Novell Assents To "Windows Is Cheaper Than Linux"

dyous87 points out a ZDNet article reporting that Novell has endorsed a customer's comment claiming that the total cost of ownership of Linux is higher then that of Windows. Novell and Microsoft jointly issued a press release quoting an IT guy for a UK-based bank, HSBC: "Some will be surprised to learn that our Windows environment has a lower total cost of ownership than our current Linux environment." The context of the comment makes it clear that HSBC's Linux environment has a mix of distros, and that a move to centralize around one distro — Novell's — will save money. Nevertheless, Novell's connection to this assertion is not likely to improve their reputation in the open source community.

Comments

its a bank

[mastershake_phd]

This is coming from a bank. They probably spent ridiculous amounts of money verifying linux is secure. They probably take microsofts word for it.

Re:its a bank

[Anonymous Coward]

Sorry, have to post as AC as this violates the NDA I signed in good faith... lol...

Few outside HSBC are aware of the massive struggle that took place between HSBC and MS over the enterprise licensing agreement in 2005/2006. You need to realize that there is enterprise licensing and then there is Enterprise Licensing for a nearly 2 *trillion* dollar multinational. HSBC is that big.

When the previous agreement expired in 2005 (and in the months leading up to the expiry), Microsoft took a pretty hard line, issuing all sorts of memos about the "new licensing structure" which of course worked out to HUGE increases in enterprise agreements (and not just for HSBC, for the whole world - remember that?). HSBC also went in hard, even going so far is to make a global "announcement" that our new global standard for server architecture would be linux-based. I remember running complete bullsh*t "pilots" of applications which were obviously purely for the benefit of our local MS/VAR boys. Now there was never any real threat of a full-on conversion but just think about the impact of such a statement from one of the world's largest technology purchasers. Those of you involved in any sort of vendor renewal will be familiar with this sort of mexican standoff.

I wouldn't be surprised to find out that as the final hand$hake took place between MS and GroupHQ, the following exchanage took place:

  - MS guy: "Ohbytheway you really killed us with that whole switch-to-linux thing... Citigroup and GE renew in the next few years... would you mind issuing some sort of statement that downplays/refutes/minimizes your earlier linux announcements?"
  - HSBC guy: "Sure, how about 'Upon further review, TCO for linux >>> TCO for MS'?"
  - MS guy: "That'll do."

Oh and for those who think that HSBC is "just a bank" because it isn't quite so dominant in the US, you really have no idea.

Applied Freudian Physchology

[l4m3z0r]

How the open source community views Novell is reminiscent of the madonna-whore complex.

1. We can only love a perfect(technically) and chaste(doesn't screw msft behind our backs) woman

2. However we want her to be sexy(successful) and do the nasty(make money).

In essence we can never be satisfied with a company's performance and also love them at the same time. We are doomed to hate Novell and yet we desperately want her.

And not just any bank

[Anonymous Coward]

HSBC's long term TCO decision making strategies of late may be deemed... well... questionable.

Re:And not just any bank

[stephanruby]

Just to clarify, since its published group history doesn't make it clear, the bank was founded in Hong Kong 140 years ago by Scottish white men. To this day, most of the Board members are white men of Scottish ancestry. For some interesting close to the truth fiction regarding the original creation of that bank, and the kind of Scottish men we're talking about -- read "The Noble House" by James Clavell (it's a very good novel -- that you won't want to put down once started).