PRESENTED BY :

MANISH SARAN
ANKIT RANA
GAURAV JOSHI
SUKHLEEN KAUR
Outline

 Briefoverview
 SWOT analysis
 Findings
 Recommendations
Brief overview

 Software industry undergoing a sweeping

change
 LINUX
 Linus torvalds
 New operating system
 “FREE SOFTWARE” & “OPEN SOURCE SOFTWARE”
 Source code can be modified

 Openly challenging the software giants

 FSF & its GNU projects
 Radical development of FSF was the creation of
GNU public license (GPL)
Contd….
 MYTH – “FREE” is not about the price its about
the liberty
 IBM, ORACLE , DELL ,INTEL & COMPAQ has
acknowledged the efficiency and popularity of
Linux
 Some constraints
 Impossible for Linux to turned into proprietary
product
Contd…

 Microsoft woke up to harsh reality - German city of

Munich decided to replace Microsoft windows from
14000 computers
 Many national & state govt used Linux
 Brazil , India , china & Japan
 LINUX GAINED IMPORTANCE
1. Economic slowdown
2. Intel corp. started optimizing its chips for Linux in addition
to Microsoft
3. Widespread resentment against Microsoft and the fear that
the company was on the verge of gaining a stranglehold on
corporate customers
 “Linux unhealthy for technology industry”
Reason to go for
Linux
More stable and secure platform than Windows
 Users can get lower running costs and developers can innovate
(customize)
 Relative lack of viruses and hackers attacks
 Linux server running for over a year without a problem
 Total Cost of Ownership
Annual Software License/
Subscription/Support Costs
 Cumulative Software
License/Subscription/ Support Costs
SWOT for Linux
STRENGTH
 Linux is open source
software
 Its free and cost effective
 Strong alignments with
companies like
IBM,HP,DELL,INTEL,
ORACLE,SAP etc
 Number 2 in the market
 Fast growing market
share (12.7%,2007 for
Q1)
 No backdoors security
issues
 WEAKNESS
 Designed for server
application
 Less user friendly the
Windows OS
 Lack of standardized
graphical user interface
 Compatibility issues
 Don’t have large number
of software designed for it
 Lack of product
standardization
 OPPORTUNITIES THREATS
 Diverse industries  Monopoly of MS in desktop
interested in Linux e.g. systems(90.68%), Linux
Boeing's phantom works, (1.85%){Jan 2009}
DreamWorks etc  Large innovative product
 Collaborations to provide line offered by MS e.g.
Linux compatible products Microsoft (Windows, Office,
e.g. Oracle, IBM etc Servers, Developer Tools,
Expression, Business
 Linux into consumer
Solutions Games& Xbox
electronics e.g. Sony PS
360, Windows Live,
 Big corporate and Windows Mobile
governments interests e.g.  MS is the largest player in
Munich
the market
 Economic slow down  Technology life span
getting shorter and shorter
 Microsoft’s Volume Purchasing Options – Allows lower price than full retail
version while Linux does not have such licensing programs.

Microsoft’s Software Assurance Program - one-time license fee to purchase

a particular software product, and then receives free upgrades to that software
thus its cheaper than purchasing a unique license for each upgrade of the
software.

Microsoft’s support offerings include:

 Microsoft Free Support
 Microsoft Bundled Support
 Microsoft Premium Support
While Red Hat offers the free open source Linux software and maintain, support,
and implement software updates and patches themselves
 Cumulative Cost of Hardware and
Software Acquisition and Six Years of
Software and Hardware Support
Microsoft’s OS license and support costs are competitive with
Red Hat Enterprise Linux

 Two companies’ different approaches to enterprise licensing

and support means best pricing comparisons should be based
on a period of ownership (three to six years), rather than on just
initial acquisition charges

 Microsoft’s separate support and license fee structures,

which contrast with Red Hat's combined subscription and
support offerings, can give a Microsoft solution a significant
pricing advantage over a Red Hat solution