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Analysis on Open Source Software Biz Model

This paper will perform analysis on the Open Source Software (here by referred as OSS) business model implementation in software industry. For in depth assessment, we will look into Red Hat Linux business implementation in detail. Started by looking into some OSS historical background, definition and deployments, including some Linux background, we shall evaluate the pro and cons of OSS economy with regards to Linux environment as well. Analysis will then go further into detail characteristics of the Linux development using relevant change models, environmental components, supporting elements in business model and implications of all those aspects to the Linux firm’s performance. Some insights into how Red Hat implemented their business model, the changes and last but not least, some recommendation of adapted business model is given with marketing in perspective.

The OSS trend started around 1970s when UNIX Source code was distributed with nominal cost through usenet to various universities by AT&T and developed by Dennis Ritchie and Ken Thompson. The uncertainty of copyright issues when AT&T tried to claim UNIX Intellectual Property rights in1980s prompted many developers into looking for al


Overall, OSS business model performance and Linux in particular is very much affected by macro environment. For instance, recent economy downturn benefits Linux-based companies to certain extend as there is increasing people or enterprises seeking lower cost alternatives which is what Linux platform are offering (Elmendorf, D., Dec 2001). For external competitive environment, it contributes as well to the Linux firm performance and business model. For example, recent Microsoft’s move to introduce new licensing scheme (together with the Windows XP release) has created furious responses from many enterprises, as it is perceived as unfair licensing. This in turn encourages enterprises to turn to other alternatives such as Linux as the awareness of vendor lock-in risk is increasing (Wilcox, J., Oct 2001).

Widget Frosting or Accessorizing Revenue Source, Sustainability and Connected Activities The company’s business is primarily in selling hardware with the software distributed as Linux product or performs contribution to the Linux development projects. The popular example of this type is IBM as it intensified its support for Linux not only in Intel platform but also with its PowerPC RISC processor platform, such as pSeries servers.

 RH Enterprise Linux AS, supporting highest end X86-compatible servers with top-of-the-line support. Designed for large departmental and datacenter deployments, with High Availability Clustering feature.

6 Maturity of code with parallel development and debugging activities. According to Bezroukov, Linux development emphasis on quality and simplicity, not speed of development (Bezroukov, Oct 1999).

Basically the main underlying problem here is many communities still wondering how to use OSS product as business foundation and particularly for those who have started their venture in Linux world some are still unable to harvest fruit over this business potential. Furthermore, the roles of marketers in Linux firms to support the company’s competitive advantages or to overcome its disadvantages also remain vague.

Some topics in this essay:
Red Hat, Hat Linux, Microsoft Windows, Debate Analysis, Public License, Performance Analysis, IBM’s UNIX, Red Hat’s, Additionally Linux, Intel X86, red hat, business model, hat linux, red hat linux, closed source, linux distribution, refer appendix, microsoft windows, corporate market, shown appendix, linux companies, rh enterprise linux, feller fitzgerald 2002, closed source software, running red hat,

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Approximate Word count = 5602
Approximate Pages = 22 (250 words per page double spaced)


  

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