"Having Microsoft tell us that their products have lower TCO is like them telling us that the Earth is flat," says OSIA spokesperson Del Elson. OSIA is the industry body for Open Source within Australia. "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."

The study is called, "Saving Cash: A Comparison of Open Source and Proprietary Software". Here is the press release.

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FOR IMMEDIATE RELEASE

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 platform."

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 authorities.

"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."

References:

http://www.researchandmarkets.com/reports/c4117/
http://www.it-analysis.com/article.php?articleid=12182
http://www.infoworld.com/article/04/09/10/37enterwin_1.html
http://www.businessweek.com/magazine/content/03_09/b3822610_tc102.htm
http://www.openoffice.org/
http://australianit.news.com.au/articles/0,7204,9939948%5e15441%5e%5enbv%5e15306-15319,00.html

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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.

http://www.osia.net.au/

Spokesperson/Contact: Del Elson