[plug] Seeing through the Linux-Windows TCO comparisons

[Leon Brooks]

    http://www.linuxworld.com/site-stories/2002/1219.barr.html

    Help for managers who want to undertake their own TCO study. We look
    at three current real-world scenarios to learn what elements should
    be included in TCO calculations.

...and amongst other things...

    In spite of Austin's participation in the pricey Enterprise Agreement,
    the invoices showed clearly that the City is continuing to pay for a
    copy of Windows on each and every new desktop system purchased. [...]

    I called Dell public relations and asked if they could give me a
    ballpark estimate on the cost of Windows 2000 and Windows XP Pro.
    After asking why I wanted to know, they promised to get back with me.
    They didn't, but Microsoft did.

    A gentleman from Microsoft declined to discuss the licensing fees it
    charges computer manufacturers. He did seek to reassure me, however,
    explaining that Microsoft expects to be paid twice by the City. Well,
    wait... he didn't use those exact words, but that's what he meant. He
    told me that under an Enterprise Agreement, Microsoft assumes that
    when a computer rolls in an Enterprise Agreement customer's door, its
    hard disk will contain a legal copy of Windows. 

    I asked him to point out to me where in Enterprise Agreement 5.0 that
    assumption is stipulated. Alas, each agreement is different, he said.
    Besides, Microsoft treats each as confidential and simply won't
    discuss agreements with anyone but the customer. Fair enough, but it
    didn't matter, as I had a copy of the Texas agreement right in front
    of me.

    I combed through it and could not find such a clause. However, I
    found something even more interesting. In the preamble of the
    agreement where Microsoft defines terms and conditions, I found
    Microsoft's definition of desktop computers encompased in the
    agreement. It defines "qualified desktops" as: 

        personal desktop computers, portable computers, workstations
        and similar devices, which are used by and for the benefit
        of an enrolled Affiliate or any Affiliate included in its
        enterprise and which meet the minimum requirements for
        running any of the enterprise products. 

    Single-use, special-purpose computers and servers are excluded, but
    clearly a desktop running Red Hat 8.0 or Mandrake 9.0 is a "qualified
    desktop." [...] In other words, Microsoft doesn't care if the
    qualified desktop is running OS/2, BeOS, Linux, or FreeBSD. It gets
    paid for each desktop's theoretical ability to run Microsoft software.

    [...]

    What can we learn about TCO calculations based on these events? I don't
    know about you, but five items that are probably not part of Microsoft-
    funded TCO studies leap out at me. Here they are:

     1. You need to add the costs for legal advice prior to signing any
        agreement with Microsoft. Otherwise you may be hit with demands
        that are impossible to comply with, like those made on the school
        districts in the Pacific Northwest.

     2. You need to add the costs for the purchase and maintenance of a
        software-licensing inventory system, as well as all the costs
        associated with keeping it up-to-date throughout your enterprise.
        This is true even with an Enterprise Agreement, because you will
        more than likely add applications to some desktops that are not
        covered under the agreement.

     3. You need to add the cost of insurance to defray the expenses
        associated with compliance with BSA or Microsoft requests for a
        "voluntary" software inventory.

     4. You need to add the cost of insurance to cover the $151,000 per-
        incident liability incurred if a proof of purchase is misplaced.

     5. Unless you're careful, you may need to add the cost of Microsoft
        "double dipping."

    Is TCO a valid yardstick for evaluating your IT solutions? The answer is a
    firm maybe.

Cheers; Leon