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Leading Belgian Hosting Provider Realizes Lower TCO on Windows than Linux | |
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| Time: 20:24 EST/01:24 GMT | News Source: Microsoft | Posted By: Chris Hedlund | ||
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Many total cost of ownership (TCO) studies have reaffirmed that TCO of a large enterprise infrastructure based on Microsoft® Windows ServerTM 2003 is lower than one based on Linux. But what about TCO in a Web hosting environment? Few rigorous studies have examined the economics of ownership among service providers. To understand TCO in a shared hosting environment and to understand what service providers could do to lower the TCO of Windows–based hosted services even more, Microsoft offered to perform an in-depth TCO study at Hostbasket, one of the leading hosting service providers in Europe. The results of the analysis showed that the TCO of Windows–based shared services can be as much as 55 percent lower than the TCO of analogous services offered on Fedora Core. Moreover, the study revealed how service providers can lower the TCO of their Windows–based offerings even more. | ||
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| #1 By 1401 (65.255.137.20) at 11/22/2006 8:29:11 PM |
| So the gist of this report is that everything is cheaper on linux except for labor... |
| #2 By 3653 (68.52.143.149) at 11/22/2006 9:47:05 PM |
| any business owner will tell you that LABOR is usually the most expensive cost to deal with. |
| #3 By 23275 (68.17.42.38) at 11/22/2006 10:41:09 PM |
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#2, Bless you, mooresa56!!!! Thank You!
Yes, oh yes! LABOR + all benefits costs, which is rough on small business people - errr... all business people. Add equipment - in our case, all communications, phones, mobile phones - our folks never see any kind of bill and never have to chase vouchers. Add all the insurance - 100% funded there, too - no co-pays, zero costs for employees. Then one comes to taxes, taxes and more taxes - these ACH out of our accounts, right as rain BEFORE payroll is ACH'd out a day later - e.g., uncle sugar takes his bit before our people get theirs. We haven't even come to cars, equipment, software, tools, mistakes, mis-orders, beverages, food, or bonuses. So yeah! Payroll is the biggest cost in any business. All that said, payroll is absolutely worth it - the people ARE THE BUSINESS, and in our case we set out to build a life-style company where the employees and their kids will take it over, own it and make it better than it is. Just don't be naive about it, any environment costs and having a full staff of guys that run 7 Linuces in back-end production, I have first hand knowledge of two things: a) what the costs are for the people and b) how totally dependent OSS/Linuces are on member servers running Windows Server 2003 to not only remain viable, but operate profitably. I really think that Steve Ballmer has it right - there is a synergy - there is a basis for interop and cooperation - BUT... be candid about it and for it to work, admit where the costs and the dependencies really are. And for goodness sake - elevate the related discourse to where it deserves to be. |
| #4 By 15406 (216.191.227.68) at 11/23/2006 9:14:27 AM |
| Another MS study that says MS is best. I wonder why most 3rd-party TCO studies say the opposite, or too close to call between the two. MS-backed studies always seem to say Windows is best. Funny that. |
| #5 By 54556 (71.213.144.226) at 11/23/2006 11:02:03 AM |
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#3 "taxes - these ACH out of our accounts, right as rain BEFORE payroll is ACH'd out a day later"
For a monthly payer, payroll taxes are due on the 15th day following the month of the payroll, with the relevant date being the effective date on the distributed check/advice. Why would one release those funds prior to their due date, much less the date where the liability was actually incurred? |
| #6 By 23275 (68.17.42.38) at 11/23/2006 2:28:36 PM |
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#5, Two deductions are made each payroll week - one for payroll tax the day before the ACH for payroll. Funds for each have to be available by 2 PM the day before the first deduction is made for taxes.
It's been that way since the first month I started my business. ADP processes payroll as a paid service for us and ensures all payroll taxes are collected and paid to all levels of government. The tax liability is paid out first - then funds for our people. Of course, not all businesses do this - in fact, many small businesses are too slow to pay taxes, but all they do is screw their employees by not vesting their FICA/Social Security, or paying the tax they allege they deduct. We don't and pay both the employee's and our own tax liability fully and on time twice per month. Bottom line, payroll taxes are there, they are high and they have to be paid on time with great consistency or emplorers screw not just themselves, but their people. You may be right about the filing timeline and deadlines in your state; however, that is irrelevant to us - since we use ADP and follow the rules they have to apply in order to have paid fully and in time to comply with the law. |
| #7 By 32132 (64.180.219.241) at 11/23/2006 5:15:41 PM |
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#4 "I wonder why most 3rd-party TCO studies say the opposite, or too close to call between the two."
I remember easily discrediting the last one I saw because of gross deception about the cost of Windows software. I seem to remember the "study" deploying way too many copies of Windows 2003 Enterprise Edition for the task at hand. And not using Windows 2003 Webserver Edition when it was appropriate. |
| #8 By 54556 (71.213.144.226) at 11/24/2006 11:53:36 AM |
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#6 "You may be right about the filing timeline and deadlines in your state"
I was refering to Federal regulations, not local. |
| #9 By 135 (75.73.90.215) at 11/24/2006 9:20:39 PM |
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An interesting, unpublished analogy.
Recently the company I work for merged with our sister company. We've been owned by the same parent, and we do different aspects of the same business. We are B2B, they are more B2C. Their development is all J2EE, running on Linux and Solaris boxes. Ours is more .NET running on Windows. Everybody was shocked to learn, though... That their server environment requires twice the support staff as ours to manage the same number of servers. |
| #10 By 23275 (68.17.42.38) at 11/25/2006 4:15:37 AM |
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#8, It is very simple. We pay our people every two weeks [some companies pay on the 1st and 15th of each month]. We have two months of each year where there are 3 payrolls/pay days. Each pay period [ at least twice per month ], we pay both our company payroll tax and the taxes cut for each employee to federal, state, county and in our case, city, too.
These taxes are paid the day before the ACH is taken to deposit for employees into their accounts, or a payroll account for those who desire a cashable check vice direct deposit. There is no benefit for delaying these payments. There are however, severe penalities for paying late or not paying these taxes at all. Regardless of the federal, or state maximum allowed time, we pay all taxes on the first date they are due. It helps me manage cash more accurately, which is projected out three months forward on a rolling schedule. This is common for most businesses that pay employees each two weeks and who use a payroll service like ADP. It is accurate, timely and ensures full compliance. Payroll in my business, as it is for most, is our single greatest expense - made more so by the rate of payroll taxes the company has to match. Finally, as applies to computer science professionals, mandatory federal minimums apply in order to salary an employee. Specific guides are published resulting from lawsuits brought by CS professionals more than two decades ago, and stipulate the minium pay, roles and responsibilities that companies must adhere to in order to salary employees. Base rates start at just under 60,000/year for a 40 hour work week, but climb rapidly for any person exercising even modest decision making authority. This post was edited by lketchum on Saturday, November 25, 2006 at 17:07. |
| #11 By 54556 (71.213.144.226) at 11/25/2006 9:15:46 AM |
| Since you bring it up, could you please post references to the mandatory ferderal minimums for salaries of computer science professionals? |
| #12 By 23275 (68.17.42.38) at 11/25/2006 5:07:04 PM |
| #11, Sure, but be clear, the reference is in order to salary CS professionals [e.g., as "exempted" employees]. I'll get Beth, our in-house consel to provide me the exact references and guides that employers have to follow in order to comply with the law. She'll be back in on Monday and I'll post them here. Since she's the one with the JD [and the one who advises me on such matters], I'll get her to provide the same references she provides to me when we make a new hire. |
| #13 By 54556 (71.213.144.226) at 11/25/2006 6:56:06 PM |
| To keep it easy on her, I'm only interested in the 60k/year minimum salary requirement. I think I'm faily well up on the rest of the requirements for exempt/non-exemplt employees, signing 135 paychecks biweekly myself. |
| #14 By 23275 (68.17.42.38) at 11/25/2006 8:23:37 PM |
| #13, It's not just amounts, it is also specified duties and responsibilities as well, which have to match their roles. |
| #15 By 2960 (68.100.7.161) at 11/26/2006 2:43:36 AM |
|
IK,
There is a medication available for that identity issue ya got going on there :) TL |
| #16 By 54556 (71.213.144.226) at 11/26/2006 10:50:45 AM |
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TL,
Thanks for worrying, but you need not. Its just lack of sleep and stress. __ LK |
| #17 By 23275 (68.17.42.38) at 11/27/2006 4:06:17 PM |
|
OK, for "NotMe" as at #16, et al, above, Beth, our in-house counsel advises that the reference and laws we abide by are derived from the U.S., Department of Labor - specifically, the FairPay Fact Sheet by Exemption Under the Fair Labor Standards Acts [FLSA, for short].
Specifically, on the exemption from minimum wage and overtime pay provided by Section 13(a)(1) of the Fair Labor Standards Act as defined by Regulations, 29 CFR Part 541. Which specifies [for exempt employees as I referenced], The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees.. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations. Salary based requirements and many other regulated areas must be met on a continuous basis for employees to sustain an exempt status, or the business may be judged to be out of compiance. The regulation speficies, "Exempt computer employees may be paid at least $455 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour." or $57,470.40 - "just under 60K/year" as I noted in #10, above. The FSLA also provides guides for employers and employees and part of the regulation requires that business owners and operators provide clear, written policies regarding their implementation of and adherence to these laws. It is all rather complex - hence why I have had Beth to help me for so long. I hope this helps. |
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