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On Thu, Jan 1, 2009 at 10:31 AM, Henry Bremridge
<henry.bremridge@xxxxxxxxx> wrote:
>
>
> On the following assumptions:
>
> - No of users: 6782
> - Cost of Microsoft Office per User per Year: £20 (or £60 every three years). This
> is a guess on the principle MS will heavily discount the cost of enterprises
> licenses to encourage use in public sector organisations.
> - New computers purchased every 4 years (bit of a guess: I believe that most
> computers would be thrown away every 2-3 years, but all would have to be renewed
> at least every 4 years)
> - Cost of Microsoft (as opposed to Linux) per PC: I am guessing £20. I am aware
> that retail OEM MS Operating systems go for about £50, but again I do not believe
> that large public sector organisations pay that
> - Interest Rate (Borrowing cost). I am assuming 5%. (The lower the interest rate,
> the more the total cost of staying with MS. I do not know what the borrowing costs
> for Devon County Council are but I would be surprised if they could not borrow at
> less than 5%).
> - The cost of switching Bristol's 6000 computers was a one time cost of £643,000
>
> Then the cost of not switching to Microsoft for 10 years is £1.3m or £130,000 per
> year, with a payback of period of the cost of switching of 5 years
>
> Summary of figures changing key variables
>
> Computers 6782 6782 6782 6782 6782
> 6782
> License Fee MS Office 10 20 50 10
> 20 50
> Computer renewal rate 4 4 4 4
> 4 4
> Cost of MS software 20 20 20 20
> 20 20
> Investment Hurdle 10% 10% 10% 5%
> 5% 5%
> Total Cost £0.6m £1.0m £2.3m £0.8m £1.3m
> £2.8m
> Cost pa £0.06m £0.1m £0.2m £0.08m £0.1m
> £0.3m
>
> Question
>
> a) Does anyone know for certain how often computers are changed in Devon. Is it
> every 3 years or 4. (If computers are changed every three years then the cost of
> staying with MS increases by about £100,000 pa)
>
> b) Does anyone have any realistic idea of how much enterprise software licenses
> cost. I am assuming that the MS charge £20 per user per year. That could be too
> high on the principal that MS might effectively give away the software to ensure
> that County Councils use MS and hence all users are encouraged to use MS.
>
>
>
> --
> Henry
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>
If you are going to consider pushing this up for serious debate at the
business level, there are some other factors to consider. These are
all things that Microsoft Licensing Sales Specialists are trained to
handle, and will pound from the other side of the pulpit.
1) How MS products are deployed in the environment, is this automated or not
2) The man-hours involved in such a deployment
3) The cost of those man-hours
4) Amount of support calls and time regarding ms office
5) The cost of that support in man-hours and money
6) Any downgrade costs associated with licensing, as many
organizations do pay this, suprisingly. ie downgrade from Office 2007
to 2003.
7) Existing Infrastructure tie-ins with outside vendors and office
8) The cost in time and money associated with removing those tie-ins
and/or technical barriers to entry
9) Any other outstanding agreements that may either:
a) Force the purchase of Office licensing based on the licensing
package the organization is subscribed to
b) Be a contract between the organization and license reseller
(this is not Microsoft, ie Ramesys) preventing outside software from
being installed
c) Be a support contract with an outside vendor that only allows
support of 'approved' software packages
With regards to your questions:
-a) Does anyone know for certain how often computers are changed in
Devon. Is it every 3 years or 4. (If computers are changed every three
years then the cost of staying with MS increases by about £100,000 pa)
a) With volume licensing this point is moot. The number of active
machines are audited annually, and the license fees are adjusted
accordingly. In the MS Licensing realm, this is known as a true-up,
so the client in year one may pay for 20 machines, a month later add
250 workstations, but not have to pay for 270 licenses until the next
fiscal year.
-b) Does anyone have any realistic idea of how much enterprise
software licenses cost. I am assuming that the MS charge £20 per user
per year. That could be too high on the principal that MS might
effectively give away the software to ensure that County Councils use
MS and hence all users are encouraged to use MS.
b) The only way to find out point b is to go subscribe up and become a
certified licensing specialist, then open dialogue with the approved
Microsoft Licensing Distributors (as you would now be considered a
vendor). Keep in mind volume licensing 'packages' are unique and
change annually in their own right (in order to keep the licensing
status one must annually renew their certification). afaik, the
certification process requires a passport account and answering a few
modules of multiple choice questions online, then you're done. This
really is a case-by-case basis... there is going to be a totally
different contract involved with an organization of 7500, than 10,000,
or 15,000 workstations.
Here is a good starting point re MS licensing:
https://partner.microsoft.com/UK/licensing/40032720
Warm Regards,
KevinT
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