1. MI021 / CS021 Computers in Management April 27, 2006 Software Markets

2. 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

3. 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

4. Most Computer Programs... RealPlayer for Windows RealPlayer for Macintosh Windows Compiler Macintosh Compiler Intel code 10010 01001... 01011 00101... 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()… … 11010 01011... Intel code

5. "[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]

6. 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

7. A Growth Stock No More?

8. 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.

10. 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!.

11. Fear the Penguin? Server MarketDesktop Market