Professional Documents
Culture Documents
The Rise of Linux
The Rise of Linux
Yes?
No?
2
Linux and Tux
3
What is Linux
4
Linux vs. Windows
5
Linux vs. Windows
In a world without fences and walls, who needs Gates and Windows?
6
Linux vs. Windows
7
Where is Linux
8
Technical Strengths of Linux
Scalability – runs on older systems
Attractive for orgs and third world (or schools) that lack of funds
Financial cost for large companies is lower
Flexibility
Anyone can modify or enhance
Operate with less system resources
Reliability – crash resistant (watch video)
9
Linux Issues
Visibility problem
Until Linus made the cover of Fo
rbes in August 1998
The novelty appeals to the medi
a, eager to paint a David vs Golia
th scenario
Ease-of-Use Issue
Programmer oriented developme
nt assumed a certain level of fami
liarity
Deterred many potential users
10
Linux Issues
The Importance of Support
Support is purely technical – no sale
speople to translate corporate needs
to computer solutions
Companies like Redhat and Caledra
market through a channel of value ad
ded resellers and integrators
No existing scheme of training and c
ertification
11
Linux Issues
Open Source Culture
Both it greatest benefit and primary weakness
There is no “Linux Inc.” – no central authority to blame
Community-driven support superior to conventional help-desk model
s (awarded by InfoWorld in 1997 for best technical support)
12
How Can Linux Rise Above Microsoft
13
Threat of New Entrants (high)
• Microsoft’s hold on to the desktop market helps it extend power
to server market (+)
• Microsoft is the largest player, but does not hold monopoly pow
er (-)
• High entry barrier for desktop market (+) but low entry barriers
for server market (-)
• Economies of scale – low cost of production once software has b
een developed (just download or a box of CDs)
• Cost Advantages – high barrier for closed-source OS developer
(Windows has to recover overhead while Linux doesn’t) (-)
• Low capital Requirement – patents, codes, and knowledge (-)
14
Bargaining Power of Customers (high)
• Few suppliers (especially for high technology) (+)
• Perception that they offer superior product gains (Microsoft has
high media profile and advertising) (+)
• Customers had little bargaining power (Windows pre-installed o
r Macintosh) (+)
15
Bargaining Power of Suppliers (low)
• High buyer switching cost (psychological) of switching to other
OS (+) (existing library of software and related files)
• Microsoft has more brand differentiation (+)
16
Threat of Substitutes (high)
• No substitutes in the past (+)
• Piracy (-)
• Substitute performance – more reliable, flexible, and no blue scr
een (-)
• Switching costs
• OpenSource is the greatest threat to Microsoft (-)
• There are now literally hundreds of companies and organizations and an equal numb
er of individuals that have released their own versions of operating systems based on
the Linux kernel.
• a new operating system designed today wouldn't be a single piece of software on a si
ngle computer. Instead, it might be something that gives users access to data running
across multiple devices, like PCs, TVs, cars, etc. "Instead of the computer being at th
e center, you (the user) are at the center,"
17
Competitive Rivalry (high)
• Microsoft’s dominance is constantly being threatened (-)
• Brand recognition (+)
• Diversity of Rivals (Microsoft engineers vs. programmers aroun
d the world)
• Unpredictability in terms of future revenues, spending and earn
ing a lot from IP rights battles (-)
• Change in customer preferences (i.e. have to wait for next versi
on of Windows) (-)
• Number of competitors (RedHat, Caledra) (-)
18
Who Said This?
"Microsoft has vast resources, literally billions of
dollars in cash, or liquid assets reserves. Micro
soft is an incredibly successful empire built on
the premise of market dominance with low-qu
ality goods.“
21
Reasons to Switch to Linux
• Windows doesn’t fascinate you anymore
22