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TCO OF A LINUX SYSTEM
 
Proponents of Linux claim that it lowers the overall TCO by supporting many other cost-effective hardware and software solutions. Those in the Microsoft camp assert that Linux vs Windows is hardly an apple-to-apple comparison.
 

 
Friday, June 04, 2004

 

"If Linux’s cost-effectiveness is so appealing, why does a large user base continue to use pirated Microsoft product instead of using ‘free’ Linux"
Dr Nitin Paranjape
CMD, Maestros Mediline Systems

Not an apple-to-apple comparison...
The argument that most present for Linux is that it offers low total cost of ownership (TCO) as compared to a Microsoft solution. But the fact remains that a Microsoft product offers far more features than Linux. And in order to estimate the true value of a solution we need to consider what the solution can do for you.

However, since over 99% of users under-utilize the system, be it a Microsoft-based or Linux-based one, the very comparison between the two becomes skewed. I don’t think it’s an apple-to-apple comparison. To really estimate Microsoft’s advantage over Linux, we need to compare the features offered by both and see what benefits these features can provide to end-users.

Service ownership is an issue...
When we say Microsoft has a proprietary business model, what it means is that the company owns the product as well as has the service ownership. This also reflects a maturity in business and long-term commitment. The same holds only partially true for Linux.

There are hardly any SLA guarantees offered on an open source solution. Further, one flavor of Linux, at times, finds it difficult to talk to another one. Integration between themselves is a big issue.


Demand for Microsoft continues to surge...
If cost-effectiveness and the ‘free’ nature of Linux were so appealing, how is it that the piracy levels for Microsoft products remains the highest? Why don’t people use free or cheap Linux-based solutions instead of going for pirate proprietary software? The fact is the kind of features a Microsoft product offers cannot be matched by Linux and this has become a necessity for a majority section of users.

True potential unexplored...
As far as integration is concerned, Microsoft solutions offer them at the highest levels. As far as cost-effectiveness is concerned, a Microsoft solution can be proved to be more cost-effective. This could be done by listing each feature of that solution and demonstrating the true capability of that feature. The aberration lies in the fact that we are comparing inefficiencies most of the time instead of comparing the potential capabilities of what the solution can do for a user.


TCO comparison is not just for argument sake...
The argument is not just about the TCO on Linux. The true TCO can be arrived at by looking at the availability of solutions (hardware plus software) that can help deliver the improved TCO. And Linux plays a significant part on the software front to bring down the same.

"Customers move to Linux because they see the value, as it assists them to integrate various technologies and enjoy flexibility and choice"
Jyothi Satyanathan
Linux Business Manager, ASEAN/SA, IBM India

Linux allows customers to change their hardware platforms to take advantage of better price performance. For example, customers can replace expensive proprietary Unix servers with low-cost Intel servers running Linux. So not only the hardware cost goes down, but also that of software. This is the true Linux TCO advantage.

Mission-critical applications too run on Linux...
Customers continue to move to Linux because they see the value. As a company, IBM continues to invest in Linux because we believe in the value of Linux. Our commitment is also demonstrated by the fact that we use Linux across over 3,500 servers inside IBM. Mission-critical applications that run Linux include the IBM web site, support of IBM’s new $2.5 billion 300mm chip manufacturing facility, and applications supporting more than 3,00,000 IBM employees worldwide.

Linux assists organizations to provide better service to their customers in enabling open technologies that can more easily integrate and provide flexibility and choice.

Analysts show Linux is growing faster...
According to IDC, Linux server shipments are expected to grow at a CAGR of 28.5% in 2002-07 as compared to 10.3% CAGR for Windows. Linux server marketshare in unit terms is expected to grow by 13.6% as compared to a decline of 3.6% for Windows.

In revenue terms, the marketshare for Linux servers is expected to grow by 9% (2002-07) as compared to 5.4% for Windows. Also, according to Gartner, 45% of mid-sized businesses are already using or experimenting with Linux. These findings clearly showcase the growth of Linux adoption.

Linux offers choice...
Linux is all about choice and open-standards. Linux creates a truly open and viable alternative for an operating system—especially in the Intel server market. Linux is the open platform choice that helps these organizations to better integrate and at the same time save cost, get better reliability, avoid costly viruses and provide better service to their customers. IBM isn’t just saying this as a marketing campaign - we are directly responding to our customer’s needs and open standards and Linux form a key part of our response.

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