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Th Im Lin he To mpact nux E tal Ec ™ Of Enterp conom f SUS prise A F Imp Co SU mic E Forrester Total E pact™ Study ommissioned By USE Economic y Project Direct Dean Davison October 2014 or: n

Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

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Page 1: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

ThImLin

he Tompact

nux E

tal Ec™ Of

Enterp

conomf SUSprise

A F

Imp

Co

SU

mic E

Forrester Total E

pact™ Study

ommissioned By

USE

Economic

y

Project Direct

Dean Davison

October 2014

or:

n

Page 2: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

Tabl

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Page 3: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

ExeSUSEEconreturndeploto profinanorgan

To beintervcompsysteacquthat FSUSErealiz

Eachserveservedifferand corgansolutminu

SUSE

Forrebaserealizmoreof pu

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Fi

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ecutive SE commission

nomic Impact™n on investmeoying SUSE Lovide readerscial impact of nizations.

etter understaviewed four cupanies wantedems and standiring and mainForrester interE Linux Enterzed a significa

h of the four orer technologieers being purcrent vendors, carry an invennization improions. In the wtes.”

E REDUCES

ester’s intervied on these int

zed benefits oe than $8.3 mirchasing com

IGURE 1

inancial Sum

Return onvestme5%

e: Forrester Rese

Summaryned Forrester ™ (TEI) study ent (ROI) that Linux Enterpriss with a framewf SUSE Linux

and the benefiustomers usind to migrate adardize on x86ntaining serverviewed plannrprise, retraineant decrease i

rganizations ses and realizechased. Adoptake advantag

ntory of serveroved average ords of one d

CAPITAL EX

ews with four eterviews realiz

of more than $llion. The mos

mmodity rather

mmary Showi

n ent:

earch, Inc.

y Consulting toand examineenterprises m

se. The purpowork to evaluaEnterprise on

its, costs, andng SUSE Linuway from pro6 servers to reers. Each of thned and migraed system admn capital expe

standardized od reductions iting hardwarege of special irs in anticipatiapplication peirector, “Our r

XPENDITURE

existing custozed the risk-a$23.4 million vst significant sr than propriet

ing Three-Ye

Paybaperiod8.5 mo

o conduct a Toe the potentialmay realize byose of this studate the potent

n their

d risks, Forresux Enterprise. prietary UNIXeduce the coshe companiesated from UNIministrators, aenditures.

on less expenn capital expe

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ES FOR SERV

omers and subdjusted ROI,

versus costs osavings for thetary servers, w

ear Risk-Adju

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otal

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and

nsive enditures thatves the organch as short-teng business dnd eased the

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VERS BY 80%

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usted Result

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t ranged from nizations flexiberm discounts,emands. Alonorganization’business nee

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million, addingorganization cd CAPEX of 8

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duction PEX:

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SE Linux Entrchase propra centers wit

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Reduced

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Increasebusineswas red

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eds was reduc

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terprise elimrietary UNIX sth commodit

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Total NPbenefit:$8.3 mill

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eness to chan“our responsmonths to min

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us UNIX e from er to delivery, ization, the loud ths to just

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Page 4: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

› Beinte

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sclosuresreader should

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USE reviewed d does not ac

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omposite orgampanies:

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tect and trand to architect a

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the following:

y SUSE and d

ons as to the timates within

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names for the

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nsition to SUSand implemen

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ng outside pro200 per day to

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SE Linux Entnt the transitio

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ofessionals tootals $113,40

Forrester Con

I that other orgork provided in

t Forrester mact Forrester's f

but did not par

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x86 servers rs of $6.4 millio

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terprise. Theon from UNIX

t for 60 systemhan $1.5 millio

o augment the0.

sulting. It is n

rganizations wn the report to

aintains editorfindings or ob

rticipate in the

that represen

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ance that is baree years.

m socket, the

e indirect cost to SUSE tota

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e internal team

ot meant to b

will receive. Foo determine th

rial control ovebscure the me

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nt those exper

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ased on purch

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Page 5: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

TEI

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Page 6: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

Ana

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Page 7: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

INTE

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HLIGHTS

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rdize on the x8ertified for x86uses SAP prostructure and

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apital expendwas 80% loweders. In additmade signific

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oducts and “SAcapacity plan

e composite o

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for maintenaresult in lower000 servers, thsignificant.

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ecided to chaning proprietary

vers and in op

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tandardizing th

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organization:

ervers by 80%quivalent hardthe interviewe

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ance agreemer maintenancehe savings in

g business Because the servers in a feto anticipate

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ustify the effor

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Page 8: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

BEN

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ital Expendit

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ed capital exp

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s for servers.

for servers.

ures For Serv

gan purchasinX servers. Thece in capital exe least expen

redundancy or

ported an incrs deployed. Iciency improvservers, and a

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ears.

ustomers realmpensate, thiser the three ye

tures For Ser

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ed

aced or upgra

er

penditures for

xpenditures fsted)

umber of qua

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ng standard x8e level of savinxpenditure sasive servers ar reliability.

rease in the nIn this study, F

ves. Readers madoption of clo

y purchased (This resulted

lized similar les benefit was rears was mor

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aded

servers

for

ntified benefit

86 servers anngs realized b

avings dependavailable while

number of servForrester assmust adapt thoud infrastruct

including repl in an annual

evels of savingrisk-adjusted ae than $19.4

Calculation

A1*20%

A3-A4

A2*A5

ts in this case

nd reduced itsby the companded on how exe others purch

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he number of sture to derive

lacements, upsavings of m

gs by standarand reduced million. See th

n Year 1

3

$14

$2

$11

$6,840

$6,498,0

e study. The o

s capital expennies that Forrxecutives defihased servers

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rdizing on x86by 5%. The rihe section on

1 Ye

3,000

600

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1,400

0,000 $6

5%

000 $6,4

rganization:

nditures by 80rester interviewined “commods that were le

s reported sigervers remain

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e

Page 9: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

Re

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earch, Inc.

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benefits quantnefits include

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sts For Serve

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is derived frofor the serverer year and m

sts For Serve

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e cost for UNIX

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nce costs for s

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tified in the pre:

changing bud architectureo business ne

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m the originalr and risk-adju

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ers

X server

server

servers

or servers

evious section

usiness needes, configuratioeeds “from mo

em administress expensiverators, the org

ess continuityry and the conctive and adop

mposite organd similar routinester uses a 9per year for a

l purchase priusts the benef7 million over

Calculation

A3*9%

A4*9%

B1*(B2-B3)

n, Forrester d

ds. The ability on templates,

onths to minute

rators. The coe than UNIX pganization has

y. The IT direntinuity of buspt a higher-lev

nization pays mne assistance9% rate to calc

total of more

ice of a servefit down by 5%three years.

n Year 1

3

$1

$

) $3,078

$2,924,1

ocumented ad

of the IT orga and by provides” for the glo

omposite orgaprofessionals.s not quantifie

ctor at the glosiness, as the vel disaster co

maintenance . While the feeculate the mathan $9.2 mil

r, Forrester us%. The result

1 Ye

3,000

1,283

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dditional bene

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obal banking cLinux platformontrol system

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ear 2

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3,078,000

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efits that cann

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Forrester, ble. We were

Page 10: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

Tota

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otal Benefits

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s (Risk-Adjus

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benefits

earch, Inc.

enefits across e organization

sted)

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$23,431,368

Page 11: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

COS

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xperienced sim$4.5 million a

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Page 12: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

Int

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Page 13: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

Tr

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Tota

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14

the

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$15,076,925

Page 15: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

FLEX

Flexibeneinitiatand lspec

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KS

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ntitatively capte meaningful aoriginal estimaealistic” expec

ABLE 9

enefit And C

nefits

duced capital

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sts

ense fees for S

ernal labor to a

ining and edu

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ned by TEI, reuture additionahe obligation dditional usesescribed in mo

r. SUSE Manapeople from h

ency.

ommunity. Te is a wonderfnts. We benefour products aus know how

two types of riroposed invesated. Impact rment in SUSEs for cost and

turing implemand accurate eates, and they ctations since

Cost Risk Adj

expenditures

nance costs fo

SUSE Linux E

architect and t

cation for sys

onal services

earch, Inc.

presents an inal investmentto do so. The

s and businesore detail in A

ager is an effehardware to m

he IT directorful platform befit from the opare updated fato better get v

isk associatedstment in SUSisk refers to th, resulting in lbenefit estim

mentation risk aestimates andaffect benefit they represe

justments

for servers

or servers

Enterprise

transition to S

stem administr

nvestment in a. This providere are multiples opportunitie

Appendix A).

ective tool thatmanage middle

r at the bankinecause it is a fpen source comaster and the value out of th

d with this anaSE may deviathe risk that theower overall tates.

and impact risd a more accuts by reducingnt the expecte

SUSE Linux E

rators

additional capes an organizae scenarios in

es. Flexibility w

t reduces a nueware and da

ng company tofully open soummunity and quality is bett

he products.”

alysis: “implemte from the ore business ortotal benefits.

sk by directly aurate projectiog the original eed values con

nterprise

pacity or capaation with the n which a custwould also be

umber of manatabases,” said

old Forrester, urce platform, culture from S

ter because th

mentation riskriginal or exper technology nThe greater t

adjusting the on of the ROI.estimates. Thensidering risk.

ability that cou“right” or the atomer might c

e quantified wh

nual activities d the IT direct

“From the uswhich means

SUSE Linux. hey come from

k” and “impactected requiremneeds of the othe uncertaint

financial estim In general, rie risk-adjuste

Adjustment

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5%

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uld be turned iability to engachoose to imphen evaluated

for system adtor at a nation

er’s perspectis that more soBecause of th

m a communit

t risk.” Implemments, resultinorganization mty, the wider th

mates results sks affect cos

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15

nto business age in future plement SUSEd as part of a

dministrators. nal

ive, SUSE olutions are he open ty. The other

mentation risk ng in higher may not be he potential

provides sts by raising hould be taken

E

n

Page 16: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

FinThe fperiovalueunad

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IGURE 3

ash Flow Ch

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ABLE 10

ash Flow (Ri

sts

nefits

benefits

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e: Forrester Rese

($8,0

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16

d payback ack period to the

resent Value

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55%

8.5 months

Page 17: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

SUThe fofferi

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USE or its

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Page 18: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

AppTotalmakiTEI mmana

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rect benefits reect, Forrester ts the value th. For instanceation (to increar worker produuture point. H

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within the inveoriginal projecbility density fumate the und

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estment. Uncections and 2) unction knowerlying range

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flexibility, and

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ct benefits care the strateg

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ertainty is methe likelihoodn as “triangula around each

18

logy decision-o clients. The enior

risks.

product or om to analyzeplace equal technology onunderstand established ures that

usiness unitsents and mental costs fits that are

an typically be ic value of anon top of the vity suite cand collaborationnal

n be

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Page 19: Th e Total Economic Im SUSE Lin rise · Linux Enter vestment dec OGY ach to evalua and sales lea currently us zation based l representativ enefit data ob del based on of the TEI me

AppDiscotheir 10% Readown e

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