OMIS 3710 Chapter Notes - Chapter 14: Utility Computing, Data Center, Linux

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Chapter 14: software in flux: open source, cloud, virtualized and app-driven shifts. The software business is attractive due to near-zero marginal costs and an opportunity to establish a standard creating the competitive advantages of network effects and switching costs. New trends in the software industry, including open source software (oss), cloud computing, software as a service (saas), and virtualization are creating challenges and opportunities across tech markets. Understanding the impact of these developments can help a manager make better technology choices and investment decisions. Saas: software as a service: users access software over the internet by starting up their web browser, you do(cid:374)(cid:859)t (cid:374)eed to o(cid:449)(cid:374) the program or install it on your own computer. While open source alternatives are threatening to conventional software firms, some of the largest technology companies now support oss initiatives and work to coordinate standards, product improvements, and official releases.

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