OpenLogic - Open Source Cost Savings in Economic Downturn

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

Agenda
How Open Source Can Help You Cut Costs
Calculating Open Source Savings
Open Source Migration Opportunities

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

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

Polling Results from Webinar Attendees
Are you seeing pressure on your IT budgets from the economic downturn?

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?

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

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

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

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

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

How to Calculate Open Source Savings

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

Increase Cost Savings with OpenLogic

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

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

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

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

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
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

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

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

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

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

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

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

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

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

OpenLogic - Open Source Cost Savings in Economic Downturn

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OpenLogic - Open Source Cost Savings in Economic Downturn Presentation Transcript