Course:ETEC522/2010ST1/OpenSourceTechnologies/Total cost of ownership
Module 6: Open Source Software - Total Cost of Ownership (TCO)
This vector was created by Darren Roper
The British Educational Communications and Technology Agency defines the Total Cost of Ownership as ". . . all of the costs involved in a technology or business solution. In addition to the initial investment cost, such costs include maintenance, support, replacement costs, and the like. In the case of software, the TCO should include the initial cost of the software; upgrade cost; and maintenance, support and training costs." The question then is how does the TCO of open source software (OSS) compare to that of proprietary software purchased from a vendor?
Open Source Software - Total Cost of Ownership
The cost to acquire and distribute OSS is essentially zero. The only cost that is associated with getting OSS is with the bandwidth required to download it and the media required to store it. Trish Hart, from the Alaska Vocational Center is quoted as saying that open source software “. . . is free like a puppy, not free like a beer.” (Trotter, 2008) In other words, OSS can be acquired at no charge. However, storing, installing, editing, hosting, and maintaining it will cost money. This cost can be substantial.(Ward, 2008) For example, an OSS program like Moodle is free to download. If the school or business wants to customize it, they will have to do so without assistance from the developers. Experts with the ability to alter the source code must be hired. Before it can be used it will have to be installed. Bugs will need to be ironed out. Teachers will have to be trained on how to develop courses for the program, and how to use it effectively.
If there are questions about the software, there is no support system from the developer. Some OSS, like Moodle have support forums that users contribute to. Still, if a particular question has not been dealt with in the forums the end user will have to figure the solution out.
Costs
The two main costs associated with OSS are the cost of training staff, and in getting support for the new software. (Hirsch, 2009) For example, a trial program using Moodle that was designed at the University of Massachusetts had set up costs of roughly $35,000. These costs consisted mostly of salaries. (Schweik, 2009) Proprietary operating systems are typically easier to set up and maintain than their open source alternatives. The additional time requirements needed to set up the open source systems will also result in higher operating costs. In the case of a school district in Washington State, private programmers had to be hired in order to get the system working. (Derringer, 2009)
Another cost to consider relates to the open nature of the software. If an OSS application is modified by the user it may not be able to be upgraded. One of the strongest assets of OSS becomes a liability. In order to upgrade, the new version of the software will have to be downloaded and the source code will have to be changed again. The cost for such a process will be much higher than for proprietary software.
In summary, while the cost to acquire the OSS is zero, the cost of using it is typically higher than it is for the proprietary alternative. In order for OSS to be a cost effective alternative, the total cost must be lower than that of proprietary software. While there are other considerations, it makes no sense to use open source programs if they are going to wind up costing more than their closed source alternatives. Some articles including Yanosky (2004) question whether or not open source alternatives can deliver cost savings. Yanosky's article speaks only in general terms, without going in to the detailed cost breakdown. The opposite viewpoint is taken by Niemi, Tuisku, Hameri, & Curtin (2009). They found that the savings could be as much as 50 per cent by choosing open source alternatives over proprietary software.
TCO in Education
In the educational setting, most end users of software are not there to make a profit. However, budget restrictions are a way of life. School administration could look toward open source alternatives as a way to lessen the strain on their finances.
The British Educational Communications and Technology Agency has advocated for the adoption of open source solutions. They found the cost for ownership for classroom operating systems and classroom operations was lower with OSS than for proprietary software. According to Derringer (2009) a school district can save $60,000 to $200,000 each year using open source alternatives. Vassalboro Community School in Maine has saved $50,000 a year by switching from the Windows operating system to Linux. (Houston, 2007)
Follow the link to read more information: How to survive ICT budget cuts. Take the time to watch the video from the British Educational Communications and Technology Agency.
Pay particular attention to what Fiona Iglesias has to say about combining resources and controlling services (starting at about 17:30).
Report Card
There are two different aspects to consider with the total cost of ownership regarding open source alternatives.
1. Cost to acquire the software. This gets an A+ because the software is free of charge.
2. Cost to use the software. This rates a C because there may be significant costs regarding the installation, adaptation and maintenance of the software. Unless the total cost of both of these aspects is less than the total cost of proprietary software, it is most likely not worth the trouble.
References
British Educational Communications and Technology Agency (BECTA). (2005) Open Source Software in Schools. Coventry, UK:BECTA. Retrieved from http://publications.becta.org.uk/download.cfm?resID=25907.
Derringer, P. (2009) When Free Isn't Free. Technology & Learning. 29(9). 28-32.
Hirsch, J. (2009) Opening Up Options for School Software. School Administrator, 66(5)Retrieved from http://www.aasa.org/schooladministratorarticle.aspx?id=2170
Houston, M (2007) Linux Makes the Grade. Technology and Learning. 28(4). 22-25
Niemi, T., Tuisku, M., Hameri, A., & Curtin, T. (2009) 'Server-based computing solution based on open source software. Information Systems Management, 26: 1, 77 — 86
Schweik, C.M., Fernandez, M.T., Hamel, M.P., Kashwan, P., Lewis, Q. & Stepanov, A. (2009)Reflections of an Online Geographic Information Systems Course Based On Open Source Software. Social Science Computer Review. 27(1), 118-129.
Trotter, A. (2008) Blackboard vs. Moodle. Competition in course-management market grows. Digital Directions. Spring/Summer 2008.
Ward, A. (2008) Giving it all Away. American School Board Journal. September 2008.
Yanosky, R. (2004) The questions you should ask. The Chronicle of Higher Education. September 2004 supp. B21.
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