Microsoft and Linux Operating

Systems TCO
Windows is Engineered to Provide Lower
TCO
Product Windows Server is a
comprehensive and integrated
software solution built for specific
IT needs

Engineered Windows Server is engineered to

be cost-effective over the IT
Lifecycle lifecycle

Ecosystem Windows Server customers have a

global ecosystem of services,
support and applications

2
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
70

60

50

40
Cost Factors
30

20 IDC 2002

10

0
Staff Costs Downtime Training Software Hardware

3
Measuring the Value of Staff Time
Staff Costs = Operations + Downtime (Planned &
Unplanned)

Routine Operations
•End user support
•Developing new apps
Unplanned Downtime Planned Downtime
•Integrating apps
• Lost end-user • Installing new
•Managing change
productivity systems
•Creating security plans
• Lost IT staff • Fine-tuning systems
•Planning upgrades
productivity • Tuning network
•Building interoperability
• Trouble-shooting • Upgrading systems
•Writing “glue code”
• Lost data • Security audits
•Searching for patches
• Lost web business • Applying new
•Managing patches
• Data recovery patches
•Managing app versions
• Ensuring against • Regression testing
•Talking to vendors
security violations • Ensuring app
•Documenting code

4
 Windows is Comprehensive, Integrated
and Easy-to-use Across Key IT Scenarios

BizTalk, CS2000
SPS
Exchange, SPS

Svr
Info Svr
AD
ISA, AD
Collaboration

Identity Mgmt
Collaboration

Productivity

OpenOffice
OpenOffice
Commerce

XP
Office XP

Sendmail
Mobility
Mobility

Mobile Info
MMS, ISA,
Exchange,

???

???
???

???
Office

Mobile
MMS,
Data
Data Management
Management SQL
SQL Server
Server MySQL
MySQL
Programming
Programming Frameworks
Frameworks .NET Framework ASP.NET J2EE/PHP
J2EE/PHP (add-on)
(add-on)
WMI, SMS 2000, MOM

Internet Information Service JBOSS

JBOSS
Development Tools

Web
Web && Application
Application Services
Services

Visual Studio.NET
MSMQ Transaction Service
Media
Media Services Real
Real or
or Darwin
Darwin Media
Media Svr
Svr (add-on)
(add-on)
Management

Services Windows Media Services

Web
Web Services
Services Windows Servers Apache
Apache (add-on)
(add-on)

???
File/Print
File/Print Services Distributed File Service, STS

???
Services Samba
Samba (add-on)
(add-on)
Network
Network Access
Access Services
Services VPN RAS PKI Smart Card ???
???
Directory/Security
Directory/Security Services
Services Active Directory Kerberos LDAP
LDAP Directory
Directory Server
Server
Kernel
Kernel Windows
Windows Kernel
Kernel Linux
Linux
Customer Need Microsoft Platform Linux**
**services not available in Linux are available at additional cost from IBM
5
Windows is Cost-effective Over the IT
Lifecycle
30% • Simple web does
5 Year TCO Advantage
not include web-
25% based applications
or development
20%

Services
Security
• Low total costs for

Serving
15% simple web overall

Print
amplify hardware &
10% Serving

Services
Network
software cost
File

differences
5%
• Microsoft expected to
0% take the lead with
Simple
Simple Windows .NET Server 2003
Web
= Windows Lower TCO
-5% Web even for simple web
= Linux Lower TCO
Source: IDC 2002

Over the long term, Microsoft costs less when

considering all factors of software lifecycle 6
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
 >450,000 MCSE professionals world-wide
More training options
 Wide range of Microsoft certified training courses and
training providers
7
Summary
Windows Linux

Comprehensive, integrated Linux +

Platform and easy-to-use across 3rd Party Software +
important IT scenarios Services

Proven as a sustainable,
Uncoordinated releases
Deployment cost-effective business
with little emphasis on the
investment over the
Lifecycle long term
long-term lifecycle

Thriving world-wide
ecosystem of application, Ecosystem in early stages
Ecosystem service, support, training with no ‘center of gravity’
and hardware providers

 Windows offers an all-up value proposition

that drives lower TCO: an integrated
platform, centralized deployment lifecycle,
plus a broad ecosystem. 8
Appendix
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 iceberg
—less 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

10
IDC Study Methodology &
Assumptions
 Where the data came from: phone interviews with 100
U.S. Linux & Windows customers who consider themselves
late adopters, MORG & LORG, from all verticals
 “Flavor” of Linux was not measured
 No mainframes or server appliances
Study focus was breadth, not depth of data
Other variables:
 IT staff skill levels: not evaluated against FTE time spent
on server tasks
 Data normalization to drive a fair comparison:
 by number of desktops per server (Linux in general had more users
per server)
 by number of workloads per server (Windows tended to support
more workloads per server)
11
Hidden Costs in Linux
 Linux needs more staff time to install and upgrade
 Linux doesn’t always work “out of the box”
 Linux needs commercial third party software “add-ons”

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12
The Challenge of Linux TCO
Linux is a relative newcomer to ‘measurable’
environments
TCO studies always involve some guesswork
and assumptions
An “apples to apples” comparison between
Linux and competitors is hard to measure
 Linux workloads tend to be simple, single-
purpose servers
 Windows and Unix workloads tend to be more
complex and on higher-end servers

13
Detailed Description of IDC’s Server
Workloads
 Web –static and dynamic Web pages. Did not
include web pages as a front-end for back-end line-
of-business and database applications.
 File – Samba on Linux compared to native Win2K
file sharing. Windows clients.
 Print – Serving print requests from Windows clients.
 Networking - WINS/DHCP/DNS, RAS, Directory,
Cache, Other (router/hub/switch)
 Security - Proxy/Firewall/VPN, Authentication, DRM
and Certificates

14
Web Servers: Details
Windows Linux
Number of FTEs 1.0 .9
needed
Hardware costs per $11,900 $9,400
server
Software costs per $11,900 $4,300
server
Total costs for 5 $32,300 $30,600
years per 100
users

15
File Servers: Details
Windows Linux
Number of FTEs 2.9 4.3
needed
Hardware costs $19,500 $11,700
per server
Software costs per $13,600 $3,700
server
Total costs for 5 $99,000 $114,400
years per 100
users

16
Print Servers: Details
Windows Linux
Number of FTEs 2.1 3.1
needed
Hardware costs $4,925 $8,703
per server
Software costs per $6,990 $1,364
server
Total costs for 5 $86,849 $106,989
years per 100
users

17
Networking Servers: Details
Windows Linux
Number of FTEs .5 .4
needed
Hardware costs $6,000 $8,300
per server
Software costs per $1,043 $7,851
server
Total costs for 5 $11,790 $13,260
years per 100
users

18
Security Servers: Details
Windows Linux
Number of FTEs 2.3 4.0
needed
Hardware costs $3,520 $7,450
per server
Software costs per $12,420 $24,150
server
Total costs for 5 $70,500 $90,900
years per 100
users

19