About foss to banks , institutions etc.. Atleast in india.. There is also the attitude of people.. If a company hides it's costs and blames price on software costs; says we are not the ones making money.. then people stop bargaining and start buying..
But if a company says 'software is free.. But support are costing.. ' then the buyer will try to dissect the cost and focus on bargaining rather than defining the solution. Hence.. I think it's a great thing vendors like microsoft and oracle do for systems integrators and solution providers.. That they give us a basis for pricing and let us move forward with business rather than get stuck in endless discussions about pricing and rationale for price points.. Regards, Nalin On 9/2/09, Manu K Mohan <[email protected]> wrote: > On Wed, Sep 2, 2009 at 11:33 AM, narendra sisodiya < > [email protected]> wrote: > >> Sorry cannot resist to post full story from : >> http://networkcomputing.in/Saving-a-Billion-Using-Open-Source-Open-Mind-001Sept009.aspx >> ------------------------------------------------------------ >> A leading bank in India saved Rs 100 crore by moving from MS Office to >> Open >> Office. It is simple mathematics—if MS Office costs Rs 11,000 per user, >> and >> the organization has 1,00,000 desktops, the company would save a cool Rs >> 110 >> crore on licensing costs if it moved to Open Office. Even if we budget Rs >> 10 >> crore for training and support costs, the company would end up saving Rs >> 100 >> crore. > > > If the name of the bank was given then it will be easier to satisfy other > banks also, any idea what is the name? > My mom works in a bank and she thinks I am bluffing, and says "Banks cannot > take risks on cheap software.." > She was praising Finnacle (come proprietary software from Infosys) then, and > saying it was similar to oracle .... > What to do man these people always take some time to get convinced.... > > >> The actual cost of training would be much less. But we don't want a >> company >> to come up with a Total Cost of Ownership (TCO) study to prove that the >> TCO >> will be higher in Open Source. It never is and never will be, especially >> in >> India where the labor costs are low. Even if you were in a western >> country, >> where the labor costs are very high, the Linux/Open Source TCO would be >> still lower. TCO has to be calculated over a period of time and that's >> when >> you start seeing savings. Yes, there are initial costs involved and we >> need >> to budget for these initially. Also, organizations often compromise on >> service costs such as training and support. Most organizations assume that >> these come for free. The reality is that you do need to budget for these >> as >> well. >> >> >> Further, how do you calculate TCO? Many companies with vested interests >> will put forth studies to show that their cost is lower, but who knows the >> TCO better than you do? So my suggestion is that it is best not to rely on >> these studies, but to do your own calculations. Also, when budgeting, >> calculate all the miscellaneous costs as well. Many people don't calculate >> the cost of upgrading or maintaining a proprietary system. The cost of >> upgrading and training people to use a new version of the same OS could be >> higher than replacing the OS with an Open Source alternative. The cost of >> acquiring a completely new server with Linux pre-loaded may be lower than >> the maintenance you would pay for your existing proprietary Unix/Mainframe >> systems. Not to mention that your Linux server will outperform your >> existing >> server. >> >> >> The table compares the licensing costs of commonly used applications. You >> can do the mathematics on your own to see how much you can save. >> >> >> >> *Proprietary Software* *Cost in Rs* *Free Open Source Alternative* >> Windows >> XP/Vista 6000 Ubuntu MS Office 12000 OpenOffice.org Photoshop 40000 Gimp >> Windows >> server 1500 Ubuntu server (Base price Rs 26,000 for five users) >> >> MS SQL server 6500 MySQL/PostgreSQL (Base price Rs 45,000 for five >> users) >> >> Oracle 10g 12000 MySQL/PostgreSQL Visual Studio 36000 Eclipse Antivirus >> (per year/per user) 1000 ClamAV Adobe Acrobat 16000 OpenOffice >> (has PDF write capability) Adobe Photoshop 40000 Gimp Tally 35000 >> GnuKhata/GnuCash AutoCAD 30000 Qcad WinZip 1700 Archive Manager >> >> >> Notes: >> >> 1. All pricing is as per user pricing. >> >> 2. Pricing is street pricing and may vary. The author does not take >> responsibility for any inaccuracy in this pricing. >> >> 3. The comparable Open Source will not have the same features; in some >> cases it may have fewer features than others. >> >> 4. You need to add training and support costs to get your TCO. >> >> >> These are only software costs; you can even save on hardware costs by >> using >> Open Source solutions. For example, instead of buying a router, you can >> use >> an old computer, install Linux, and convert that computer into an >> inexpensive router. Similarly, instead of buying an EPABX system, you can >> create one by using Asterisk software, a PC and a few cards. With these, >> you >> can not only save on initial costs but also costs involved in adding >> features. For example, if you have an EPABX system and need to add a >> voicemail capability, you would need to buy expensive hardware cards to >> enable those features. With Asterisk, which is a software-based EPABX, you >> would only need to install the voicemail module. >> >> >> Does this article sound exciting to you? Then go and start exploring some >> Open Source solutions. Do write to me once you manage to save a few >> billions. >> >> from : >> >> *Prakash Advani is Partner Manager of Central Asia-Canonical. He blogs >> regularly at * *www.cityblogger.com* <http://www.cityblogger.com/> * and >> can be reached at * *[email protected]* <[email protected]> *.* >> [image: >> AddThis]<http://www.addthis.com/bookmark.php?v=120&winname=addthis&pub=nwc&source=men-120&lng=en-GB&s=&url=http%3A%2F%2Fnetworkcomputing.in%2FSaving-a-Billion-Using-Open-Source-Open-Mind-001Sept009.aspx&title=Saving%20a%20Billion%20Using%20Open%20Source&logo=&logobg=&logocolor=&ate=AT-nwc/-/l2-2/95410db2f94bba/1&CXNID=2000001.5215456080540439074NXC> >> > >> > > > -- > Manu K. Mohan > B.Tech (Computer Science & Engg.) > http://manuknkra.wordpress.com/ > > > > -- Sent from Gmail for mobile | mobile.google.com --~--~---------~--~----~------------~-------~--~----~ Do you have another question? 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