WEBCAST SCHEDULE

1
WEBCAST SCHEDULE

• Todays event will run one-hour long. Here are
  the expected times for each segment of the
  Webcast
• 00 05 Moderator introduces the speaker and
  discusses the details of the Webcast.
• 05- 35 Speaker delivers a PowerPoint
  presentation on the Webcast topic.
• 35- 60 Moderator and speaker engage in a QA
  on the topic.

2
TECHNICAL FAQs

• Here are answers to the most common technical
  problems users encounter during a Webcast 
• Q Why cant I hear the audio part of the
  webcast?
• A Try increasing the volume on your computer.
• Q I just entered the webcast and do not see the
  slide that the speaker is referring to. What
  should I do?
• A The slides are constantly being pushed to
  your screen. You should refresh (hit F5) to view
  the latest slide.
• Q. I cant view some of the detail on the slides.
  How do I enlarge the slides for a better view?
• A Click the Enlarge slide link in the upper
  right corner of your presentation. This will open
  a new browser with a full view of the current
  slide.
•  
• You can also visit the Broadcast Help page for
  more information or to test your browser
  compatibility. Click here http//help.yahoo.com/
  help/bcst/
• If you still have technical questions or
  problems, send an e-mail to WebcastSupport_at_TechTar
  get.com. A technical support person will
  respond to you within 24 hours.
•  

3
Linux vs. Windows TCO

• Representing Linux
• CJ Rayhill, Chief Operating Officer and
  Executive Vice-President for O'Reilly
  Associates
• Representing Windows
• Peter Houston, Senior Director Windows Server
  Strategies Group for Microsoft Corp.

4
Linux TCO

• CJ Rayhill is currently the Chief Operating
  Officer and Executive Vice-President for O'Reilly
  Associates. CJ spent the majority of her career
  doing software development and technology
  management in the financial services and
  healthcare industries prior to joining O'Reilly
  as Chief Information Officer in 2000. She has
  worked for Electronic Data Systems (EDS),
  Citibank, Travelers Insurance Company, Zenith
  Insurance and a Workers' Compensation Clinic
  start-up company called U.S. Healthworks, so she
  is familiar with the technology challenges and
  issues facing small, medium and large-scale
  companies. She is a graduate of the United States
  Naval Academy, having attended Annapolis with the
  first-ever class of women. She also holds an MBA
  degree from the University of South Florida.

5
Total Cost of Ownership (TCO) Windows vs. Linux?
6
TCO What is it?

• One-time costs
• Initial acquisition (including hardware)
• Installation setup
• Skill shifts (retooling / training)
• On-going costs
• Support availability fees
• License maintenance fees
• Upgrades (installation tweaking)
• Over what time period?
• Largest single factor in TCO is salary! (IDC
  study cites 50-70)

7
Which has the lowest TCO?It depends

• Server vs. Desktop vs. Fileserver vs. Network
  appliance vs. Devices
• Windows vs. Linux (vs. Mac vs. nix)
• Nature of the business and the applications/functi
  onality required
• Skill-level and familiarity of the support staff
• Skill-level and familiarity of the user community
• Cost of change (retooling, training)

8
Other Considerations

• Support
• Security
• Responsibility
• Performance and Reliability
• Scalability
• Hardware independence
• Freedom Trust
• License Management
• Application bloat
• International

9
Conclusions

• Perception is Reality
• Awareness/exposure is a key factor in the success
  of OSS
• Salary is clearly the largest TCO cost
• Big differences between desktop server markets
• Microsoft has lowered the bar for change
  consideration with new licensing terms
• Windows Linux are not the only options
• Application/business needs are often a driver

10
Windows TCO

• As Senior Director of the Windows Server
  Strategies Group, Peter Houston is responsible
  for Microsofts understanding of Windows Server
  competitors and ensuring that Windows Server is
  continually improving to meet the needs of
  customers. He brings to the discussion table a
  deep understanding of the industry landscape and
  an eagerness to communicate Microsofts point of
  view and future plans. Houston has worked in the
  Windows Server organization for almost six years,
  most recently as the Group Program Manager for
  Active Directory. He has spent almost 20 years in
  the software industry focusing on enterprise
  computing and distributed systems. Previous to
  Microsoft, he worked at companies such as
  IBM/Transarc and Legent. Houston has a BS in
  Mathematics from Carnegie Mellon University and
  an MBA from the University of Pittsburgh.

11
Microsofts Perspective on Linux and TCO

• Peter Houston,
• Microsoft Corporation

12
What Factors Contribute to TCO?

• Initial software cost is 5 of long-term TCO
• Independent analyst firms confirm that staffing
  and downtime are the biggest cost factors

IDC 2002
13
Measuring the Value of Staff Time
Staff Costs Operations Downtime (Planned
Unplanned)

• Routine Operations
• End user support
• Developing new apps
• Integrating apps
• Managing change
• Creating security plans
• Planning upgrades
• Building interoperability
• Writing glue code
• Searching for patches
• Managing patches
• Managing app versions
• Talking to vendors
• Documenting code

• Unplanned Downtime
• Lost end-user productivity
• Lost IT staff productivity
• Trouble-shooting
• Lost data
• Lost web business
• Data recovery
• Ensuring against security violations

• Planned Downtime
• Installing new
• systems
• Fine-tuning systems
• Tuning network
• Upgrading systems
• Security audits
• Applying new
• patches
• Regression testing
• Ensuring app
  
  
  
  
  
  
  
• compatibility

14
Windows is Engineered to Provide Lower TCO
15
Windows is Comprehensive, Integrated and
Easy-to-use Across Key IT Scenarios
services not available in Linux are available
at additional cost from IBM
16
Windows is Cost-effective Over the IT Lifecycle
30

• Simple web doesnot include web-based
  applicationsor development
• Low total costs forsimple web overallamplify
  hardware software costdifferences
• Microsoft expected totake the lead withWindows
  .NET Server 2003 even for simple web

25
20
Security Services
15
PrintServing
5 Year TCO Advantage
10
File Serving
Network Services
5
0
Simple Web
Windows Lower TCO Linux Lower TCO
-5
Source IDC 2002

• Over the long term, Microsoft costs less when
  considering all factors of software lifecycle

17
Windows Server Customers Can Choose from a Global
Ecosystem of Services, Support and Applications

• Largest number of applications
• Hundreds of thousands of desktop applications,
  thousands of server applications
• Largest number of devices
• 12,000 device drivers on the XP CD
• 41,000 devices submitted to WHQL
• More certified solution programs
• Thousands of certified device drivers,
  application certification programs
• Broader availability of services
• gt450,000 MCSE professionals world-wide
• More training options
• Wide range of Microsoft certified training
  courses and training providers

18
Summary

• Microsoft offers lower TCO
• with value-rich products that are comprehensive,
  integrated and easy-to-use across key IT
  scenarios
• with a sustainable, cost-effective business
  investment that saves staff time
• with an ecosystem of partners, support,
  applications, training and services that offers
  customers more choice, therefore more savings

19
Appendix
20
IDC Study Results

• Over 3 and 5 years, IDC found that IT staff time
  and downtime costs were the biggest cost factors
  for both Windows Linux
• Upfront software costs are only the tip of the
  icebergless than 10
• Web serving Windows 6 more costly than Linux
• File serving Windows 13 cheaper
• Print serving Windows 19 cheaper
• Networking Windows 11 cheaper
• Security servers Windows 34 cheaper

21
Hidden Costs in Linux

• Linux needs more staff time to install and
  upgrade
• Linux doesnt always work out of the box
• Linux needs commercial third party software
  add-ons

Add Java
Add Apache mods
Mobility?
Security Roll your own
Add Corba
Linux Kernel
Directory Roll your own
Add load balancing
Web services?
Php
MySQL
Pay for media
File system?
WMI?
22
Windows has Superior Integration Manageability
Windows Advantage
Windows
Linux

• Integrated flexible deployment options
• Rich, Self Configuring, Easily Customized
• Integrated, single source for all updates
• Simple change roll-back

• Rembo
• RPM , dpkg
• Red Hat Network, Apt-Get
• Backup for recovery

Change
Operate
Support

• CA Unicenter, IBM Tivoli, HP OpenView, Intel
  LanDesk, OpenNMS

• Simple integrated tool set
• Eventing
• MOM, 3rd party (CA, IBM, HP, Intel)

• Tightly integrated with OS
• Feature rich tools
• Industry Standard Platform

Optimize
23
Beyond TCO to Business Value

• Businesses must also consider
• Enabling business advantage
• Fit within strategic IT plan
• Time to market
• IT staff recruitment, training and consultant
  services
• Adherence to company standards
• Application availability
• -Abilities

These are elements of Business Value
24
Audience Questions
Peter and CJ will be taking audience questions on
this topic following the event. You can submit
your specific questions for either of them by
clicking the Ask a Question button in the lower
left corner of your presentation screen.
Answers to your questions will be posted within
a few days on the SearchWin2000.com site in a
featured article.
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Feedback

• Did you enjoy this event? Would you like to see
  us host other events like this? If so, send your
  suggestions and comments to editor_at_searchWin2000.c
  om.