You are on page 1of 19

Zimbra Collaboration Suite & Microsoft Exchange 2007

Total Cost of Ownership Analysis Mar 2007

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

TCO: Comparable, Real-World, 5-year Total Cost


Average corporate user messaging profile & production deployable configurations Servers & storage quotes from the same vendor Includes license for complete software stack, assurance (including support) and 3rd party products (as necessary) Similar hardware and software support SLA for both solutions

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Real World Scenario: Average Large Enterprise User Usage Profile (25K Users)

HP ProLiant Sizer for Microsoft Exchange Server 2003: http://www27.compaq.com/SB/ExchangeSizer/ExchangeASP/StpA_Index.aspx?SaID=Exchange2003 Dell Exchange 2003 Advisor: http://www.dell.com/content/topics/topic.aspx/global/shared/alliances/en/exchange_advisor_form?c=us&l=en&s=biz

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Real World Scenario: Production Deployable Configurations


Request quotes from top Exchange vendors for 25K users Normalize quotes to arrive at similar service terms/SLAs

Request quote for Zimbra hardware & storage from same vendor

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Software & Support Costs Comparison

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

License, New Releases & Support: Microsoft Solution (Quoted)

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

License, New Releases & Support: Zimbra Solution (List Price)

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Software License, New Releases & Support


Windows Server approx 35% of total Microsoft software cost

Total Microsoft software costs 72% more than Zimbra

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Server & Storage Costs Comparison

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Servers & Storage

Exchange Sizing: No FE (OWA) server, no blackberry server, no separate domain controller or active directory box, no recovery storage group storage buffer, no public folder database

Microsoft solution costs 42% more than Zimbra solution. Also Zimbras modular architecture allows deployments to scale horizontally and vertically
* 3 years of support (and not 5) included in above numbers

Microsoft solution storage costs are 106% more than Zimbras. Better IO performance & built-in HSM in Zimbra allow customers to utilize & organize storage cost-effectively

10

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Total Cost of Ownership Comparison Results

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Solution Acquisition & Support Costs


Zimbra Delivers 43% Savings or $2.1M over a Five Year Period
$40 Zimbra TCO Savings
$3.7

Average Total Cost per User / Year

Software, New Releases & Support Servers & Storage including Support

42% 49%

$23
$1.9

TOTAL

43%

$21

$36.1

Source: TCO data based on medium enterprise messaging profile, quotes from leading Exchange vendors

12

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Acquisition, Support & Administration Costs


Zimbra Delivers 46% Savings or $4.6M over a Five Year Period
$80
$39.9

Zimbra TCO Savings


Software, New Releases & Support Servers & Storage including Support Administration Costs

42% 49% 50%

Average Total Cost per User / Year

$43
$20.0 $3.7 $36.1

$1.9
$21

TOTAL

46%

Source: Administration costs based on report from Radicati Group and Zimbra customers.

13

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Comparison of Upfront Costs (Year 1 Commit)


Subscription-based Licensing & Support Model & Lower Hardware Requirements Significantly Reduces Upfront Costs & Investment Risk
$191
$39.9

Zimbra: Upfront Investment: $1.3M or 24% of total Microsoft: Upfront Investment: $4.8M or 48% of total
$18.6 $133

$50
$20 $9.4 $21

Software, New Releases & Support Servers & Storage including Support Administration Costs

14

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Cumulative Solution Cost & NPV Over 5 Years


$12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5

Zimbra Solution Microsoft Solution

Net Present Value (@ 15% discount rate) Microsoft Solution: $8.4M Zimbra Solution: $4.1M

15

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Other Costs Outage Costs


Costs due to unscheduled downtime can result in significant lost productivity. Based on customer surveys, Radicati reported Exchange downtime costs/user to be $37.25 Zimbra customers that used Exchange before suggest an average of 4 hours of unscheduled Exchange downtime per month as compared to 0.5 hours per month for Zimbra
With Exchange during an 8 months period every month would have some downtime, we typically averaged 4 hours of downtime a month or around 1 hour a week of downtime. Again Zimbra has given us the confidence that email is always working. Plus the result in switching to a Linux server we have never rebooted the server due to lockups.

A four-hour outage that affects 10% employees earning an average salary of $35/hour can result in outage costs of $350K per incident or $4.2M/year to the enterprise

16

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Other Costs Desktop Software License & Support


Zimbra offers integrated & collaborative capabilities including Shared Documents, Attachments rendering as HTML and Zimbra Desktop that preclude the need for Microsoft Office and SharePoint server licenses for many users These licenses can easily run into a few hundred dollars per user (Office: $360/user and SharePoint Server 2007: $93/user) Ongoing support and upgrades for these software titles can rack up additional costs for customers

17

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Conclusions
Acquisition Costs Savings
Zimbra solution delivers savings of 43% in acquisition costs & support Over a five year period, the NPV of Zimbra solution is half that of Exchange

Zimbra TCO Benefits

Reduce Upfront Investment & Risk


Zimbras annual subscription model requires upfront investment of 24% of the total 5-year cost as compared to 48% for Exchange Customers are not required to hold an asset and be locked into a multi-year commitment with Zimbra

Other Costs
Significant savings can accrue from reduced system downtime Many users may not require licensing desktop software & support

18

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.

Thank you!
Zimbra, Inc. 1500 Fashion Island Blvd Suite 100 San Mateo, CA 94404 info@zimbra.com
Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright 2007 Zimbra, Inc.