Offering regional and national programs, CIO (and CSO) events bring together some of the most respected names and thought leaders in information technology and security. Presented by CIOs and other senior level executives, these invitation-only programs offer timely topics and strong networking. Learn More »
Public Council Teleconference: Application Rationalization — Hidden Costs and Smart Decisions
November 17 at 11:00 am US/Eastern (GMT-5)
Join Honorio Padrón, of The Hackett Group, who will share the drivers for companies to tackle application rationalization and the results of research that define the hidden cost of complexity. Additionally, we will discuss key decision milestones—to start or not, holding the course steady and fulfilling expectations.
Virtual Desktop Cost-Benefit Analysis — Michael Jacobs, Catlin Group
The analysis contained in this presentation measures the cost of everything from the machines and licenses to the infrastructure for virtual vs. traditional desktop environments.
Honor your best senior team members - Apply for the CIO Ones to Watch Award
Get well-earned public recognition for your top up-and-coming team members, your IT organization and your enterprise. Award winners will be announced, publicized and feted in May 2010, great timing to help attract new IT recruits to your company.
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The real question is perhaps how one allocates the inevitable cost of IT. Steven O'Grady of RedMonk recalls that years ago Windows helped people move from the high licensing costs of Unix to deliver applications with lower price points, just as Linux is helping people move away from Windows licensing now. "Windows has helped reduce the total cost of solutions over time, [and] open source has taken that to the next level. In some cases, the total cost of the solution itself can be what you have to build on top of it." Businesses will then invest in service and support instead of licensing. O'Grady says, "What open source has done is not make everything free or remove the costs of software, but instead shifted the up-front licensing model to what Sun's Simon Phipps calls 'paying at the point of value."
His reference is to an article by Phipps last year about "Software Market 3.0," about the deployer being "liberated to pay just for the things that result in value," and paying when value starts to be realized "instead of at the point of acquisition of the bits." Essentially, the costs are minimized up front, and triggered only as the enterprise ramps up and invests in whatever support is necessary to actually operate the system.
It may be argued that the financial consideration of deploying Linux over any other system will all come down to TCO. True, perhaps...but one thing that we've managed to highlight in considering the variables is that the kind of expense rolled up within the TCO matters. For many, even if the TCO were equal, the shift in the type of expense that Linux achieves can commend it over Windows or other proprietary systems as a wise financial decision.
Summarizing the seven financial reasons to use Linux comes down, I believe, to the last reason offered: paying at the point of value. In one way or another, an aspect of each of the foregoing reasons pokes its head up in this single concept, which truly represents the coup de grace in settling the question.
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Brent Toderash recently left the IT consulting firm of which he was an owner and manager (disclosure: with Scott Toderash, quoted above) to become a freelance writer, thinker, strategist and consultant. Founding editor of Penguinista.org, which he ran from 1999 to 2003, he lives in Winnipeg, Manitoba, and blogs at toderash.net.