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Linux cost of ownership study (fwd)



---------- Forwarded message ----------
Date: Tue, 29 Feb 2000 20:45:53 -0500
From: Tony Baer <tbaer at tbaer.com>
To: John Abreau <jabr at blu.org>
Subject: Linux cost of ownership study

John,

I am the editor of COMPUTER FINANCE, a journal
which covers IT economics. We focus on cost of 
ownership, resource management, and ROI/benefit
valuation issues.

We did a preliminary report examining Linux
last year which I have attached. At this point,
now that there's been more experience, we want
to conduct a wider range study that would look
at a more representative sampling of Linux
installations.

Do you know of any members of your user group
who have had at least 6 - 12 months operating 
a Linux-based system who would be willing to 
share their experiences?

In exchange, of course, we'll send a copy of the
report, due to be published in our April issue.



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<TITLE> 01-01-99 Hidden costs of the Linux OS - Part I</TITLE>
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<P><B><S>                                                                                                                                                            </S></B><BR>

<H1><B>Hidden costs of the Linux OS - Part I</B></H1>
<P><B>Issue Date: </B><B>01-01-99</B><BR>
<B>Issue Number: </B><B>9.08</B><BR>
<B>Category: </B><B>LINUX</B><BR>

<P>The inmates are taking over the asylum. Over the past year, Linux's share of the server market has grown 212%, according to International Data Corp. However, Linux has more in common with noncommercial tools such as the Apache web server, Perl language, and Sendmail than it does with NT or UNIX. The answer to this riddle is that Linux is 'open source' software, meaning that its source code is publicly available, often without charge, and the user has the right to improve it as long as the enhancement is shared with the rest of the Linux community - a term often called 'copyleft.'<BR>

<P>Invented by Linus Torvalds in 1991, Linux has emerged as the major UNIX-on-Intel alternative to NT. Like the PCs of 15 years ago, Linux has often snuck in through the back door away from the eyes of IT. Linux users brag about its dependability for 'lock it inside the closet' applications, where the system is rebooted about once a year, or if it's time to install a new version or 'distribution.' Unlike commercial software, vendors are playing a supporting but not a driving role in Linux development. Red Hat, Caldera (a Novell spinoff), and Germany's S.u.S.E. are packaging Linux onto CDs, complete with system boot and other utilities, manuals, and limited technical support. But users can also get it from any Linux developer with an FTP server. The different Linuxes available from vendors or FTP sites are often called 'distributions'. Linux may be free, but what are the hidden costs? Significantly, most experience to date has been anecdotal. In the coming year, Red Hat plans to commission a TCO study, while analysts such as D.H. Brown will finally conduct formal technical comparisons of Linux to other, platform-specific UNIXes. In this report, we surveyed a small group of users and consultants to assess structural cost factors. In future reports, we will dissect new Linux TCO research as it comes out, and conduct more detailed end user cost analyses.<BR>

<P><B>OS Platform Costs.</B> Since operating systems are usually bundled with hardware, Linux users don't save on up front OS licensing costs. But they could avoid paying 'maintenance' (for upgrades) or for 'premium' technical support. They might save on per-user costs, such as NT's $35 client access licenses (CALs). For UNIX, Linux avoids the a la carte costs of features such as C compilers than can easily cost $1,500 per machine. Hardware costs are reduced because Linux is efficient enough to allow even old, otherwise junked 386 or 486 boxes perform adequately for limited functions such as mail servers. Obviously, users can download distributions for free off the 'net, or pay $49 per copy to vendors such as Red Hat. 'I often prefer the Red Hat version because it tends to be more polished and more current, but without having strayed into the dangerous part of the cut,' said Richard Couture, a San Francisco-based network consultant.<BR>

<P><B>Installation.</B> According to Toronto-based UNIX and Linux consultant Drew Sullivan, it takes a couple days consulting time to install a workgroup file and print server serving a population of 50 - 100 users, at rates equivalent to US $750 - $1,800/day. Whether that's comparable to NT is hotly debated.<BR>

<P><B>Software Updates.</B> Although Linux update cycles are not as formal as vendor-specific code, there are more similarities than differences. One could spend full time simply following all the Linux news groups to learn about the latest and greatest distributions or bug fixes. And, while Linux has had few official major releases, minor releases proliferate, often within days. The bottom line is that the Linux administrator can spend as much or as little time keeping up with software enhancements. 'If it ain't broke, don't fix it,' said Couture, who has installed roughly 50 Linux boxes for customers.<BR>

<P><B>Technical Support.</B> 'If you're willing to pay a million dollar support contract, you might get a fix. Otherwise, you're probably better off getting a psychic fix,' according to Sullivan. Linux users, such as Alan Henn, IT manager for Agdia Inc., a 20-person Indiana-based agricultural services firm, often claim they can get by on their own. But, keep in mind that many Linux users pride themselves on being self-reliant hackers.<BR>

<P>Although IT managers often gripe about ISV technical support prices, those costs provide the assurance of vendor accountability. Most commercial OSs come with 90 days support and a la carte extended options. Most Linux enthusiasts don't think commercial ISVs are giving a good deal, and argue that having access to the UseNet or local user groups is far superior. Recalls Joe Klemmer, computer specialist for the U.S. Army Publishing Agency, he was able to get a patch for a ping-related UNIX bug in barely two hours.<BR>

<P>'The support paradigm for Linux, FreeBSD, NetBSD, OpenBSD, and other freeware products is to find small consulting firms for each of the specialties for which you need support,' said Jim Dennis, whose Bay Area firm, Starshine, is one such example.<BR>

<P>However, formalized technical support is coming to Linux, especially when database and other ISVs start releasing Linux versions. At press time, it was rumored that IBM and Red Hat might be close to an agreement which would leverage Big Blue's global presence - indication of support arrangements likely to come. A relatively large Linux shop, Canadian National Railways, which operates over 40 Linux boxes (primarily mail servers and IP routers), says it's open to more formalized support.<BR>

<P><B>Platform and ISV Support.</B> ISV and platform support is beginning to snowball. For instance, Oracle 8i, Developer Server (application server), and some modules of Oracle 11 (ERP) will have Linux versions by 1Q99. Obviously, products such as Oracle's Parallel Query Server won't be available until Linux improves SMP support. Meanwhile, Sun has made specifications for low-end UltraSPARC workstations available to allow Linux developers to create compatible versions. Today, UltraPenguin (a distribution of Linux) supports the UltraSPARC5 and 10 workstations. However, Sun does not plan to develop its own Linux-on-SPARC versions itself, but is considering supporting recompiling Solaris applications to Linux or vice versa. The Linux community, in addition, has developed Samba (another piece of open source software)  that supports NT file systems. Additionally, Caldera is working on Linux support of Novell Directory Services (NDS), meaning that Linux could be thought of as a file and print server. <BR>

<P><B>Reliability.</B> We received plenty of anecdotal evidence that Linux boxes generally don't crash. Some reported findings:<BR>

<P>* A mail server that has been running for 500 days without crashing or administrative intervention, according to Sullivan.<BR>
* The US Army Publishing Agency's Intranet server, which processes 60,000 pages (roughly 300,000 hits) daily, which is taken down only for hardware or OS upgrades.<BR>
* Deja News, an Internet media company, runs 150, dual-Pentium Linux boxes as Web, database, mail, and news servers, and for developer workstations. (However, they use NT servers and clients for the front office.) Up time, carefully measured, is 99%+, on a 24 x 7 basis.<BR>

<P>Scalability. Linux is often viewed as an NT alternative because it currently lacks high-end UNIX features such as SMP support or the ability to automatically identify new processors as they are plugged in (a key feature of Solaris 2.6). According to Sun, UltraPenguin should work on 2- or 4-way Enterprise 250 or 450 workgroup servers, but obviously, not on a 64-way Enterprise 10000 machines. However, it is expected that Linux 2.2, due anytime now, should improve SMP support.<BR>

<P>NOT YET READY FOR PRIME TIME<BR>

<P>Linux is still restricted to small - midsize workgroup applications such as file or print servers, or standalone web, mail, or proxy servers, etc. At enterprise level, SAP does not currently have plans for Linux support. And the lack of Linux-based applications and tools, for now, require some Linux shops to add developers. According to Tom Schenk, systems administrator team lead at Deja News, out of a staff of five developers/administrators, roughly one additional FTE was necessary for this reason. But with improvements to scalability (which in turn will likely pull ISV support), corporate Linux users may come out of the closet-with their Linux boxes - to provide better documented track records that could make Linux thinkable in about 12-18 months as ERP server for midsize enterprises. As user experience is documented, we will document the costs.
<P><B><S>                                                                                                                                                            </S></B>
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_______________________________
Tony Baer
Principal Analyst
Computer Finance
ph  (781) 271-0010
fax (781) 271-1348
tbaer at tbaer.com

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