Linux & Open Source Software - Strategic Interactions in Software Industry Presented by Simon Tang 9/09/2004.

Presentation on theme: "Linux & Open Source Software - Strategic Interactions in Software Industry Presented by Simon Tang 9/09/2004."— Presentation transcript:

1 Linux & Open Source Software - Strategic Interactions in Software Industry Presented by Simon Tang 9/09/2004

2 From Hobby to Multi-Billion Dollar Business Initially as a hobby by a young student, Linus Torvalds in 1991 Initially as a hobby by a young student, Linus Torvalds in 1991 Linux Kernel v1.0 in 1994 Linux Kernel v1.0 in 1994 the source code for Linux is freely available to everyone the source code for Linux is freely available to everyone Freedom, not necessarily free of charge Freedom, not necessarily free of charge Redhat is a $2.4Billion company; Redhat is a $2.4Billion company; IBM expect the revenue from Linux Services over $2Billion (2004) IBM expect the revenue from Linux Services over $2Billion (2004)

3 Linux Today Latest Kernel v2.6.8 (Sep ’04) Latest Kernel v2.6.8 (Sep ’04) www.linux.org has 157 English Distros for download www.linux.org has 157 English Distros for download 25 Languages 25 Languages

4 Value Net in Linux Linux Distribution Redhat, SuSe, Mandrake,.. Programming Community Complementors IBM, Oracle.. H/W vendors Consultants Magazines Apps Developers Enterprise Users ‘Geeks’ University Government Evil ‘Microsoft Empire’

5 Open Source Prisoner’s Dilemma? Open Source is a classical PD situation Open Source is a classical PD situation ‘if you release your source code, my best strategy is to keep my source code proprietary…’ ‘if you release your source code, my best strategy is to keep my source code proprietary…’ Open Source Community – change the payoff; PD avoided Open Source Community – change the payoff; PD avoided Linux and Netscape are the examples of open source collaboration Linux and Netscape are the examples of open source collaboration

6 Microsoft’s Reaction Attack by Bill Gate & Steve Ballmer on Linux & Open Source Software: Attack by Bill Gate & Steve Ballmer on Linux & Open Source Software: ‘Linux is Cancer’.. ‘Linux is Cancer’.. ‘Linux is Communism’.. ‘Linux is Communism’.. ‘Open Source Inhibits Innovation’.. ‘Open Source Inhibits Innovation’.. Is the threat credible? More Likely to be ‘Babbling’. Is the threat credible? More Likely to be ‘Babbling’.

7 SCO Legal Suit PD re-visited In 2003 SCO took legal action against IBM – that IBM released SCO’s Unix codes into Linux without permission In 2003 SCO took legal action against IBM – that IBM released SCO’s Unix codes into Linux without permission In Sep 2003 SCO began invoicing US Linux Enterprise Users In Sep 2003 SCO began invoicing US Linux Enterprise Users Shaken the Foundation of Open Source Software Shaken the Foundation of Open Source Software The curse of PD? The end of Open Source? The curse of PD? The end of Open Source?