Chapter 11 In-Class Concepts

Question 1

How do low marginal costs, network effets, and switching costs combine to help create a huge and important industry?

Question 2

How are adopted technologies (open source software, cloud computing, and software as a service impacting the software industry?

Question 3

Why is there no marginal cost for software products?

Answer 3

The marginal cost is zero because there are no costs associated with each additional unit produced. This is why the software business is attractive and creators of software businesses are very wealthy (i.e. Microsoft Bill Gates and Oracle Larry Ellson).

Question 4

What is open source software?

Answer 4

Software that is free for anyone to use. This posed problems for businesses that profitted from OSS.

Question 5

How did companies compete with free OSS?

Question 6

What is cloud computing?

Answer 6

Using services provided over the Internet on other’s hardware.

Question 7

What is Software as a service (SaaS)?

Answer 7

A form of cloud cimputing; Uses a third-part vendor that manages software of the business/company.

Question 8

Virtualization

Answer 8

Ex. VMWare; Using another machine that does not have the adequate software to get something done on one’s own device.

Question 9

Characteristics of Open Source

Answer 9

access to the source, ability to remix and reditribute, unable to assume private property, raises performance and skills of others (others improve on existing products and learn from eachother’s products)

Question 10

First Open-source Software

Answer 10

Java

Question 11

What is open source software and how does it differ from conventional offerings?

Question 12

Examples of open source software and how might firms leverage this technology?

Answer 12

Linux

Question 13

What is LAMP?

Answer 13

Free software, powering Facebook and Youtube.

Question 15

Why open source?

Answer 15

cost - free alternives to costly commercial code
reliability - open source community try to improve quality (more people = more errors caught and corrected); the quality of OSS outperforms commercial competitors
security - any vulnerabilities come to light and are addressed faster by allowing anyone to examine the code
scalability - the workload grows increasingly
agility and time to market - it is open and free, allowing new products to reach the market faster. saves time developing from scratch

Question 16

How will LAMP earn revenue if it is free?

Answer 16

Professional companies supported.

Question 17

What was the Heartbleed bug?

Answer 17

An error in the security toolkit in which hackers were able to gain sensitive information.

Question 18

Why did the Linux Foundation create the Core Infrastructure Initiative?

Answer 18

to fund open surce projects that are in the critical path for core computing functions

Question 19

Auditing software products

Question 20

Examples of Open Source Software

Answer 20

wordpress, firefox, libreoffice, gump, magento, tensorflow, alfresco, marketcetera, zimbra, mySQL, MongoDB, SugarCRM, Docker, Asterisk, Git, FreeBSD and Sun’s OpenSOlaris

Question 21

How is the business of open source doing?

Question 22

How are open source firms earning profit? For example, why does Red Hat have a market cap of $30 billion?

Answer 22

They sell support and consulting services. They can take free open source products and customize it for customers. They do so well because the more you rely on basic services and are satisfied with the product, the more you develop a need for the service, and find things you want to improve and customize, which comes at a cost.

Question 23

Hidden and complex challanges of OSS?

Answer 23

Maintaining OSS, legal exposure (agreements and licenses)

Question 24

Who helped improve Linux?

Answer 24

RedHat

Question 25

Pie Chart

Answer 25

nothing in row or column bc no axis

Question 26

If Date variable

Answer 26

always show a line chart

Question 27

Text chart

Answer 27

drag row variable to text

Question 28

stcked area chart, shape chart,

Question 29

order date

Answer 29

weekday, quarter, day, week number, helps analyze specific metric