Regal Entertainment chooses Microsoft over Linux
Microsoft increases services for Regal Entertainment at less cost
Updated: May 12, 2005
Happy ending for Regal Entertainment Group, the cinema chain operator
Like so many classic Hollywood productions, this story also has a happy ending: Microsoft simply costs less than Linux.
That’s what Regal Entertainment Group, a nationwide cinema chain operator, discovered two years after deploying Linux to several thousand point-of-service devices. The Linux system was not only expensive, it also lacked the vendor support and remote management tools necessary to support Regal’s strategic plans.
"When we calculated the total cost of ownership for Red Hat Linux using a 10-year net present value model, we were very surprised at how expensive it was," says J. E. Henry, the Regal CIO. "Given our situation, Windows XP Embedded was significantly more cost-effective than Linux, coming in at a double-digit savings in TCO."
Linux on the cutting room floor
Since 2002, Regal theaters, with 560 locations across the United States and $2.5 billion US in yearly revenue, had been operating a Red Hat Linux-based POS system. Each theater had a single server managing various POS terminals—7,000 total in theaters across the country. To cut costs, Regal had opted to forego paid support for the free Linux kernel.
But, like a bad B movie, the old Linux-based system got two thumbs down. With the Linux-based system, box office and refreshment stand POS functions were split into two separate systems, exasperating systems support and impeding reporting. Centralized management also suffered: Each theater operated independently from the others and from headquarters.
Linux, moreover, offered no easy way to remotely update the POS terminals’ software—restricting each computer to dated versions. Remote troubleshooting was also out of the question; troubled computers had to be shipped back to headquarters for repair.
Wanted: New, super-star talent at less cost
In 2004, these limitations prompted Regal to shoot a sequel. The goals were to reduce costs, offer customers new services, and boost manageability. Combining box office and refreshment stand POS systems would cut costs and streamline reporting. Customers now could be offered self-service ticket kiosks, gift card purchases, and a new loyalty program. Most importantly, Regal’s lean, 50-member IT team would be able to remotely manage any computer in any theater from its headquarters in Knoxville, Tenn.
From a technology standpoint, the Microsoft Windows XP Embedded operating system enables Regal to accomplish several key goals:
| • | Remote management and support: Terminal Services will enable the company's centralized IT team to remotely access and troubleshoot POS devices. |
| • | Remote updates: Device Update Agent, a Windows-based service that runs on the embedded device, provides a way for Regal to quickly and easily keep POS systems updated without having to physically touch each device. |
| • | Lean development: Because Windows XP Embedded is component-based, Regal can build an operating system image with only the functionality required for its specific solution. |
| • | Expandability: Windows XP Embedded is based on the same binaries as Windows XP Professional, which will ensure the availability and compatibility of device drivers for new point-of-service system peripherals that Regal may want to use. |
Reviews are in: Microsoft costs less than Linux
Regal believes the new POS system meets all of its goals—at lower cost. Regal expects to save $10 million US over the next five years. Over 10 years, the company projects Windows XP Embedded will continue lowering total cost of ownership, even when factoring in an operating system upgrade in seven years.
As for manageability, Windows XP Embedded remote support features enable Regal’s IT team to centralize system support, from remote self-service ticket kiosks to the company headquarters central systems. "Consolidation onto a single platform will make our centralized support model more efficient, as will the remote support and management tools in Windows XP Embedded," says Regal CTO Cliff DeYoung.
Security also gets a boost. Remotely installed security updates will help keep everything tightly locked against unauthorized access. And the Windows XP Embedded component-based architecture enables Regal to install just the features it needs, helping to minimize potential avenues of unauthorized access.
The new POS system will premier in time for the 2005 summer movie season. Look for it in a theater near you.
For more information
Read the complete Regal Entertainment Group case study
