EU Commission Study Finds OSS Saves Money
PS3Penguin writes "Groklaw has up a story about an EU Commission's recent findings on the costs savings available from using Open Source Software. From the article: 'Costs to migrate to an open solution are relevant and an organization needs to consider an extra effort for this. However these costs are temporary and mainly are budgeted in less than one year. The major factor of cost of the new solution - even in the case that the open solution is mixed with closed software - is costs for peer or ad hoc training. These are the best example of intangible costs that often are not foreseen in a transition.'"
This does not come as a surprise for people having worked in IT and with OSS for some time.
Now, if this report gets public bodies to use and require use of OO/ODF, the large corporations (whose customers or legislators the public bodies tend to be) might move to OO/ODF as well, and then also us small subcontractors could finally junk the P-O-S, all-defaults-are-nonsensical, pay-for-incompatible-upgrades MSOffice. Someone just needs to get the ball rolling...
Damn, it's good to see the EU bureaucracy sometimes produce sensible results!
One of open source's most touted benefits is its price. Download the software, install it--and don't pay a penny. That's the theory. But to a surprising number of companies, the price tag--or lack of one--is irrelevant. Believe it or not but in my university there are no problems to choose software. We are not looking the philosofical part of the questin (this is OS, this is not). We literally don't care for that. We look at what does the job best. And we buy and use it. And don't care for the price.
It's time to realise that Abble's products are the biggest abomination these days. Just say NO to the dumb iAbble way!!
I am a manager with a masters degree in engineering. My charge rate is well past $180/hour.
I spend about 1 hour a day telling other members of staff how things work in Excel. That's Excel 97 by the way, which we have had deployed for over 6 years.
Retraining costs only apply if your staff are trained in the first place. In the world where *everyone* puts "Office expert" on their CV almost no one is trained - at least not to a high enough standard to do anything beyond typing a letter.
With the interface also changing in the next version of Word this cost is even more fictional than ever - but it was never legitimate in the first place.
Beep beep.
No mattter WHAT it costs to transition your people, those costs can be amortized over time. Whereas paying proprietary software license fees is FOREVER. By definition, sooner or later OSS HAS to cost you less - not even taking the intangibles of avoiding lock-in, flexibility, etc. into account.
The only issue is whether you can afford the upfront costs - and that has to be decided on a case-by-case basis. And you solve that issue by doing your migration over time according to a PLAN.
Planning? A novel idea for most IT management who are usually locked in to a crisis management mode...
Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
I've seen Microsoft advertisements and white papers that assert that there are many hidden costs of using FOSS. You and I know that it's FUD or at least naieve, but people like Gartner Group lap that kind of 'research' up and repeat it.
More interesting would be to do the research on the hidden costs of using Microsoft OS and applications. I, for one, waste plenty of time dealing with updates, reboots after updates, etc. with the various Microsoft OS's that I have to use.
Best regards.
... commissioned by a company that's a Microsoft partner. But no, honestly, it will be independent; we even paid extra for them to put "an independent study" in their abstract.
/always/ happens, and I've not seen a "Upgrading to Vista is cheaper than Linux" report yet this year, so it's due some time soon.
It
Also FatPhil on SoylentNews, id 863
It would be interesting, then, to see a comparison of training costs between switching to an OSS solution and upgrading to Vista and Office 2007. Certainly a pure OSS solution is going to require more training because there are more changes involved, and some of the differences are significant. Still given the easier incremental transitions you're likely to get on the OSS upgrade treadmill (which tends to have more regular, smaller, upgrades) compared to MS, you might be able to claim an offset in future training costs. At the very least it would be interesting to see how such costs stack up in a variety of cases. If training to the only really significant cost for OSS then this next upgrade round from MS might see a few more companies deciding to do an OSS roll out when they finally get around to upgrading.
Craft Beer Programming T-shirts
I always see the studies about the costs of migrating to Linux. But they never adequately explain the control group.
To be of any real value, you have to compare the Linux migration costs to some control group.
Here are some possible control groups:
1. Group transitioning from Windows95/98 to Window XP to Windows Vista
2. Group transitioning from Windows95/98/XP to Mac
3. Group transitioning from Mac to Windows Vista
4. Group transitioning from Windows95/98/XP to LTSP
5. Group transitioning from Linux to... Linux?
6. Group transitioning from Windows NT to Windows 2003 to Windows Vista
It seems that the control group in most of these studies is only imaginary: Windows XP with no transition.
That control group doesn't exist. It is never actually included in the studies. It is only conjectured.
What is the value of a study that uses an imaginary control group?
Wasn't it well established in an open letter that open source is dangerous and could derail the European economy? :)
That's what they tell me all the time. I mean, MS has no problem selling to us stupid people.
Me: download F/OSS, install it. Read TFM.
Compile errors usually saying I need a newer version of some dependancy that wasn't mentioned in the FM.
Get the dependencies. They have their own dependencies.
Have problem getting software to work. Contact developer: Developer, "RTFM! Idiot!" Okeydokey.
After 30 -40 hours of surfing web, scratching head, I just say, I'm too stupid. Delete software, buy MS solution.
I don't have time to do it myself or the money to pay for someone smarter than me.
It's been years since I took 'em, but you know the ones: Office competency tests... "Perform a Mail Merge using the file 'blahblah.txt'". Except that if you use hotkeys, it registers as a wrong answer.
I always wanted to train some sort of domestic animal to pass those tests.
My turnips listen for the soft cry of your love
The forces who do not want to see OSS succeed for their own financial reasons will do what ever it takes to make sure your costs go up. If Linux usage spikes next month (for example) I would except to see a rise in underhanded tactics as well.
"Thanks for all the money you paid to us. We've used it to buy off ISO among other things" -Microsoft
Glad to see the EU has started their own Department of Duh!
-It complies with published standards and therefore creates longer-lasting documents
-Since the source code is available, you are not locked in to a single vendor
-There are far, far more people who know the internals of the code and can offer you customizaton services.
-Security holes are easier to spot.
Who wants to do the next four?
My turnips listen for the soft cry of your love
Of course the EU would say that, Europeans are socialists and Linux is communism.
Want the truth? Get the facts where they are totally straight and objective, from honest American corporations.
(Insert tongue in cheek)
..it's the sound of millions of Slashdotters facepalming at once.
Slashdot Burying Stories About Slashdot Media Owned
-(of particular interest to govts.) Instead of spending money on licensing fees that go into the Redmond, Washington tax base, you spend it on training, customization, etc. that can be performed by your constituency, and thereby have many generations of return
-Any feature you want/need badly enough can be added. You don't have to hope that your desires are common enough to merit MS's attention.
-You do not have to worry about whether sensitive information about your computers is being sent to Microsoft as part of some newfangled Automatic Updates or DRM "feature"
-On the offchance that your government believes in individual liberty, F/OSS should give you a warm fuzzy feeling.
My turnips listen for the soft cry of your love
Hi, welcome to /.
For approximately 10 years we've been arguing about why a lot of those products are so widely-used despite their (in some cases) inferiority or (in other cases) exorbitant pricing.
My turnips listen for the soft cry of your love
"EU Commission Study Finds OSS Makes It Next to Impossible to Make Any Money". Fixed that for you.
All the "Get the facts" Case Studies are in .DOC format. So we will never know what we are missing. :)
Vista will make cost irrelevant.
Lots of companies and most governments are going to be mandated to use whole-disk encryption for laptops and desktops in the next year or so. The easiest way to do this is to get your hands on Vista Ultimate or Vista Enterprise.
This is a problem.
Vista Ultimate is a consumer product and you cannot get it via a volume license agreement, so that's out.
Vista Enterprise is available via volume & enterprise agreements but you must have software assurance agreement in place.
To get software assurance, you pay Microsoft a "seat fee" equal to the number of computers that you have that aren't:
- Servers
- Applicances (VPN devices, Google Search boxes, etc)
- Kiosks (ATM's, POS terminals, etc)
- Embedded devices (Treos, Blackberries, etc)
That means that you'll pay Microsoft for Macs, Linux machines, FreeDOS machines... anything that is a workstation. So switching to Linux won't save a time, because you'll pay Microsoft anyway!
Conformity is the jailer of freedom and enemy of growth. -JFK
Another EU Commissioned Study Finds OSS Wastes Money
so transition is zero when you have to retrain people when moving to never fancy ribonized M$ Office? Same cost so for your sake it is better to switch to OSS like OpenOffice, instead retraining people with M$ junk.
Hey, fanboys! Before you get too far into yet another "OSS is the best!" argument, you have to realize that there are many, many, MANY other things that software does that OSS doesn't do yet.
Case in point... the main software that I need is point-of-sale. There is NO OSS point-of-sale software that is anywhere near as good as any of the closed source products.
Hell, there isn't even a good equivalent for Quickbooks/Peachtree that's OSS. It's absolutely mind-boggling that any small businesses could ever go completely open source WITH NO FINANCIAL SOFTWARE (Yes, I know about GNUCash: it's a joke).
Hell, we don't even use any office software at my business (text documents are done with Textpad).
So, while Open Office and Linux is nice and all, it only meets a fraction of common, every day business needs. (Unless you're a multi-billion dollar internation corporation, then you can just pay a team of people to write something OS, and not care if your competition uses it or not).
Oh, so my point is that these studies are ridiculous. The custom OSS software we would have to have written would have to be amortized over ~20 years in order to save us money. OSS is grossly more expensive for me than shirnk-wrapped products.
... but I still prefer ALSA.
http://outcampaign.org/
Retraining employees isn't cheap, especially with regards to the time cost.
Unfortunately, OO.org is not anywhere near on par with M$ Word, especially under Linux. It's bloated as hell. When a word processor is so slow that it's annoying, something has gone horribly wrong. Hopefully later versions of OO (or some other office suite) will improve on this... but until then, I can't see Linux/OSS making significant progress into the office/business market without a good word processor.
One of these days, I'm going to cut you into little pieces.
The saving over time has to be larger than interest on the initial investment for the free software (or any other cost saving measure) to be a good investment. Otherwise, you are better off putting the money in the bank.
The "intangibles" as you call it, avoiding lock in, is the reason that free software usually is the better investment in the long run. The freedom granted by the use of free software is important when you have to navigate your organization in an ever changing and unpredictable world.
Well, MSFT had how much sales last year? 40 Billion Dollars? What is the total expenditure of all the Fortune 500 companies put together? 2 trillion dollars? MSFT is not taking big enough chunk of the companies to matter.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
"My charge rate is well past $180/hour."
You mean, *gasp*, it is almost $190/hour?!
(ok it's Friday, I'm not being sarcastic, my head is just... not right)
And my second reason: with source code I don't have to worry about the supplier dying. I'm currently trying to find what to do with a software my company has; we do have the source code, 400k lines of Fortran, but it's VAX-FORTRAN and runs on VMS. The VAX/VMS suppliers have died twice already, when DEC was taken over by Compaq and when Compaq was taken over by HP. The best solution would be if HP released the source code to VAX/VMS under the GPL, but no such luck.
I'm a big OSS advocate and I feel I make a pretty good case for clients to use OSS. However, the percentage that don't, and i've heard this quite a bit, do so because they're not "collectible" in the event it causes damage.
Even if the damage had minimal impact, it seems they still need assurance that they can sue the crap out of someone.
Sad.
____ plex
Hell, there isn't even a good equivalent for Quickbooks/Peachtree that's OSS. It's absolutely mind-boggling that any small businesses could ever go completely open source WITH NO FINANCIAL SOFTWARE (Yes, I know about GNUCash: it's a joke).
Simply amazing that those crazy Europeans manage to get by without Quickbooks. A miracle I manage in my own business(es) without ever once missing Quickbooks. I run OSS almost exclusively and actually spend less time dorking with my computers, which tend to stay working for extremely long periods of time. What is it I can't do without Quickbooks? Because I manage to track mileage and expenses, do billing, proposals and make financial projections with, what to me feels like, a minimum amount of effort. I must be living a torrid, pathetic existence. How sad for me to be so happy in a slime pit of unrealized potential. I don't have Quickbooks and I'm too cheap to spring for a copy of CrossOver to run it. But I do have a lot of fun with the money I'm not spending on MSFT products, so it's not a complete loss.
I'm not sure what makes that mind-boggling, because I think I'm doing just fine without MSFT. Perhaps you're easily boggled?
That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
http://www.illwillpress.com/acci.html/ NSFW...hell not safe even out of work at times...
Idiocy seems to be rewarded in Slashdot as you seem to have been favorably moderated. Just do a google search and you will find plenty of linux-based POS solutions.
Try Novell's POS as we have deployed that for a very large business in Spain.
Financial software is very much country specific. Here there are a couple of very compelling open source solutions, and some proprietary ones.
Anyway, I'll quit wasting my time with what is obviously a troll post in intent, nature, and tone.
Pragmatism as an ideology is not particularly pragmatic in the long term. Keep it in mind when you dismiss Free Software
First of all, know what you're confronting. You're going to sit at a public manager desk and spread all these numbers, talk for some hours till some magic moment when he looks up to the ceiling and says: "Eureka! Got an idea! Why don't we use this FLOSS and save the taxpayers a bunch?"
.NET, ASP, etc. Mono, hah, not an icecube's chance in hell.
No.
He'll just ignore you, and say to others you're a zealot whose ideas are distorted towards Linux domination. Don't say you're going to propose the use of free software on Windows: it won't work and he'll keep calling you Linux zealot.
Against all evidence, he'll just keep buying M$ licences instead of directing money to acquiring better hardware. He'll keep investing in platforms exclusive to M$ environments, like C#,
He'll spread FUD like "software has a life cycle" (so licences must be bought again and again), "new purchases are needed because newer product versions have bugs fixed" (an article by the late Dijsktra from 30+ years ago stated the opposite, mind you).
He'll use any possible dirty trick he knows to make Windows win and why? Because Linux wasn't in his plans! He's been so fiercely busy promoting Windows variants as better than Unices and when things started to lean favourably, there comes this PITA Linux to spoil his victory... (the other theory involves corruption, but I find incompetence more plausible).
In the end, there's no possible way to solve this on reasonable grounds only. If this guy was capable of changing his mind, he would have done it at least 3 years ago.
He has succeeded in qualifying Linux as a crazy nut thing; the ones he commands either are too coward to protest or have so much investment in M$ knowledge that they -- like their boss -- don't want to learn new things, too.
So, what do we do? I don't know for sure.
Fortunately, as I've seen in the past, the Windows-to-free-software change is happening in spite of guys like him (or me, btw!). In my zealot's distorted vision, it is as sure as the progress of time.
I think I'll just keep doing what I think is right and let time deal with him.
The EU couldn't find their way out of a room with only 3 walls let along anything as complicated as that.
... is that any statement about the cost implies that the total cost (and hence, the actual benefit) are measurable. Measuring either would be highly complex and depends largely on decisions about relative valuations made by those measuring.
aggregate, to collect over time, to draw by attraction.
to aggregate a good group would thus mean that you attracted a good core group of software developers.
not every open source project does so, open source tends to be more a "survival of the fittest" model than a "biggest bankroll" model.
J. Henager: If the average user can put a CD in and boot the system and follow the prompts, he can install and use Linux
We haven't been debating (and don't much care) whether your firm in particular chooses X or Y. It's more about why (e.g.) the 80% of Photoshop users who do basic cutting/pasting/editing of images still shell out for it when the GIMP is perfectly good.
Why do so many people buy SUVs when cheaper, cleaner sedans do the same job? They "feel safer". Scientific tests prove they aren't *actually safer, but there you go. Or it might be an image thing -- but that's not *rational decision-making.
"The philosophy and puritanism of OS=good and hip, commercial = bad and pest is not relevant"
I love when people just throw the word philosophy in like it's an insult. As though thinking is something to be ashamed of.
My turnips listen for the soft cry of your love
As a philosophy B.A., this thread disturbs me. There are about half a dozen references to "philosophy" as ... well, it's hard to tell. "You keep using that word. I'm not sure it means what you think it means..."
Philosophy is about logic, the means of acquiring knowledge, and the limitations of knowledge. If someone says "I choose Linux instead of Mac b/c Apple is evil" that's not a "philosophic" decision, it's a moral one. What gives?
btw, by far the *more annoying misuse of "philosophy" is this one:
"At CompuGlobal Hyper MegaNet, out philosophy is Great Customer Service Every Day..."
My turnips listen for the soft cry of your love
One thing i've learned is the best solution doesn't necessarily make it. I did a research paper in college on why drugs should be legalized backed up with government research all supporting my legalization arguement, however in practice, it is not so. I guess the politicians don't either read or act on the information they are presented with.
"Oh, so my point is that these studies are ridiculous. The custom OSS software we would have to have written would have to be amortized over ~20 years in order to save us money. OSS is grossly more expensive for me than shirnk-wrapped products"
Where does the study say you would have to write it yourself, in 'Textpad'. It may take ~20 years if you were going to write it yourself. But given the collaborative nature of OSS you get the benefit of the input from developers all over the world.
There is OTHER software than Office (Score:5, mod troll)
davecb5620@gmail.com
"when you do high end enterprise softwares inhouse, moving from one environment to another can be a pain. When you're moving from an environment where the solutions are in .NET, people use OWA, Active Directory, SQL Server, IIS, web services, MS Office, Sharepoint, Biztalk, high level of integration ..
.. eg ppp.ddd.ccc.ppt. That was the sum total of their in-house software.
.. developer required, C# and .NET 2.0 experience essential and knowledge of OR Mappers .. interfaces technologies used include flat files (binary and ASCII)'
.. :)
What is it you do at your company, design nuclear subs, space planes? I worked in-house for a fortune 500 consultancy and all they ever used their 'integrated innovation' for was customised PowerPoint documents stored in mapped drives under project name. A customized macro constructed the file name from the project number, department number, customer id
"All the environment generic algorythms and whatsnot they teach in school is cute and all, but when faced with business challenges, environment specific architecture and solutions are often needed, and people with high degree of seniority in these environments are required to get it done"
As a UK school sysadmin recently pointed out to me, nowadays most IT 'training' consists of clicking in MS applications. Why an ease of use GUI required a thousand page manual is beyone me.
I doubt the average MS certified sandwich maker would have ever heard of linked-lists or qsort. As for seniority I don't know what that is supposed to mean. I have also worked in a place where the bought in Systems Analysist was writing the database in Visual Basic. That's how senior he was.
"Basically, my point is that you'll need to fire 2/3rd of your IT department"
Nonsence, when you sign on to an Open Source project you get the benefit of the best IT brains on the planet.
with your Human Ressource department not knowing which qualifications are required in the new guys
You cannot be serious, for a laugh go and read up on some of the current It adverts as written by HR. EG:
'experience in TCP and UDP
Wanted cabinet maker with knowledge of dovetail joints
was: Re:Training cost? (Score:2)
davecb5620@gmail.com