SaaS and Open Source Software Quiz
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Questions and Answers

What was the potential impact of the Heartbleed bug?

  • It improved software performance.
  • It provided companies with better tools for coding.
  • It enhanced database security.
  • It allowed hackers to gather sensitive information. (correct)

    • The Linux Foundation supports only proprietary software projects.

    False

    What is the main purpose of the Core Infrastructure Initiative?

    To fund open source projects critical for core computing functions.

    The software that powers about a third of websites is called _______.

    <p>WordPress</p> Signup and view all the answers

    Match the following open source software with their commercial counterparts:

    <p>WordPress = Microsoft Sharepoint LibreOffice = Microsoft Office Gimp = Photoshop MySQL = Oracle Database</p> Signup and view all the answers

    Which of the following is an example of nonrelational database software?

    <p>Cassandra</p> Signup and view all the answers

    All commercial products have an open source equivalent.

    <p>True</p> Signup and view all the answers

    Name one open source web browser mentioned.

    <p>Firefox</p> Signup and view all the answers

    What is a common revenue model for most SaaS firms?

    <p>Usage-based pricing model</p> Signup and view all the answers

    SaaS providers completely eliminate the need for network connections.

    <p>False</p> Signup and view all the answers

    Name one benefit of using SaaS over traditional software.

    <p>Lower costs</p> Signup and view all the answers

    SaaS providers mitigate financial risk by allowing ______ during slow seasons.

    <p>reduced payment</p> Signup and view all the answers

    Match the following SaaS firms with their primary services:

    <p>NetSuite = ERP Suite HubSpot = Marketing Software ServiceNow = IT Infrastructure Management Splunk = Analytical Techniques</p> Signup and view all the answers

    Which of the following is a risk associated with SaaS?

    <p>Dependence on a single vendor</p> Signup and view all the answers

    SaaS allows for instant deployment of bug fixes and product enhancements.

    <p>True</p> Signup and view all the answers

    What is a potential consequence of SaaS users being forced to migrate to new versions?

    <p>Unforeseen training costs and shifts in procedures</p> Signup and view all the answers

    What is one significant characteristic of marginal costs in the software industry?

    <p>They are zero for software products.</p> Signup and view all the answers

    Cloud computing involves using local hardware for software services.

    <p>False</p> Signup and view all the answers

    What does OSS stand for?

    <p>Open Source Software</p> Signup and view all the answers

    ____ is a form of cloud computing where a firm subscribes to a third-party software to receive a service delivered online.

    <p>Software as a service (SaaS)</p> Signup and view all the answers

    Match the technology with its characteristic:

    <p>Open Source Software = Anyone can modify the code Cloud Computing = Services provided over the Internet Software as a Service = Subscription-based third-party software Virtualization = Allows one computer to behave like many</p> Signup and view all the answers

    Which of the following is considered a key benefit of open source software?

    <p>Redistribution and modification by anyone</p> Signup and view all the answers

    The source code for conventional software products is typically openly shared.

    <p>False</p> Signup and view all the answers

    Which operating system is an example of open source software?

    <p>Linux</p> Signup and view all the answers

    What are the benefits of the area surrounding the Columbian River for cloud computing?

    <p>Low-cost power</p> Signup and view all the answers

    Virtualization software allows a single computer to function only as one computer.

    <p>False</p> Signup and view all the answers

    What is the estimated size of the Microsoft Data Center in Middenmeer, Holland?

    <p>27 acres</p> Signup and view all the answers

    Virtualisation can help reduce an organization's ________ needs.

    <p>hardware</p> Signup and view all the answers

    Which company is currently a leader in virtualization software?

    <p>VMware</p> Signup and view all the answers

    Match the following types of virtualization with their descriptions:

    <p>Virtualization = Allows one computer to act like many Containers = Allows for shared operating systems Virtual desktops = Executes a PC's software remotely Server farms = Massive data installations for cloud computing</p> Signup and view all the answers

    Apps and app stores increase the cost of software distribution and maintenance.

    <p>False</p> Signup and view all the answers

    The primary benefit of virtualization is the ability to ________ systems far more easily.

    <p>scale, back up, secure, and upgrade</p> Signup and view all the answers

    Which of the following best describes Infrastructure as a Service (IaaS)?

    <p>Cloud providers provide services that include remote hardware, storage, and networking.</p> Signup and view all the answers

    Cloudbursting allows for excess capacity only during periods of low demand.

    <p>False</p> Signup and view all the answers

    What is one advantage of homegrown solutions that may lead to lower costs?

    <p>Staff could introduce the new tools in homegrown solutions.</p> Signup and view all the answers

    _____ is a cloud model that allows firms to build their own applications using a provider's infrastructure.

    <p>Platform as a Service (PaaS)</p> Signup and view all the answers

    Match the cloud services with their main purpose:

    <p>PaaS = Build applications on provider's infrastructure IaaS = Utilize remote hardware and storage Cloudbursting = Provide excess capacity during high demand SaaS = Software accessed over the cloud</p> Signup and view all the answers

    Which of the following companies offers the cloud service known as Force.com?

    <p>Salesforce.com</p> Signup and view all the answers

    User interfaces of web-based software are typically more sophisticated than those of desktop alternatives.

    <p>False</p> Signup and view all the answers

    Name one major risk associated with adopting cloud computing solutions.

    <p>Unauthorized IT usage throughout an organization.</p> Signup and view all the answers

    What are black swan events?

    <p>Ultra-rare and high-impact events that cannot be predicted</p> Signup and view all the answers

    Cloud computing eliminates all risks associated with data storage.

    <p>False</p> Signup and view all the answers

    What should firms do before transitioning to cloud computing?

    <p>A thorough financial analysis.</p> Signup and view all the answers

    Cloud computing can decrease barriers to entry by lowering the cost to access powerful systems and __________.

    <p>software</p> Signup and view all the answers

    Match the following terms with their descriptions:

    <p>Server Farm = A massive network of computer servers Cloud Vendor = Provider of cloud computing services SaaS = Software as a Service High-margin Server = Expensive servers with significant profit margins</p> Signup and view all the answers

    How has cloud computing impacted high-end server sales?

    <p>They have fallen, with IBM seeing a decline of 20 to 30%.</p> Signup and view all the answers

    Cloud computing has no effect on the job outlook for information systems (IS) workers.

    <p>False</p> Signup and view all the answers

    What is a key concern when a firm relies heavily on a single cloud vendor?

    <p>If the cloud vendor fails, the firm is at risk of being down.</p> Signup and view all the answers

    Study Notes

    Software in Flux

    • Open source software (OSS) is free and modifiable code
    • Marginal costs for software are zero
    • Software business is very attractive
    • Microsoft Bill Gates and Oracle Larry Ellison are among the wealthiest people

    Learning Objectives 15.1

    • Low marginal costs, network effects, and switching costs have created a major industry
    • The software industry is changing due to open source software, cloud computing, and software as a service

    Introduction

    • Marginal costs are the costs associated with each additional unit produced
    • Software products have zero marginal costs
    • The software business is highly attractive
    • Key figures in software include Microsoft Bill Gates and Oracle Larry Ellison

    Introduction

    • Cloud computing replaces computing with services provided over the internet
    • Software as a service (SaaS) is a cloud computing form where firms subscribe to third-party software delivered online
    • Virtualization technology makes one computer behave like many separate computers, consolidating resources and improving efficiency

    Learning Objectives 15.2

    • Define open source software and its differences from conventional software
    • Provide examples of open source software and how companies can use it

    Open Source

    • Linux is an open-source operating system
    • Source code for open source products is publicly shared
    • Linux powers various devices from cell phones to supercomputers
    • Anyone can modify and redistribute open-source code
    • Conventional software firms often keep their source code secret

    Turn on the LAMP

    • LAMP is an acronym for Linux, Apache, MySQL, and PHP (Perl/Python)
    • LAMP powers many websites, from Facebook to YouTube

    Learning Objectives 15.3

    • Understand the main reasons why firms choose to use open-source software
    • Appreciate the benefits of open-source software on industry and government

    Why Open Source?

    • Cost: Free code is a major motivator for switching to OSS, as seen in Barclays' 90% cost reduction
    • Reliability: Multiple contributors improve code quality
    • Security: OSS vulnerabilities are found more quickly due to multiple review
    • Scalability: Enables firms to scale from startups to larger companies without rewriting code
    • Agility/Time to Market: Enables faster product development and market entry

    When the Open Source Army Doesn't Show Up: Lessons from Heartbleed

    • Many open-source projects are well-maintained by paid professionals
    • The Heartbleed bug in OpenSSL in 2014 exposed vulnerabilities in some two-thirds of websites, highlighting the importance of security reviews

    When the Open Source Army Doesn't Show Up (Cont'd)

    • Linux Foundation established the Core Infrastructure Initiative for projects critical to core computing functions.
    • Managers should audit software despite widespread use, because use does not guarantee quality

    Learning Objectives 15.4

    • Recognize that commercial products often have open-source equivalents
    • Provide a list of commercial products as well as open-source competitors

    Examples of Open Source Software

    • WordPress powers a third of websites
    • Firefox is a web browser competing with Chrome
    • LibreOffice is similar to Microsoft Office
    • Gimp is a graphic tool similar to Photoshop
    • Magento is an e-commerce software
    • TensorFlow is open source machine learning software
    • Alfresco is a competitor to Microsoft Sharepoint
    • Marketcetera competes with FlexTrade and Portware
    • Zimbra is an email software competing with Outlook
    • MySQL, Ingres, and PostgreSQL are relational database software
    • MongoDB, HBase, and Cassandra are nonrelational database software
    • SugarCRM competes with Salesforce
    • Docker tools for "containerization"
    • Asterisk an open source implementation for PBX systems
    • Git-version control software
    • Free BSD and OpenSolaris

    Learning Objectives 15.5

    • Understand the disproportionate impact of OSS on the IT market
    • Understand how vendors monetize open-source offerings

    Why Give It Away? The Business of Open Source

    • Open source is a $60 billion industry with a significant impact on the trillion-dollar IT market, particularly by lowering computing costs
    • Open-source businesses often are worth more than $1 billion, and the first one to reach significant market cap is Red Hat
    • Oracle provides Linux free, making money more from services than hardware

    Why Give It Away? (Cont'd)

    • Vendors primarily generate revenue through support services and consulting, such as Red Hat
    • Pre-Linux days saw incompatibility between operating systems, while the ubiquitous nature of Linux today leads to a unified large market

    Linux on the Desktop?

    • Linux is common in mobile devices and enterprise solutions, but less prevalent on personal computers
    • Installation complexities combined with total cost of ownership factors discourage widespread desktop use
    • Certain open-source products are hard to use, especially without support contracts
    • Firms can face legal risks when distributing open-source code
    • Open-source license agreements vary significantly and can lead to legal complications if misused

    Learning Objectives 15.6

    • Understanding the definition of cloud computing
    • Identifying the major cloud categories: SaaS, PaaS, and IaaS

    Defining Cloud Computing

    • Two primary cloud computing categories:
      • SaaS: Firms subscribe to third-party software online
      • Utility computing: firms run their software on internet servers of their provider
      • PaaS: Firm develops tools including programming languages, databases and OS to run on their chosen cloud
      • IaaS: Barebones services are offered as an alternative to purchasing hardware

    Defining Cloud Computing (Cont'd)

    • Private clouds are pools of resources specifically for one organization
    • Cloud computing usage is rapidly changing industries, with implications for the future of hardware and software business models, and the skill sets valued by employers

    Learning Objectives 15.7

    • Understanding how SaaS dramatically lowers costs in information systems
    • Understanding how SaaS vendors earn money
    • Identifying benefits SaaS provides business
    • Identifying benefits SaaS provides vendors

    Software in the Cloud: Why Buy When You Can Rent?

    • SaaS products reduce many costs associated with software licenses, personnel and maintenance associated with physical servers.
    • SaaS firms earn revenue primarily from usage-based pricing models similar to monthly subscriptions, and from advertising.
    • SaaS is a rapidly growing portion of the IT market

    Benefits of SaaS

    • SaaS reduces costs related to software, hardware and personnel
    • SaaS offers faster deployment
    • SaaS offers variable costs
    • SaaS mitigates financial risks
    • SaaS systems are often scalable
    • SaaS generally provides high-quality service

    Benefits of SaaS (Cont'd)

    • SaaS allows for remote access and availability
    • SaaS provider feedback loops and ability to quickly deploy updates
    • SaaS generally has lower distribution costs than physical software.
    • SaaS platforms reduce the incidence of software piracy

    Learning Objectives 15.8

    • Understanding the risks associated with SaaS usage

    SaaS: Not Without Risks

    • Dependence on single vendors
    • Viability of partner firms
    • Migrating to new versions
    • Reliance on network connections

    SaaS: Not Without Risks (Cont'd)

    • Remote-access vulnerabilities
    • Contractual and legal issues
    • Limited customization and integration
    • Costs of homegrown alternatives
    • Less sophisticated user interface
    • Risks of unauthorized access and use through ease of adoption

    Learning Objectives 15.9

    • Distinguishing between SaaS and hardware clouds
    • Identifying firms and uses of hardware clouds
    • Understanding cloud computing, cloudbursting, and black swan events
    • Recognizing the challenges and economics involved in shifting to cloud computing

    Understanding Cloud Computing Models

    • Some firms develop custom software but want others to support and maintain the service (clouds)
    • Firms pay for storage, processing and communication costs
    • Cloud vendors host software
    • Google, Salesforce, and Microsoft offer cloud-based resources

    Understanding Cloud Computing Models (Cont'd)

    • Platform-as-a-service (PaaS) offers one complete platform (OS, databases, and tools) for users
    • Infrastructure-as-a-service (IaaS) providers run the hardware and handle storage, networking, and offer more control to the user

    Figure 15.4: Estimated Monthly Costs to Run a Website

    • Estimated monthly costs of running a website for different cloud providers are compared to a company-owned service for 50 million page views

    Clouds in Action

    • Cloudbursting: Using cloud computing to increase capacity during peak demand
    • Black swans: Unpredictable events making scalable resources crucial

    Challenges Remain

    • Installing complex systems on third-party hardware presents challenges
    • Financial analysis is essential before cloud adoption, as is thorough system maintenance planning
    • Unlimited data storage in the cloud needs careful consideration
    • Firms should approach cloud cautiously, especially regarding critical systems
    • Vendor failure can lead to significant problems

    Learning Objectives 15.10

    • Understanding cloud computing's impact across industries
    • Effects of cloud computing on hardware sales and service shift
    • Influence of cloud computing on innovation and job skills
    • Cloud computing's role in lowering entry barriers
    • Importance, size, and metrics of server farms

    Clouds and Tech Industry Impact

    • Companies invested heavily in physical servers for computing power
    • Cloud computing impacts the margin structure for many in the computing industry
    • Server farms are large networks of servers coordinating use
    • Cloud computing often accelerates innovation

    So What's It Take to Run This Thing?

    • The Pacific Northwest is ideal for massive cloud computing data installations
    • Cheap land, low-cost power, and high-speed fiber optic are key considerations
    • Server farm modules from cloud providers are readily available

    Figure 15.5: Server Farms

    • Microsoft's data center in Holland illustrates the size of server farms
    • These facilities are enormous and expensive, often exceeding multiple billions of Euros

    Learning Objectives 15.11

    • Understanding virtualization software and its impact on cloud computing.
    • Benefits for companies using virtualization

    Virtualization

    • Virtualization software allows a single or grouped computers with shared OS functionality
    • Use of virtualization reduces hardware costs, creates private clouds and reduces environmental impact.
    • Software can be run on various platforms
    • Containers allow shared operating systems, saving resources and accelerating execution.
    • Virtual desktops allow for remote access, upgrading and scaling

    Learning Objectives 15.12

    • Understanding the benefits and challenges of app stores
    • How app stores are changing software business models

    Apps and App Stores

    • App stores lower the costs of distributing and maintaining software
    • Apps are rich user interfaces and tightly integrate with device OS
    • Huge companies often rely on smartphone apps for customer interaction.
    • App stores can cause consumers to stay within one walled ecosystem, increasing their costs to switch.

    Learning Objectives 15.13

    • Understanding the decision options for companies in choosing software solutions
    • Determining whether to make, buy or rent software

    Make, Buy, or Rent

    • Key considerations for companies acquiring software solutions, based on competing advantages through unique processes, procedures or technologies; ensuring security and reliability of the systems with suitable legal cover; financial issues (costs, time); potential vendor issues based on reputation and reliability.

    Make, Buy, or Rent (Cont'd)

    • Companies should consider factors such as specific legal and compliance requirements related to the acquisition of the solutions; assessing the in-house skills, expertise and labor required for acquisition, development or deployment of the solutions; the cost-effectiveness of each option. Finally, the robustness and reliability of the vendor and the potential implications of vendor failures.

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    Chapter 15 Open Source and Cloud PDF

    Description

    Test your knowledge about the impacts and concepts related to SaaS and open source software. This quiz covers topics such as the Heartbleed bug, the Core Infrastructure Initiative, and risks associated with SaaS. Challenge yourself with questions about software counterparts and revenue models in the tech industry.

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