OpenLogic - Open Source Cost Savings in Economic Downturn
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OpenLogic - Open Source Cost Savings in Economic Downturn



OpenLogic provides insights into how to navigate the economic downturn using open source. The deck also provides poll results of how enterprises view OSS in this environment. Stream the presentation ...

OpenLogic provides insights into how to navigate the economic downturn using open source. The deck also provides poll results of how enterprises view OSS in this environment. Stream the presentation here



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OpenLogic - Open Source Cost Savings in Economic Downturn Presentation Transcript

  • 1. Navigating the Economic Downturn: Strategies for Cutting Costs with Open Source Webinar on Oct 29, 2008 Presented by Kim Weins and Rod Cope of OpenLogic Recording available at: www. openlogic . com/downloads/webinars . php
  • 2. Agenda
    • How Open Source Can Help You Cut Costs
    • Calculating Open Source Savings
    • Open Source Migration Opportunities
  • 3. About OpenLogic
    • OpenLogic enables enterprises to
    • safely and securely
    • acquire, manage and control
    • open source software,
    • and thereby
    • realize significantly higher savings .
    OpenLogic Company Confidential
  • 4. Aggregating Open Source for the Enterprise
    • One throat to choke
      • Consolidated SLA support
    Support Provisioning Governance
    • Risk reduction
      • Indemnification
      • SaaS Governance platform
    • Trusted source
      • Certified library of 460+ projects
      • Managed updates
  • 5. Polling Results from Webinar Attendees
    • Are you seeing pressure on your IT budgets from the economic downturn?
  • 6. 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
  • 7. 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.
  • 8. Polling Results from Webinar Attendees
    • Will your company use more open source because of economic uncertainty?
  • 9. 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 Costs
      • Avoid reinventing the wheel; leverage the community
  • 10. How OpenLogic Can Help You Cut Costs
    • Commercial OSS Support at Low Cost
      • Significantly lower cost than proprietary alternatives
      • Aggregate 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 OSS
      • Commercial support for almost 500 open source projects
      • Indemnification
      • Governance solutions
  • 11. Polling Results from Webinar Attendees
    • Have you recently replaced any commercial proprietary software with open source because of economic uncertainty?
  • 12. Case Study: Cost Savings with OSS
    • Proprietary Alternative
    • License cost of $1.7M per year to start
    • Expected cost to rise to $10M per year
    • OSS Alternative
    • Free to start
    • Able to prototype solution in a matter of days
    • Costs for subscription and support <10% of proprietary alternative
  • 13. Case Study: Cost Savings with OpenLogic
    • Existing OSS Vendor
    • Support costs of $300K+ /year for one open source product
    • Less than 5 support tickets per year
    • OpenLogic Alternative
    • Significantly reduce costs
    • Aggregate support for hundreds of open source projects
    • Enable development teams to use more open source
  • 14. How to Calculate Open Source Savings
  • 15. Polling Results from Webinar Attendees
    • Do you think replacing commercial proprietary systems with open source could save your company money?
  • 16. Increase Cost Savings with OpenLogic
  • 17. Cost Considerations for Open Source Hard Costs Soft Costs Costs to find, evaluate and certify open source. Tip: Create a central repository of certified open source Sourcing Costs to support open source Tip: Shop around, open source support is a competitive market Support Zero cost (typically) Tip: There are some commercial OSS companies that do charge a license fee for “enterprise” editions. Licensing Costs to manage open source in production Tip: Commercial support contracts can reduce these costs IT Services Costs to review open source licenses and requests to use OSS Tip: Automate governance processes & maintain an audit trail Compliance & Legal Open Source Cost Considerations Areas
  • 18. Example: Hard Cost Savings with Open Source Assumes: DB, App Server and Web Server (12 CPUs each) SOA Suite (8 CPUs) and BI Suite (4 CPUs) 88% $450,000 $3,712,800 Hard Cost Total 77% $450,000 $1,944,800 Support (5 yrs) 100% - $1,768,000 Licensing Commercial Proprietary Use OSS with OpenLogic Savings Commercial vs OL Costs
  • 19. Four Actions You Can Take Now
    • Gartner
    • Get the best pricing and terms for your IT purchases
    • Identify major cost-saving opportunities
    • Implement cost-savings technologies
    • Implement cost-saving process improvement
    • Open Source
    • Shop for Open Source Support
      • OpenLogic supports 460+ OSS packages
    • Identify Opportunities to use OSS
      • OSS Opportunities Workshops
      • OSS Selection Workshops
    • Implement Open Source where appropriate
      • Migration Planning
    • Remove Roadblocks to OSS Usage
      • OSS Policy Workshop
      • OSS Governance Solutions
  • 20. Polling Results from Webinar Attendees
    • Other than the operating system, what types of software would you like to replace with open source to lower costs?
  • 21. Open Source Migration Opportunities
  • 22. 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?
  • 23. Proprietary vs. Open Source: Implementation
    • Pros
      • Easy to know where to get support
      • Usually well-integrated with other products from same vendor
    • Cons
      • Slow to respond to customer requests and adopt new standards
      • Support quality sometimes lacking
      • Security only tested in-house
      • Proprietary extensions may create lock-in
    • Pros
      • Quick to respond to popular requests / can modify yourself
      • Flexible, focus on industry standards
      • Security tested publicly
    • Cons
      • Hard 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
  • 24. Quick Hits for Open Source Migration
    • Migration opportunities
      • Expensive proprietary licensing and maintenance costs
      • Standards-based technologies
      • Departmental or non-mission-critical deployments
    • Green field opportunities
      • Open to solutions beyond incumbent vendors
      • Integration with legacy systems is initially minimal
  • 25. Proprietary vs. Open Source: 4 Key Categories Application Server Database SOA/ESB BI/Reporting WebSphere WebLogic Oracle DB2 Sybase WebSphere ESB TIBCO Sonic Fiorano iWay Business Objects/Crystal Actuate IBM/Cognos JBoss Tomcat Glassfish Geronimo MySQL PostgreSQL HSQLDB ServiceMix JBoss ESB CXF ActiveMQ Mule Jasper Reports Pentaho Mondrian Weka
  • 26. Application Server WebSphere, WebLogic Commercial Start with departmental apps, minimal integration with proprietary systems Quick Hits JBoss, Tomcat, Glassfish, Geronimo Open Source Alternatives Medium, depends on features used Ease of Migration Java Enterprise Edition (JEE) Standards
  • 27. Database Oracle, DB2, Sybase Commercial Evaluate on case-by-case basis, starting with simple applications Quick Hits MySQL, PostgreSQL, HSQLDB Open Source Alternatives
    • 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)
    Ease of Migration SQL Standards
  • 28. SOA and ESB WebSphere ESB, TIBCO, Sonic, Fiorano Commercial Possible to integrate local SOA/ESB tools with central ESB; New projects Quick Hits ServiceMix, JBoss ESB, CXF, ActiveMQ, Mule Open Source Alternatives Medium, depends on use of proprietary extensions, routing, plug-ins, etc. Ease of Migration JMS, SOAP, SMTP, FTP, HTTP, BPEL, many others Standards
  • 29. Business Intelligence and Reporting Business Objects/Crystal, IBM/Cognos, Actuate Commercial Start with open source reporting for department or division Quick Hits Jasper Reports, Pentaho, Mondrian, Weka Open Source Alternatives Difficult if reports must be rewritten Ease of Migration SQL, no standard for report design Standards
  • 30. Conclusion
    • Start with low-hanging fruit
      • Non-mission-critical
      • Departmental apps
      • Primarily using standard features, not vendor-specific add-ons
      • No need for deep integration with legacy systems
    • Gain experience with OSS tools, support vendors
      • Trusted partners experienced with OSS can ease the transition
    • Expand on your success
      • Establish a beachhead, demonstrate savings, grow from there
      • Don't try to boil the ocean
  • 31. Contact Information
    • Contact OpenLogic:
    • Get recording of webinar:
    • Get a quote on support:
    • www. openlogic .com/products/support. php
    • Get a quote on governance solutions:
    • Get a quote on professional services: