere 1% increase in productivity in the organization as a whole it would dwarf any savings in IT costs. If IT isn't providing those types of benefits annually, it is doing something very wrong.

    Return on investment, not TCO, is a better measurement of value. Businesses that think they can cost-cut their way to success are generally doomed anyway.

  16. The point at which you stop taking them seriously by drsmithy · · Score: 3, Insightful
    Is when they start quoting retail prices for software licenses.

    If you get past that, the inclusion of Fedora Core 2 as an OS option should stop you in your tracks.

    And if you manage to get past that, the needless use of, for example, enterprise versions of Windows 2003 Server should be the final indicator at how flawed their methods are.

  17. Re:Biased in MS Favour by jellomizer · · Score: 3, Insightful

    Linux into an environment will lead to increased reliance on external consultants

    Oddly enough the high costs of external consultants is often greatly exaggerated. Unlike full time employees who need other benefits as well Health Care, Retirement, ... usually adds 40% to the cost of each employee on top of their wages. Now paying 3 times as much for a consultant is now closer to 2 times as much as a normal employee and if this external consultant or external administrator can maintain you Linux Boxen 1 or 2 times per week you are saving money vs. Having a full time employee.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  18. Identify functionality, not products. by khasim · · Score: 2, Insightful
    I'm struggling to think how it could be much easier and more streamlined than Group Policy and Symantec's "Security Centre".
    Don't just rattle off names.

    Identify the functionality that each of those provides and WHY it is necessary for an administrator.

    Only then can you compare/contrast the two platforms.
    It always makes me chuckle when I hear unix people criticising Windows because "you need to login to the machine to admin it" (which is untrue, but that's by the by) and then talk about their admin scripts - which are really doing exactly the same thing (logging into each machine to do things).
    I don't see anyone claiming that.

    Here's an example: Package management.

    On Debian, it is ultra-simple. And every file belongs to a package and that is controlled by the package management system.

    On Windows, there isn't any system-based link between the files and what package installed them. Any package can update any file.

    This becomes important when you're managing multiple workstations. With Debian, it is trivial to verify files to packages and packages between machines to troubleshoot a problem.

    With Windows, it is far more difficult and usually results in the proverbial reboot, reload, re-install.
  19. Re:Is that a surprise? by SeaGK · · Score: 2, Insightful

    men, you are so right!.

    We hired 15 new staff (50+ total) during the last 2 months; and guess what .... training was a 2hr presentation to inform them about policies and procedures, and to just show them the Linux desktop and off they went to use the system and do their work.

    Now, moving the initial 18+ staff over from Windows/Office/Outlook to Linux/OpenOffice/Evolution, that was a real pain; but now that we became a Linux shop, new staff fits just right in. People tends to give their best effort (and not complain that much) when they start a new job, don't they?

    We still have some issues with crappy formatted MS-Word documents (frames instead of rows in a table, anyone?) or VB script ridden Spreadsheets we get from third parties, but our administrative assistants have become pretty good at "fixing" those documents if we need to keep using them in the future (Styles and the Navigator in OpenOffice make a breeze to work with large documents).

    Now, what is important is to keep staff training going on a continuos basis, after all, you don't want people doing the same old same old on your shiny new system, and making the same formating errors, and creatring the same crappy Access type (pseudo)databases, or keeping mission critical data on (now)OpenOffice Calc spreadsheets, etc.

    Erik.

  20. Re:Email migration? by killjoe · · Score: 2, Insightful

    There are several alternatives to exchange. Suse has one, there is also bill groupware, kolab and citadel.

    Of course there are commercial software too such as groupwise, lotus notes, hp openmail, bynari etc.

    Exchange is no longer a barrier.

    --
    evil is as evil does
  21. Re:Windows users will be windows users on any OS by starfishsystems · · Score: 2, Insightful
    Linux was designed from the beginning as a multiuser environment with appropriate protection given to the operating system. Windows was designed for use on standalone systems where whoever was at the console would have unrestricted access to the entire system.

    So, Windows users may feel some frustration when your site moves to Linux, but any damage they do is strictly limited to themselves. And if some users prove truly inept, you can always set their accounts to run a limited set of applications, or indeed anything else you choose to meet your requirements.

    Windows is like one of those elaborate but boring toys which you can only use for passive kinds of play. Linux and Unix are designed to be used like Lego. You're supposed to take the pieces and use them to create something. This does require a somewhat different mindset, and has different implications.

    One consequence is the insight that a discussion concerning you the designer can imply a different person with not just different privileges but a different environment than you the user.

    --
    Parity: What to do when the weekend comes.