This is not a flaky 5 Year ROI Study
● It addresses costs in year one
● It uses publicly available information – review it yourself
● It provides tools to help you question your ECM vendors
● Ask Vendor to Explain Specifically:
- What are you Selling me
- What am I Getting
- What Extra Software do I Need
- Can you Break Down the Cost
- Why does it Cost this Amount
- Explain why is it so Expensive
Compared to Open Source
3. 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
6. 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
6
7. 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
8. Publicly Available Pricing
● quot;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.quot;
8
10. OpenText
● 1000 User
$637,304
● 100 User
$196,754
● GSA Pricing
10
11. SharePoint
● 1000 User
$318,738
● 100 User
$24,669
● Pricing
www.microsoft.com
11
12. 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”
12
13. 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
13
14. Alfresco
● 1000 User
$33,500
$46,250
● 100 User
$18,500
14
15. ECM Stack Costs
● Application Server
● Database
● Operating System
15
16. Oracle Database &
Application Server
● 1000 User DB
$59,950
● 100 User DB
$21,350
● Pricing
http://www.oracle.com/corporate/pricing/pricelists.html
16
17. Microsoft Database
● 1000 User DB
$17,210
● 100 User DB
$8,605
● Pricing
http://www.microsoft.com/licensing/mla/default.aspx
17
18. MySQL
● 1000 User Gold
$2999
● 100 User Silver
$1999
● Pricing
http://mysql.com/products/enterprise/features.html
18
19. Microsoft Windows
● 1000 User
$3201
● 100 User
$2176
● Pricing
http://www.microsoft.com/licensing/mla/default.aspx
19
20. 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
20
21. Summary Year 1 Cost Savings
● 1000 Users
Save 85% to 96%
● 100 Users
Save 42% to 85%
21
23. Open Source vs. Enterprise
So=ware Model
Annual Cost Cumulative Cost
Low Upfront Cost Increasing Savings
Lower Project Risk
Op Ex vs. Cap Ex
24. 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
25. 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
25
28. Reduce your ECM Costs by 90%
Questions
Dr. Ian Howells
January 2009
29. 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
29
30. FUD Repellant
Web 2.0 Runs on Open Source
● Commoditize:
● Scalability
● RAS
● Usability
Do More with
Less
30