MI021 / CS021 Computers in Management April 27, 2006 Software 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

Software Operating Systems control hardware and provide an environment in which applications execute Application Programs end-user program that performs a specific function Individual examples: word processor, spreadsheet. Collections of apps: Office (suite), SAP R/3 (ERP) Applets small application programs which execute within a larger environment (e.g. Java applets within browser) operating system applications

Most Computer Programs... RealPlayer for Windows RealPlayer for Macintosh Windows Compiler Macintosh Compiler Intel code 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()… … Intel code

"[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 Space Personal Computers Windows XP Apple Mutli-User Systems Windows Server 2003 Unix (Sun, IBM, HP / Compaq) Linux Consumer Devices Windows Mobile Xbox Microsoft TV Windows XP Tablet PC Windows XP Media Center Edition Palm (handheld) Liberate (set top) Sony Linux Apple 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