Linux Vs. Microsoft Presentation On Strategy Marketing

PRESENTED BY : MANISH SARAN ANKIT RANA GAURAV JOSHI SUKHLEEN KAUR

Outline  Brief

overview  SWOT analysis  Findings  Recommendations

Brief overview 

Software industry undergoing a sweeping change  LINUX    

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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… 

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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

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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

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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   

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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 

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OPPORTUNITIES 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

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THREATS 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 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 