Microsoft vs linux


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Microsoft vs linux

  1. 1. Microsoft CorporationType Public NASDAQ: MSFT SEHK: 4338Traded as Dow Jones Industrial Average component NASDAQ-100 component S&P 500 component Computer softwareIndustry Online services Video games Albuquerque, New Mexico, United States (April 4, 1975Founded (1975-04-04))Founder(s) Bill Gates, Paul AllenHeadquarters Microsoft Redmond Campus, Redmond, Washington, U.S.Area served Worldwide
  2. 2. Founder(s) Bill Gates, Paul AllenHeadquarters Microsoft Redmond Campus, Redmond, Washington, U.S.Area served Worldwide Steve Ballmer (CEO)Key people Bill Gates (Chairman)Revenue US$ 73.72 billion (2012)[1]Total assets US$ 121.2 billion (2012)[1]Total equity US$ 66.36 billion (2012)[1]Subsidiaries List of Microsoft subsidiariesWebsite
  3. 3. STRENGHT Applications and operations divisions along with recently created online service network divisions (MSN) Flexible workforce through contingent workers for seasonal/cyclical projects Loyal, hardworking, and diverse workforce (20% minority, 26% women) who, in addition to good compensation, have an opportunity to do well financially through stock purchases Multinational corporation operating through regional subsidiaries to minimize cultural differences in more than 60 countries New product, Neptune , is a Windows interface and is an example of smart software
  4. 4.  Relatively rapid product development processes that allow for timely updating and release of new products Revenues and profits rising at 30% a year with merger/acquisition or investment in 92 companies over past five years Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and cost- effectiveness Top rating from Fortune for best company to work at and most admired company Windows 95, 98, 2000 series, and Windows NT are globally known as the PC desktop operating system with a market share of about 88% Worlds largest software company with global name recognition and strong reputation for innovative products
  5. 5.  Between 1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the Internet Bill Gates has become Microsofts chief software architect but has not yet developed a substantially new line of products Dependency on hardware manufacturers to pre-install Microsofts PC operating system Downside of product launches and deadlines contributes substantially to employee burnout Employee turnover has increased from 6% for a ten year period to 7.4% Falling sales in the operating systems and server software sectors Frequent reorganization, red tape, and autocratic atmosphere dampen employee creativity leading to a loss of key personnel and chilling of communication and innovation; 5-layers of management
  6. 6.  IRS audits in 1989 and 1990 revealed employment status of contingent workers for whom Microsoft did not withhold taxes nor allow to participate in Microsofts Savings Plus Plan or Employee Stock Purchase Plan, leading to a finding of tax liability for Microsoft in the "permatemps" Vizcaino litigation Little or no significant presence in the wireless market and Windows CE has been disappointing Not a key player in the Internet space and few products for Internet applications Perceived by many as a cut-throat competitor that uses its dominant market position to marginalize competition by stealing/destroying the competitions products, stifling product innovation, and decreasing the availability of competitor products Products have a single application focus and do not work well with or on-top of other products Reputation has suffered because of entanglement in antitrust and "permatemps" Vizcaino litigation
  7. 7.  Cheaper global telecommunication costs open new markets as people connect to the Internet Federal trial Judge Thomas P. Jacksons breach of judicial discretion and conduct in the Microsoft antitrust case clouded the proceedings in Microsofts favor Mobile phone applications and exploitation of personal digital assistants represent a growth industry so that strategic alliances could provide Microsoft with opportunity in a market where it currently has little or no significant presence Popularity among people for Internet access The demand for personal computers in American and global markets remains strong despite the growth and increasing popularity of personal handheld devices
  8. 8.  Apple and Linux threaten Microsofts 88% market share of the desktop operating market Between 1993-95, Sun Microsystems, Netscape, Oracle, IBM, AOL, and other companies moved into the Internet space and defined it while Microsoft failed to anticipate its growth or popularity Currency exchange rates affect demand for application/operation software and hardware, and fluctuating currencies can negatively impact revenues in the global marketplace Department of Justice antitrust litigation and current appeal creates uncertainty among employees since its outcome is not known Hardware manufacturers (Sun Microsystems, Oracle, IBM) have collaborated on new platform technologies that replicate much of the value of Windows
  9. 9.  Hardware manufacturers (Sun Microsystems, Oracle, IBM, AOL, and Apple) are issuing their own pre-bundled programs on their own hardware Linux influence growing from 7% in 1998 to 17% in 1999 Personal computers, mobile-phones, personal digit assistants, entertainment-oriented hand-held computers, and similar wireless products for Internet access do not require Window operating system products Rapid development of mobile devices that will displace/replace personal computers Software piracy of commercial and consumer applications software on a global scale threatens revenue streams Technology life cycle is shorter and shorter Unix dominates high-end mission-critical applications and its customers do not believe Windows can handle these operations
  10. 10. Company / developer ManyProgrammed in VariousOS family Unix-likeWorking state CurrentSource model Free and open source softwareInitial release 1991 (2012-09-01)Marketing target Personal computers, embedded devices, mobile devices, serversSupported platforms Alpha, ARM, AVR32, Black fin, C6x, ETRAX CRIS, FR-V, H8/300, Hexagon, Itanium, M32R, m68k, Micro blaze, MIPS, MN103, OpenRISC, PA-RISC, PowerPC, s390, S+core, SuperH, SPARC, TILE64, Unicore32, x86, XtensaLicense Many[3] ("Linux" trademark owned by Linus Torvalds[4] and administered by the Linux Mark Institute)
  11. 11. STRENGHT  Linux is open source software so anyone can use it.  Its free and cost effective  Strong alignments with companies like IBM, HP, DELL, INTEL, ORACLE etc  It is no 2 in the market with fast growing market share 12.7%  No backdoors security issues  Consistent revenue growth with strong customer base
  12. 12.  It is designed for server application. Less user friendly then the Windows OS Lack of standardized graphical user interface Compatibility issues Don’t have large number of software designed for it Lack of product standardization
  13. 13.  Diverse industries interested in Linus. Eg Boeing’s phantom works, Dream works etc Collaborations to provide Linux compatible products . Eg Oracle, Sap etc Linux into consumer electronics. Eg Sony PS Big corporate and governments interests E.g. Brazil government has implemented Linux Economic Slow down Increasing demand for open source software
  14. 14.  Monopoly of Microsoft in desktop systems i.e. 90.68% Large innovative product lines offered by Microsoft. E.g. Microsoft ( windows, office servers, Developer Tools, Windows mobile etc Microsoft is the largest player in the Market Technology life span getting shorter and shorter
  15. 15. Microsoft LinuxCritical Weight Rating Weighted Rating WeightedSuccess Score ScoreFactorsProduct Quality 0.15 4 0.60 4 0.60Price 0.15 3 0.45 3 0.45Technology and 0.2 4 0.80 3 0.60InnovationManagement 0.15 4 0.60 3 0.45Financial 0.1 3 0.45 2 0.30Customer 0.2 3 0.60 3 0.60Market Share 0.05 2 0.10 3 0.15Total 1.00 3.60 3.15
  16. 16.  This CPM suggest that Microsoft is still in good position with regard to Linux This CPM suggest that both companies are above average and in strong position. Since this both are in the field of IT and here innovation plays a great role so Microsoft gives priority to innovation than Linux Linux gives more priority to Web if it started to giving priority to OS part then it can be the top Company so Microsoft should think on it and makes a competitive strategy.
  17. 17.  As Microsoft has clear advantage in terms of application, big support infrastructure and in terms of security over Linux. Microsoft is in unique position to fulfill enterprises software and brings different version of OS. Microsoft has user friendly accountability as well as standardization of product quality.
  18. 18.  Linux is best doing in Server application than Microsoft Linux has wide range of application in mobile, java, android etc than micrososft Linux is a open source and free software and many strong alignment with big companies like IBM, Oracle etc But in comparison with Microsoft Linux has to do a lot and it should enter into other market shift so that it can compete with Microsoft and became a No. 1 Company in the world of IT.