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 From : Sergey Lentsov                       2:4615/71.10   10 May 2002  19:55:05
 To : All
 Subject : URL: http://www.lwn.net/2002/0509/
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    Here is the [30]permanent site for this page.
 
    See also: [31]last week's LWN.
 
 Leading items and editorials
 
    Measuring total cost of ownership. A claim that is often made by free
    software detractors is that free software is not really cheaper.
    Initial licensing fees, it is said, make up a very small part of the
    "total cost of ownership" (TCO) of a computing system. Once you figure
    in the costs of ongoing operations and support, free software no
    longer looks like a very good deal.
 
    In reality, there is very little in the way of real data which
    demonstrates, one way or the other, whether a free or proprietary
    software shop is cheaper to run. So it was refreshing to see
    information from two separate sources which fills that gap this week.
    The bottom line from both sources is the same: running an operation
    with free software costs less.
 
    First, consider a survey done by Cybersource ([32]available in PDF
    format) which looks directly at the TCO issue. The folks at
    Cybersource look at two scenarios for outfitting a company with a
    server and desktop infrastructure, with and without the need to buy
    new hardware. The survey considers hardware and software costs, and
    the costs of the staff required to keep things going. The final
    conclusion: a Linux-based infrastructure has a 25% lower TCO over
    three years if new hardware is part of the deal; 34% lower if existing
    hardware is to be used.
 
    The survey could be attacked as being simplistic. The only software
    cost for the Linux-based network is $79.95 (Australian) for a single
    copy of a commercial distribution. The possibility that a company may
    need to buy any proprietary packages is not considered. The survey
    also does not consider retraining and other migration costs - a point
    which is often made by proprietary software companies, and which
    should be taken into account (but see the next item, below).
    Cybersource found that Linux system administrators cost a bit more
    than Windows administrators, but does not account for the (generally
    unmeasured) perception that Windows systems require more
    administrative time than Linux systems. And so on.
 
    No such survey is going to be perfect, however - real-world networks
    are complicated things. This survey is, however, a useful contribution
    to the debate.
 
    The other data point comes from a very different source, and was never
    meant to be presented as a TCO comparison. Consider [33]Dell's new
    dedicated hosting service, and, in particular, the [34]D-2800
    offering. This service offers a respectable system (Pentium 850,
    256MB, 20GB, 21GB/month bandwidth) in two configurations:
      * Red Hat Linux 7.1: $189/month.
      * Windows 2000: $239/month.
 
    The folks at Dell are not out to prove a point about which system is
    better. They are running a business, and have figured out a
    competitive price at which they can offer each service. The total cost
    of ownership of each system will have been figured into the hosting
    costs they charge their customers. The result is decisive: with
    identical hardware and bandwidth provision, the Linux system is 21%
    cheaper. Not a bad result.
 
    Microsoft vs. Peru. These events transpired in late March and early
    April, but we in the North can be a bit slow at times.... Peru, like a
    number of countries, is considering legislation which would require
    the use of free software within the government whenever possible.
    Microsoft, strangely enough, does not like that idea. So, on March 21,
    Juan Alberto Gonzalez, general manager of Microsoft Peru, sent a
    letter to Edgar Villanueva Nunez, the Peruvian congressman behind the
    free software bill. This letter is available on the net [35]translated
    to English; those wanting to read the original Spanish version can
    find it (as a set of scanned images) on [36]this page.
 
    The letter raises the usual points heard from Microsoft when it is
    worried about free software:
      * Use of free software will "discourage local and international
        software manufacturers who make real and important investments in
        the country."
      * Free software presents security risks, comes with no warranty, and
        may violate "the intellectual property rights of third parties."
      * Free software is not really free (of charge), and, in any case,
        licensing costs are a small part ("8%") of the total cost of
        ownership.
      * The state could benefit from Microsoft's volume pricing schemes
        (despite the fact that Microsoft just claimed that licensing costs
        are almost insignificant).
      * Moving to free software imposes migration costs.
      * The level of service available for free software is inadequate.
      * Using free software will discourage creativity in the Peruvian
        software industry. "With a law encouraging the use of open source
        software, programmers lose their intellectual property rights and
        their most important source of remuneration."
 
    And so on.
 
    Government officials in many countries seem to eat that sort of stuff
    up. So it is delightful to read Mr. Villanueva's highly clueful
    response (in [37]Spanish or [38]English translation). We'll present a
    few excerpts here, but it is worth the effort to read the whole
    (somewhat lengthy) thing.
 
    Mr. Villanueva starts by reiterating the goals of the free software
    bill, which Microsoft passed over entirely in its criticism:
      * Free access to public information
      * Permanence of public data
      * Security of the state and its citizens
 
    These goals, he argues, can only be achieved with free, open source
    code and file formats. Not all free software users are much concerned
    with freedom, but governments should be. Microsoft's arguments pass
    over freedom and look at economic issues; it is good to see that this
    congressman is able to keep the freedom argument in view.
 
    Once that is done, however, Mr. Villanueva proceeds to demolish the
    economic arguments as well. Concerning, for example, the claim that
    the local software industry would be damaged:
 
      In addition, a reading of your opinion would lead to the conclusion
      that the State market is crucial and essential for the proprietary
      software industry, to such a point that the choice made by the
      State in this bill would completely eliminate the market for these
      firms. If that is true, we can deduce that the State must be
      subsidizing the proprietary software industry. In the unlikely
      event that this were true, the State would have the right to apply
      the subsidies in the area it considered of greatest social value;
      it is undeniable, in this improbable hypothesis, that if the State
      decided to subsidize software, it would have to do so choosing the
      free over the proprietary, considering its social effect and the
      rational use of taxpayers money.
 
    With regard to Microsoft's security claims:
 
      What is impossible to prove is that proprietary software is more
      secure than free, without the public and open inspection of the
      scientific community and users in general. This demonstration is
      impossible because the model of proprietary software itself
      prevents this analysis, so that any guarantee of security is based
      only on promises of good intentions (biased, by any reckoning) made
      by the producer itself, or its contractors.
 
    Mr. Villanueva also sees through the "no warranty" argument:
 
      If as a result of a security bug in one of your products, not fixed
      in time by yourselves, an attacker managed to compromise crucial
      State systems, what guarantees, reparations and compensation would
      your company make in accordance with your licensing conditions? The
      guarantees of proprietary software, inasmuch as programs are
      delivered ``AS IS'', that is, in the state in which they are, with
      no additional responsibility of the provider in respect of
      function, in no way differ from those normal with free software.
 
    Mr. Villanueva takes issue with the cost of ownership arguments,
    making many familiar points: there is a more competitive market for
    services, fixes only need be done once, far fewer problems with
    downtime, "blue screens of death," viruses, etc. He also has an answer
    to the claim that migration costs make free software uncompetitive:
 
      Once a policy of using free software has been established (which
      certainly, does imply some cost) then on the contrary migration
      from one system to another becomes very simple, since all data is
      stored in open formats. On the other hand, migration to an open
      software context implies no more costs than migration between two
      different proprietary software contexts, which invalidates your
      argument completely.
 
    For what it's worth, Microsoft is far less concerned about migration
    costs on its [39]Migrating to Windows from Unix and Linux pages.
 
    One last point worth careful study is Mr. Villanueva's analysis of the
    failure of Mexico's "Red Escolar" project, which has backed off from
    its goal of running free software in all of Mexico's schools. Red
    Escolar failed because it emphasized licensing costs over the other
    benefits of free software, because it lacked support from the federal
    government, and, crucially, because there was no real plan for moving
    over to free software:
 
      ...the assumption was made that to implant free software in schools
      it would be enough to drop their software budget and send them a CD
      ROM with Gnu/Linux instead. Of course this failed, and it couldn't
      have been otherwise, just as school laboratories fail when they use
      proprietary software and have no budget for implementation and
      maintenance. That's exactly why our bill is not limited to making
      the use of free software mandatory, but recognizes the need to
      create a viable migration plan, in which the State undertakes the
      technical transition in an orderly way in order to then enjoy the
      advantages of free software.
 
    This is an important realization: you can't just mandate free software
    and expect it to work. The fact that Peru is thinking about how this
    change is to be made, and that it is not "free beer" free, is a
    hopeful sign.
 
    Increasingly, governments are realizing that the goals of freedom of
    information and security conflict with the use of proprietary
    software. Most national governments are also well at ease with the
    notion that they don't have to send all that money to a large, U.S.
    corporation which has been convicted of antitrust violations. Said
    corporation does not like this trend, and can only be expected to
    fight back fiercely. In Peru, however, the company has so far found
    itself rather outclassed.
 
    LWN now accepts credit cards. Numerous people have asked us for an
    alternative to PayPal as a means for donating to LWN or paying for
    advertisements. We may be slow, but we don't forget...we now have
    secure credit card processing working on the site. If you have been
    waiting for a non-PayPal way to [40]donate to LWN, now is your chance.
 
    Inside this LWN.net weekly edition:
      * [41]Security: Honeynet Reverse Challenge; tcpdump & FreeBSD; GnuPG
        1.0.7
      * [42]Kernel: The end of /proc/ide; kbuild 2.5 and modversions.
      * [43]Distributions: Yet another revision (to the LWN Distributions
        List); The Arabization of Linux.
      * [44]Development: Samba 2.2.4, SocketCC, Google search modules,
        Rosegarden 4v0.1.5, GARNOME preview 6, game contest, FLTK
        1.1.0rc1, GnuPG 1.0.7, SBCL 0.7.3, Parrot answers, OProfile 0.2.
      * [45]Commerce: Red Hat Launches New Channels to Support Education;
        EUCD status Wiki established.
      * [46]Letters: Mandating the GPL.
 
    ...plus the usual array of reports, updates, and announcements.
 
    This Week's LWN was brought to you by:
      * [47]Jonathan Corbet, Executive Editor
 
    May 9, 2002
 
                                Sponsored Link
 
    [48]Cheap and Effective
 
    LWN's text ads are a cheap and effective marketing tool for your
    organization. You can now purchase text ads automatically through our
    own credit card gateway. (No more PayPal).
                                                        [49]Next: Security
 
    [50]Eklektix, Inc. Linux powered! Copyright Л 2002 [51]Eklektix, Inc.,
    all rights reserved
    Linux (R) is a registered trademark of Linus Torvalds
 
 References
 
    1. http://lwn.net/
    2. http://lwn.net/2002/0509/security.php3
    3. http://lwn.net/2002/0509/kernel.php3
    4. http://lwn.net/2002/0509/dists.php3
    5. http://lwn.net/2002/0509/devel.php3
    6. http://lwn.net/2002/0509/commerce.php3
    7. http://lwn.net/2002/0509/press.php3
    8. http://lwn.net/2002/0509/announce.php3
    9. http://lwn.net/2002/0509/letters.php3
   10. http://lwn.net//2002/0509/bigpage.php3
   11. http://lwn.net/daily/
   12. http://linuxcalendar.com/
   13. http://lwn.net/stocks/
   14. http://lwn.net/Reviews/
   15. http://lwn.net/Gallery/
   16. http://lwn.net/archives/
   17. http://lwn.net/op/headlines.phtml
   18. http://lwn.net/mediakit/
   19. http://lwn.net/corp/paypal/donate.php3
   20. http://lwn.net/corp/supporters.php3
   21. http://lwn.net/op/Contact.html
   22. http://lwn.net/2002/features/rms.php3
   23. http://lwn.net/2001/features/Timeline/
   24. http://lwn.net/2001/features/oreilly2001/
   25. http://lwn.net/2001/features/OLS/
   26. http://lwn.net/2001/features/MandrakeSoft.php3
   27. http://lwn.net/2001/features/KernelSummit/
   28. http://lwn.net/2001/features/Singapore
   29. http://lwn.net/2001/features/djbdns.php3
   30. http://lwn.net/2002/0509/
   31. http://lwn.net/2002/0502/
   32. http://www.cyber.com.au/cyber/about/linux_vs_windows_tco_comparison.pdf
   33. http://www.dellhost.com/
   34. http://www.dellhost.com/solutions/dedicated/d2800.asp
   35. http://pimientolinux.com/peru2ms/alt2_ms_to_villanueva.html
   36. http://pimientolinux.com/peru2ms/
   37. http://pimientolinux.com/peru2ms/villanueva_a_ms.html
   38. http://pimientolinux.com/peru2ms/villanueva_to_ms.html
   39. http://www.microsoft.com/windows2000/migrate/unix/
   40. http://lwn.net/corp/donate/
   41. http://lwn.net/2002/0509/security.php3
   42. http://lwn.net/2002/0509/kernel.php3
   43. http://lwn.net/2002/0509/dists.php3
   44. http://lwn.net/2002/0509/devel.php3
   45. http://lwn.net/2002/0509/commerce.php3
   46. http://lwn.net/2002/0509/letters.php3
   47. mailto:lwn@lwn.net
   48.
 http://oasis.lwn.net/oasisc.php?s=2&c=5&cb=366450665&url=http%3A%2F%2Flwn.net%2F
 corp%2Fadvertise%2Ftext%2F
   49. http://lwn.net/2002/0509/security.php3
   50. http://www.eklektix.com/
   51. http://www.eklektix.com/
 
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 URL: http://www.lwn.net/2002/0509/   Sergey Lentsov   10 May 2002 19:55:05 
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