While the debate between the advantages and disadvantages of using free and open source software (FOSS) rages on (with Google?s announcement of Chrome operating system which will be free creating new interest in the age-old debate), when it comes to effective cost saving, FOSS is a clear winner. For instance, the country?s largest insurer, Life Insurance Corporation (LIC) clocked savings of $8.75 million by adopting FOSS. The company, which has an IT infrastructure of 3,500 servers and 30,000 desktops, adopted FOSS way back in 2001.
The LIC is not alone. The IT@schools project in Kerala replaced Windows software with FOSS on 50,000 desktops and saved around $48.2 million (Rs 49 crore). Similarly, New India Assurance company, saved about $16.67 million (Rs 80 crore) in tangible and intangible costs by implementing FOSS on 1,500 servers and 7,000 desktops.
These case studies are part of the findings of a report by IIM-Bangalore, which says that the use of free and open source software (mostly known as Linux) can save to the tune of Rs 4,638 crore from the projected IT budget of enterprises for the year 2010. As the name suggests, FOSS is free compared to operating systems and other software sold by companies such as Microsoft that attract a licence fee.
In the case of PCs bought by individual consumers, use of FOSS product instead of Office Suite (or paid for software) is expected to bring about savings of Rs 16,500 per unit, which totals up to Rs 4,515 crore even if half of the projected buyers of new PCs adopt FOSS. The report takes into consideration that in 2010 around 5.47 million units of retail PCs will be sold and enterprise will buy around 4.64 million of PCs.
The fact that open source software is free, addresses the problem of piracy to a large extent, which is major crippler when it comes to revenues of companies such as Microsoft and Adobe among others. In fact, technology giant Google has been making waves globally by announcing its Chrome operating system, which will be free.
IIM-Bangalore professor Radul De told FE the ability to innovate, tinker with, change and create new software remains one of the most powerful benefits of FOSS. Moreover, the fact that FOSS is virus free and therefore eliminates the spending on anti-virus software is a big advantage. ?Companies not only save on the upfront cost of purchase but also on the upgradation and anti-virus cost. However, it is the lack of awareness that cripples the spread of FOSS,? he added.
De said that wide range of organisations from the private sector to schools and colleges are using FOSS. It is also entering the mainstream as large corporations are switching to open source. The current economic downturn, which has caused companies to slash their IT budgets makes the case for FOSS stronger. Moreover, the direct cost savings it brings about makes it more popular in places like schools and colleges.