There have been a lot of discussion over whether Open Source is actually cheaper vis-a-vis proprietary systems if one takes into account the TCO rather than the RoI or the actual acquisition cost. What do you think about the same from an enterprise perspective?
Is there any study or research done that concretely establishes the same?
Is there any study or research done that concretely establishes the same?
All responses can be tracked here [1]
My response is that ROI, if calculated correctly, will help you decide which software product to use, regardless of whether its licensing is Open Source or Proprietary. ROI should include the TCO. If you apply an adapted triple-bottom-line [2] concept to your investment decision, other intangibles can be brought to light.
The bottom lines we should consider are
Profit: ROI and impact on cash-flows. Your cash outflow, could determine the choice - i.e. how much you need to spend, how often.
People: How your team would react is also important to consider. This not only includes people who will use the end product, but those who will build, install, train and maintain it.
Sustainability: s the project sustainable over the required lifetime. There is no point in going for the least TCO approach if the result software product in not sustainable as this would be a waste of time and effort.
Bottom line is that you should use the most appropriate solution and product, independently of its licensing terms.
[1] http://www.linkedin.com/answers/technology/enterprise-software/TCH_ENT/645584-20181869
[2] http://en.wikipedia.org/wiki/Triple_bottom_line
