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The “total cost of ownership”
is a proprietary software vendors argument (usually Microsoft) , to
show why Open Source solutions are free but actually are not cheaper
to run that systems than proprietary systems that costs thousands to
implement!? “
“I have always suspected this to be a
ridiculous argument”, says Philip Copeman, project leader of
TurboCASH Accounting. “Microeconomics 101 tells me that the
price of a free market service will always be cheaper than the price
of a monopolists. Sure we experience cost of service, exactly like
this of a proprietary vendor, but in the Open Source case, there is
no vendor lock in and the user is free to change his consultant.”
“A recent inquiry by a user on the
cost of a multi user with 2 tills and and back Office machine lead me
to cost the alternatives. The results speak for themselves …”
Philip Copeman -Project Leader 
The competitor I analyzed was a leading
competitive South African accounting software brand. Prices were in
Rand but are reflected here in Dollars at 10 to 1. Our advertising
laws prevent me from making a named comparison, but you can make you
own assumptions and I am sure you will find conditions similar in
your country.
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2 tills and a back office retail system.
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TurboCASH Multi User
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Proprietary competitor
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Software licence – Basic Multi
User
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$100
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$800
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POS Addon licences X2
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-
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$500
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Stock Module Add On
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$200
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Annual Support Cover
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$ 200
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$300
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Network Set up
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$300
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$300
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Accounting Software Installation
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$300
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$300
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Training
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$200
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$200
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Hardware
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$2000
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$2000
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Total Cost of Ownership
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$3100
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$4600
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So there we have it, in total the cost
of ownership of the proprietary system over the Open Source
TurboCASH Systems is a 50% increase in cost. This does not
factor into account the use of other Open Source products nor the
fact that the OS product (TurboCASH) is actually likely to be
of a superior engineering quality (proprietary system use marketing
many to imply otherswise). If looked only at the software amounts
the savings of $1500 dollars over a cost of $1100 vs $2600 means an
increase in spending of 150%.
The Total cost of ownership of Open
Source systems is way cheaper. Argument settled.
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