Software Industry and Open Source Trends
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Questions and Answers

What primarily makes software business attractive?

  • High employee salaries
  • Low marginal costs (correct)
  • High production costs
  • Physical product storage

    • Open source software is typically provided at a cost to users.

    False

    Name one technology that helps consolidate computing resources.

    Virtualization

    The acronym LAMP refers to Linux, Apache, MySQL, and any of the several programming languages that start with ______.

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

    Match the following terms with their definitions:

    <p>Open Source Software = Software that anyone can modify Cloud Computing = Services provided over the Internet Software as a Service (SaaS) = Third-party software delivered online Virtualization = Single computer simulating multiple computers</p> Signup and view all the answers

    Which statement best describes the role of Linux in cloud environments?

    <p>It powers most servers in AWS.</p> Signup and view all the answers

    Software as a Service (SaaS) requires users to manage and maintain software.

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

    What percentage of Linux is used in the Azure Cloud?

    <p>40%</p> Signup and view all the answers

    What is the primary advantage of using virtualization software?

    <p>It simplifies scaling, backing up, securing, and upgrading systems.</p> Signup and view all the answers

    Apps offer a more complex user interface compared to packaged software.

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

    What company owns VMware, a leader in virtualization software?

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

    The ______ factor must be considered when making software decisions in companies.

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

    Match the following software concepts with their descriptions:

    <p>Competitive Advantage = Unique processes creating differentiation Security = Risks associated with software solutions Legal and Compliance = Regulatory requirements for technologies Skill and Expertise = Availability of labor for software development</p> Signup and view all the answers

    What is a common criticism of smartphone apps?

    <p>They confine consumers within walled gardens.</p> Signup and view all the answers

    Managers only need to consider cost when determining how to meet their software needs.

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

    One of the options for managers when satisfying software needs is to ______ the software.

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

    What is a primary reason firms choose open source software (OSS)?

    <p>Free alternatives to costly commercial code</p> Signup and view all the answers

    OSS can lead to increased security vulnerabilities due to its open nature.

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

    Name one open source software that competes with Microsoft Office.

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

    The Heartbleed bug was a significant security breach in the _____ toolkit.

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

    Match the following open source software with their commercial competitors:

    <p>WordPress = Wix Gimp = Photoshop MySQL = Oracle Database Docker = VMware</p> Signup and view all the answers

    Which of the following is a direct benefit of open source software for growing firms?

    <p>Ability to handle increasing workloads</p> Signup and view all the answers

    Open source projects cannot be funded by large companies.

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

    List one of the main reasons why vendors profit from OSS.

    <p>Selling support and consulting services</p> Signup and view all the answers

    Red Hat was the first open source firm to reach a market cap of _____ billion.

    <p>30</p> Signup and view all the answers

    What was the primary function of the Core Infrastructure Initiative?

    <p>To fund critical open source projects</p> Signup and view all the answers

    Barclays managed to reduce their costs by 50% by switching to OSS.

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

    What significant error did Heartbleed expose in the SSL security toolkit?

    <p>A routine coding error</p> Signup and view all the answers

    Open source firms valued at over $1 billion include _____ and Cloudera.

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

    Match the following open source tools with their primary usage:

    <p>TensorFlow = Machine learning Zimbra = Email software Asterisk = Telephony system Git = Version control</p> Signup and view all the answers

    Which of the following is an example of a Platform as a Service (PaaS)?

    <p>Google’s App Engine</p> Signup and view all the answers

    Cloudbursting allows firms to scale their resources during periods of low demand.

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

    What is a black swan event?

    <p>An unpredictable event that can have a significant impact.</p> Signup and view all the answers

    Cloud computing helps in reducing barriers to ____ for organizations.

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

    Match the following cloud service models with their descriptions:

    <p>PaaS = Build applications on the provider's platform IaaS = Run remote hardware and storage services SaaS = Software hosted online and accessed via the internet</p> Signup and view all the answers

    Which company is known for providing Infrastructure as a Service (IaaS)?

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

    Server farms are small networks of computers that do not connect to one another.

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

    Name one benefit of using virtualization.

    <p>Reduces hardware needs.</p> Signup and view all the answers

    A significant drop in IBM’s server sales was from ____ to ____ percent.

    <p>20, 30</p> Signup and view all the answers

    Match the companies with their respective cloud services:

    <p>Salesforce.com = Force.com Google = Bigtable Microsoft = Windows Azure</p> Signup and view all the answers

    What is one of the critical challenges companies face when shifting to cloud computing?

    <p>System maintenance complexity</p> Signup and view all the answers

    What is a primary risk associated with adopting open source software (OSS)?

    <p>Legal exposure due to licensing issues</p> Signup and view all the answers

    Containers in virtualization allow for separate operating systems on each machine.

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

    Linux is commonly used on desktop computers.

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

    What does TCO stand for in the context of software systems?

    <p>Total Cost of Ownership</p> Signup and view all the answers

    What is one effect of cloud computing on job outlook for IS workers?

    <p>Need for new skills mix.</p> Signup and view all the answers

    SaaS stands for _______.

    <p>Software as a Service</p> Signup and view all the answers

    The Pacific Northwest's environment is beneficial for cloud computing due to ____ land and low-cost ____ connections.

    <p>cheap, fiber-optic</p> Signup and view all the answers

    Match the cloud computing service model to its description:

    <p>SaaS = Firm subscribes to third-party software delivered online PaaS = Delivers tools for software development and deployment IaaS = Offers virtualized computing resources over the internet Utility Computing = Runs self-developed software on a service provider's hardware</p> Signup and view all the answers

    Which of the following is NOT a benefit of using SaaS?

    <p>Higher costs associated with IT staff</p> Signup and view all the answers

    SaaS vendors primarily earn money through upfront licensing fees.

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

    Name one major concern when relying on SaaS.

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

    The model known as _______ provides a more bare-bones approach to cloud services.

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

    Match the SaaS benefit to its description:

    <p>Lower costs = Reduction in software and hardware expenses Scalable systems = Ability to adjust resources based on demand Mitigate financial risk = Reduce costs during slow business periods Remote access = Access services from any location with an internet connection</p> Signup and view all the answers

    Which of the following correctly identifies the type of cloud computing that delivers an online platform for designing applications?

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

    Open source software poses no legal risks for users.

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

    What is one potential downside of SaaS concerning network reliance?

    <p>Slower or unstable connections</p> Signup and view all the answers

    Most SaaS firms utilize a _______ pricing model for their services.

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

    Study Notes

    Software Industry Shifts

    • Software industry is experiencing significant change due to open source, cloud, and app-driven technologies.
    • Low marginal costs, network effects, and switching costs have created a large, important industry.
    • Examples of wealthy figures in the software industry are Bill Gates (Microsoft) and Larry Ellison (Oracle).

    Open Source Software (OSS)

    • OSS is free software with open code, allowing modification.
    • Firms view OSS as a threat to their traditional business models.
    • OSS is prevalent in many systems, from cell phones to supercomputers.
    • Linux, a major OSS operating system, powers 92% of AWS servers and 40% of Azure cloud servers.
    • LAMP (Linux, Apache, MySQL, Programming languages) is widely used for websites.
    • Companies use OSS for cost reduction, reliability improvement (many eyes on code), enhanced security (more eyes on code), scalability, agility, and reduced time-to-market.
    • OSS projects, while often well-maintained, can experience vulnerabilities, as seen with the Heartbleed bug.
    • The Heartbleed bug highlights the need for security audits even in widely used OSS projects; the Linux Foundation's Core Infrastructure Initiative addresses this, funding critical infrastructure projects.
    • Examples of OSS include WordPress, Firefox, LibreOffice, Gimp, Magento, TensorFlow, Alfresco, Marketcetera, Zimbra, MySQL, PostgreSQL, MongoDB, HBase, Cassandra, SugarCRM, Docker, Asterisk, Git, FreeBSD, and OpenSolaris.

    The Business of Open Source

    • The OSS industry is estimated to be a $60 billion market, disproportionately impacting the much larger trillion-dollar IT market.
    • OSS lowers computing costs, creates accessibility for smaller firms, and improves reliability and security.
    • OSS firms like Hortonworks, Cloudera, MapR, MongoDB, Docker, and Red Hat (market cap exceeding $30 billion) have seen significant value.
    • Revenue for open source companies comes from support and consulting services.
    • Standardisation encouraged by OSS has unified the market making it more attractive to developers and software providers.

    Cloud Computing

    • Two main types of cloud computing: SaaS applications, and utility computing and other platform and infrastructure models.
    • Software as a Service (SaaS): Firms subscribe to third-party software delivered online.
    • Platform as a Service (PaaS): Provides tools like programming languages, databases, operating systems, testing, and deployment in the cloud.
    • Infrastructure as a Service (IaaS): Offers remote hardware, storage, and networking, allowing clients to choose their software.
    • Private cloud: An organization's own cloud infrastructure for specific tasks.

    Software as a Service (SaaS)

    • SaaS lowers costs associated with software licenses, IT staff, server hardware, and maintenance.
    • SaaS companies generally earn money via subscription fees.
    • Some SaaS firms use advertising to support free services.
    • Benefits of SaaS for users include lower costs, faster deployment, variable expenses, reduced financial risk, scalability, higher quality service, and remote access.
    • Benefits for SaaS vendors include a unified platform, a tighter feedback loop, faster bug fixing, reduced distribution costs, and lower software piracy risks.

    SaaS Risks

    • Dependence on a single vendor.
    • Vendor viability concerns.
    • Potential for unforeseen training and procedure changes with new versions.
    • Reliance on network connections that may be slower, less stable, or less secure.
    • Remote data access vulnerabilities.
    • Legal issues from differing jurisdictions.
    • Limited customization and integration options in some cases.
    • Possible cheaper and more manageable in-house alternatives.

    Virtualization

    • Virtualization software allows a single computer to function as multiple computers.
    • Virtualization can reduce hardware needs, create private clouds, and lower energy consumption.
    • Containers and virtual desktops are specific virtualization approaches.
    • Virtualization software lets firms easily scale, back up, secure, and upgrade systems.

    App Stores

    • App stores lower costs and maintenance of software delivery and provide improved user interfaces with operating system integration.
    • App stores, with apps as the primary consumer interface, are significant in some large firms.
    • Critics argue that apps lead to consumer lock-in and increase switching costs.

    Make, Buy, or Rent Decision

    • Managers must consider competitive advantage, security, legality, skills/expertise/available labor costs, time, and vendor reputation for successful software adoption.
    • Evaluating security, reliability, compliance, and vendor stability are essential elements of consideration.

    Cloud Computing Models: PaaS, IaaS, and Motivations/Risks

    • Firms may use cloud services to run their software on external hardware, paying only for necessary processing, storage and communications.
    • Cloudbursting: Shifting workloads to the cloud during demand spikes.
    • Black swan events: Unpredictable but high-impact events.
    • Cloud computing can accelerate innovation and alter skills needed by IS workers by decreasing the need to invest in hardware.
    • Server farms are massive networks that power cloud computing.
    • Geographical considerations for setting up these farms are related to cost, power, fiberoptic connections and climate.

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    Description

    Explore the significant shifts in the software industry driven by open source, cloud technologies, and app-driven solutions. Learn how these changes impact traditional business models and the adoption of open source software across various platforms and sectors.

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