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Reduce your ECM Costs by 90%

                         Dr. Ian Howells
                      Alfresco Software
                           January 2009
The
Focus
of
2009

●  More Content

●  More Users
●  More Productivity
                            8% Decline in ITSpend
●  More Compliance


●  Dramatically Less Cost




                                            2
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
Agenda
                           

●  ECM Pricing

●  Methodology
●  ECM Vendor Cost

●  ECM Stack Cost
●  Alfresco

●  Summary

●  More Information
ECM
Industry


High Cost   High Complexity     Tie-In
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
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
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
EMC/Documentum

●  1000 User
    $863,937

●  100 User
    $129,078

●  GSA Pricing




                          9
OpenText
                        

●  1000 User
    $637,304

●  100 User
    $196,754

●  GSA Pricing




                   10
SharePoint
                                  

●  1000 User
    $318,738

●  100 User
    $24,669

●  Pricing
    www.microsoft.com




                            11
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
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
Alfresco
                      

●  1000 User
    $33,500

    $46,250

●  100 User
    $18,500




               14
ECM Stack Costs
                                      

●  Application Server

●  Database
●  Operating System




                                15
Oracle Database &

                                        Application Server
                                                         


●  1000 User DB
    $59,950

●  100 User DB
    $21,350

●  Pricing
    http://www.oracle.com/corporate/pricing/pricelists.html




                                                        16
Microsoft Database
                                                      

●  1000 User DB
    $17,210

●  100 User DB
    $8,605

●  Pricing
    http://www.microsoft.com/licensing/mla/default.aspx




                                                       17
MySQL
                                                               

●  1000 User Gold
    $2999

●  100 User Silver
    $1999

●  Pricing
    http://mysql.com/products/enterprise/features.html




                                                          18
Microsoft Windows
                                                      

●  1000 User
    $3201

●  100 User
    $2176

●  Pricing
    http://www.microsoft.com/licensing/mla/default.aspx




                                                       19
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
Summary Year 1 Cost Savings
                                                   

●  1000 Users
    Save   85% to 96%
●  100 Users
    Save   42% to 85%




                                             21
Summary
      




 22
Open
Source
vs.
Enterprise

                              
So=ware
Model   

Annual Cost             Cumulative Cost




Low Upfront Cost       Increasing Savings
Lower Project Risk
Op Ex vs. Cap Ex
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
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
www.alfresco.com




          26
27
Reduce your ECM Costs by 90%
         Questions
                  Dr. Ian Howells
                   January 2009
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
FUD Repellant

                  Web 2.0 Runs on Open Source
                                            
●  Commoditize:

●  Scalability
●  RAS

●  Usability
                    Do More with
                       Less




                                       30

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Total Cost Of Ownership For ECM - Compares Documentum, SharePoint, OpenText and Alfresco

  • 1. Reduce your ECM Costs by 90% Dr. Ian Howells Alfresco Software January 2009
  • 2. The
Focus
of
2009 ●  More Content ●  More Users ●  More Productivity 8% Decline in ITSpend ●  More Compliance ●  Dramatically Less Cost 2
  • 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
  • 4. Agenda ●  ECM Pricing ●  Methodology ●  ECM Vendor Cost ●  ECM Stack Cost ●  Alfresco ●  Summary ●  More Information
  • 5. ECM
Industry
 High Cost High Complexity Tie-In
  • 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
  • 9. EMC/Documentum ●  1000 User   $863,937 ●  100 User   $129,078 ●  GSA Pricing 9
  • 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
  • 22. Summary 22
  • 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
  • 27. 27
  • 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