Showing posts with label tco. Show all posts
Showing posts with label tco. Show all posts

07 December 2011

Open Source Total Cost of Ownership 2.0

Back in 2006, I wrote a piece for LXer called "A Brief History of Microsoft FUD". This ran through successive attempts by Microsoft to dismiss GNU/Linux in various ways. One of the better-known was a series of "Total Cost of Ownership" (TCO) studies. By an amazing coincidence, these all showed that Microsoft Windows was cheaper than that supposedly cheap GNU/Linux.

On Open Enterprise blog.

20 January 2011

There's No FUD Like an Old FUD

The Economist has been writing poorly-informed articles about open source for years - I dissected a particularly egregious example back in 2006. So it's hard to tell whether the flaws in this new book review are down to that antipathy, or whether they are inherent in the title it discusses, “The Comingled Code”. As far as the latter is concerned, the following information does not inspire confidence:

On Open Enterprise blog.

04 December 2008

Microsoft's Tired TCO Toffee

Those with good memories may recall a phase that Microsoft went through in which it issued (and generally commissioned) a stack of TCO studies that “proved” Windows was better/cheaper than GNU/Linux. Of course, they did nothing of the sort, since the methodology was generally so flawed you could have proved anything.

I'd thought that even Microsoft had recognised that this was a very weak form of attack, so I was surprised to come across this....

On Open Enterprise blog.

25 August 2008

Of Microsoft, Retraining Costs, and TCOs

when it comes to the education of kids, there is no mythical "migration" costs, and therefore Microsoft's standard arguments of Total Cost of Ownership studies with retraining goes right out the window. In a few years, Microsoft will become even more expensive because of the "migration" costs from Linux to Windows X, and I wonder if that will be a factor in their TCO studies.

Nice point. The rest of the article - about installing GNU/Linux on 23,000 PCs in the Philippines - is also well worth reading.

10 October 2007

No, Minister

It is - alas - not often that the relative merits of open and closed source get debated in the House of Commons, but yesterday was such a (frabjous) day. The hero of the piece, as so often in this context, was John Pugh, Lib Dem MP for Southport. The villain - well, I'll leave that for you to decide from the following comment, which as was made by Angela Eagle, The Exchequer Secretary to the Treasury, in reply to John's questions:

It is often suggested that open source solutions offer better value because they are cheaper to buy. In fact, the total cost of ownership is considered in procurement, and it is not always the case that the open source solutions are the cheapest. Although they are free of licence charges, because they can involve high levels of support and training costs, they sometimes do not provide the best value for money. External studies have not shown a consistent cost advantage to open source solutions over proprietary solutions.

Now, where have I heard this old TCO argument before? And what a coincidence that a UK minister should be using it, no? I wonder how she, er, happened upon it...?

07 June 2007

Microsoft, Its Rose and the Canker

Now here's an interesting thing:

Developing the Future is an annual report examining the impact of the software development industry on the UK economy, from both a local and global perspective. The report is a collaborative work with partners from the IT industry and academia. By exploring emerging trends, the report stimulates debate between stakeholders and calls for positive action to support the UK software industry.

It's interesting because:

The second edition of Developing the Future not only comprises original research commissioned by Microsoft on these fascinating themes, it also includes independent articles from luminaries such as Will Hutton, outlining unique perspectives on the massive change now taking place in Britain.

You'd pretty much expect this to be standard Microsoft propaganda, along the lines of its risible TCO "studies"; but you'd be wrong. Developing the Future is an extremely interesting look at major issues affecting UK software development in the near-future. It is one of the best-presented digital documents I have seen in a while, with excellent photography, and a nice clean design.

The contents aren't bad either: for the most part, the writing is neutral and fair. Only at one point is it clear that there is a canker at the heart of this rose, when the section on innovation starts wittering on about that mythical beast of "intellectual property", and comes out with this extraordinary self-evident truth:

The lack of intellectual property protection for algorithms, software or enhanced business processes are barriers to innovation.

Creating intellectual monopolies in something as fundamental as algorithms is about as sensible as handing out government monopolies on air and water. It's sad to see an otherwise forward-looking document stuck so firmly in the past, instead of promoting innovation and prosperity in the "Knowledge Economy" through the liberation of its wondrous, non-rivalrous, raw stuff: ideas.

20 March 2007

In the (Marketing) Belly of the Beast

It's always a good idea to try to understand how Microsoft regards the world of free software, and there's no better way of doing that than reading its own materials aimed at beating open source. Here's a good example, called Linux Personas, which presents various kinds of GNU/Linux users and how to win them back to Windows.

Perhaps the most interesting category is the Linux Aficionado - hard-core open source geek, in other words. The two key approaches are the usual tired TCO studies - a pretty forlorn hope given the extent to which they have been debunked - and an argument based on the strength of Windows' integrated platform.

The latter has always truck me as one of the better points, since it is (currently) a key differentiator for Microsoft. I still don't see geeks going for it (their senior managers might, though). What's more important in this context, perhaps, is the rise of the open source stack, which effectively is building a counter-argument to this. (Via Slashdot.)

03 February 2007

Microsoft's TCO Tricks: Ancient but Important

This may be ancient history now, but it's important that people remember that Microsoft does not fight fair, as these old documents about the company's TCO campaign against GNU/Linux indicate:

The court evidence also gives a peek into the relationships large vendors like Microsoft have with research firms. In a different Nov. 3, 2002, message, Houston said that the company had been unable to convince any other major research company to do the TCO study, and specifically mentioned Gartner as one that turned down Microsoft's request.

"We approached Gartner about doing this study and they declined," said Houston. "They said it was because they didn't know that their model for TCO would work well with Linux. I privately wonder if they want to take on this debate."

And the month before, Houston wrote Johnson a message that intimated pressure had been put on IDC to tweak the report so it would put Microsoft in a better light. "I hate to put it like this, but at this point, IDC is done negotiating with us. We have moved them quite a bit already, but they are now holding the line, saying that if we want the names of their 'big' analysts on the report, this is it."

17 January 2007

Microsoft Enterprise Open Source

Well, that's what it says here, although what this really means is something like this:

Aras Innovator enterprise software solutions take advantage of the Microsoft enterprise service-oriented architecture [SOA] technologies to deliver applications that are scalable, manageable and secure.

Aras Innovator solutions are Microsoft enterprise open source combining the flexibility and control of open source with the affordable Microsoft infrastructure. Together Aras and Microsoft deliver a Total Cost of Ownership dramatically lower than conventional enterprise systems.

Not quite so dramatic, but nonetheless an interesting move from a company that seems hugely proud of its mongrel heritage:

Aras Corporation is the Microsoft enterprise open source software solution provider for companies that want the control and flexibility of open source and have Microsoft skill sets and infrastructure.

(Via TheOpenForce.com.)

26 September 2006

It's Baaaaack: the Scary Teeseeoh Monster

I've written extensively - some would say too extensively - about Microsoft's long tradition of FUD. This has gone through many incarnations in a desperate attempt to find something that might convince people to stay away from that nasty GNU/Linux stuff. It appears that even the fertile minds of Microsoft's FUDmeisters are running out of ideas, since they've resurrected the old TCO argument.

I won't even bother going through why this PDF is a waste of electrons - even I'm bored with refuting these tired old arguments. But I would like to point out the underlying flaw with all these studies: that traditional TCO fails utterly to take into account things like the cost of vendor lock-in that the Microsoft route implies.

Even when the TCO for Windows is lower than that for GNU/Linux - and yes, it happens - there is the problem that Microsoft will always bring out a new version of Windows that requires massive software and hardware investments over and above those budgeted for in simplistic TCO analyses (i.e. all those prepared by analysts). Of course, according to Microsoft, this isn't a problem, since it represents a huge economic "benefit".

11 September 2006

It's Academic

I know this is only a "stylized mathematical model" of how Windows and GNU/Linux interact in the marketplace, but it's more akin to a Swiss cheese model, so many holes does it exhibit. For example:

The model captures what we believe are the most important features of the Linux-Windows competitive battle (faster demand-side learning on the part of Linux and an initial installed base advantage for Windows), but makes important assumptions regarding other aspects.

"Faster demand-side learning" has almost nothing to do with it these days: issues like control, stability and security are more to the fore.

And then this is a completely erroneous assumption, too:

Our paper introduces a dynamic mixed duopoly model in which a profit-maximizing competitor (Microsoft) interacts with a competitor that prices at zero (Linux), with the installed base affecting their relative values over time.

Nobody equates GNU/Linux with zero price anymore: even if TCO is a slippery concept, it is certainly more realistic than simply looking at the price tag, as this study does.

And so on, and so on. The fundamental problem is that open source is driven by so many complex - and often non-economic - factors that any simplistic mathematical modelling is doomed to fail from the start.