MI021 / CS021Computers in Management

April 27, 2006Software Markets

Topics Covered

• Operating Systems & Software Markets– Competition Among Operating Systems

and Computing Platforms– The Linux Challenge

• The evolving software market– mySQL – open source beyond Linux– Salesforce.com, ASPs, and software as a

service

SoftwareOperating Systems

control hardware and provide an environment in which applications execute

Application Programsend-user program that performs a specific function

Individual examples: word processor, spreadsheet. Collections of apps: Office (suite), SAP R/3 (ERP)

Appletssmall application programs which execute within a

larger environment (e.g. Java applets within browser)

operating system

applications

Most Computer Programs...

RealPlayer for Windows

RealPlayerfor Macintosh

Windows Compiler

Macintosh Compiler

Intelcode

1001001001...

0101100101...

PowerPC code

… are written for an Operating System (Windows, Macintosh, etc.) & compiled for a microprocessor (Intel x86, Power, Sun UltraSPARC, Compaq Alpha, etc.). Compiled code is ready to be executed by the appropriate microprocessor (fast).

DrawWindow()……

GetWindow()……

1101001011...

Intelcode

"[The Windows API] is so deeply embedded in the source code of many Windows apps that there is a huge switching cost to using a different operating system instead. It is this switching cost that has given the customers the patience to stick with Windows through all our mistakes, our buggy drivers, our high TCO [total cost of ownership], our lack of a sexy vision at times, and many other difficulties. Customers constantly evaluate other desktop platforms, [but] it would be so much work to move over that they hope we just improve Windows rather than force them to move."

-- Microsoft C++ general manager Aaron Contorer explains Windows' greatest selling point in a 1997 memo to Bill Gates. [source: San Jose Mercury News GMSV]

Competition in the OS SpacePersonalComputersWindows XP

Apple

Mutli-UserSystemsWindows Server2003

Unix (Sun, IBM, HP / Compaq)Linux

ConsumerDevicesWindows MobileXboxMicrosoft TVWindows XP Tablet PCWindows XP Media Center Edition

Palm (handheld)Liberate (set top)SonyLinuxApple

Microsoft

Competition

A Growth Stock No More?

The Microsoft Stimulus Package

• In ’04 Microsoft returned $9 billion to individual investors that hold the stock (excluding all the institutions & funds).

• The Bush child tax credit returned $14 billion.

• Bill Gates has pledged all $3.4 billion to his charitable foundation.

Comments from Windows Source Code

private\genx\shell\inc\prsht.w:// we are such morons. Wiz97 underwent a redesign between IE4 and IE5

private\shell\ext\ftp\ftpdrop.cpp:// We have to do this only because Exchange is a moron.

private\shell\shdoc401\unicpp\desktop.cpp: // We are morons. We changed the IDeskTray interface between IE4

private\shell\browseui\itbar.cpp:// should be fixed in the apps themselves. Morons! .

Fear the Penguin?

Server MarketDesktop Market