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An Oracle White PaperFebruary 2010
Cost Comparison of Oracle Open Office 3,OpenOffice.org 3.x, and Microsoft Office2007
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Oracle White PaperCost Comparison of Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007
Executive OverviewThis white paper compares the costs of Oracle Open Office 3, OpenOffice.org 3.x, and
Microsoft Office 2007 by analyzing an organization with 1,000 desktops using a typical
number of documents and Microsoft Office macros. The purpose is to show the potential
cost savings of Oracle Open Office 3 and OpenOffice.org 3.x over Microsoft Office 2007.
IntroductionThere has been a significant amount of interest in a total cost of ownership (TCO)
comparison among Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007.
Although there are many open source TCO studies available, most of them do not cover
office suites explicitlymaking comparisons among the various types of office suites
difficult. This document compares the direct costs of an office suite deployment.
An Oracle Open Office 3 license typically costs just 20 percent of a Microsoft Office 2007
license, and OpenOffice.org 3.x is offered free of charge. But it is not enough to compare
only the license costs when weighing the differences. There are three other important
costs that need to be considered:
IT infrastructure costs, including licensing, hardware, operating system, application
integration, and document analysis costs
Training and support costs, including help desk costs
Migration and installation costs, including installation and migration of an organization's
Microsoft Office documents, templates, and macros
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Oracle White PaperCost Comparison of Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007
The conclusion of this study is that Oracle Open Office 3 and OpenOffice.org 3.x yielded
a cost savings of 48 percent, or US$885,000 per 1,000 desktops, over Microsoft Office
2007 during a three-year time period. Key findings include the following:
Oracle Open Office 3 and OpenOffice.org 3.x have significantly lowerup to 80
percentlicense costs than Microsoft Office 2007.
Maintenance costs are lower for Oracle Open Office 3 and Microsoft Office 2007 due to
product updates and patches. In contrast to OpenOffice.org 3.x, which is available as a
full installation set only, Oracle Open Office 3 product updates are easy to distribute
through the software deployment systems. This results in 60 percent lower
maintenance costs than OpenOffice.org 3.x.
Because of its new user interface, for the first time, the cost of training for Microsoft
Office 2007 is the same as Oracle Open Office 3 and OpenOffice.org 3.x.
Migrating to a new office suite requires a migration of the old documents and
templates. The estimated costs for the migration are less than US$11,000 for a
company with 50,000 Microsoft Office documents.
The overall costs for Oracle Open Office 3 and OpenOffice.org 3.x are identical,
despite the no-fee licensing of OpenOffice.org. The higher system administration and
support costs for OpenOffice.org 3.x negate its zero-cost licensing.
This study has also shown that the costs for OpenOffice.org 3.x and Oracle Open Office3 migration are very similar. The Professional Analysis Wizard which lowes migration
costs and the easier and faster installation of product updates of Oracle Open Office 3
effectively make up for the zero-cost licensing of OpenOffice.org 3.x. In addition, Oracle
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Oracle White PaperCost Comparison of Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007
Open Office 3 users can receive indemnification from Oracle; this can make it even less
risky relative to OpenOffice.org 3.x.
Customers should use this document as a framework when evaluating the benefits and
costs of moving to Oracle Open Office 3 or OpenOffice.org 3.x. The assumptions were
taken from real cases, but customers should enter their own numbers specific to their
organization and environment.
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Oracle White PaperCost Comparison of Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007
Key Definitions
Below are brief descriptions of the products used in this comparison:
OpenOffice.org 3.x. This is the core functionality product, sometimes referred to in this
document as just OpenOffice.org.
Oracle Open Office 3 Standard Edition. This version adds 60-day installation support,
design templates, sample files, and clip art to the basic Oracle Open Office 3 product.
Oracle Open Office 3 Enterprise Edition. This product includes features of the retail
version of Oracle Open Office 3 and adds migration tools like the Professional Analysis
Wizard, which analyzes Microsoft Office files and helps lower migartion costs, enterprise
extensions like the Oracle Connector for Microsoft SharePoint, and the Transformation
Wizard. This is the product that is discussed in this paper. Microsoft Office Professional 2007. This version of Microsoft Office has Microsoft Word,
Microsoft Outlook with Business Contact Manager, Microsoft Excel, Microsoft Access,
Microsoft PowerPoint, Microsoft Publisher, and Microsoft Accounting Express. Sometimes it
is referred to as just Microsoft Office.
Information Technology Infrastructure Costs
This section compares the IT infrastructure costsincluding licensing, hardware, operating
system, application integration, and document analysis costsof Oracle Open Office,
OpenOffice.org, and Microsoft Office.
License Costs
The license costs of Microsoft Office are generally very high. Here, Oracle Open Office and
OpenOffice.org have a huge cost advantage. Oracle Open Office 3 and OpenOffice.org share
the same binaries. In addition to indemnification, Oracle Open Office 3 provides the following
features not found in OpenOffice.org:
Professional Analysis Wizard
Oracle Connector for Microsoft SharePoint
Transformation Wizard for creating Microsoft Installer Transformation files to install
customized Oracle Open Office installations through a software deployment system
The cost advantage of Oracle Open Office can be even higher for users with more than one
workstation or notebook. Oracle Open Office licensing allows up to five installations per user
whereas Microsoft charges extra license fees for additional machines belonging to the same user.
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For this scenario, no assumptions have been made about any extra licensing fees for additional
machines that need Microsoft Office.
As an example, current Oracle Open Office customer Bristol City Council saved 1.3 million(US$2 million) by switching 5,500 desktops to Oracle Open Office. The municipal
administration of Katowice saved 100,000 (US$135,000) on licensing for 350 computers.
According to a report by the Copenhagen Business School, moving to Oracle Open Office and
OpenOffice.org reduced the software costs of the local Faroese hospital, Klaksvik, by 24
percent, and the national hospital by 67 percent. They forecast further cost savings of up to 91
percent by moving the entire public sector onto Oracle Open Office and OpenOffice.org. The
TCO report of Ramboll Management predicts cost savings for the Danish government of DKK
225 million (US$39.8 million).1 Table 1 summarizes the licensing costs of the office suites.
TABLE 1. LICENSING COSTS FOR OFFICE PRODUCTIVITY SUITES (IN US. DOLLARS)
ORACLE OPEN OFFICE 3* OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Single license $66 $0 $350
1,000 licenses $66,000 $0 $350,000
Microsoft Software
Assurance Program for
Microsoft Office 2007
(optional)
29% of initial purchase price
per year (for a three-year
period)
N/A N/A $304,500
Subtotal Microsoft Office
license (for a three-year period)
$66,000.00 $0.00 $654,500
* User-based license. Each user could install Oracle Open Office 3 on five different machines. Microsoft charges approximately an additional US$200 per user for a Work at Home li-
cense.
Hardware Upgrade Costs
Companies typically upgrade their desktop hardware every three to five years. These upgrades are
usually accompanied by an upgrade of a new operating system as well. This can be an
opportunity to save money and improve reliability and security by replacing Windows with
Oracle Solaris or Linux instead. Oracle Open Office runs on Oracle Solaris and Linux as well as
it does on Windows.
1 Ramboll Management, Estimating the Costs of Implementing Office OpenXML and ODF in the CentralGovernment, http://www.odfalliance.org/resources/RamboellReport.pdf
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Oracle White PaperCost Comparison of Oracle Open Office 3, OpenOffice.org 3.x, and Microsoft Office 2007
Table 2 compares the hardware upgrade costs of Oracle Open Office, OpenOffice.org, and
Microsoft Office. The representative organization has 1,000 PCs of which 300 are more than five
years old and need to be replaced.
TABLE 2. HARDWARE UPGRADE COSTS (IN US. DOLLARS)
ASSUMPTIONS ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Total number of workstations:
1,000 (300 are older than five
years and need to be replaced)
300 300 300
Update costs per unit:
$1,500
$450,000 $450,000 $450,000
Subtotal hardware $450,000 $450,000 $450,000
Operating System Costs
Migrating to a new office productivity suite is a good opportunity to rethink the operating
systems and platforms that an organization uses. Several TCO studies have shown the potential
significant cost savings of a migration to a more-reliable and secure Oracle Solaris or Linux
platform.2 Examples include the Free/Libre and Open Source Software deployment in
Extremadura, Spain, which deployed open source software on more than 40,000 desktops and
saved 30 million (US$41 million), and Beaumont Hospital Dublin, which saved more than 5.9
million (US$8 million) in five years. There are other TCO studies that analyze the migration
efforts from Windows to UNIX. This white paper is not intended to be a TCO study of Oracle
Solaris and Linux versus Windows. The migration of mail servers, databases, and other softwaresolutions that would be involved in such a TCO are beyond the scope of this document.
Table 3 compares the operating system upgrade costs of Windows, Oracle Solaris, and Linux.
The row titled External consulting represents the varied companies on the market that provide
consulting services for a migration from Windows to Oracle Solaris / Linux. These companies
create a migration roadmap, provide training for administrators, and offer other services that
would not be typically provided by the organizations IT staff. Those services are generally not
necessary for a Windows upgrade.
TABLE 3. OPERATING SYSTEM UPGRADE COSTS (IN U.S. DOLLARS)
OPENSOLARIS SPARC / X86 LINUX MICROSOFT WINDOWS
VISTA PROFESSIONAL
License fee per user $0 $0 $250
2 See Appendix 2 for a list of freely available Linux TCO studies.
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Total number of workstations:
1,000
$0 $0 $250,000
Microsoft Software
Assurance Program for
workstations (optional)
29% of initial purchase price
per year (for a three-year
period)
N/A N/A $217,500
External consulting (for a three-
year period)
$60,000 $60,000 $0
Subtotal operating systems $0 $60,000 $467,500
Application Integration CostsThere are most likely software solutions in an organization or business that interact with the
existing office suite. For those applications, it is necessary to find an equivalent solution that
works with Oracle Open Office or OpenOffice.org. Table 4 shows the costs associated with
replacing or modifying applications that worked with a previous version of Microsoft Office
when the organization moves to a new office suite. Note that even if the organization upgrades
to Microsoft Office 2007, it will incur some integration costs. The table shows the four main
steps involved with the integration effort:
Create a list of applications that work with the current version of Microsoft Office.
Determine if there should be alternatives to the existing applications or if the existing
applications could still be used but with modifications. If alternatives, evaluate them to selectthe optimal one.
Verify the integration on a pilot basis with the new office suites.
Install the new applications or modify the existing ones at a departmental or organizational
level.
The exact costs depend strongly on the replacement application. The migration effort could be
higher if an equivalent application is not available. Also, note that although Oracle Open Office
is appropriate for most environments, there might be a few cases where reintegrating existing
applications with Oracle Open Office is not suitable.
TABLE 4. COST OF INTEGRATING APPLICATIONS WITH THE OFFICE SUITES (IN U.S. DOLLARS)
ASSUMPTIONS ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
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Create a list of applications that work
with Microsoft Office 2007 (8 hours)
$446.80 $446.80 $425.52
Evaluate OSS alternatives for
Oracle Open Office / OpenOffice.org
(senior: 20 hours; midlevel: 20 hours)
$1,904.20 $1,904.20 $0.00
Verify the integration with Microsoft
Office 2007 (5 hours)
$0.00 $0.00 $183.50
Installation of the alternative OSS
applications and data migration
(320 hours) or update of existing
application (16 hours)
$12,595.20 $12,595.20 $587.20
Subtotal application analysis $14,946.20 $14,946.20 $1,196.22
Document Analysis Costs
The import/export filter for Microsoft Office documents contained in Oracle Open Office and
OpenOffice.org will import the majority of documents without any issues; but occasionally,
some documents will not look exactly like they did in Microsoft Office. To make migration from
Microsoft Office as smooth as possible, an analysis of the existing Microsoft Office files is highly
recommended. The Professional Analysis Wizard in Oracle Open Office is designed to find and
analyze these documents. It determines the number of macros and estimates the effort of the
document migration. The wizard is not available with OpenOffice.org.
OpenOffice.org users have to authorize a migration partner to do such an evaluation. This takes
about a week (approximately US$4,000). The costs of converting these documents are discussedin the section titled Migration and Installation Costs.
Table 5 shows the costs associated with analyzing Microsoft Office documents.
The import and export of old Microsoft Office 2007 documents is good enough for daily tasks.
There is no need for analyzing documents; the few minor glitches can be fixed by the users.
TABLE 5. COST OF ANALYZING MICROSOFT OFFICE DOCUMENTS (IN U.S. DOLLARS)
ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Document analysis with the
Professional Analysis Wizard
(16 hours)
$893.60 N/A N/A
Document analysis by a migration
partner
$0.00 $4,000.00 $0.00
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Subtotal document analysis $893.60 $4,000.00 $0.00
Training and Support Costs
This section compares the training and support costs of Oracle Open Office, OpenOffice.org,
and Microsoft Office.
Support Contracts
Both Oracle and Microsoft offer support contracts for their respective products. (Note that
Oracle also offers support for OpenOffice.org.) The support engineers are highly professional
and are very close to the product engineering teams. A large number of service providers also
offer support for OpenOffice.org, but the costs and service levels vary. You can find a complete
list of these vendors at bizdev.openoffice.org/consultants.html.
Microsoft has changed its support offering for small and medium businesses to prepaid, per-hour
support packages. The customer buys a package of 30 problem-solving hours upfront.
TABLE 6. SUPPORT COSTS FOR THE OFFICE SUITES (IN US. DOLLARS)
ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Premier support(per annum, unlimited
number of problem-solving hours)
$14,520 $20,520 N/A
Pay per incident N/A N/A $99$515
Help Desk Costs
The Oracle Open Office and Microsoft Office user interfaces are similar. Usability studies have
shown that a half-day training course is sufficient for an entry-level user. Those trainings also
have the advantage of reducing the number of support calls associated with deploying a new
office suite.
However, Microsoft has completely changed the user interface in Microsoft Office 2007;
consequently, the way a user works with the application has also changed. This will cause a
higher number of help desk calls from these users.
TrainingOracle Open Office and Microsoft Office are not so different that a retraining is absolutely
required for entry-level users, but experience has shown that those are the type of users that
would benefit the most from these trainings.
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Training for knowledge workers and advanced users is recommended to reduce the time it takes
for them to learn the new office suite and attain their previous levels of productivity. As an
example, the Italian province of Genova provides an eight-hour training for its knowledge
workers. The training costs incurred are more than offset by the benefit of more-productive
users. As another example, the U.K.s Bristol City Council created self-service online how tos;
computer-based training; and for key users of each application (approximately 20 percent of all
users), a one-day conversion course. The TCO study of the Klaksvig Hospital includes training
costs for OpenOffice.org, Oracle Open Office, and Microsoft Office 2007.3
Microsoft Office upgrades to Microsoft Office 2007, with its completely new user interface, also
require training to maintain existing levels of user productivity. The training required for an
entry-level user of Microsoft Office 2007 could be even more than for Oracle Open Office and
OpenOffice.org.
Table 7 summarizes the training costs of the three office suites and includes the following terms:
Entry-level users. Users whohave infrequent access to an office suite or use the basic feature
set with minimal complexity.
Knowledge users. Users who have regular access to an office productivity suite and perform
medium-to-complex tasks.
Power users. Users whoare accustomed to using a high level of macros and databases, a
relatively high percentage of the feature set, or features at a very technical level.
Downtime costs. Costs that are incurred when users participate in training and cant attend
their regular jobs.
TABLE 7. TRAINING COSTS ASSOCIATED WITH THE OFFICE SUITES (IN US. DOLLARS)
ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Training afford entry-level user
Number of participants per course: 15
Costs per training day (room): $800
Overall number of training days: 5
$4,000 $4,000 $4,000
Training afford knowledge user
Number of participants per course: 10
Costs per training day (room): $800
Overall number of training days: 65/50
$52,000 $52,000 $40,000
Training afford power user
Number of participants per course: 10
$32,000 $32,000 $16,000
3 Copenhagen Business School, OpenOffice.org vs. Microsoft Office, gotzespace.dk/birgir.pdf
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Costs per training day (room): $800
Overall number of training days: 40/20
Training afford help desk engineers
Number of participants per course: 10
Costs per training day (room): US$800
Overall number of training days: 6/5
$4,800 $4,800 $4,000
Downtime costs of user base
Entry-level worker (0.5 day training)
15% or 150 users
Hourly rate: $20
$12,000 $12,000 $12,000
Downtime costs user base
Knowledge worker
Oracle Open Office, OpenOffice.org,
Microsoft Office (1 day training)
65% or 650 users
Hourly rate: $30
$156,000 $156,000 $156,000
Downtime costs user base
Power users
Oracle Open Office / OpenOffice.org
(2 days training)
Microsoft Office 2007 (1.5 days training)
Approximately 20% or 198 users
Hourly rate: $40
$126,720 $126,720 $95,040
Downtime costs user base
Help desk workers
Oracle Open Office / OpenOffice.org
(3 days training)
Microsoft Office 2007 (2.5 days training)
Two users
Hourly rate: $40
$1,920 $1,920 $1,600
Subtotal training costs $389,440 $389,440 $328,640
Another option is online training. E-learning can save money at companies with more than 1,000
desktops. The average cost to create an e-learning course is US$100,000, which is US$100 per
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user for a 1,000 user company. E-learning can also lower training costs and provide greater
flexibility because users can take the courses whenever they have the time.4
Migration and Installation Costs
This section compares the migration and installation costsand more specifically, the migration
and installation costs of an organizations Microsoft Office documents, templates and
macrosacross the three office suites.
Installation and Maintenance
There are several solutions on the market to install office suites throughout the network. These
solutions take over the deployment of Oracle Open Office, OpenOffice.org, or Microsoft
Office. Oracle Open Office 3 and OpenOffice.org 3.x could be deployed by many of the existing
software deployment tools. The assumption is that the costs for setting up the deployment are
the same for all office suites. As an example, Bristol City Council had deployment and
maintenance costs for its 5,500 desktops of 10,000 (US$14,700).
The costs of the initial deployment are estimated slightly higher for OpenOffice.org because it
does not have the Transformation Wizard like Oracle Open Office does, which creates
transformation files for customized installations. OpenOffice.org has to do this manually, which
takes two additional hours.
Oracle provides quarterly product updates for Oracle Open Office. The patches use the
Windows patch technology and have the advantage of being able to be deployed by a Windows
software deployment system. OpenOffice.org also gets updated four times a year; but the
updates cannot be installed incrementally, like in Oracle Open Officethe entire suite has to be
reinstalled. This causes an increase of up to 60 percent in maintenance costs.
The costs for administration tend to get underestimated. Oracle calculated 10 minutes per year
per user without using a central administration tool. However, these tools are available in Oracle
Open Office, OpenOffice.org, and Microsoft Office. The administration tool for Oracle Open
Office and OpenOffice.org is provided by OpenOffice-Enterprise.5 Ituses Microsofts Group
Policy and requires a Microsoft Active Directory infrastructure. This reduces the costs of
administration by up to 90 percent.
The Microsoft approach is also based on Group Policy. This has the disadvantage of needing an
Active Directory server environment, which further requires Windows 2003 servers, and making
Microsoft Office 2007 possibly even more expensive. Oracle has assumed that an Active
4 Karsten Gerloff, Open Source Observatory and Repository, Declaration of Independence: The LiMuxProject in Munich, osor.eu/case_studies/docs/IDABC.OSOR.casestudy.LiMux.pdf5 For more information about the use of OpenOffice-Enterprise, visit openofficetechnology.com/products/OpenOffice-Enterprise
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Directory server environment exists in the scenario. (The implementation of central
configuration capabilities becomes very expensive when an Active Directory environment does
not exist.)
TABLE 8. USER ADMINISTRATION COSTS OF THE OFFICE SUITES (IN U .S. DOLLARS)
ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Costs for deployment (20/22 hours) $787.20 $865.92 $734.00
Costs for deploying product
updates/patches (96 hours/3 years)
(OpenOffice.org: 240 hours/3 years)
$3,778.56 $9,446.40 $3,523.20
Administration costs without central
configuration (10 min. per user/year)
(for a period of three years)
$14,895.00 $14,895.00 $14,360.00
License costs centralized configuration
for 3 years, including support
$6,000.00 $6,000.00 $0.00
Administration costs with central
configuration (saves 90%)
$1,489.50 $1,489.50 $1,436.00
Subtotal administration costs $19,460.76 $25,207.32 $18,617.20
Centralized administration for 3 years $12,055.26 $17,801.82 $5,693.20
Migrating Existing Company Templates and Documents Without Macros
Migrating old documents is fairly straightforward. First, many of the documents are older than
one year and usually not relevant for the daily business. Those documents can be loaded in
Oracle Open Office or OpenOffice.org, but it is highly recommended that they be archived and
not migrated.
There are two types of documents that need a closer analysis: business-related templates and
documents that are less than one year old. Oracle estimates that for a typical company, just 10 to
15 percent of all documents are those types of documents; the remaining 85 to 90 percent do not
need to be migrated, because they contain no or minor issues only. They can be opened and
saved into the OpenDocument file format and ready for editing.
That leaves a small number of documents that might require manual editing. This can be done by
the IT department or by the owner of the document. Oracle Open Offices Professional Analysis
Wizard classifies these documents in four categories: documents with zero, minor, medium, or
complex issues. Documents with medium and complex issues need to be adjusted manually. As
mentioned in the Document Analysis Costs section, OpenOffice.org users dont have access
to the Professional Analysis Wizard or the Macro Migration Wizard, so they need to work with a
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migration partner to analyze and classify the Microsoft Office documents. This takes
approximately a week.
Document Structure List
TABLE 9. NUMBER OF DOCUMENTS
TYPE OF DOCUMENT NUMBER OF DOCUMENTS
Total documents in representative organization 50,000
Documents that are older than 1 year (archive these) 40,000
Documents less than 1 year 10,000
Documents with no or minor issues (don't need manual migration) 8,380
Documents with medium issues 1,000
Documents with complex issues 120
Documents that need manual migration 1,120
Template Structure List
TABLE 10. NUMBER OF TEMPLATES
TYPE OF TEMPLATE NUMBER OF DOCUMENTS
Total templates in representative organization 500
Templates that are older than 1 year 300
Templates less than 1 year 200
Templates that need manual migration 50
Migration Costs Summary
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Table 11 summarizes the migration costs for files without Microsoft Office macros. The costs
are incurred in Oracle Open Office and OpenOffice.org only.
TABLE 11. DOCUMENT MIGRATION COSTS DOCUMENTS WITHOUT MACROS (IN U.S. DOLLARS)NO OR MINOR ISSUES MEDIUM ISSUES COMPLEX ISSUES CI TEMPLATES
Document migration time
(minutes)
0 10 30 60
Labor costs (per hour) N/A $30.00 $29.79 $29.79
Documents less than 1 year 10,000 1,000 120 50
Costs document migration $0.00 $5,000.00 $1,787.40 $1,489.50
Subtotal document migration $8,276.90
Migration Costs Summary
The migration to Oracle Open Office provides an excellent opportunity to rethink your
companys existing processes. For example, before migrating any existing Visual Basic macros,
try to determine if the macros are still needed. You can then discard the macros that are no
longer useful; simple Microsoft Excel macros might run though the VBA runtime library of
Oracle Open Office and OpenOffice.org. You can also reengineer the remaining macros
manually in Oracle Open Office Basic or rewrite the existing macros as Java or C++
components. An advantage to this approach is that the new components provide a performance
boost over the Visual Basic macros. Another approach is to use Web-based and collaborativeJava applications. These components provide better runtime security and error handling than
Visual Basic macros.
In Table 12, the compatibility of the macros is not perfect and the new user interface for
Microsoft Office 2007 requires a migration effort for menu and toolbar customizations, which is
why there are macro migration costs when deploying Microsoft Office 2007. Macros have been
categorized as minor, medium, or complex. As an example, the German Surveying and Land
Register Administration, with 1,900 desktops, identified 5 Word, 39 Excel, and 4 Access macros
to migrate.
TABLE 12. COSTS OF MIGRATING MICROSOFT OFFICE MACROS WHEN DEPLOYING A NEW OFFICE SUITE OR UPGRADING TO
MICROSOFT OFFICE 2007 (IN U.S. DOLLARS)
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ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Minor/Excel macro (cost for one
macro)
$629.76 / $39.36 $629.76 / $39.36 $0.00
Medium/Excel (cost for one macro) $1,259.52 / $944.64 $1,259.52 / $944.64 $57.44
Complex/Excel (cost for one macro) $6,297.60 / $5,904.00 $6,297.60 / $5,904.00 $229.76
50 (44 Excel / 6 Word) minor
complex
$5,510.40 $5,510.40 $0.00
10 (8 Excel / 2 Word) medium
complex
$10,076.16 $10,076.16 $287.72
1 (Excel) complex macro $5,904.00 $5,904.00 $28.72
Subtotal macro migration $21,490.56 $21,490.56 $5,693.20
Conclusion
The costs to migrate training, documents, and macros are higher for Oracle Open Office and
OpenOffice.org than for Microsoft Office, but these costs are more than offset by the savings in
licensing, operating system costs, and hardware replacement costs associated with Oracle Open
Office and OpenOffice.org. Table 13 summarizes the costs.
TABLE 13. SUMMARY OF ALL COSTS (IN U.S. DOLLARS)
ORACLE OPEN OFFICE 3 OPENOFFICE.ORG 3.X MICROSOFT OFFICE 2007
Subtotal hardware $450,000.00 $450,000.00 $450,000.00
Subtotal operating systems $70,000.00 $70,000.00 $467,500.00
Subtotal application analysis $14,946.20 $14,946.20 $1,086.22
Subtotal document analysis $893.60 $4,000.00 $0.00
Subtotal Office licenses $66,000.00 $0.00 $654,000.00
Subtotal support costs (3 years) $43,560.00 $61,560.00 N/A
Prepaid package of support hours N/A N/A $14.499.00
Subtotal training $389,440.00 $389,440.00 $328,640.00
Subtotal administration $19,460.76 $25,207.33 $18,617.20
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Subtotal document migration $10,776.90 $10,776.90 $0.00
Subtotal macro migration $21,490.56 $21,490.56 $316.44
Total with hardware $1,087,018.02 $1,047,420.99 $1,934,658.86
Cost savings (per 1,000 desktops,
over 3 years)
$847,640.84 $887,237.87
Percentage saved 44.00% 46%
Total without hardware $567,018.02 $527,420.99 $1,017,158.86
Cost savings (per 1000 desktops,
over 3 years)
$450,140.84 $489,737.87
Percentage saved 44.00% 48%
An office suite is an essential part of the company workflow. It cannot be replaced by just
replacing the software. A well-managed migration project makes a migration to Oracle Open
Office easy and secure with a potential cost savings relative to Microsoft Office of more than 46
percent, or US$885,000 per 1,000 desktops over a three-year time period.
The migration to Microsoft Office 2007 needs to be carefully planned because of its new user
interface and new file format; it is not a typical upgrade as with Microsoft Office 2003. Users
need to be trained in the same way as they would be trained to use Oracle Open Office or
OpenOffice.org. In addition, the new features are not compatible with earlier releases. It cannot
be expected that other users could edit the document because of the relatively low marketpenetration of the Microsoft Office 2007 release.
OpenOffice.org is free but this does not imply that it has a lower TCO. Oracle Open Office
comes bundled with the Professional Analysis Wizard, Oracle Connector for Microsoft
SharePoint, and the Transformation Wizard, which reduces migration costs significantly. Even
more significant is the advanced patch strategy that reduces the maintenance costs for Oracle
Open Office. Considering all these factors, the overall costs of Oracle Open Office and
OpenOffice.org are almost identical.
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Appendix 1: Staff Salaries
Any organization of comparable size to the example organization requires IT services, provided
either by an in-house team or outsourced to a service provider. The salaries and sundry expenses
of having a team of three permanent staff will be costed and included in the analysis. The staff
will comprise a senior systems-level person and a junior support person. The salary costs are
based on numbers produced by the Linux vs. Windows: Total Cost of Ownership Comparisonstudy.
The staff chosen to fill the roles will be trained and expert in either of the competing Microsoft
or Linux platforms.
The salary of UNIX administrators is approximately 5 percent higher than their Windows
counterparts because of a wider range of knowledge. Both salary rates will be aligned over the
next few years due to the higher popularity of Linux.
TABLE A1. STAFF SALARIES (IN U.S. DOLLARS)
WINDOWS PLATFORM PERMANENT STAFF* PER ANNUM PER HOUR**
Salary and benefits for senior systems administrator $100,000.00 $53.19
Salary and benefits for midlevel systems administrator $69,000.00 $36.70
Salary and benefits for junior support administrator $54,000.00 $28.72
ORACLE SOLARIS X86 AND LINUX PLATFORM PERMANENT STAFF
Salary and benefits for senior systems administrator $105,000.00 $55.85
Salary and benefits for midlevel systems administrator $74,000.00 $39.36
Salary and benefits for junior support administrator $56,000.00 $29.79
ORACLE SOLARIS X86 AND LINUX PLATFORM PERMANENT STAFF
Entry-level worker $20.00
Knowledge worker $30.00
Power users $40.00
Help desk workers $40.00
* The costs for both Linux and Windows platform staff were researched via online staff recruitment and placement firms.
** 1,880 hours/work year.
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Appendix 2: Studies for Reference
Linux / Open Source Software Total Cost of Ownership Studies
Cybersource, Linux vs. Windows: Total Cost of Ownership Comparison,
www.cybersource.com.au/about/linux_vs_windows_tco_comparison.pdf
Avranches-Granville Hospital, France Suite bureautique, les enjeux d'une alternative,
oootools.free.fr/memoire_cnam/memoire_cnam.pdf (French).
Beaumont Hospital, Dublin, Open Source Software Can Improve the Health of the Bank Balance,
www.netproject.com/docs/Beaumont.pdf
Danish Board of Technology, Open source software in e-government,
tekno.dk/pdf/projekter/p03_opensource_paper_english.pdf
Soreon Report,
http://www.campussource.de/org/opensource/soreon.html
Maria Winslow, Linux, , Evaluating the ROI of Open Source on the Desktop,
linux.sys-con.com/read/43720.htm
Karsten Gerloff, Open Source Observatory and Repository for European Public
Administrations, Declaration of Independence: The LiMux Project in Munich,
osor.eu/case_studies/declaration-of-independence-the-limux-project-in-munich
City of Vienna, Open Source Software on PC Workstations of Viennas City Administration,
http://news.zdnet.co.uk/software/0,1000000121,39237412,00.htm
Katowice Municipality, Saving public money with OpenOffice.org,
osor.eu/case_studies/katowice-municipality-saving-public-money-with-openoffice.org
Open Source Case Studies
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OpenOffice.org, Roundtable:City of Haarlem and OpenOffice.org,
www.openoffice.org/editorial/roundtable_haarlem.html
Centre hospitalier de Tourcoing,
www.aesis-conseil.com/rubrique.php3?id_rubrique=36 (French only)
Copenhagen Business School, OpenOffice.org vs. Microsoft Office,
gotzespace.dk/birgir.pdf
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Cost Comparison of Oracle Open Office 3,
OpenOffice.org 3.x, and Microsoft Office 2007February 2010
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