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Five ways to slash costs: how opensource can save your business
VersionVersionVersionVersion 0.40.40.40.4
AuthorAuthorAuthorAuthor Steve Rayson and Mark Aberdour
DateDateDateDate 10 July 2008
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KineoKineoKineoKineo 2008200820082008 Five ways to slash costs: how open source can save your businessFive ways to slash costs: how open source can save your businessFive ways to slash costs: how open source can save your businessFive ways to slash costs: how open source can save your business
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License1
Introduction: openIntroduction: openIntroduction: openIntroduction: open sourcesourcesourcesource for changing timesfor changing timesfor changing timesfor changing times
Running a business means controlling costs. Never more so than in challenging times like these.
But theres a new way now. The rise of free and open source software means the cost base of the
small to medium enterprise should never be the same again. The development of the internet and
in particular the growth of software as a service (or SaaS) means that small to medium
businesses can use best in class solutions at very low cost. These solutions include customer
relationship management, website content management, telephony, information management,
staff online learning and personal productivity tools.
This guide explores
Why open source is a no-brainer for business What does free mean? An explanation of how it works Five cost areas where open source can make a big impact How to get started: Kineo Open Source
ContentsContentsContentsContents::::
Introduction: open source for changing timesIntroduction: open source for changing timesIntroduction: open source for changing timesIntroduction: open source for changing times ........................................................................................................................................................................................................................................................ 1111Why open source is a noWhy open source is a noWhy open source is a noWhy open source is a no----brainer for businessbrainer for businessbrainer for businessbrainer for business........................................................................................................................................................................................................................................................ 2222What does free mean?What does free mean?What does free mean?What does free mean? ............................................................................................................................................................................................................................................................................................................................................................................................ 3333Its freeIts freeIts freeIts free whats the catch?whats the catch?whats the catch?whats the catch? .................................................................................................................................................................................................................................................................................................................................................................... 4444Helping you get the most from open source: SoHelping you get the most from open source: SoHelping you get the most from open source: SoHelping you get the most from open source: Software as a Service (SaaS)ftware as a Service (SaaS)ftware as a Service (SaaS)ftware as a Service (SaaS) ........................................................................ 5555Five ways to save with free and open source toolsFive ways to save with free and open source toolsFive ways to save with free and open source toolsFive ways to save with free and open source tools ............................................................................................................................................................................................................................ 6666Get the benefits today: How Kineo Open Source can helpGet the benefits today: How Kineo Open Source can helpGet the benefits today: How Kineo Open Source can helpGet the benefits today: How Kineo Open Source can help ............................................................................................................................................................................ 16161616
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This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License2
Why open source is a noWhy open source is a noWhy open source is a noWhy open source is a no----brainer for businessbrainer for businessbrainer for businessbrainer for business
Lets start with the business case for open source. Its pretty simple:
Huge software cost saving
Lets take it as a given that you face costs in your business in areas such as telephony, customerrelationship management, and website development, among others. Lets also take it as a given
that software makes a huge difference to your peoples productivity in these areas and hence
generates cost savings.
So what if that software was better supported than the commercial software youre currently
using, with no licence fees?
Thats what open source delivers.
Open source is collaboratively developed software that is shared with no license fees. People get
together, build something, then give it away, and provide access to the source code, so that anyonecan contribute ideas for its continued improvement and development. So instead of the people on
the payroll of a software company working on it, a huge (and voluntary) developer community
around the world is making the software better, and keeping it free.
Doesnt sound very businesslike? IBM, Google and many others would disagree.
We are way beyond the tipping point for open source in organizations:
Organizations are saving millions of dollars on IT by using open source software. In 2004, open
source software saved large companies (with annual revenue of over $1 billion) an average of $3.3
million. Medium-sized companies (between $50 million and $1 billion in annual revenue) saved an
average $1.1 million. Firms with revenues under $50 million saved an average $520,000. Walli,
S., Gynn, D., Rotz, B. V. The Growth of Open Source Software in Organizations: A Report.
If youre running a small to medium business, and youre looking to improve productivity and
reduce costs, youve got to look at open source.
You dont need to be a geek to get itOpen Source software was previously difficult for small business to implement. It often involved
downloading software, setting up a server and a high degree of technical skills. The labour skills
and the effort required started to cut quite deeply into the potential savings.
However, that has all changed with the advent of software as a service (SaaS) and a growing
number of specialized open source SaaS providers. SaaS has been pioneered by service providers
such as Salesforce.com (which isnt open source), and means the software resides on a providers
servers and they take care of all technical issues for an annual fee. Theyre not licensing the
software its free. Theyre providing you with a secure hosted and supported service to get you
the software (by they, we mean Kineo Open Source - but more about that later).
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This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License4
Its freeIts freeIts freeIts free whats the catch?whats the catch?whats the catch?whats the catch?
Theres still some nervousness about open source. You may face it in your own organization when
it comes to convincing others to take it forward. To help them, and you, here are some common
fear factors - and why you dont need to be scared
Open source feOpen source feOpen source feOpen source fear factorar factorar factorar factor Dont be scaredDont be scaredDont be scaredDont be scared
What happens if the tool justWhat happens if the tool justWhat happens if the tool justWhat happens if the tool just
goes away? If theres nogoes away? If theres nogoes away? If theres nogoes away? If theres no
commercial organization incommercial organization incommercial organization incommercial organization in
charge, couldnt it just stopcharge, couldnt it just stopcharge, couldnt it just stopcharge, couldnt it just stop
being supported?being supported?being supported?being supported?
Thats a lot less likely to happen with open source than with
most software youre using, which lets face it will end up
being discontinued at some point due to acquisition or
upgrade. Sure, some open source products are owned by a
company who does the bulk of development, but with open
source the code is ultimately owned by everyone and no-one
and thats much safer.
What about security? SoundsWhat about security? SoundsWhat about security? SoundsWhat about security? Sounds
like it might be prone tolike it might be prone tolike it might be prone tolike it might be prone toviruses and hacks, who knowsviruses and hacks, who knowsviruses and hacks, who knowsviruses and hacks, who knows
whats in that code?whats in that code?whats in that code?whats in that code?
This is one myth where the reverse is actually true. Just ask
NATO, the US Department of Defence or NASA, who are all bigadvocates of open source. The fact is, without full access to
the source code, a full security audit is impossible, which
makes closed source code much less secure. With high profile
examples of enterprise applications which contained Trojan
code or back doors for many years before they were
detected, security is one area where you can trust open
source.
if anyone can change theif anyone can change theif anyone can change theif anyone can change the
code, isnt it inherentlycode, isnt it inherentlycode, isnt it inherentlycode, isnt it inherently
unstable? How do I know myunstable? How do I know myunstable? How do I know myunstable? How do I know myversion is going to run?version is going to run?version is going to run?version is going to run?
Actually no. With code being reviewed and interfaces tested by
far more people than a proprietary software house could even
afford or find, bugs are found and fixed quickly. Or, in opensource nerd-speak: Many eyes make all bugs shallow.
Additionally, due to the logistics of having developers
distributed around the world working out of the same code
repository, release management and version control is
handled far more rigorously in open source than in most
proprietary software companies. While interim releases come
more rapidly, great care is taken to release stable versions at
key milestones.
Nothings really free is itNothings really free is itNothings really free is itNothings really free is it
arent there costs to install,arent there costs to install,arent there costs to install,arent there costs to install,host and support it.host and support it.host and support it.host and support it.
Actually some things really are free. The fact is, there are
absolutely no licence costs for open source, it is freelyavailable for all to download.
But yes, there are costs involved the effort of reviewing and
selecting tools, to start with. Then there are labour costs to
install, host, train and support users and upgrade to new
versions (the same as youd expect for commercial software).
But small to medium businesses dont need to go it alone
here. Companies like Kineo Open Source provide leading open
source tools on a secure and hosted platform with all the
services business needs, so that plugging into open source is
easy and extremely cost effective
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Helping you get the most from open source: Software asHelping you get the most from open source: Software asHelping you get the most from open source: Software asHelping you get the most from open source: Software as
a Service (SaaS)a Service (SaaS)a Service (SaaS)a Service (SaaS)
Software as a Service (SaaS) is a model of software deployment where an application is hosted as
a service provided to customers across the Internet. By eliminating the need to install and run theapplication on the customer's own computer, SaaS alleviates the burden of software maintenance,
ongoing operation and support from the customer. Using SaaS also can reduce the up-front
expense as it is paid for on a monthly or annual basis.
A good example of commercial SaaS is Salesforce.com which is a leading Customer Relationship
Management Tool. Before salesforce.com, the standard CRM package was a software package
youd buy and install locally. Running it on multiple machines, accessing it remotely, syncing data
was all painful. But Salesforce moved the industry into an SaaS model with its commercial
customer relationship management software which is available to customers for a monthly fee.
This is not free or open source software and the pricing includes a software licence fee. The ease
of access was a major advance Salesforce built a successful business on the back of theadvertising slogan No Software!.
Free and open source software is now available on an SaaS basis think Salesforce without the
software licence fee. For example, Sugar CRM is customer relationship management software
which is completely free and does practically everything that Salesforce can. A number of
companies including Kineo Open Source offer this CRM software on an SaaS basis. The fee for
open source software on a SaaS basis tends to be lower than that for commercial software as
there is no licence fee element. Thus you can have your very own CRM system with robust
functionality to manage all client contacts, newsletters, marketing campaigns from as little as
750 which will buy you hosting and support for a year. More importantly your Sugar CRM systemcan be set up and operating within a few days.
Now that weve explained the benefits and the key aspects of freeware and open source, lets look
at five key business areas where they can make a huge impact.
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Five ways to save with free and open source toolsFive ways to save with free and open source toolsFive ways to save with free and open source toolsFive ways to save with free and open source tools
Telephony - Skype
Business benefit:Business benefit:Business benefit:Business benefit:Most businesses spend more than they want to on phone
calls. Making fewer calls is not the answer. Making them for
free would help and thats what Skype does.
What is it?What is it?What is it?What is it?
Still using landlines? How 20th century
Skype use Voice Over Internet Protocol (VOIP) to allow you to
make free calls to other Skype users and very low cost calls
to landlines across the world. You can also hold freeconference and video calls using Skype.
Skype has over 53 million registered users across the world,
with the software available for a multitude of systems
including Windows, Mac OS, Linux and even portable
devices. A huge number of businesses (including Kineo)
have made it the standard way of making landline calls both
internally and with customers.
Skype works in a number of ways: you can "call" another computer if the user is online or you canmake calls to phones as normal telephone calls. SkypeOut (the landline dialling service) isn't just
restricted to local or national calls, either. International rates are also provided on the Skype
website and these look very reasonable compared to the British telecom rates. Skype's system
enables you to call a range of countries using their unified rate ( 0.017 per minute) compared to
BT's crunching 0.05 per minute on their BT Together plan (all the phone companies are offering
or looking similar VOIP services), though you have to pre-buy credit.
You can still surf the web at the same time as making or receiving a call with any disruption. Using
large amounts of bandwidth when downloading from the web can cause your calls to break up,
though.
Skype really requires a broadband connection to work properly. Trying to have a conversation on
dialup is going to have an adverse effect on sound quality. It's also advisable, if you're planning on
using Skype a lot, to buy an integrated headphone/microphone headset. When using a standard
speaker/microphone set up, the sound coming out of your speakers can often be rebroadcast to
your caller.
Get the most from it:Get the most from it:Get the most from it:Get the most from it:
Bring your friends: you can hold conference calls using Skype with up to 10 people. This can really
save the small business a fortune when you consider rates for renting conference call lines. Its
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really easy to run these calls. Kineo Open Source can talk you through it: Skype us on
kineoopensource.
Swap information during the call - If you need to swap information to the other computer user in
the middle of a call, you can also use Skype's built-in instant messaging (IM) client which works
like a basic MSN Messenger. More immediate than email.
Never dial international from your landline again: if youre making international phone calls,
Skype really is a no-brainer. The savings are immense - you can call landlines for extremely low
rates, or if you get your client or colleagues onto Skype too, the whole thing is free.
Take it furtherTake it furtherTake it furtherTake it further
You canYou canYou canYou can download Skype for free at www.skype.com.
Kineo Open Source can provide training and support around Skype usage for you and your team,
Contact kineopopensource on Skype or go to www.kineoopensource.com for more information.
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This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License8
Website Creation and Content Management Joomla
Business benefit:Business benefit:Business benefit:Business benefit:
For most business, a web presence is a must-have. But
traditionally the software required has been a major
expense, and the maintenance costs are like a slotmachine. But with Joomla, You can build and maintain a
sophisticated website using a free open source web
content management system. You can also use
components such as OS Commerce to create your own
online e-commerce services. What software fee?
What is it?What is it?What is it?What is it?
Joomla is an award-winning Content Management System (CMS) that will help you build websites
and other powerful online applications. Joomla is an open source solution that is freely available
to everybody. Joomla is used all over the world to power everything from simple, personal
homepages to complex corporate web applications. Applications include:
Corporate websites Online commerce Small business websites Non-profit and organizational websites Government applications Corporate intranets and extranets Community-based portals Magazines and newspapers
Joomla can be used to easily manage every aspect of your website, from adding content and
images to updating a product catalog or taking online reservations. Kineo Open Sources own
website is a Joomla site.
Make the moMake the moMake the moMake the most of it:st of it:st of it:st of it:
Build on the basics: Joomla has a large and growing range of plug-ins that can really evolve yoursite. Look out for the many Joomla components built by the community including form
applications, banner management, calendars, payment systems and many more. Over 3,000 more,
to be precise, at http://extensions.joomla.org/
Take it furtherTake it furtherTake it furtherTake it further
You can download Joomla at www.joomla.org
Kineo Open Source can provide- Joomla install and support services if you want it on your own server- Hosting and support on our secure servers
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- Joomla design and site development- Joomla training
www.kineoopensource.com(Built in Joomla, of course)
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Customer relationship management system - Sugar CRM
Business benefit:Business benefit:Business benefit:Business benefit:
Sales team management made
cost effective.
If youre using Saleforce, take adeep breath then have a look at
this.. Sugar CRM is a free way
of tracking all of your customer
data to ensure your sales team
are productive and on target.
What is it?What is it?What is it?What is it?
Sugar CRM is a complete
customer relationship
management system to help youidentify, track and acquire
customers. It enables you to
keep details on all your customers and all the contact you have with them.Sugar CRM functionality includes:
Client and contact database Lead, Opportunity and Account Management Team Management and Sales Forecasting Campaign Management, Email Marketing Case Management and Incident Tracking Activity, Calendar, and Project Management Microsoft Outlook Integration Mobile Support Workflow Management
Sugar CRM also has great reporting features including advanced Reporting across all Sugar
modules and customizable Dashboards.
Make the most of it:Make the most of it:Make the most of it:Make the most of it:
Integrate Sugar with your Outlook so you can add clients to the Sugar CRM database easily fromOutlook.
Where can you get itWhere can you get itWhere can you get itWhere can you get it
http://sourceforge.net/projects/sugarcrm
Take iTake iTake iTake it further:t further:t further:t further:
Kineo Open Source can host, train and support your team with:
Installation and configurationInstallation and configurationInstallation and configurationInstallation and configuration services
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CustomisationCustomisationCustomisationCustomisation using bespoke or open source extensions Theme developmentTheme developmentTheme developmentTheme development services Free and unlimited professional supportFree and unlimited professional supportFree and unlimited professional supportFree and unlimited professional support from our service desk specialists Free upgradesFree upgradesFree upgradesFree upgrades to major, compatible version releases Administrator trainingAdministrator trainingAdministrator trainingAdministrator training Administrator supportAdministrator supportAdministrator supportAdministrator support End user manualsEnd user manualsEnd user manualsEnd user manuals No vendor lockNo vendor lockNo vendor lockNo vendor lock----inininin you are free to export your Sugar database to another vendors Sugar
or your own, at any time.
www.kineoopensource.com
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Staff Training & Development Moodle
Business benefit:Business benefit:Business benefit:Business benefit:
Train and communicate with
your staff more efficiently, with
a free Learning ManagementSystem
Training costs are part of every
business. But the management
and tracking of training doesnt
have to add more costs. With
Moodle you can provide online
learning materials for all staff,
undertake assessments and
keep records for compliance
purposes with Moodle, theleading open source learning management system. It provides everything you need for an online
learning academy.
What is it?What is it?What is it?What is it?
Moodle is an open source virtual learning environment or learning management system. It allows
organisations to create online learning portals and provides a vast array of functionality to allow
learners to be tracked, assessed and supported.
The Moodle course format allows many different learning resources to be added to any particular
course. These learning resources include:
word documents e-learning courses and modules pdf documents audio video web links
Moodle itself also provides tools to create quizzes and simple html pop up web pages, so that you
can create additional learning resources.
Moodle also has standard modules which you can use with a course which such as:
calendar (to book workshop/event dates) discussion forum chat room RSS feeds the ability for users to create their own blogs or learning records
Make the most of it:Make the most of it:Make the most of it:Make the most of it:
See what weve done with it as an example: have a look at Kineos Moodle demo at
www.kineolearning.com/demo.
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Take it furtherTake it furtherTake it furtherTake it further
You can download Moodle for free here: http://moodle.org/
Kineo open source can support you through:
Design of a specific look and feel for your Moodle to fit with your brand Design and development of any e-learning content you require through Kineo, the UKs
leading rapid e-learning company (www.kineo.com) Training on how to make the most from Moodle Technical support for Moodle Hosting for Moodle
Find out more at
www.kineoopensource.com
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Office Software - OpenOffice
Business benefit:Business benefit:Business benefit:Business benefit:
Who said theres no alternative to
Microsoft Office? Bill Gates,
probably. But hes stepped away and maybe you should too. You
can seriously reduce your
software costs with this free
alternative to Microsoft Office.
What is it?What is it?What is it?What is it?
OpenOffice is an office suite
which includes a word processor,
database, drawing tool,
spreadsheet, presentation tool and mathematical function creator. Commonly when most peoplethink of office suite they think of Microsoft Office and associated products i.e. Word, Excel,
Powerpoint, Access.
OpenOffice runs on Windows, Linux and Solaris, and comprises the normal range of office
applications, with a word processor (Writer), spreadsheet (Calc) and presentation module
(Impress) at the fore, backed up by database and drawing tools. All can import Microsoft-
formatted files to an impressive degree, and can be set to export in Microsoft native formats for
use in mixed-suite environments. So your clients dont need to be running MS office to read
OpenOffice files. Though they might thank you for the cost saving suggestion.
Make the most of it:Make the most of it:Make the most of it:Make the most of it:
One nice feature of OpenOffice is the Export Directly as PDF button. Located next to the print
button on the toolbar, this button acts just like a normal save button, but it saves your document
as an Adobe PDF file. If you are using Word you can install cute DF creator to do the same thing.
Take it furtherTake it furtherTake it furtherTake it further
You can download OpenOffice for free here:
www.OpenOffice.org
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Related Desktop softwareThere is a great range of other free desktop software:
Thunderbird for email, http://www.mozilla-europe.org/en/products/thunderbird/ Image editing with tools such as Paint.NET and GIMP PDF Creator and Cute PDF for creating PDF documents Audacity for audio editing AVGs anti-virus software to protect your systems Survey Software you can run staff surveys using the free service available from Survey
Monkey or Lime Survey
Personal productivity: You can keep updated on the latest in your industry by gatheringRSS feeds using tools such as RSS Owl
Mindmapping: You can map out and brainstorm ideas using Freeminds mind mappingsoftware.
In a future guide, well share our tips and advice on making the most of these tools too.
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Get the benefits today: How Kineo Open Source can helpGet the benefits today: How Kineo Open Source can helpGet the benefits today: How Kineo Open Source can helpGet the benefits today: How Kineo Open Source can help
As this guide has shown, Open Source can deliver real benefits to business by improving
productivity and cutting costs in key areas.
To get the benefits of open source, many small to medium enterprises may need a trusted partnerwho can guide you through the options, provide help and support to get started, and make usage
for your team easy through secure hosted solutions and dedicated support.
At Kineo Open Source we are committed to providing organizations with competitive open source
solutions and great customer service.
We offer open source support services on demand, where we host and run everything for you. If
you prefer to have it all in-house, we will install and set up the software in your organization on
your own servers.
We can also provide support and tailored services to ensure you get the maximum impact from
open source software.
To realise the benefits of open source for business today, contact us:To realise the benefits of open source for business today, contact us:To realise the benefits of open source for business today, contact us:To realise the benefits of open source for business today, contact us:
www.kineoopensource.com
7 Orange Row
Brighton
BN1 1UQ
Phone: 01273 728900
Skype ID: kineoopensource
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