In 2006, Microsoft finds that their dominant position in the client and server operating under attack from Linux. Although Linux has only 3% of the global installed base of PC operating system, it captured 20% of the server market in late 2005 and is quickly becoming a formidable alternative to the performance of programs OpenOffice. Linux «business model" to compete with Microsoft significantly different from traditional commercial software companies. Linux open source (all code is available for redistribution to anyone), and uses the collective power of thousands of programmers - both independent and employees of large software companies such as IBM, HP, Intel, Sun and Dell - which allows it to work out errors and quickly releasing a new operating system a few times a year. Students are faced with the analysis of competitive interaction between Windows and Linux business model and the value of the loop and ask whether the cause is a clear winner appears.
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by Ramon Casadesus - Masanell, Jordan Mitchell Source: Harvard Business School 25 pages. Publication Date: October 31, 2006. Prod. #: 707465-PDF-ENG
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