PRESENTED BY :

MANISH SARAN

ANKIT RANA

GAURAV JOSHI

SUKHLEEN KAUR

OutlineOutline

Brief overview SWOT analysis Findings Recommendations

Brief overviewBrief 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….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…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 IMPORTANCE1. 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 Reason to go for LinuxLinux 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/ Annual Software License/ Subscription/Support CostsSubscription/Support Costs

Cumulative Software Cumulative Software License/Subscription/ Support CostsLicense/Subscription/ Support Costs

SWOT for Linux SWOT for Linux STRENGTH 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

WEAKNESSWEAKNESS 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

OPPORTUNITIESOPPORTUNITIES Diverse industries

interested in Linux e.g. Boeing's phantom works, DreamWorks etc

Collaborations to provide Linux compatible products e.g. Oracle, IBM etc

Linux into consumer electronics e.g. Sony PS

Big corporate and governments interests e.g. Munich

Economic slow down

THREATSTHREATS Monopoly of MS in desktop

systems(90.68%), Linux (1.85%){Jan 2009}

Large innovative product line offered by MS e.g. Microsoft (Windows, Office, Servers, Developer Tools, Expression, Business Solutions Games& Xbox 360, Windows Live, Windows Mobile

MS is the largest player in the market

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 thesoftware.

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 Cumulative Cost of Hardware and Software Acquisition and Six Years of Software Acquisition and Six Years of

Software and Hardware SupportSoftware 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