MS attacks 'hidden costs' of open source

Software giant cites studies showing its own platform has lower TCO

Microsoft's latest mission is to explode what it has labelled the "myth" surrounding open-source software.

The software giant has claimed that open source, widely believed to be cheaper than proprietary software, has a lot of extra costs.

"There is the myth and the reality over total cost of ownership (TCO)," said Nick McGrath, head of platform strategy at Microsoft. "A number of studies by IDC and Gartner have proved our platform has a lower TCO than open source because there are no hidden costs."

Microsoft recently held 'platform value roadshows' in London, Edinburgh, Manchester and Newport to promote its open-source claims. These were open to customers, partners and rivals.

In the past Microsoft admitted concern over Linux. Steve Ballmer, Microsoft's chief executive, even called it the firm's number-one threat.

McGrath said: "Where is the value proposition in engaging with companies such as IBM and Hewlett-Packard that don't even have their own open-source solution, but just act as resellers for firms such as Red Hat? There are a lot of support and services costs associated with those platforms."

However, Colin Bradford, technology leader at corporate VAR Computacenter, said TCO is "overrated" as a benchmark, and claimed that vendors should concentrate more on training and staff support issues.

"Businesses will choose a platform because it's the right one for their organisation," he said. "Linux is potentially a credible alternative to Microsoft, but the key obstacle customers face is the cost of integration. Microsoft does have a hold on that space."

Marcel den Hartog, principal consultant for the open-source technology group at Computer Associates, said: "A lot of large firms have invested and continue to invest in Linux. Not because it is cheaper, but because it offers more flexibility and power for less money.

"It is the power to make Linux do what you want that is appealing to customers."

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