Seizing opportunities to go open source

ANALYSIS
Microsoft has told us it's successful because it makes better products at cheaper prices. However, Microsoft Office can now be matched on quality and beaten on price by Ximian's Evolution and Sun Microsystem's OpenOffice, the free version of StarOffice. Combined, they are said to be the first open source contenders against the formidable Microsoft Office product and its approximately 90-percent desktop market share. And now that Microsoft has begun pressuring businesses to pay licensing fees, the environment is particularly primed for open source to take some of that market share. All that's left is for proponents of open source to familiarise themselves with these products and learn how to promote them in a way that business people can understand.

A common scenario
Let's look at a common scenario playing out in many companies. Suppose you're an IT manager at a small company that's a subsidiary of a much larger company. Your office has 150 computers, of which 100 are used by a few shifts of customer-service personnel. These workers only use Microsoft Internet Explorer as an interface to an in-house program on the server that your department developed. The other 50 computers are used by office workers who primarily run Microsoft Office 97. Five of these computers also have a Microsoft Windows-based accounting program installed. Almost all of the computers were purchased with Microsoft Windows 95 pre-installed, but they've all been upgraded over time to Microsoft Windows 98 using five licensed copies that came with five newer computers that were purchased a while back. At this point, the users are fairly content with the software, and they politely ignore comments you make occasionally about the merits of open-source software.

A new development
Now let's suppose your CIO receives a certified letter from Microsoft requesting that he conduct a self-audit of the office's software licenses and stating that the company must purchase any missing licenses within 30 days. The letter also says that if he is unwilling to perform a self-audit, Microsoft's legal department is ready to petition the local court to allow it to do the audit and possibly follow up with a lawsuit for any copyright law violations. Your CIO has already called his boss and he was told to comply. He was also told that license purchases will come out of his office's budget. Your CIO is upset and asks you to make a quick assessment of what it will cost to get in compliance.

You count the five Microsoft Windows 98 licenses and the one Microsoft Office 97 license. You check with one of your favourite software vendors, and you find out that you can get away with upgrading to Microsoft Windows XP (the Win98 licenses are the same price), but you'll have to buy the full standard version of Microsoft Office XP since you don't want to pay an on-going licensing fee. With rough prices in hand, you're able to whip together a calculation to give to the CIO (see Figure A).
Figure A

Software
Quantity
Price
Total
MS Windows XP
150
180
27,000
MS Office XP
50
360
18,000
$45,000  

After staring at these numbers and realising that his bonus is lost, he says that he had no idea that it would be so much. A brief, pointless discussion ensues as to how it got to be so much, before he asks if there is any way around it. For the first time in the five years that you've been working there, your CIO is open to discussing open source. You pitch Evolution, OpenOffice, and Linux. You compare them to their Microsoft counterparts and explain the cost. You bring him over to your PC, which has these programs installed on it, and let him try them out. He's impressed and comments that they seem easy to use.

Talkback

Nice story... you forgot to calculate the cost of converting 200 PC's from Windows to Linux. Let's say you spent 1 day whipping up an unattended install disc, then let's say it takes about 3 hours per PC (some will take less, some will take more), so that's 200*3hrs, or 600 hours. Let's say you can do two PC's at once, so cut it to 300hrs. That seems low.... let's say 350 hours to convert all the PC's, including prep time, contingencies, answering all the questions, etc... At $100/hr, that's roughly $35000 to convert everything. Still cheaper than going legit with MS, but there's less margin for error when you factor in the real costs of going open source. I think you should be doing it gradually, not all at once - that's too risky. What if something goes wrong, and the company's information system needs to be shutdown for a whole day ?

via Facebook 5 November, 2003 05:38
Reply

600 hours? You got to be kidding?
I've done 20 simultaneous installaton at one go.
That that only because I've got only one server and a switch.
Automated network installation like kick start is a breeze to configure, Modify the kickstart config file. boot via PXE. viola your installing RH.

via Facebook 5 November, 2003 06:47
Reply

Whilst the cost of installing Open Source on the PC's has not been included. What has also not been taken into account which, negates the argument about installing Open Source cost, is the fact that as the PC's are running Windows 98 and Office 98 and the scenario is to upgrade to Windows XP & Office XP is
a) the cost of installing both these products
b) the probable need to buy new PC's or hardware to run Windows XP & Office XP

So the cost factor of changing to Open Source is potentially even more beneficial, although some of the Linux distributions now assume Gbytes space available!

via Facebook 5 November, 2003 10:36
Reply

How many hours needed to upgrade to Windows XP ???

via Facebook 5 November, 2003 16:05
Reply

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

songmaster

SHleG: Do you remember building a clockwork scorpion kit (I'm pretty sure I have a photo of it somewhere) — I think it was called something like...

59 minutes ago by songmaster on Software with everything
Chris Wortman

Good I love Yahoo! Their search engine is getting better than Google as of late. I find more of what I want on the first page, and usually within...

1 hour ago by Chris Wortman via Facebook on Linux Mint 13 ramps up for KDE release
PatrickG

openhgs has made the point for Windows 8 multiple monitors without realising it! With Windows 7 you have to switch the mouse and so your focus...

3 hours ago by PatrickG on Windows 8 could speed multi-monitor uptake
Leslie Satenstein

Mozilla has threatened to stop supporting Linux. I guess that UBUNTU is going with another browser. I indicated that if Mozilla stops supporting...

5 hours ago by Leslie Satenstein via Facebook on Firefox rapid release improves Fedora Linux
Andy Bolstridge

Much as I abhor Microsoft's licensing practices, this is almost certainly down to purchasing IT equipment via 3rd party consultants - you get the...

5 hours ago by Andy Bolstridge via Facebook on 6 million wasted licences and £1,200 PCs: welcome to government IT
Jack Schofield

@openhgs Windows users have had multiple desktops since Linus started writing Linux. They just haven't shipped as standard because not enough...

21 hours ago by Jack Schofield on Windows 8 could speed multi-monitor uptake
Jack Schofield

@Phil at Cloud4 What, Microsoft gets £1,200 per PC and £1,622 per server? Gosh, I'm amazed....

22 hours ago by Jack Schofield on 6 million wasted licences and £1,200 PCs: welcome to government IT
craigsc

You guys have no idea what is going on at Autonomy. Autonomy could have been a much more profitable organization. The sales operations at Autonomy...

23 hours ago by craigsc on HP cuts 27,000 staff as Autonomy chief Lynch leaves
Moley

How does this impact on dual or multi booting? Seems to me to more or less prohibit this, from Windows 8 anyway. Will Grub 2 recognise Windows 8,...

23 hours ago by Moley on Windows 8 start-up speed forces USB boot workaround
apexwm

I don't understand why there cannot be a slight pause during the boot process so the user can press a key. Many operating systems do this, even if...

1 day ago by apexwm on Windows 8 start-up speed forces USB boot workaround
Gavin Goodman

You can now buy the Xi3 modular computer in the UK at http://www.ocdistribution.com . This can be bought with the Tand3m software, pricing and...

1 day ago by Gavin Goodman on CES 2012: Xi3 microSERV3R
Phil at Cloud4

I agree: Mike Lynch can clearly build a business and manage strategy. I suspect the exit of Mike is more likely the end of a planned handover...

1 day ago by Phil at Cloud4 on HP cuts 27,000 staff as Autonomy chief Lynch leaves
Phil at Cloud4

This is unbeleivable government wastage with only one winner... Microsoft 1 - Tax payer Nil!

1 day ago by Phil at Cloud4 on 6 million wasted licences and £1,200 PCs: welcome to government IT
Mispam

So what do you do when you can't boot into windows? Why can't I just hold Shift while I power up instead of having to boot into windows and click a...

1 day ago by Mispam on Windows 8 start-up speed forces USB boot workaround
apexwm

I've also seen that Mac OS X for Intel machines is supposed to run in VirtualBox, which would also be a nice solution. I've never tried it though.

1 day ago by apexwm on xTreme Triple Booting: Linux, Mac & Windows
dave heasman

What I wonder is why when companies are caught bang to rights in not providing contracted services, people bend over to smear the customers? Surely...

1 day ago by dave heasman on Virgin throttles broadband for high-speed customers
pjc158

Strange statement from HP regarding Mike Lynch and not capable of scaling a company. Autonomy was a $7bn purchase which started as a small company...

1 day ago by pjc158 on HP cuts 27,000 staff as Autonomy chief Lynch leaves
lojolondon

Or - possibly, they will destroy business by ensuring people do not invest where there is no return. Another socialist idea, well beyond it's...

1 day ago by lojolondon on Open Data Institute will act as biz incubator
J.A. Watson

Good stuff Jake, very interesting. Thanks. jw

1 day ago by J.A. Watson on xTreme Triple Booting: Linux, Mac & Windows
openhgs

"the cost of a second LCD screen is about the same as one day of an office worker's time, so this should soon be recouped in extra productivity."...

2 days ago by openhgs on Windows 8 could speed multi-monitor uptake