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'Windows scores over Linux in ownership cost'
Posted on Monday, November 27 2006 @ 16:24:04 EST by linuxwiz |
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A Frost & Sullivan study
commissioned by Microsoft on the total cost of ownership (TCO) of IT
assets has revealed that Microsoft Windows 2003 environment across
enterprises scores over Linux.
MS
Windows 2003 has close to 15.9% advantage over Linux and constitutes
lower TCO in 80% of the instances encompassing application servers,
network servers and mail servers.
The study was conducted in 54
organisations (both high-end and mid-tier) across banking financial
services and insurance, manufacturing, public sector and Government
IT-enabled services, BPO and telecom verticals.
CIOs have realised that they need
analysis that goes beyond initial purchase cost of a hardware or
software, and indicates post-implementation operation, support and
maintenance costs too.
Hence, there is a need to capture the
TCO, the sum total of all direct and indirect costs associated with the
lifecycle of an IT asset, said a Frost & Sullivan release.
The target respondents consisted of
senior IT professionals such as CIOs, CTOs and IT managers among others
of large and mid-sized enterprises (500 and more employees). The report
was audited by Capgemini. Companies such as Ashok Leyland, Aztecsoft, B2K Corp, BSNL, Bokaro Steel, Directorate of Treasuries, West Bengal Government, Food Corporation of India, Godrej Industries, Haldia Petrochemicals, ITI,
National Insurance Company, Tamil Nadu Small Industries Development
Corporation, Sundaram Clayton, Tamil Nadu Water Supply and Drainage
Board and Timken India, among others, participated in this research.
TCO comprises cost incurred by an
enterprise in the course of selection (search and evaluation),
installation (capital & deployment cost), maintenance and
deployment (both planned & unplanned) and upgrades of software
systems over the course of five years.
It also includes indirect costs
associated with planning, audit and other incidental costs such as
consulting, rollout, configuration management, bug fixing and testing
and module integration.
Interestingly, in India, hardware is
the largest component of TCO of enterprises while software cost is just
about 15% of the capital expense and six per cent of overall TCO.
Elaborating on the study, Mr T R Madan Mohan, Director (Consulting),
ICT Practice, Frost & Sullivan India, said: 'While assessing the
TCO, organisations should evaluate the capital expenditure and
operational expenses of the specific IT investment through out the
lifecycle of the asset. More often than not the focus is just on
capital expenditure, which leads to skewed decisions.'
He added: 'Specifically, while
comparing proprietary software with open source software, the capex
constitutes 53% and 47% respectively. Our analysis shows that while
capex for Linux might be low, the operating expenses could be as much
as 53.1% higher compared to Windows 2003, primarily due to the high
cost of support and manpower costs. Hence, it is prudent for an
organisation to capture all necessary cost components beyond just the
initial cost of acquisition.'
He also said: 'Our research revealed
that for application servers, Microsoft Windows 2003 emerges with the
lowest TCO, 22.4% lower than Linux, where as for network servers and
mail servers the TCO is 11% and 8.24% lower than Linux respectively.'
According to him, Linux offers TCO advantage of 4.7% in file print server and 24% in Web server over Widows 2003.
'However, cost of maintenance and upgrades of file print server for Windows 2003 is cheaper than Linux.'
Mr R. Ragavan, AGM (IT) of Sundaram
Clayton (Brakes Division), one of the key participants in the study,
said: 'We are now able to maintain better uptime of the servers with
lesser restarts. It is user-friendly for the system administrator to
deploy the network access policies. The version controls are
standardised. The IT staff is focusing more on improvement activities.'
Source
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