how to cut it costs with open source

Navigating the Economic Downturn:Strategies for Cutting Costs with Open SourceWebinar on Oct 29, 2008

Presented by Kim Weins and Rod Cope of OpenLogicRecording available at: www.openlogic.com/downloads/webinars.php

http://www.openlogic.com/downloads/webinars.php






OpenLogic Company Confidential

Agenda

How Open Source Can Help You Cut Costs

Calculating Open Source Savings

Open Source Migration Opportunities

OpenLogic Company Confidential 3OpenLogic Company Confidential

About OpenLogic

OpenLogic enables enterprises to safely and securely

acquire, manage and control open source software,

and thereby realize significantly higher savings.


Aggregating Open Source for the Enterprise

One throat to chokeConsolidated SLA supportSupport

Provisioning

GovernanceRisk reduction

IndemnificationSaaS Governance platform

Trusted sourceCertified library of 460+ projectsManaged updates


Polling Results from Webinar Attendees

Are you seeing pressure on your IT budgets from the economic downturn?

0 20 40 60 80 100

Don't know

No, and don't expectwe will

Not yet, but Ianticipate we will

Yes


What the State of the Economy Means to IT

61% of CIOs are currently re-evaluating their 2009 budgets 59% percent are trying to save money by renegotiating contracts with their vendors 59% are putting all nonessential projects on hold 49% are cutting the amount they spend on consultants and have restricted travel 25% are freezing IT hiring

Source: CIO Executive Board Survey, Sept 2008


What the State of the Economy Means to IT

"The next big thing in IT is not a technology—it is cost reduction, risk management and compliance,"

Peter Sondergaard, SVP Research, Gartner.



Will your company use more open source because of economic uncertainty?

0 20 40 60 80 100

Economy isn't aconsideration

We are unlikley to

We are considering it

We plan toWill your company use more open source because of economic uncertainty?


How Open Source Can Help You Cut Costs

Cut Licensing Costs Zero (or near zero)

Reduce Support & Maintenance Costs A competitive market means support for open source typically costs less than support for proprietary products;

Reduce Development CostsAvoid reinventing the wheel; leverage the community


How OpenLogic Can Help You Cut Costs

Commercial OSS Support at Low CostSignificantly lower cost than proprietary alternativesAggregate open source support for cost savings

Low Cost Services to Accelerate Use of Open Source

1 to 5 day engagements for Policy Creation, OSS Selection, Training, Migration and Tuning

Mitigate Concerns that Limit the Use of OSSCommercial support for almost 500 open source projectsIndemnification Governance solutions



Have you recently replaced any commercial proprietary software with open source because of economic uncertainty?

0 20 40 60 80 100

No

In progress

Yes


Case Study: Cost Savings with OSS

Proprietary AlternativeProprietary Alternative

License cost of $1.7M per year to License cost of $1.7M per year to startstart

Expected cost to rise to $10M per Expected cost to rise to $10M per yearyear

OSS AlternativeOSS Alternative

Free to startFree to start

Able to prototype solution in a Able to prototype solution in a matter of daysmatter of days

Costs for subscription and Costs for subscription and support <10% of proprietary support <10% of proprietary alternativealternative


Case Study: Cost Savings with OpenLogic

Existing OSS VendorExisting OSS Vendor

Support costs of $300K+ /year for Support costs of $300K+ /year for one open source productone open source product

Less than 5 support tickets per Less than 5 support tickets per yearyear

OpenLogic AlternativeOpenLogic Alternative

Significantly reduce costsSignificantly reduce costs

Aggregate support for hundreds Aggregate support for hundreds of open source projectsof open source projects

Enable development teams to use Enable development teams to use more open sourcemore open source

How to Calculate Open Source Savings



Do you think replacing commercial proprietary systems with open source could save your company money?

0 20 40 60 80 100

No, we won't use more open source

No, we use open source for other reasons

Maybe

Yes, we anticpate saving money

Yes, we've already saved money


Increase Cost Savings with OpenLogic


Cost Considerations for Open Source

Areas Open Source Cost Considerations

Licensing Zero cost (typically)Tip: There are some commercial OSS companies that do charge a license fee for “enterprise” editions.

Support Costs to support open sourceTip: Shop around, open source support is a competitive market

Sourcing Costs to find, evaluate and certify open source.Tip: Create a central repository of certified open source

IT Services Costs to manage open source in productionTip: Commercial support contracts can reduce these costs

Compliance & Legal

Costs to review open source licenses and requests to use OSSTip: Automate governance processes & maintain an audit trail

Hard CostsSoft Costs


Example: Hard Cost Savings with Open Source

CostsCommercial Proprietary

Use OSS with OpenLogic

Savings Commercial vs

OL

Licensing $1,768,000 - 100%

Support (5 yrs) $1,944,800 $450,000 77%

Hard Cost Total $3,712,800 $450,000 88%

Assumes:DB, App Server and Web Server (12 CPUs each)SOA Suite (8 CPUs) and BI Suite (4 CPUs)


Four Actions You Can Take Now

Gartner1. Get the best pricing and

terms for your IT purchases2. Identify major cost-saving

opportunities 3. Implement cost-savings

technologies4. Implement cost-saving

process improvement

Open Source1. Shop for Open Source Support

OpenLogic supports 460+ OSS packages

2. Identify Opportunities to use OSS

OSS Opportunities Workshops OSS Selection Workshops

3. Implement Open Source where appropriate

Migration Planning4. Remove Roadblocks to OSS

Usage OSS Policy WorkshopOSS Governance Solutions



Other than the operating system, what types of software would you like to replace with open source to lower costs?

0 20 40 60 80 100

Other business appsERP

CRMContent management

Development toolsOther middleware

Business intelligenceSOA

App or web serversDatabases

Open Source Migration Opportunities


Questions about moving to Open Source

What are the differences between proprietary and open source from an implementation point of view?

How do I know if my particular situation is compatible with the change?

Which types of applications should I migrate first and why?


Proprietary vs. Open Source: Implementation

ProsEasy to know where to get supportUsually well-integrated with other products from same vendor

ConsSlow to respond to customer requests and adopt new standardsSupport quality sometimes lackingSecurity only tested in-houseProprietary extensions may create lock-in

ProsQuick to respond to popular requests / can modify yourselfFlexible, focus on industry standardsSecurity tested publicly

ConsHard to find support on hundreds of packages *Effort required to monitor package updates & security vulnerabilities *Documentation may be more limited

Proprietary Open Source

* Provided by OpenLogic


Quick Hits for Open Source Migration

Migration opportunitiesExpensive proprietary licensing and maintenance costsStandards-based technologiesDepartmental or non-mission-critical deployments

Green field opportunitiesOpen to solutions beyond incumbent vendorsIntegration with legacy systems is initially minimal


Proprietary vs. Open Source: 4 Key Categories

WebSphere

WebLogic

Oracle

DB2

Sybase

WebSphere ESB

TIBCO

Sonic

Fiorano

iWay

Business Objects/Crystal

Actuate

IBM/Cognos

Application Server Database

SOA/ESB BI/Reporting

JBoss

Tomcat

Glassfish

Geronimo

MySQL

PostgreSQL

HSQLDB

ServiceMix

JBoss ESB

CXF

ActiveMQ

Mule

Jasper Reports

Pentaho

Mondrian

Weka


Application Server

Standards Java Enterprise Edition (JEE)

Ease of Migration Medium, depends on features used

Quick Hits Start with departmental apps, minimal integration with proprietary systems

Commercial WebSphere, WebLogic

Open Source Alternatives

JBoss, Tomcat, Glassfish, Geronimo


Database

Standards SQL

Ease of Migration Easy to Difficult, depending on usage ORM makes it easier (e.g., Hibernate)

Database-specific extension usage makes it harder (e.g., stored procedures, warehousing extensions)

Quick Hits Evaluate on case-by-case basis, starting with simple applications

Commercial Oracle, DB2, Sybase


MySQL, PostgreSQL, HSQLDB


SOA and ESB

Standards JMS, SOAP, SMTP, FTP, HTTP, BPEL, many others

Ease of Migration Medium, depends on use of proprietary extensions, routing, plug-ins, etc.

Quick Hits Possible to integrate local SOA/ESB tools with central ESB; New projects

Commercial WebSphere ESB, TIBCO, Sonic, Fiorano


ServiceMix, JBoss ESB, CXF, ActiveMQ, Mule


Business Intelligence and Reporting

Standards SQL, no standard for report design

Ease of Migration Difficult if reports must be rewritten

Quick Hits Start with open source reporting for department or division

Commercial Business Objects/Crystal, IBM/Cognos, Actuate


Jasper Reports, Pentaho, Mondrian, Weka


Conclusion

Start with low-hanging fruitNon-mission-criticalDepartmental appsPrimarily using standard features, not vendor-specific add-onsNo need for deep integration with legacy systems

Gain experience with OSS tools, support vendorsTrusted partners experienced with OSS can ease the transition

Expand on your successEstablish a beachhead, demonstrate savings, grow from thereDon't try to boil the ocean


Contact Information

Contact OpenLogic:

www.openlogic.com

Get recording of webinar:

www.openlogic.com/downloads/webinars.php

Get a quote on support: www.openlogic.com/products/support.php

Get a quote on governance solutions: www.openlogic.com/solutions/governance.php

Get a quote on professional services: www.openlogic.com/products/professional-services.php

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