Total Cost of Ownership

Save Money With Linux

Most studies that try to determine Total Cost of Ownership focus on the standard IT tasks such as procurment, installation, administration, etc. They wrongly assume that all software has the same license compliance overhead, approximately the same reliability, security, etc. Not supprisingly, most of these studies are comissioned by companies who earn huge profits selling you software.

Linux saves money in four ways:

1. Linux can reliably run more than one application per server. This avoids multiple server deployments (that are popular in Microsoft enviornments).

2. Linux is more efficient. You don't need as much hardware to accomplish the same tasks. Consequently, you spend less on hardware.

3. Linux simply costs less to acquire. True there are commercial versions of Linux that come with commercial price tags. But they don't come with forced upgrades and Client Access Licenses that make up the bulk of software acquisition costs. Follow this link for an example of how much you can save by deploying Linux.

4. It simply costs less to administer Linux systems.

Soft Cost Saving That Add Up to Hard Dollars

The fact is that proprietary software forces you and your staff to invest significant time and money on tasks that provide no value to your business. By deploying Open Source software, you eliminate the expense and overhead of proprietary software. How? By following the mananagement axiom:

"The greatest efficiencies come from finding work that no
longer needs to be done - and to stop doing it!

Below are detailed examples of things you no longer need to do once you choose to adopt Open Source software. Think about how much time and money your company can save by no longer having to worry about:

• License Management.
  Some of our clients have been forced to self-audit and report by the Canadian Aliance Against Software Theft. CAAST maintains a snitch line where people can phone in to report license violations. In most cases the snitch was a disgruntled ex-employee who felt like getting back at their ex-employer.

  Companies must conduct an expensive review of all software deployments, must inventory and identify all licenses used and must report the results to CAAST. In every case, our clients were officially out of compliance simply because individual managers had purchased software but not saved the license. Having the box, CDs or the software already installed on your computer is not sufficient. CAAST's position is that if you can't produce the license card, you are guilty of a license violation.

  Under the threat of litigation, most companies find it cheaper to just re-purchase software they already own (but can't prove). One of our clients was forced to spend over $50,000 to purchase software they already owned. Simply stated, it was cheaper to re-purchase than it was to risk damages and the PR fall out of fighting in court.

  CAAST members include the likes of Microsoft, Symantec, Autodesk, Borland, Network Associates and Adobe. Do you really want to partner with companies that engage in this type of business practice?

• Licence Interpretation
  Many vendors have license agreements that make Income Tax forms look simple. Even with the best of efforts and intent, it is easy to purchase the wrong licenses or the wrong number of licenses.

  You shouldn't need to be a lawyer to figure out your vendor's license scheme.

• No Forced Upgrades
  Some proprietary vendors use upgrades as a way to force you to take software you don't want. Murphy's law definitely applies to running servers "If it isn't broke - don't fix it!".

  However, when your vendor forces you to take software you don't need or want, when the service pack quietly undoes all of your security settings, when you are forced to agree to terms of license agreements (e.g.: Windows 2000 SP3) just to get the latest security fixes, you are not in control. These practices put your servers and your business at risk. Use Linux to break free of the cycle of upgrades forced on you by your software provider.

• No Forced License Changes
  Windows 2000 Service Pack 3 contained critical fixes needed to keep your server secure. It also contains a back door for use by Microsoft to audit for License Compliance. You agreed to let Microsoft enter your server and audit your system for license compliance purporses when you installed SP3 (read the really fine print!). Remeber, Microsoft is a member of both the BSA and CAAST.

  You really had no choice! Either you don't accept the license, and your machine remains insecure, or you accept the license and open your system up to probing by Microsoft.

  If Microsoft can now enter your system at will, how long do you think it will be before hackers learn to use the same back door to attack your system?

• No Client Access Licenses (CALs).
  Client Access Licenses are a license to print money (for the vendor). Just think... You buy the vendors clients software. You buy the vendors server software, then you buy a license that says the vendors client software is allowed to talk to the same vendors server software!"

  Customers pay vendors thousands of dollars for the right to have client and server programs talk to each other. What do you get? A piece of cardboard with a code on it! In Microsoft deployments, CAL expenditures may exceed all other costs including hardware costs.

  Add up what you pay for Windows Server CALs, Exchange CALs, Terminal Server CALs, SQL Server CALs, System Management Server CALs and future (unannounced ) CALs. Instead of paying all of that to your vendor, use Linux and add that money to your bottom line.

• Fewer Servers.
  Windows Best Practices dictates that a separate machine should be deployed for each server task... one for file and print sharing, one for e-mail, one for database, one for web, and so on... All of these machines must be purchased, licensed and administered. This adds significant cost and waste to your computing infrastructure.

  Did you know that most Windows servers are no more than 15-25% utilized? That means that if it weren't for the software you selected, you could run all of your software on one or two machines, purchase two thirds fewer machines and still provide good service!

  Linux is stable even when multiple applications run on one machine. In our office, a single Linux server runs:

  1. File and Print Sharing
  2. E-Mail for about 400 users
  3. Web Services for about 100 domains
  4. SQL Database services for about 6 database driven web sites
  5. Firewall services to keep the machine safe
  6. Network naming services for about 150 domains (DNS)
  7. Network address managemet (DHCP)
  8. And more...

  The machine is a white box dual Pentium III at 1000 mhz. with 2GB of RAM. Linux is so efficient, that on a really bad day, this machine goes down to about 90% idle! The total cost for this server... about $5,000.

• Fewer Administrators.
  It stands to reason that fewer machines require administrators.

  Additionally, like commercial UNIX, most Linux systems run lights-out. You don't need administrators to constantly baby-sit (tinker with) the machine.

• Virus Resistant.
  There are over 100,000 Windows viruses and fewer than 100 Linux viruses. Linux is immune to Microsoft Viruses! We run an OutLook clone called Ximian Evolution that looks, acts and even works like OutLook. The exception is that it is imune to e-mails that attack OutLooks contact list and spread viruses.

  You can spend money trying to defend against Microsoft viruses or you can simply leave them behind.

• Faster Deployment
  Because of the threat of litigation, most companies no longer temporarily copy proprietary licenses whenever they are setting up a new server.

  Rather than copying the license, issuing a Purchase Order, putting the new server into production and then layering the new license over top of the old, companies are now forced to delay their projects until new licenses arrive. Worse, if the project is cancelled or the software doesn't perform as expected, you are stuck with product you don't want or need but can't return.

  With Linux, you don't have to wait to purchase new licenses before deploying software. Linux is free and installs in about 20 minutes!

• Linux is Stable
  Linux was designed from first principles to be safe, secure and reliable. Most Linux shops run lights-out and many don't even employ Linux administrators. And, Linux systems stay up for months to years without the need for a reboot.

  Stop loosing work when unreliable systems crash. Stop paying for administrators to baby sit your Windows server. Stop paying for anti-virus software and stop buying expensive upgrades.

• Linux Administration Is Easy
  It can take a senior Windows administrator over a day to upgrade the hardware on a Windows server. The procedure is long, complicated and prone to risk. This exposes your business to down time and potential data loss.

  With Linux, you simply replace your hardware. When the machine boots, it will generally migrate it's configuration from the old hardware to the new hardware. You are usually back up and running in a matter of minutes.

  You can do so much more when you don't have to try to convince your proprietary vendor's operating system that you aren't trying to steal it! For an even easier time administering, Linux, we highly recommend Webmin!

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