comparacion de costos open office y microsoft office

8/8/2019 Comparacion de Costos Open Office y Microsoft Office

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An Oracle White PaperFebruary 2010

Cost Comparison of Oracle Open Office 3,OpenOffice.org 3.x, and Microsoft Office2007


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Oracle White PaperCost Comparison of Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007

Executive OverviewThis white paper compares the costs of Oracle Open Office 3, OpenOffice.org 3.x, and

Microsoft Office 2007 by analyzing an organization with 1,000 desktops using a typical

number of documents and Microsoft Office macros. The purpose is to show the potential

cost savings of Oracle Open Office 3 and OpenOffice.org 3.x over Microsoft Office 2007.

IntroductionThere has been a significant amount of interest in a total cost of ownership (TCO)

comparison among Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007.

Although there are many open source TCO studies available, most of them do not cover

office suites explicitlymaking comparisons among the various types of office suites

difficult. This document compares the direct costs of an office suite deployment.

An Oracle Open Office 3 license typically costs just 20 percent of a Microsoft Office 2007

license, and OpenOffice.org 3.x is offered free of charge. But it is not enough to compare

only the license costs when weighing the differences. There are three other important

costs that need to be considered:

IT infrastructure costs, including licensing, hardware, operating system, application

integration, and document analysis costs

Training and support costs, including help desk costs

Migration and installation costs, including installation and migration of an organization's

Microsoft Office documents, templates, and macros

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The conclusion of this study is that Oracle Open Office 3 and OpenOffice.org 3.x yielded

a cost savings of 48 percent, or US$885,000 per 1,000 desktops, over Microsoft Office

2007 during a three-year time period. Key findings include the following:

Oracle Open Office 3 and OpenOffice.org 3.x have significantly lowerup to 80

percentlicense costs than Microsoft Office 2007.

Maintenance costs are lower for Oracle Open Office 3 and Microsoft Office 2007 due to

product updates and patches. In contrast to OpenOffice.org 3.x, which is available as a

full installation set only, Oracle Open Office 3 product updates are easy to distribute

through the software deployment systems. This results in 60 percent lower

maintenance costs than OpenOffice.org 3.x.

Because of its new user interface, for the first time, the cost of training for Microsoft

Office 2007 is the same as Oracle Open Office 3 and OpenOffice.org 3.x.

Migrating to a new office suite requires a migration of the old documents and

templates. The estimated costs for the migration are less than US$11,000 for a

company with 50,000 Microsoft Office documents.

The overall costs for Oracle Open Office 3 and OpenOffice.org 3.x are identical,

despite the no-fee licensing of OpenOffice.org. The higher system administration and

support costs for OpenOffice.org 3.x negate its zero-cost licensing.

This study has also shown that the costs for OpenOffice.org 3.x and Oracle Open Office3 migration are very similar. The Professional Analysis Wizard which lowes migration

costs and the easier and faster installation of product updates of Oracle Open Office 3

effectively make up for the zero-cost licensing of OpenOffice.org 3.x. In addition, Oracle

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Open Office 3 users can receive indemnification from Oracle; this can make it even less

risky relative to OpenOffice.org 3.x.

Customers should use this document as a framework when evaluating the benefits and

costs of moving to Oracle Open Office 3 or OpenOffice.org 3.x. The assumptions were

taken from real cases, but customers should enter their own numbers specific to their

organization and environment.

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Key Definitions

Below are brief descriptions of the products used in this comparison:

OpenOffice.org 3.x. This is the core functionality product, sometimes referred to in this

document as just OpenOffice.org.

Oracle Open Office 3 Standard Edition. This version adds 60-day installation support,

design templates, sample files, and clip art to the basic Oracle Open Office 3 product.

Oracle Open Office 3 Enterprise Edition. This product includes features of the retail

version of Oracle Open Office 3 and adds migration tools like the Professional Analysis

Wizard, which analyzes Microsoft Office files and helps lower migartion costs, enterprise

extensions like the Oracle Connector for Microsoft SharePoint, and the Transformation

Wizard. This is the product that is discussed in this paper. Microsoft Office Professional 2007. This version of Microsoft Office has Microsoft Word,

Microsoft Outlook with Business Contact Manager, Microsoft Excel, Microsoft Access,

Microsoft PowerPoint, Microsoft Publisher, and Microsoft Accounting Express. Sometimes it

is referred to as just Microsoft Office.

Information Technology Infrastructure Costs

This section compares the IT infrastructure costsincluding licensing, hardware, operating

system, application integration, and document analysis costsof Oracle Open Office,

OpenOffice.org, and Microsoft Office.

License Costs

The license costs of Microsoft Office are generally very high. Here, Oracle Open Office and

OpenOffice.org have a huge cost advantage. Oracle Open Office 3 and OpenOffice.org share

the same binaries. In addition to indemnification, Oracle Open Office 3 provides the following

features not found in OpenOffice.org:

Professional Analysis Wizard

Oracle Connector for Microsoft SharePoint

Transformation Wizard for creating Microsoft Installer Transformation files to install

customized Oracle Open Office installations through a software deployment system

The cost advantage of Oracle Open Office can be even higher for users with more than one

workstation or notebook. Oracle Open Office licensing allows up to five installations per user

whereas Microsoft charges extra license fees for additional machines belonging to the same user.

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For this scenario, no assumptions have been made about any extra licensing fees for additional

machines that need Microsoft Office.

As an example, current Oracle Open Office customer Bristol City Council saved 1.3 million(US$2 million) by switching 5,500 desktops to Oracle Open Office. The municipal

administration of Katowice saved 100,000 (US$135,000) on licensing for 350 computers.

According to a report by the Copenhagen Business School, moving to Oracle Open Office and

OpenOffice.org reduced the software costs of the local Faroese hospital, Klaksvik, by 24

percent, and the national hospital by 67 percent. They forecast further cost savings of up to 91

percent by moving the entire public sector onto Oracle Open Office and OpenOffice.org. The

TCO report of Ramboll Management predicts cost savings for the Danish government of DKK

225 million (US$39.8 million).1 Table 1 summarizes the licensing costs of the office suites.

TABLE 1. LICENSING COSTS FOR OFFICE PRODUCTIVITY SUITES (IN US. DOLLARS)

ORACLE OPEN OFFICE 3* OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007

Single license $66 $0 $350

1,000 licenses $66,000 $0 $350,000

Microsoft Software

Assurance Program for

Microsoft Office 2007

(optional)

29% of initial purchase price

per year (for a three-year

period)

N/A N/A $304,500

Subtotal Microsoft Office

license (for a three-year period)

$66,000.00 $0.00 $654,500

* User-based license. Each user could install Oracle Open Office 3 on five different machines. Microsoft charges approximately an additional US$200 per user for a Work at Home li-

cense.

Hardware Upgrade Costs

Companies typically upgrade their desktop hardware every three to five years. These upgrades are

usually accompanied by an upgrade of a new operating system as well. This can be an

opportunity to save money and improve reliability and security by replacing Windows with

Oracle Solaris or Linux instead. Oracle Open Office runs on Oracle Solaris and Linux as well as

it does on Windows.

1 Ramboll Management, Estimating the Costs of Implementing Office OpenXML and ODF in the CentralGovernment, http://www.odfalliance.org/resources/RamboellReport.pdf

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Table 2 compares the hardware upgrade costs of Oracle Open Office, OpenOffice.org, and

Microsoft Office. The representative organization has 1,000 PCs of which 300 are more than five

years old and need to be replaced.

TABLE 2. HARDWARE UPGRADE COSTS (IN US. DOLLARS)

ASSUMPTIONS ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007

Total number of workstations:

1,000 (300 are older than five

years and need to be replaced)

300 300 300

Update costs per unit:

$1,500

$450,000 $450,000 $450,000

Subtotal hardware $450,000 $450,000 $450,000

Operating System Costs

Migrating to a new office productivity suite is a good opportunity to rethink the operating

systems and platforms that an organization uses. Several TCO studies have shown the potential

significant cost savings of a migration to a more-reliable and secure Oracle Solaris or Linux

platform.2 Examples include the Free/Libre and Open Source Software deployment in

Extremadura, Spain, which deployed open source software on more than 40,000 desktops and

saved 30 million (US$41 million), and Beaumont Hospital Dublin, which saved more than 5.9

million (US$8 million) in five years. There are other TCO studies that analyze the migration

efforts from Windows to UNIX. This white paper is not intended to be a TCO study of Oracle

Solaris and Linux versus Windows. The migration of mail servers, databases, and other softwaresolutions that would be involved in such a TCO are beyond the scope of this document.

Table 3 compares the operating system upgrade costs of Windows, Oracle Solaris, and Linux.

The row titled External consulting represents the varied companies on the market that provide

consulting services for a migration from Windows to Oracle Solaris / Linux. These companies

create a migration roadmap, provide training for administrators, and offer other services that

would not be typically provided by the organizations IT staff. Those services are generally not

necessary for a Windows upgrade.

TABLE 3. OPERATING SYSTEM UPGRADE COSTS (IN U.S. DOLLARS)

OPENSOLARIS SPARC / X86 LINUX MICROSOFT WINDOWS

VISTA PROFESSIONAL

License fee per user $0 $0 $250

2 See Appendix 2 for a list of freely available Linux TCO studies.

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Total number of workstations:

1,000

$0 $0 $250,000

Microsoft Software

Assurance Program for

workstations (optional)

29% of initial purchase price

per year (for a three-year

period)

N/A N/A $217,500

External consulting (for a three-

year period)

$60,000 $60,000 $0

Subtotal operating systems $0 $60,000 $467,500

Application Integration CostsThere are most likely software solutions in an organization or business that interact with the

existing office suite. For those applications, it is necessary to find an equivalent solution that

works with Oracle Open Office or OpenOffice.org. Table 4 shows the costs associated with

replacing or modifying applications that worked with a previous version of Microsoft Office

when the organization moves to a new office suite. Note that even if the organization upgrades

to Microsoft Office 2007, it will incur some integration costs. The table shows the four main

steps involved with the integration effort:

Create a list of applications that work with the current version of Microsoft Office.

Determine if there should be alternatives to the existing applications or if the existing

applications could still be used but with modifications. If alternatives, evaluate them to selectthe optimal one.

Verify the integration on a pilot basis with the new office suites.

Install the new applications or modify the existing ones at a departmental or organizational

level.

The exact costs depend strongly on the replacement application. The migration effort could be

higher if an equivalent application is not available. Also, note that although Oracle Open Office

is appropriate for most environments, there might be a few cases where reintegrating existing

applications with Oracle Open Office is not suitable.

TABLE 4. COST OF INTEGRATING APPLICATIONS WITH THE OFFICE SUITES (IN U.S. DOLLARS)

ASSUMPTIONS ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007

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Create a list of applications that work

with Microsoft Office 2007 (8 hours)

$446.80 $446.80 $425.52

Evaluate OSS alternatives for

Oracle Open Office / OpenOffice.org

(senior: 20 hours; midlevel: 20 hours)

$1,904.20 $1,904.20 $0.00

Verify the integration with Microsoft

Office 2007 (5 hours)

$0.00 $0.00 $183.50

Installation of the alternative OSS

applications and data migration

(320 hours) or update of existing

application (16 hours)

$12,595.20 $12,595.20 $587.20

Subtotal application analysis $14,946.20 $14,946.20 $1,196.22

Document Analysis Costs

The import/export filter for Microsoft Office documents contained in Oracle Open Office and

OpenOffice.org will import the majority of documents without any issues; but occasionally,

some documents will not look exactly like they did in Microsoft Office. To make migration from

Microsoft Office as smooth as possible, an analysis of the existing Microsoft Office files is highly

recommended. The Professional Analysis Wizard in Oracle Open Office is designed to find and

analyze these documents. It determines the number of macros and estimates the effort of the

document migration. The wizard is not available with OpenOffice.org.

OpenOffice.org users have to authorize a migration partner to do such an evaluation. This takes

about a week (approximately US$4,000). The costs of converting these documents are discussedin the section titled Migration and Installation Costs.

Table 5 shows the costs associated with analyzing Microsoft Office documents.

The import and export of old Microsoft Office 2007 documents is good enough for daily tasks.

There is no need for analyzing documents; the few minor glitches can be fixed by the users.

TABLE 5. COST OF ANALYZING MICROSOFT OFFICE DOCUMENTS (IN U.S. DOLLARS)

ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007

Document analysis with the

Professional Analysis Wizard

(16 hours)

$893.60 N/A N/A

Document analysis by a migration

partner

$0.00 $4,000.00 $0.00

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Subtotal document analysis $893.60 $4,000.00 $0.00

Training and Support Costs

This section compares the training and support costs of Oracle Open Office, OpenOffice.org,

and Microsoft Office.

Support Contracts

Both Oracle and Microsoft offer support contracts for their respective products. (Note that

Oracle also offers support for OpenOffice.org.) The support engineers are highly professional

and are very close to the product engineering teams. A large number of service providers also

offer support for OpenOffice.org, but the costs and service levels vary. You can find a complete

list of these vendors at bizdev.openoffice.org/consultants.html.

Microsoft has changed its support offering for small and medium businesses to prepaid, per-hour

support packages. The customer buys a package of 30 problem-solving hours upfront.

TABLE 6. SUPPORT COSTS FOR THE OFFICE SUITES (IN US. DOLLARS)


Premier support(per annum, unlimited

number of problem-solving hours)

$14,520 $20,520 N/A

Pay per incident N/A N/A $99$515

Help Desk Costs

The Oracle Open Office and Microsoft Office user interfaces are similar. Usability studies have

shown that a half-day training course is sufficient for an entry-level user. Those trainings also

have the advantage of reducing the number of support calls associated with deploying a new

office suite.

However, Microsoft has completely changed the user interface in Microsoft Office 2007;

consequently, the way a user works with the application has also changed. This will cause a

higher number of help desk calls from these users.

TrainingOracle Open Office and Microsoft Office are not so different that a retraining is absolutely

required for entry-level users, but experience has shown that those are the type of users that

would benefit the most from these trainings.

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Training for knowledge workers and advanced users is recommended to reduce the time it takes

for them to learn the new office suite and attain their previous levels of productivity. As an

example, the Italian province of Genova provides an eight-hour training for its knowledge

workers. The training costs incurred are more than offset by the benefit of more-productive

users. As another example, the U.K.s Bristol City Council created self-service online how tos;

computer-based training; and for key users of each application (approximately 20 percent of all

users), a one-day conversion course. The TCO study of the Klaksvig Hospital includes training

costs for OpenOffice.org, Oracle Open Office, and Microsoft Office 2007.3

Microsoft Office upgrades to Microsoft Office 2007, with its completely new user interface, also

require training to maintain existing levels of user productivity. The training required for an

entry-level user of Microsoft Office 2007 could be even more than for Oracle Open Office and

OpenOffice.org.

Table 7 summarizes the training costs of the three office suites and includes the following terms:

Entry-level users. Users whohave infrequent access to an office suite or use the basic feature

set with minimal complexity.

Knowledge users. Users who have regular access to an office productivity suite and perform

medium-to-complex tasks.

Power users. Users whoare accustomed to using a high level of macros and databases, a

relatively high percentage of the feature set, or features at a very technical level.

Downtime costs. Costs that are incurred when users participate in training and cant attend

their regular jobs.

TABLE 7. TRAINING COSTS ASSOCIATED WITH THE OFFICE SUITES (IN US. DOLLARS)


Training afford entry-level user

Number of participants per course: 15

Costs per training day (room): $800

Overall number of training days: 5

$4,000 $4,000 $4,000

Training afford knowledge user



Overall number of training days: 65/50

$52,000 $52,000 $40,000

Training afford power user


$32,000 $32,000 $16,000

3 Copenhagen Business School, OpenOffice.org vs. Microsoft Office, gotzespace.dk/birgir.pdf

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Training afford help desk engineers


Costs per training day (room): US$800


$4,800 $4,800 $4,000

Downtime costs of user base

Entry-level worker (0.5 day training)

15% or 150 users

Hourly rate: $20

$12,000 $12,000 $12,000

Downtime costs user base

Knowledge worker

Oracle Open Office, OpenOffice.org,

Microsoft Office (1 day training)

65% or 650 users

Hourly rate: $30

$156,000 $156,000 $156,000


Power users


(2 days training)

Microsoft Office 2007 (1.5 days training)

Approximately 20% or 198 users

Hourly rate: $40

$126,720 $126,720 $95,040


Help desk workers


(3 days training)

Microsoft Office 2007 (2.5 days training)

Two users

Hourly rate: $40

$1,920 $1,920 $1,600

Subtotal training costs $389,440 $389,440 $328,640

Another option is online training. E-learning can save money at companies with more than 1,000

desktops. The average cost to create an e-learning course is US$100,000, which is US$100 per

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user for a 1,000 user company. E-learning can also lower training costs and provide greater

flexibility because users can take the courses whenever they have the time.4

Migration and Installation Costs

This section compares the migration and installation costsand more specifically, the migration

and installation costs of an organizations Microsoft Office documents, templates and

macrosacross the three office suites.

Installation and Maintenance

There are several solutions on the market to install office suites throughout the network. These

solutions take over the deployment of Oracle Open Office, OpenOffice.org, or Microsoft

Office. Oracle Open Office 3 and OpenOffice.org 3.x could be deployed by many of the existing

software deployment tools. The assumption is that the costs for setting up the deployment are

the same for all office suites. As an example, Bristol City Council had deployment and

maintenance costs for its 5,500 desktops of 10,000 (US$14,700).

The costs of the initial deployment are estimated slightly higher for OpenOffice.org because it

does not have the Transformation Wizard like Oracle Open Office does, which creates

transformation files for customized installations. OpenOffice.org has to do this manually, which

takes two additional hours.

Oracle provides quarterly product updates for Oracle Open Office. The patches use the

Windows patch technology and have the advantage of being able to be deployed by a Windows

software deployment system. OpenOffice.org also gets updated four times a year; but the

updates cannot be installed incrementally, like in Oracle Open Officethe entire suite has to be

reinstalled. This causes an increase of up to 60 percent in maintenance costs.

The costs for administration tend to get underestimated. Oracle calculated 10 minutes per year

per user without using a central administration tool. However, these tools are available in Oracle

Open Office, OpenOffice.org, and Microsoft Office. The administration tool for Oracle Open

Office and OpenOffice.org is provided by OpenOffice-Enterprise.5 Ituses Microsofts Group

Policy and requires a Microsoft Active Directory infrastructure. This reduces the costs of

administration by up to 90 percent.

The Microsoft approach is also based on Group Policy. This has the disadvantage of needing an

Active Directory server environment, which further requires Windows 2003 servers, and making

Microsoft Office 2007 possibly even more expensive. Oracle has assumed that an Active

4 Karsten Gerloff, Open Source Observatory and Repository, Declaration of Independence: The LiMuxProject in Munich, osor.eu/case_studies/docs/IDABC.OSOR.casestudy.LiMux.pdf5 For more information about the use of OpenOffice-Enterprise, visit openofficetechnology.com/products/OpenOffice-Enterprise

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Directory server environment exists in the scenario. (The implementation of central

configuration capabilities becomes very expensive when an Active Directory environment does

not exist.)

TABLE 8. USER ADMINISTRATION COSTS OF THE OFFICE SUITES (IN U .S. DOLLARS)


Costs for deployment (20/22 hours) $787.20 $865.92 $734.00

Costs for deploying product

updates/patches (96 hours/3 years)

(OpenOffice.org: 240 hours/3 years)

$3,778.56 $9,446.40 $3,523.20

Administration costs without central

configuration (10 min. per user/year)

(for a period of three years)

$14,895.00 $14,895.00 $14,360.00

License costs centralized configuration

for 3 years, including support

$6,000.00 $6,000.00 $0.00

Administration costs with central

configuration (saves 90%)

$1,489.50 $1,489.50 $1,436.00

Subtotal administration costs $19,460.76 $25,207.32 $18,617.20

Centralized administration for 3 years $12,055.26 $17,801.82 $5,693.20

Migrating Existing Company Templates and Documents Without Macros

Migrating old documents is fairly straightforward. First, many of the documents are older than

one year and usually not relevant for the daily business. Those documents can be loaded in

Oracle Open Office or OpenOffice.org, but it is highly recommended that they be archived and

not migrated.

There are two types of documents that need a closer analysis: business-related templates and

documents that are less than one year old. Oracle estimates that for a typical company, just 10 to

15 percent of all documents are those types of documents; the remaining 85 to 90 percent do not

need to be migrated, because they contain no or minor issues only. They can be opened and

saved into the OpenDocument file format and ready for editing.

That leaves a small number of documents that might require manual editing. This can be done by

the IT department or by the owner of the document. Oracle Open Offices Professional Analysis

Wizard classifies these documents in four categories: documents with zero, minor, medium, or

complex issues. Documents with medium and complex issues need to be adjusted manually. As

mentioned in the Document Analysis Costs section, OpenOffice.org users dont have access

to the Professional Analysis Wizard or the Macro Migration Wizard, so they need to work with a

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migration partner to analyze and classify the Microsoft Office documents. This takes

approximately a week.

Document Structure List

TABLE 9. NUMBER OF DOCUMENTS

TYPE OF DOCUMENT NUMBER OF DOCUMENTS

Total documents in representative organization 50,000

Documents that are older than 1 year (archive these) 40,000

Documents less than 1 year 10,000

Documents with no or minor issues (don't need manual migration) 8,380

Documents with medium issues 1,000

Documents with complex issues 120

Documents that need manual migration 1,120

Template Structure List

TABLE 10. NUMBER OF TEMPLATES

TYPE OF TEMPLATE NUMBER OF DOCUMENTS

Total templates in representative organization 500

Templates that are older than 1 year 300

Templates less than 1 year 200

Templates that need manual migration 50

Migration Costs Summary

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Table 11 summarizes the migration costs for files without Microsoft Office macros. The costs

are incurred in Oracle Open Office and OpenOffice.org only.

TABLE 11. DOCUMENT MIGRATION COSTS DOCUMENTS WITHOUT MACROS (IN U.S. DOLLARS)NO OR MINOR ISSUES MEDIUM ISSUES COMPLEX ISSUES CI TEMPLATES

Document migration time

(minutes)

0 10 30 60

Labor costs (per hour) N/A $30.00 $29.79 $29.79

Documents less than 1 year 10,000 1,000 120 50

Costs document migration $0.00 $5,000.00 $1,787.40 $1,489.50

Subtotal document migration $8,276.90

Migration Costs Summary

The migration to Oracle Open Office provides an excellent opportunity to rethink your

companys existing processes. For example, before migrating any existing Visual Basic macros,

try to determine if the macros are still needed. You can then discard the macros that are no

longer useful; simple Microsoft Excel macros might run though the VBA runtime library of

Oracle Open Office and OpenOffice.org. You can also reengineer the remaining macros

manually in Oracle Open Office Basic or rewrite the existing macros as Java or C++

components. An advantage to this approach is that the new components provide a performance

boost over the Visual Basic macros. Another approach is to use Web-based and collaborativeJava applications. These components provide better runtime security and error handling than

Visual Basic macros.

In Table 12, the compatibility of the macros is not perfect and the new user interface for

Microsoft Office 2007 requires a migration effort for menu and toolbar customizations, which is

why there are macro migration costs when deploying Microsoft Office 2007. Macros have been

categorized as minor, medium, or complex. As an example, the German Surveying and Land

Register Administration, with 1,900 desktops, identified 5 Word, 39 Excel, and 4 Access macros

to migrate.

TABLE 12. COSTS OF MIGRATING MICROSOFT OFFICE MACROS WHEN DEPLOYING A NEW OFFICE SUITE OR UPGRADING TO

MICROSOFT OFFICE 2007 (IN U.S. DOLLARS)

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Minor/Excel macro (cost for one

macro)

$629.76 / $39.36 $629.76 / $39.36 $0.00

Medium/Excel (cost for one macro) $1,259.52 / $944.64 $1,259.52 / $944.64 $57.44

Complex/Excel (cost for one macro) $6,297.60 / $5,904.00 $6,297.60 / $5,904.00 $229.76

50 (44 Excel / 6 Word) minor

complex

$5,510.40 $5,510.40 $0.00

10 (8 Excel / 2 Word) medium

complex

$10,076.16 $10,076.16 $287.72

1 (Excel) complex macro $5,904.00 $5,904.00 $28.72

Subtotal macro migration $21,490.56 $21,490.56 $5,693.20

Conclusion

The costs to migrate training, documents, and macros are higher for Oracle Open Office and

OpenOffice.org than for Microsoft Office, but these costs are more than offset by the savings in

licensing, operating system costs, and hardware replacement costs associated with Oracle Open

Office and OpenOffice.org. Table 13 summarizes the costs.

TABLE 13. SUMMARY OF ALL COSTS (IN U.S. DOLLARS)


Subtotal hardware $450,000.00 $450,000.00 $450,000.00

Subtotal operating systems $70,000.00 $70,000.00 $467,500.00

Subtotal application analysis $14,946.20 $14,946.20 $1,086.22

Subtotal document analysis $893.60 $4,000.00 $0.00

Subtotal Office licenses $66,000.00 $0.00 $654,000.00

Subtotal support costs (3 years) $43,560.00 $61,560.00 N/A

Prepaid package of support hours N/A N/A $14.499.00

Subtotal training $389,440.00 $389,440.00 $328,640.00

Subtotal administration $19,460.76 $25,207.33 $18,617.20

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Subtotal document migration $10,776.90 $10,776.90 $0.00

Subtotal macro migration $21,490.56 $21,490.56 $316.44

Total with hardware $1,087,018.02 $1,047,420.99 $1,934,658.86

Cost savings (per 1,000 desktops,

over 3 years)

$847,640.84 $887,237.87

Percentage saved 44.00% 46%

Total without hardware $567,018.02 $527,420.99 $1,017,158.86

Cost savings (per 1000 desktops,

over 3 years)

$450,140.84 $489,737.87

Percentage saved 44.00% 48%

An office suite is an essential part of the company workflow. It cannot be replaced by just

replacing the software. A well-managed migration project makes a migration to Oracle Open

Office easy and secure with a potential cost savings relative to Microsoft Office of more than 46

percent, or US$885,000 per 1,000 desktops over a three-year time period.

The migration to Microsoft Office 2007 needs to be carefully planned because of its new user

interface and new file format; it is not a typical upgrade as with Microsoft Office 2003. Users

need to be trained in the same way as they would be trained to use Oracle Open Office or

OpenOffice.org. In addition, the new features are not compatible with earlier releases. It cannot

be expected that other users could edit the document because of the relatively low marketpenetration of the Microsoft Office 2007 release.

OpenOffice.org is free but this does not imply that it has a lower TCO. Oracle Open Office

comes bundled with the Professional Analysis Wizard, Oracle Connector for Microsoft

SharePoint, and the Transformation Wizard, which reduces migration costs significantly. Even

more significant is the advanced patch strategy that reduces the maintenance costs for Oracle

Open Office. Considering all these factors, the overall costs of Oracle Open Office and

OpenOffice.org are almost identical.

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Appendix 1: Staff Salaries

Any organization of comparable size to the example organization requires IT services, provided

either by an in-house team or outsourced to a service provider. The salaries and sundry expenses

of having a team of three permanent staff will be costed and included in the analysis. The staff

will comprise a senior systems-level person and a junior support person. The salary costs are

based on numbers produced by the Linux vs. Windows: Total Cost of Ownership Comparisonstudy.

The staff chosen to fill the roles will be trained and expert in either of the competing Microsoft

or Linux platforms.

The salary of UNIX administrators is approximately 5 percent higher than their Windows

counterparts because of a wider range of knowledge. Both salary rates will be aligned over the

next few years due to the higher popularity of Linux.

TABLE A1. STAFF SALARIES (IN U.S. DOLLARS)

WINDOWS PLATFORM PERMANENT STAFF* PER ANNUM PER HOUR**

Salary and benefits for senior systems administrator $100,000.00 $53.19

Salary and benefits for midlevel systems administrator $69,000.00 $36.70

Salary and benefits for junior support administrator $54,000.00 $28.72

ORACLE SOLARIS X86 AND LINUX PLATFORM PERMANENT STAFF

Salary and benefits for senior systems administrator $105,000.00 $55.85

Salary and benefits for midlevel systems administrator $74,000.00 $39.36

Salary and benefits for junior support administrator $56,000.00 $29.79

ORACLE SOLARIS X86 AND LINUX PLATFORM PERMANENT STAFF

Entry-level worker $20.00

Knowledge worker $30.00

Power users $40.00

Help desk workers $40.00

* The costs for both Linux and Windows platform staff were researched via online staff recruitment and placement firms.

** 1,880 hours/work year.

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Appendix 2: Studies for Reference

Linux / Open Source Software Total Cost of Ownership Studies

Cybersource, Linux vs. Windows: Total Cost of Ownership Comparison,

www.cybersource.com.au/about/linux_vs_windows_tco_comparison.pdf

Avranches-Granville Hospital, France Suite bureautique, les enjeux d'une alternative,

oootools.free.fr/memoire_cnam/memoire_cnam.pdf (French).

Beaumont Hospital, Dublin, Open Source Software Can Improve the Health of the Bank Balance,

www.netproject.com/docs/Beaumont.pdf

Danish Board of Technology, Open source software in e-government,

tekno.dk/pdf/projekter/p03_opensource_paper_english.pdf

Soreon Report,

http://www.campussource.de/org/opensource/soreon.html

Maria Winslow, Linux, , Evaluating the ROI of Open Source on the Desktop,

linux.sys-con.com/read/43720.htm

Karsten Gerloff, Open Source Observatory and Repository for European Public

Administrations, Declaration of Independence: The LiMux Project in Munich,

osor.eu/case_studies/declaration-of-independence-the-limux-project-in-munich

City of Vienna, Open Source Software on PC Workstations of Viennas City Administration,

http://news.zdnet.co.uk/software/0,1000000121,39237412,00.htm

Katowice Municipality, Saving public money with OpenOffice.org,

osor.eu/case_studies/katowice-municipality-saving-public-money-with-openoffice.org

Open Source Case Studies

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OpenOffice.org, Roundtable:City of Haarlem and OpenOffice.org,

www.openoffice.org/editorial/roundtable_haarlem.html

Centre hospitalier de Tourcoing,

www.aesis-conseil.com/rubrique.php3?id_rubrique=36 (French only)

Copenhagen Business School, OpenOffice.org vs. Microsoft Office,

gotzespace.dk/birgir.pdf

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Cost Comparison of Oracle Open Office 3,

OpenOffice.org 3.x, and Microsoft Office 2007February 2010

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