STRATEGIC MANAGEMENT

CASE STUDY :

LINUX-GAINING GROUND:SHAKING WINDOWS

PRESENTED TO: PROF. ANJU DUSSEJA

Presentation On

GROUP MEMBERS

NAME ROLL NO.

Sagar Ashamshetty 62

Shashank Pamul 94

Pratima Patil 98

Supriya Pawar 100

Deepika Shetty 110

CASE OVERVIEW

• The case discusses the open source movement and the evolution of Linux in early 1990s, which changed the computing world.

• The case focuses on the open source movement and the reasons why big companies like IBM, HP and Sun extended hardware support to Linux.

• The case also discusses the initial response of Microsoft towards Linux and the gradual change in response.

• The case ends with the prospects of Linux and problems that might crop up for Linux in the future.

INTRODUCTIONMarch 2003: Microsoft Corporation (leading software company) had offered to open the source code of windows(its highly guarded operating system) to Chinese government.Reason:1. To make Microsoft's position strong in the country .2. Increasing popularity of India.3. Other countries including India have been shifting to Linux for

administrative task.4. Linux is available for free.5. Linux’s open source code.6. Focus shifted towards Linux where market share of windows

fell down (Linux captured 13.7% of market share & estimated to increase 25.5%)

OPEN SOURCE MOVEMENT GAINING GROUND

• In 1970 the computing world was dominated by one operating system -Disk operating system (DOS)6

• There was also another operating system provided by Bell labs - Unix.7

• In 1983 Microsoft introduced its revolutionary operating system - Windows

• Microsoft's Windows source code was a closely guarded secret.

• In 1984 Richard Stallman former programmer at MIT's artificial intelligence lab, developed GNU software as an open source version of Unix.

• Stallman founded the Free Software Foundation (FSF) in 1985.

EVALUATION OF LINUX

• Early 1990’s :- Linus Torvalds, a Finnish graduate student of computer science started coding an operating system.

• August 1991: Code shared freely to a software discussion group (Torvalds had started developing the operating system as a hobby for Intel processors - 386 (486), which was based on MINIX.)

• Sept 1991: LINUX ver. 0.01 available on the internet to test.• Oct 1991: LINUX ver. 0.02 released. Declared to develop OS

that would run on all system platforms.

• December 1991 : LINUX ver. 0.10, 0.11, 0.95 released.• 1994: the commercialization of Linux began, with vendors

selling application software that would run on Linux.

• 1996: Linux was used at Los Alamos National Laboratory to run 68 PCs as a combined processing computer to replicate atomic shock waves at very low cost.

• By 2001: Linux was acclaimed as cheaper, and also free from software bugs or glitches as compared to other o/s such as Windows and Unix.

THREATENED BY THE PENGUIN

1) Mid 1990: Linux gained respectability in corporate circles and was supported by several computer companies like IBM, Oracle, HP, Compaq and Dell.

2) 1998: Microsoft tried to sideline Linux.3) Microsoft chose to downplay the threat posed by Linux, Sun

extended its support to Linux. 4) 1999 :Microsoft woke up to the threat from Linux and started

its campaign to counter the growth of Linux by creating a portal ‘Linux Myths’.

5) 2000: Linux’s market share increased to 27% and growth rate was 24% against Microsoft’s 20%.

5)December 2002: Microsoft adopted a strategy to counter Linux by evaluating the TCO total cost ownership..

6) 2002: Microsoft announced a major shift in its strategy and adopted an embrace and extend strategy towards Linux.

7) 2003 :it was reported that around 39% of corporations had shifted to Linux in the server market.

8)IDC reports: it was estimated that by 2006 Linux would increase its market share to 25.2% in the server market, threatening Microsoft’s leadership.

THE FUTURE OF LINUX AND OPEN SOURCE MOVEMENT

• Open-source would have trouble in penetrating software industry.

• Limited number of applications available for use on the Linux o/s.

• Lindows.com was launched, to cater to the needs of committed Windows users.

• Unix software would register claims against Linux.• Technical problem.• Graphical interface problem.

Conclusion & Learning

THANK YOU