Reduce your ECM Costs by 90%
Dr. Ian Howells
Alfresco Software
January 2009

The Focus of 2009
● More Content
● More Users
● More Productivity
8% Decline in ITSpend
● More Compliance
● Dramatically Less Cost
2

Goal of Webinar and White Paper
● Not a Flakey 5 Year ROI Study
● Cost in the Next Year
● Publicly Available Information – Review it
● Tools Customers to Question Vendors
● Ask Vendor to Explain Specifically:
What are you Selling me

Explain why is it
What am I Getting

so Expensive
Compared to
What Extra Software do I Need

Open Source
Can you Break Down the Cost

Why does it Cost this Amount

3

Agenda
● ECM Pricing
● Methodology
● ECM Vendor Cost
● ECM Stack Cost
● Alfresco
● Summary
● More Information

ECM Industry
High Cost High Complexity Tie-In

Traditional ECM Pricing and Myths
Pricing Model Cost
● Complex ● Per User
1000’s options 1 Hour per Year/24 Hours Per Day
 
Hidden Extras Pricing Model Type Content Accessed
 
● Lack Transparency ● Usage
Audit Implications Intranet, Internet, Extranet,
 
Website
● SharePoint – Free
WSS, MOSS Standard and

Enterprise
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Methodology
● Basic System – Content Management for the Masses
Office Integration

Collaboration

Content Management

Workflow or BPM

Transformation/Rendition Management

Search

● 1000 Enterprise Config and 100 Users Standard Config
● Publicly Available Pricing
● Year One Cost
7

Publicly Available Pricing
● \"the price analysis GSA does to establish the Government's Multiple
Award Schedule (MAS) negotiation objective should start with the best
discount given to any of the vendor's customers.\"
8

EMC/Documentum
● 1000 User
 $863,937
● 100 User
 $129,078
● GSA Pricing
9

OpenText
● 1000 User
 $637,304
● 100 User
 $196,754
● GSA Pricing
10

SharePoint
● 1000 User
 $318,738
● 100 User
 $24,669
● Pricing
 www.microsoft.com
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SharePoint Pricing
● Complete Microsoft Stack
● Basic Pricing
● http://office.microsoft.com/en-us/sharepointserver/
FX102176831033.aspx
● Microsoft Software Assurance
● http://www.microsoft.com/licensing/mla/default.aspx
“To be licensed for the Enterprise Edition functionality of
Office SharePoint Server 2007, both the Standard and
Enterprise client access licenses are required”
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Alfresco
● All Products in One Subscription
 Document
Management, Collaboration and Web Content
Management, Records Management, Image Management
● All Components included
 BPM, Workflow, Transformation …
● No CAL’s
● No Extra for different Client
● CPU based
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Alfresco
● 1000 User
 $33,500
 $46,250
● 100 User
 $18,500
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ECM Stack Costs
● Application Server
● Database
● Operating System
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Oracle Database &
Application Server
● 1000 User DB
 $59,950
● 100 User DB
 $21,350
● Pricing
 http://www.oracle.com/corporate/pricing/pricelists.html
16

Microsoft Database
● 1000 User DB
 $17,210
● 100 User DB
 $8,605
● Pricing
 http://www.microsoft.com/licensing/mla/default.aspx
17

MySQL
● 1000 User Gold
 $2999
● 100 User Silver
 $1999
● Pricing
 http://mysql.com/products/enterprise/features.html
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Microsoft Windows
● 1000 User
 $3201
● 100 User
 $2176
● Pricing
 http://www.microsoft.com/licensing/mla/default.aspx
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Red Hat Application Stack
● Stack
Apache HTTP Server

JBoss Application Server

JBoss Hibernate

MySQL and PostgresSQL

Red Hat Enterprise Linux

1000 User Premium Enterprise Stack - $8499
100 User Basic Stack - $1999
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Summary Year 1 Cost Savings
● 1000 Users
 Save 85% to 96%
● 100 Users
 Save 42% to 85%
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Summary
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Open Source vs. Enterprise
So=ware Model
Annual Cost Cumulative Cost
Low Upfront Cost Increasing Savings
Lower Project Risk
Op Ex vs. Cap Ex

Summary
Late 1990’s and early 2000’s Today
● The ECM Suite ● Short Approved Vendor
Shortlist
● Single Vendor Strategy
● Cost this Year
● Lock-In
● Reuse Existing Hardware,
Software and Skills
● Choose per Project
Cost

Functionality

● Review Renewals 24

More Information
● White Paper – Total Cost of Ownership for
Enterprise Content Management
 Detailed Breakdown of ECM Vendor Pricing
 Detailed Breakdown of Stack Pricing
 Detailed Comparison Matrix
 URL’s for all Pricelists
 All calculations were performed in November 2008
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www.alfresco.com
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Reduce your ECM Costs by 90%
Questions
Dr. Ian Howells
January 2009

Lessons in FUD
1. Open Source doesn’t have Support Of course you
know it is more
2. OK It does have commercial SLA’s but Open expensive really.
Source is More Expensive Really
3. OK it is Supported, Cheaper But it Doesn’t
Scale
4. OK It is Supported, Cheaper and it Scales to
run Web 2.0 but it costs More to Configure
5. OK, OK, OK
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FUD Repellant
Web 2.0 Runs on Open Source
● Commoditize:
● Scalability
● RAS
● Usability
Do More with
Less
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