The document discusses the open source movement and the rise of Linux in the 1990s. It begins by providing background on early operating systems like DOS, Unix, and Windows. It then summarizes the development of Linux by Linus Torvalds in 1991 and its growing popularity among companies. The document also discusses Microsoft's initial resistance to Linux but eventual embrace of it as a competitor. It concludes by noting potential challenges for Linux's future growth.

1. STRATEGIC MANAGEMENT
PRESENTED TO: PROF. ANJU DUSSEJA
Presentation On

2. GROUP MEMBERS
NAME ROLL NO.
Sagar Ashamshetty 62
Shashank Pamul 94
Pratima Patil 98
Supriya Pawar 100
Deepika Shetty 110

3. CASE OVERVIEW
• The case discusses the open source movement and the
evolution of Linux in early 1990s, which changed the
computing world.
• The case focuses on the open source movement and the
reasons why big companies like IBM, HP and Sun extended
hardware support to Linux.
• The case also discusses the initial response of Microsoft
towards Linux and the gradual change in response.
• The case ends with the prospects of Linux and problems that
might crop up for Linux in the future.

4. INTRODUCTION
March 2003: Microsoft Corporation (leading software company)
had offered to open the source code of windows(its highly
guarded operating system) to Chinese government.
Reason:
1. To make Microsoft's position strong in the country .
2. Increasing popularity of India.
3. Other countries including India have been shifting to Linux for
administrative task.
4. Linux is available for free.
5. Linux’s open source code.
6. Focus shifted towards Linux where market share of windows
fell down (Linux captured 13.7% of market share & estimated to
increase 25.5%)

5. OPEN SOURCE MOVEMENT GAINING
GROUND
• In 1970 the computing world was dominated by one
operating system -Disk operating system (DOS)6
• There was also another operating system provided by Bell labs
- Unix.7
• In 1983 Microsoft introduced its revolutionary operating
system - Windows
• Microsoft's Windows source code was a closely guarded
secret.
• In 1984 Richard Stallman former programmer at MIT's
artificial intelligence lab, developed GNU software as an open
source version of Unix.
• Stallman founded the Free Software Foundation (FSF) in
1985.

6. EVALUATION OF LINUX
• Early 1990’s :- Linus Torvalds, a Finnish graduate student of
computer science started coding an operating system.
• August 1991: Code shared freely to a software discussion
group (Torvalds had started developing the operating system
as a hobby for Intel processors - 386 (486), which was based
on MINIX.)
• Sept 1991: LINUX ver. 0.01 available on the internet to test.
• Oct 1991: LINUX ver. 0.02 released. Declared to develop OS
that would run on all system platforms.
• December 1991 : LINUX ver. 0.10, 0.11, 0.95 released.
• 1994: the commercialization of Linux began, with vendors
selling application software that would run on Linux.

7. • 1996: Linux was used at Los Alamos National Laboratory to
run 68 PCs as a combined processing computer to replicate
atomic shock waves at very low cost.
• By 2001: Linux was acclaimed as cheaper, and also free from
software bugs or glitches as compared to other o/s such as
Windows and Unix.

8. THREATENED BY THE PENGUIN
1) Mid 1990: Linux gained respectability in corporate circles and
was supported by several computer companies like IBM,
Oracle, HP, Compaq and Dell.
2) 1998: Microsoft tried to sideline Linux.
3) Microsoft chose to downplay the threat posed by Linux, Sun
extended its support to Linux.
4) 1999 :Microsoft woke up to the threat from Linux and started
its campaign to counter the growth of Linux by creating a
portal ‘Linux Myths’.
5) 2000: Linux’s market share increased to 27% and growth rate
was 24% against Microsoft’s 20%.

9. 5)December 2002: Microsoft adopted a strategy to counter Linux by
evaluating the TCO total cost ownership..
6) 2002: Microsoft announced a major shift in its strategy and adopted
an embrace and extend strategy towards Linux.
7) 2003 :it was reported that around 39% of corporations had shifted
to Linux in the server market.
8)IDC reports: it was estimated that by 2006 Linux would increase its
market share to 25.2% in the server market, threatening Microsoft’s
leadership.

10. THE FUTURE OF LINUX AND OPEN SOURCE
MOVEMENT
• Open-source would have trouble in penetrating software
industry.
• Limited number of applications available for use on the Linux
o/s.
• Lindows.com was launched, to cater to the needs of
committed Windows users.
• Unix software would register claims against Linux.
• Technical problem.
• Graphical interface problem.

11. Conclusion & Learning