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Video Ezy Closes Door on Open Source and Chooses a More Certain Future with Windows

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Video Ezy Closes Door on Open Source and Chooses a More Certain Future with Windows Video Ezy Closes Door on Open Source and Chooses a More Microsoft Customer Solution Case study Certain Future With Windows “From a business perspective Facing a multi-million dollar technology refresh across 560 Linux just didn’t stack up. It was retail outlets, Australasia’s largest video and DVD franchise going to cost the business extra operation, Video Ezy, was making decisions that would be felt far in too many ways, such as into the future. The company wanted to reduce overheads on IT administration, training and systems support and implement a cost-effective technology that integration.” would generate business confidence throughout its franchisee James Huckerby community. After a head-to-head comparison with various open CIO source technologies and deciding to go with Microsoft, Video Ezy Video Ezy hired Microsoft Consulting Services to design a Microsoft® Windows® environment for its corporate and franchise operations. The company chose what it describes as “a solid corporate approach” that provided “better value for money”. As a result, Video Ezy expects lower total cost of ownership, superior manageability and functionality, easy access to support skills and a sound technology road map for what will be a competitive and demanding future. CUSTOMER PROFILE BUSINESS SITUATION SOLUTION BENEFITS Founded in 1983, Video Ezy is Video Ezy needed to install a Following a head-to-head Lower total cost of ownership. Australasia’s largest video and new standard operating comparison with open source Superior manageability. DVD franchise operation. It has environment across its stores software, Video Ezy hired Superior functionality. more than 560 rental and retail to increase reliability, tighten Microsoft Consulting Services stores throughout Australia and security, reduce support costs to design a Windows Ready availability of skills. New Zealand, as well as outlets and prepare its franchises for a environment for its franchise Sound technology road map. in Singapore, Indonesia and future that would involve video- operation. Video Ezy will install Minimal training. Thailand. on-demand. Microsoft Windows Small Business Server 2003, Microsoft® SQL Server™ 2000 and Microsoft Windows XP Professional. retail offering, Huckerby and his team were looking for immediate ways to reduce The competitive home entertainment “Our CEO wanted the heat the company’s overheads on IT systems industry is undergoing a transformation, taken out of technology and for support and implement a technology that with rapid developments in technology and franchisees to be happy. would generate business confidence predatory new players eyeing the territory. throughout its franchisee community. Everyone is familiar with the Such developments helped senior Given the cost-conscious nature of the Microsoft Office tools and management at Video Ezy realize that the franchise world, Huckerby was obliged to Microsoft Small Business game would go to the swift and the savvy, investigate all possibilities to save money Server meets the needs of the so the company hired its first CIO – James for Video Ezy’s corporate operations and franchisees in a very Huckerby. economical way.” for its hundreds of franchisees. Inevitably, Huckerby believed his task was to develop this led him to investigate open source James Huckerby IT systems at Video Ezy that would give software. CIO the company’s many franchisees better Video Ezy control over their individual businesses and create greater convenience for their customers. Video Ezy compared Microsoft head-to- Huckerby knows something about setting head with open source solutions. Huckerby strategy and driving business value from and his team evaluated open source technology investments. The former CIO software leaders Red Hat Enterprise Linux of Panthers Entertainment Group has also as a server and desktop solution, MySQL held technical project management, e- for their database platform and the SuSE business and change management positions Linux operating system against a Windows at Woolworths, the BBC, Tetley Tea, solution. Unipart and Global Crossing, and he filled a consulting role at the Commonwealth “The push for open source software came Bank. He completed the Australian down to the fact that franchisees watch Computer Society’s Certification Program, every dollar,” says Huckerby. “When they specializing in Managing Strategy and hear something can be had for free they Information Systems. want to know why they should pay for an alternative. So I had to explain what ‘free’ Soon after his arrival at Video Ezy, really means. We would be paying license Huckerby realized the scope of his fees either way to use Red Hat or challenge – small and big business issues Microsoft. In my experience, software is across the franchise company’s corporate typically a small part of the overall budget operations and 560 individual retail outlets. of any significant IT project. When I “There was plenty to do,” he says. “With outlined my previous experience with increasing demands and threats on the Linux it made everyone think again about systems, the non-standardized approach an open source platform.” was not doing the job. It’s essential you get Video Ezy looked at using Linux and the foundations right, so we have been chose Microsoft Windows as its standard concentrating on the infrastructure and the operating system. The company then hired processes relating to infrastructure.” Microsoft Consulting Services to design a Facing a multi-million dollar technology Windows environment for its franchise refresh, Video Ezy was making decisions operation. The Video Ezy franchise whose effects would be felt far into the platform is built around Microsoft future. With plans to expand into online Windows Small Business Server 2003, rentals and revamp Video Ezy’s online Microsoft SQL Server 2000 and Microsoft already familiar with and it has all the tools Windows XP Professional. they need.” Huckerby says the Windows solution gave Lower Total Cost of Ownership “The great strength of the Video Ezy “better value for money”. The platform assessment revealed to Microsoft technology road map Huckerby that open source software “Our CEO wanted the heat taken out of is that it gives me confidence in technology and for franchisees to be happy could present problems in the availability the future paths we can take. It’s with the solution we chose,” says and cost of technical support. Huckerby about predictability – knowing Huckerby. “Everyone is familiar with the discovered that for an organization the what to expect and having Microsoft Office tools on the desktop, and size of Video Ezy, it was more cost- someone who is accountable” Microsoft Small Business Server meets the effective to deploy Microsoft. needs of the franchisees in a very “From a business perspective Linux just James Huckerby economical way. CIO didn’t stack up,” says Huckerby. “It was Video Ezy “I need to manage more than 560 locations going to cost the business extra in too centrally without an army of support many ways – administration, training and people. With Linux, you save money in the integration. When we looked at all the short term but pay a lot more in the long components of total cost of ownership we term. It’s that simple. It might have a place found that Linux did not give us value for in certain circumstances for certain money. organizations but not at this level where “When I was at Panthers I had an the big rubber hits the road. ‘enlightening’ experience with Linux. We “The fact that we have a small business had just taken over a large club. It was a platform and an enterprise business remote site, much the same as the platform makes the Microsoft solution a franchisee operation at Video Ezy. great match for Video Ezy because we are Basically, this club had ‘saved a lot of many small businesses operating within money’ putting in Linux file and print one big business. With Microsoft, we can servers. have the same standards, the same “However, they were paying about $1,000 applications and the same skill sets all the a week for administration and support. So way across our organization.” they saved themselves some money in software but faced extra costs post- implementation. When we put in a standard, centrally managed Microsoft operating system at Panthers, the return on Huckerby says the value Microsoft brought investment reached about 150 per cent in to the technology overhaul at Video Ezy the first year in cost savings alone. can be measured in two ways: the “The other thing is, our franchisees know relationship and the technology. and understand Microsoft. The products “Once we had made the decision, are easy to use and people are comfortable Microsoft brought a solid consultative with them. Choosing Linux would mean approach and high-level design help with retraining everyone and that would cost too the business case,” he says. “Engaging much money.” Microsoft Consulting Services to help us Superior Manageability and with the design of the technology refresh Functionality also put us in a good spot to sell the Huckerby describes the Microsoft concept to the franchisees. So it has been a Windows platform as “a solid corporate very positive relationship. Microsoft Office approach”. is an environment that our people are “We were supporting what we couldn’t Availability of Skills and control,” Huckerby says. “We had to put Certification controls in via the platform, the operating The availability of Microsoft skills and system, reporting, and so on. This is how resources at locations near Video Ezy’s we will regain control of what we support, stores provides further comfort for which is a far better position to be in. I Huckerby – comfort he would not have have done this in a number of places before with an open source system. and I expect the support calls will “This is vital for us because business dramatically decrease. Our people won’t be happens at the store where the customer so involved in trouble-shooting bizarre gets served,” he says.
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