[AUUG-Talk]: MEDIA RELEASE: Independent Study Shows TCO for Open Source 30% Lower

Con Zymaris conz at cyber.com.au
Wed Oct 6 10:48:59 EST 2004

[Please feel free to disseminate]


Australia -- 6th October, 2004
In what is probably the first major independent study contrasting Linux
& open source against proprietary Microsoft software, open source was
shown to have a lower TCO by upto 30%. This casts further doubts on the 
Microsoft-funded TCO study undertaken by IDC and adds additional 
momentum to the open source platform as the best way forward for most IT 
requirements. Who would have guessed it?

"We've always known that the Microsoft-funded IDC study was flawed. The
report's key author said as much in a response to questioning by
BusinessWeek journalists. He claimed that Microsoft selected scenarios
that would inevitably be more costly using Linux," said OSIA
spokesperson Del Elson. 

"This independent study, however, indicates that open source software has
the potential to lower operating costs for most organisations, enabling
businesses to use Information Technology as a tool rather than a financial
drain," continued Elson. "Data was collected from interviews conducted
with 50 different enterprises, which means that this isn't a mere
theoretical model, but one based on real-world savings."

The independent study released by Research and Markets presents a
detailed TCO (Total Cost of Ownership) calculation of open source
software and proprietary software with the help of case histories,
studies into licensing costs, wage and training costs, etc. The study
points towards savings potentials up to 30% depending on the
application, including commonly used office applications. Research and
Markets is one of the world's leading sources for international market
research and market data. Their research reports are funded
independently through the sale of research data and market reports. 
"Open source products have already demonstrated lower overall TCO in
studies within Australia, including in several government and business
run trials" continued Elson. "For example, the RTA in NSW has already
suggested savings of $2 million per year by switching to an open source
Other points raised in the research include:            
* Savings of nearly 30% are possible. 

* Significant savings potentials regarding license and operating costs 
  turn open source into a genuine alternative.

* Large enterprises or public authorities can profit the most by 
  moving to open source.

* Open source will spread substantially through enterprises and public 

"We particularly enjoyed the fact that this independent research slaps
down the IDC TCO report funded by Microsoft," concluded Elson. "When you
think about it, it makes sense. Linux and open source products are
cheaper, more robust and more secure. Having Microsoft tell us that
their products have lower TCO is like them telling us that the Earth is
flat. Right-thinking CIOs know that Linux and open source software
result in lower costs and are not likely to be hoodwinked by verbal
sleight-of-hand or spurious, vendor-manipulated TCO studies."


- - -
About Open Source Industry Australia Limited.

OSIA is the industry body for Open Source within Australia. We exist to
further the cause of Free and Open Source software (FOSS) in Australia
and to help our members to improve their business success in this
growing sector of the global Information and Communication Technology
(ICT) market.


Spokesperson/Contact: Del Elson
Phone: 02 9400 0400
Email: media at osia.net.au

- - - END - - -

Con Zymaris <conz at cyber.com.au> Level 4, 10 Queen St, Melbourne, Australia 
Cybersource: Australia's Leading Linux and Open Source Solutions Company 
Web: http://www.cyber.com.au/  Phone: 03 9621 2377   Fax: 03 9621 2477

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