[TriLUG] OT: figuring out financial info for switching to Linux

[Janyne Kizer]

We did not decide to change our rollout plans from Windows TS to Linux
for financial reasons -- although it has been a very nice side benefit. 
We did it because there was no way that we could support Windows servers
distributed throughout the state without a substantial increase in the
number of support personnel and there was no way that was going to fly
politically.  (FWIW, KY Cooperative Extension uses Windows on the
desktop and they do have IT people distributed throughout the state.  We
have one sysadmin and two helpdesk people to support 1400 users at 100+
locations.)  That and the fact that Active Directory just didn't work in
our distrubted environment.  That being said, even at educational
pricing we are saving a bundle on software.  Factor in the fact that the
hardware can do more and that it is stable and so on and I think that NC
Cooperative Extension is getting a deal!  Of course I also like the fact
that I don't have to keep track of licenses :-)

Also, since we were going from Solaris to Windows before, retraining
would have been needed either way.

Maria Winslow wrote:
> 
> This is a very interesting area that I am dealing with now for customers. We
> are finding that non-technical managers, and even CIO types, have no idea of
> the options available in the open source world. They haven't really thought
> about the percentage of license fees that go to MS Office, for example, and
> their ears perk up when they see how OpenOffice looks on a well configured
> laptop. Even just moving from MS Office to OpenOfice can save a bundle.
> 
> Since most places buy the MS software with the machine, you should figure out
> what the OEM cost is, and start there. You can figure about $160 for XP, $330
> for Office, and $50 for Norton Antivirus, for a total of about $540 per
> machine. And that's if you don't plan to buy other software such as Exchange
> seats ($67 per machine), Photoshop, Acrobat, etc, for which there are free or
> low cost alternatives. My advice is to look at the standard setup and add all
> these costs up. Even if you give them just this number, they will be
> surprised. Keep in mind that MS licensing fees have been "hidden" in the
> hardware cost when you buy machines, and are easily overlooked since we
> didn't have these open source options before.
> 
> Other factors to consider are the cost benefits of increased reliability,
> security, and remote maintenance. These are more difficult to figure, so I
> recommend including the list of benefits and taking a guess at how many hours
> of productivity will be gained. This could translate to free time for working
> on that custom application you don't have the staff for, for example. Try to
> work in something that would be particularly interesting to your manager. I
> wouldn't make up something outrageous, since the license savings alone will
> speak volumes. Also remind them that a Linux upgrade gets them off the track
> of continual costly MS upgrades, leaving more money in the budget for future
> projects.
> 
> Finally, a note about why this is interesting to me: I have started a new
> company to assist businesses in determining their appropriate Linux/open
> source upgrade path, and provide all the services needed to make it happen.
> We offer a no-cost initial assessment designed for non-technical (or
> semi-technical) executives to help them understand their options and look for
> ways their company can take advantage of the cost savings of Linux. Please
> pass the word if you know anyone who would benefit, or give me a call
> sometime (968-7802).
> 
> Maria
> 
> On Wednesday 04 September 2002 12:20 pm, ya'll wrote:
> > This may be somewhat off topic - but I couldn't think of a better place
> > to ask :)
> >
> > Have any of you (either for your own client or the company you work for)
> > had to figure out financial information such as ROI, etc for using
> > Microsoft vs. Linux? I'm not really good with numbers although I could
> > follow formulas for stuff if I had good directions. Where do you learn
> > to do this? Is this the kind of thing an accountant would do?
> >
> > Thanks for any info as always!!
> > Lisa B.
> >
> >
> >
> > _______________________________________________
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> 
> --
> Maria Winslow
> maria.winslow at windows-linux.com
> 919.968.7802
> 
> Open Source Migrations
> www.windows-linux.com
> 
> _______________________________________________
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> TriLUG Organizational FAQ:
>     http://www.trilug.org/~lovelace/faq/TriLUG-faq.html

-- 

Janyne Kizer
CNE-3, CNE-4, CNE-5
Systems Programmer Administrator
NC State University, College of Agriculture & Life Sciences
Extension Information Technology