STRATEGY AND OPEN SOURCE: WAYS OF RESHAPING THE PLAYING FIELD

Hope all of you have had the chance to listen to my intervention lecture. As I said in the lecture what began to happen about a decade ago has now created a whole new playing field and there was strategy at the back of it. So let’s think of two questions to respond to:

1. Would you have anticipated that open source software could be part of business strategy? From within the metaphor of a playing field we can see that the use of a non-market force –such as software that resists being a commodity –Can be used to reshape the playing field. In the same way that regulation shapes / reshapes the playing field would you see the use of open source as an anti-market / anti-competitive practice?

2. Microsoft has moved into the cloud market and established itself as one of the significant actors. Intel is still struggling to find a new foothold. Do you believe that these two giants can rebuild their dominance and do you see ways in which open source will be used to reshape both the two emergent markets — cloud and AI?

40 thoughts on “STRATEGY AND OPEN SOURCE: WAYS OF RESHAPING THE PLAYING FIELD

  1. 1. I do not think that open source software will be used as part of a business strategy. The technology world is fierce and very competitive. Open source software would level the playing field and if that were to happen, we may not get technological advances as quickly as we are now.
    2. I don’t believe that Microsoft and Intel can become a giant in the cloud market as Apple’s cloud products have been a heavy hitter for a while. I have used both Microsoft and Apple’s cloud products and Apple has Microsoft beat by a landslide. As for the technology with AI, I feel that Microsoft and Intel have a chance to get into that market. There are a lot of smaller companies that are working on AI advances and Microsoft and Intel have the means to become partners in the smaller companies stake.

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    1. Hi Jessica,

      I found your take on open source software not being used as part of a business strategy very interesting. I agree that open source software levels the playing field but I also think the playing field is never really leveled when it comes to business. Having open-source software would benefit the company that is most creative and innovative. It will also benefit the company that provides what the consumers need the best.

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    2. Hi Jessica,
      I’ve also found your take on open source software not being used as part of a business strategy very interesting. As mentioned in my comments, ” Wintel’s fall was the lack of innovations and the inability to see the benefits from the mobile market. Open-source has the advantage and allows companies to see those great ideas.” The rate of using open source is growing rapidly. 10,000 lines of code are added to Linux every day, making it the fastest evolving software.
      https://www.bcg.com/publications/2021/open-source-software-strategy-benefits
      Thank you,
      Cici Ouyang

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  2. 1. I would say I am not surprised open source software can be used for business strategy. The technology allows businesses to be very creative when building an online presence via their websites and social platforms. People consume their media primarily through the internet today and businesses have had to adapt how they market their services through this change. The use of open source software can become a competitive advantage for businesses if used properly. For example, Trojan branded condoms have created an entertaining account on the social app TikTok, where they blend humor and creative metaphors to show how their product works. Other consumer brands, like OxiClean, may post “how to” videos on their official websites to show consumers how best to use their cleaning products. Businesses who understand how to best use open source software can reshape the playing field to their best interest.

    2. I do think it’s possible for Microsoft and Intel to become large players in the cloud market. Microsoft already has rolled out their cloud based, OneDrive, system which functions as a cloud storage space. We use this technology in my company and it is very helpful when trying to preserve files. The challenge will be competing with Apple as they have established themselves as a strong cloud based service with applications such as Apple Music and iCloud. One other area Microsoft does well in the cloud market is with video games. As someone who owns Microsoft’s console Xbox, I have familiarity with their cloud based storage for games. I find this feature very helpful when I need somewhere to store game data and run out of internal storage on my system.

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    1. Hi Tom,
      I wanted to follow up on your point about OneDrive being an excellent Microsoft tool for the cloud. Not only is it easy for accessing data, it is also capable of being linked to SharePoint and Microsoft Teams. Additionally, I prefer not using Microsoft Teams to review files, so I use the “sync” function so that I can find all of my files, whether they are on SharePoint or Teams, via my file explorer. I think from a business perspective, Microsoft is still a dominant force, but I think their opportunity exists outside of the business world with personal cloud usage.

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  3. 1) I don’t believe an open source source software should be used for any business strategy. Every product or business is different and that is what differentiates every company. They should not be all even on a playing field. A company would modify open source and use it for their own advantage in the business world.
    2) i do believe Microsoft and Intel can rebuild their dominance with the help of open source and cloud software. They started the technology advancement and they can easily become the first to discover something new or modify something that solves a daily need. Creating something revolutionary with AI can be a starting point. However, they need to discover something fast before the media moves them to the side.

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    1. Hi Anthony.

      Open source software enables many small companies with limited resources to compete. They can customize the master code to suite their needs. Hence the availability of open source code is critical to innovation and competition in the marketplace.

      For small businesses, open source software provides unlimited access to fully functioning software that can help grow and automate your business at little to no cost. As long as someone on your team has the necessary know-how, you can easily customize the software to meet your unique needs and you should be good to go.

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  4. 1. I would not have anticipated that open source software could be apart of a business model, mostly due to how accessible the software is to all players. When I think of two competitors in the same marketplace, I would have never considered them utilizing the same base software to create their products. For example purposes, I could not see Uber and Lyft creating their applications from the same base. I think it is interesting to consider, though, how two competitors must manipulate the software in order to give themselves a competitive advantage, which is why I ultimately believe open source software is not an anti-competitive practice. The goal of any company should be to create a unique product that meets the wants and needs of potential consumers. Open source software may create the same base, but I do not feel that companies will be motivated enough to continue to create unique products and ideas to help their market share. By refusing to experiment, a company would be limiting their potential growth and revenues.

    2. I believe that both Microsoft and Intel have the potential to reinsert themselves as serious players in the tech industry due to their history and resources. As Group 2 had indicated in their Section B post earlier in the week, the Cloud industry is beginning to get a little crowded, with Apple and Microsoft as established players, with Google and Amazon beginning to push out Cloud products as well. Whether or not Microsoft’s future is in Cloud is to be seen, but the company has seen success with their Azure Cloud technology to this point, and are even expanding to Mexico and Spain with the services. Intel, unfortunately, has not seen the same success as their partner. Again, as Group 2 noted, Intel tried their hand at 5G smartphone tech, but ultimately backed out and are seeking to sell their resources to Qualcomm. As I mentioned above, though, I do believe Intel’s reputation and size allows them the potential to regain market dominance, but whether that is in either cloud tech or AI is to be seen. In this instance, I could see open source software as a major advantage for a company such as Intel in order to enter an already growing marketplace with Cloud tech. As mentioned, major players have already gone to market with their products, and other services are on the path to be released. Open source software, in this instance, would provide Intel with the base technology required to catch up and allow a semi-even playing field. It would still be Intel’s responsibility, though, in making sure their Cloud tech serves a public need and is unique enough to stand out.

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    1. Hi Joe,
      I enjoyed reading your post. In my view Microsoft has a better shot at gaining back its domination as it has expanded in many different industries with gaming being one of them. its Xbox division has shown tremendous growth and its constantly working in cornering the gaming industry. From a growth point of Microsoft fall from grace happened early enough to give the company time to revisit its strategy and deploy resources in a more efficiently to ensure growth.

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    2. Hello Joe,

      I enjoyed reading your post and agree that Microsoft has been making big moves in the cloud industry. For a company that was initially against open-source software until the 2010s, Microsoft has done a good job catching up with companies like Apple. Microsoft released a Windows 10 rest build that includes the ability to run Linux graphical user interface apps in April 2021. In June 2021, Microsoft showcased a new Windows Subsystem for Android that enables support for the Android Open Source Project. This new Windows Subsystem enables users to run Android apps on the Windows desktop. These are just two examples out of many that show Microsoft will continue being a strong competitor in the cloud market.

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  5. 1.While open software offers many advanced, I was always hesitant to see it as a strategic asset in a company’s business plan to develop software. My hesitation comes from the discovered and undiscovered security loopholes in open software that can severely compromise software and hurt the brand name of the company utilizes it.
    On the second point I see the core opensource software as being a catalyst for open markets. Companies use the core source to custom-make their own software that interacts with other inhouse systems flawlessly. This is a more advantageous choice as the company doesn’t have to create bridges from vendor software to integrate with other inhouse programs.
    2. When we view the market exposure of intel and Microsoft, I am hesitant to have much hope for intel based on their current business model, failure to innovate and lack of diversity.
    Microsoft on the other hand has completed a full turnaround since the days of their failure in mobile market. Their clous infrastructure if first class and a prime choice for many corporate clients. Together with AWS they are the industry standard when it comes to cloud servicing. In a way cloud infrastructure and AI systems are interconnected as many companies are utilizing the cloud for ease of use with the work from home business model that was further utilized during the pandemic. Because companies have enormous volume of data R&D dollars will do in both these areas. We can expect tremendous advancements in both Cloud infrastructure and AI in the years to come.

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  6. 1. Developing and deploying open source software is no longer just a novel idea. It’s a strategic necessity in a fast-changing digital world. As the idea of “openness” becomes one of society’s hallmarks in the 21st century, and extends into innovation, research, and standards-setting, open source software has become integral to business. Because of the speed and the scale at which it has happened, open source is central to strategy today. It’s shifting the economics of innovation by offering companies powerful capabilities without their having to make upfront investments. In addition to leveling the playing field for startups, open innovation has forced digital giants to pivot and embrace open source software. Companies that find ways to take advantage of the breadth and the depth of the open community will save time and money, and boost their innovation capabilities as well. It may sound contradictory, but it’s time CEOs focused on open source software as a way of gaining a proprietary advantage for their companies.
    2. Definitely, Microsoft and Intel should merge with small firms and take advantage of the AI expertise they have. Additionally, if the smaller firms come-out with the technology which works then the other big giant companies will try to acquire them. There will also be a dominance of these two companies if they acquire smaller companies. They have huge infrastructure and skilled manpower which can be used to expand.

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    1. Hello Dhara,

      The idea of Microsoft and Intel merging with smaller firms is an interesting proposition, however, they would need to ensure the technology they are merging with will truly help their positioning in the AI market. Also, Microsoft and Intel were forced to go separate ways and end their partnership due to the changing technological landscape, and by making additional mergers they may again set themselves up for failure. They could attempt to purchase smaller firms, but again, that is a big financial commitment so they need to ensure that is the best move for the organization.

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  7. 1. One of the biggest challenges open source will have to overcome is the security element of open source technology. While this is a significant challenge, open source methodology will not fail as a result of security infrastructure and tactics, rather the security is really just a by product of continuously evolving tech and as a result needs to also evolve with it. They’ll also have to overcome the advertising hurdle in that they have advertising plastered over so much of their UI’s it can be intrusive in some cases. For example, the very platform we’re having the discussion on, WordPress, is a free and open-source content management system (CMS). You’ll also probably notice the amounts of advertising and pop up’s that show up when pretty much navigating to any new url location while using it. This is a key way that organizations that run open source technology earn a majority of their revenue through advertising.
    2. Microsoft as pointed out in several of the section b posts has certainly overcome the challenges they were presented with the general adoption of a more mobile centric or mobile first society but reshaping their business strategy and entering the cloud market with Azure. Now competing as essentially the number one provider, followed by a close second Amazon AWS Web Services, they has solidified their future revenue growth for a long and prosperous decade. Particularly with how the cloud services contracts are structured, providers stand to gain billions of dollars in revenue forecast, which I believe actually presents more of a problem for buying organizations through the raising IT costs. Hopefully we don’t see these companies price themselves out of the market, although I do believe there are some monopolistic tendencies at play with how much it costs a company to migrate cloud services to other providers, they are locked in to continue services regardless of cost in many cases. This in turn can have impact of shareholder value and EPS which needs to be addressed in the long-term to continue this type of service and support model.

    https://www.helpnetsecurity.com/2021/06/15/cloud-computing-costs/
    https://siliconangle.com/2021/11/28/cloud-computing-costs-high-can/

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  8. 1. In my opinion, open-source software can be used as part of a business strategy. No two companies are completely alike. Companies who use open-source software would still be able to differentiate themselves by the manner they manipulate the software to fit their needs. In a fast-changing digital world, open-source software could become a strategic necessity for potential growth within a company. Open-source software can be used as a foundation, improve speed to market, prevent vendor lock-ins, and can reduce costs for companies.

    2. Microsoft and Intel, with the use of cloud and open-source software have the potential to become dominant in the cloud market. Just like in every market, there are very strong competitors in the cloud market; especially Apple. There accelerating demand for cloud computing services means that the stage is wide open for Microsoft to increase their PC demands by remaining innovative and ahead of their competitors.

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    1. Hi Samuel,

      Great discussion this week. i never thought of it this way that open-source software could become a strategic necessity for potential growth within a company. this seems very interesting to me and can be very true. Most major companies now are tech companies and need open-source software if they want to succeed in the future. I believe that it opens more doors and opportunities for the companies.

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  9. 1. I think that open-source software could be a part of a business strategy. The reason for Wintel’s fall was the lack of innovations and the inability to see the benefits from the mobile market. Open-source has the advantage and allows companies to see those great ideas. On the other hand, it also helps the company see further what the market wants. I researched and found that 99% of the fortune 500 companies use open-source software. “Business use of open source software is soaring. As many as 80% of IT departments plan to increase their use of open-source software over the next 12 months, with 95% of IT specialists agreeing that open source has become strategically important.” However, I do not think that open-source could be used as an anti-market/anti-competitive practice since more than one company could use the same base. On the other hand, using open-source as an anti-market/anti-competitive practice would go against the original purpose of open-source.
    2. I do not see that Microsoft and Intel could rebuild their dominance at this moment. These two giants are going towards different goals and directions while Microsoft is moving into the cloud market, and Intel is still struggling at the same time. Not only are big companies working on AI services, but there are also many other less competitive companies working on AI technologies. I do believe that open-source could use in the AI market.
    https://www.bcg.com/publications/2021/open-source-software-strategy-benefits

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    1. Hi Yongshi! I thought your take on Microsoft and Intel not being able to rebuild their dominance was quite interesting. I do agree that Microsoft and Intel would not be able to rebuild their dominance when it comes to server software and hardware; however, I do think that Microsoft will be able to rebuild its dominance in the cloud and AI markets. Microsoft took a page out of Google’s playbook and has backed an opensource AI project called OpenAI as well as repositioned its initial services as services that are available on cloud technology. I did an internship last semester and the company I worked at (along with collaborating companies) exclusively utilized Office 365. Microsoft has poured significant funding in its cloud technology and I believe that it will pay off, especially in light of the emerging metaverse.

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  10. An interesting point I wanted to raise regarding “open source” software is that even though Microsoft lost a considerable portion of its market share in the mobile device market, they have released an application which carries the very same principles of open source. The application that they developed is called “PowerApps” which allows users to develop their own applications in a quick and easy way, and then link them to other Microsoft applications. As an example, I can develop my own application, and have the application assign tasks to someone in Microsoft Teams, and remind them by email in Microsoft Outlook. As a customer of this tool in a factory setting, it was an excellent resource for us to deploy new ways of working with mobile devices (tablets) and track everything online via Microsoft SharePoint. It’s interesting that although this is not open source in the way that Apache works, it is very similar in the principle.

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    1. Hi David,

      I did not know Microsoft had an application such as PowerApps, and after reading your post it truly does seem like the general basis for open source software. It is pretty ingenious on Microsoft’s part as well, as whatever application a user creates is linked with other Microsoft programs. It is essentially allowing the company to profit off of and utilize the work of others.

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    2. Hi David, I enjoyed reading your response. I am not familiar with Power Apps, but it seems like a great way for developers to work with open source software and create interesting applications. I will definitely do more research into this. It seems very useful, especially with the fact that it can connect to existing Microsoft softwares, like Outlook. Perhaps moving forward, competitors to Microsoft will develop apps that can allow the users to create programs and link them to existing programs within the competing companies. Great job here

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  11. 1.) I believe open source can be useful in managing your business and giving you a strategic advantage. Open source allows your business to be more efficient, flexible, and creative with software. Not to mention, open source is entirely free to use, which lowers operating expenses. This could benefit a smaller company with less capital to grow. Also, I don’t see Open Source as anti-market/anti-capitalist. It does change the playing field, and in many ways expands the field and creates opportunities for new market players. However, Open Source software doesn’t have a “one size fits all” format. It can be customized based on your current business needs, and the ones who excel at this customization are the ones with a competitive edge.

    2.) Microsoft (and to a much lesser degree, Intel) will continue to be a significant player due to its emergence in the cloud market. With fierce competition from Amazon and Google however, I don’t see Microsoft ever being as dominant as they once were in the 80s, 90s, and 2000s. Their biggest market is the Windows OS, which is still the most widely used computer OS in the world. They can use this dominance as an opportunity to improve cloud services on their computers even further, despite having the market share slowly decrease over the last decade.

    Open Source and the cloud market are already butting heads. Previously, your open source software could only be stored on your hard drive/flash drive/etc. The issue now is that when something is stored in the cloud, it is no longer being run by you, it being run on a device that is controlled by someone other than you. That person has control of your software and can decide how it is used/updated/etc.

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    1. Hi Joseph, I agreed with what you said. Open source software can definitely provide an advantage for companies to be creative with. I also agree that they are not anti-market or anti-capitalist. Your points on Microsoft also make a lot of sense. It would be hard for them to be as dominant as they once were, but with Windows, they still have a large advantage.

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    2. Hey Joseph,

      I agree with your perspective on the open source software debacle and whether it really does promote competition in the business environment. Open source software is more liberal and free to use than closed source software. Open source allows for any consumer to change the code of the software to fit their needs. For Mozilla Firefox, this open source software allows for their consumers to change the software so that it has improved function on their computers. This is a step ahead of other browsers like Internet Explorer which doesn’t allow this type of consumer and corporate interaction. By not reaching across the aisle to their consumers, Microsoft has kind of doomed Internet Explorer by not addressing a lot of the consumer complaints with it and changing it from closed to open software. Open source software is just better for the IT industry because ift fosters innovation through freedom and acceptance of change. Yet, what worries me is the fact that I don’t think that open source software is going to be around as a main stay in the market. I feel more and more companies have increasing capitalist pressures to change their products towards more monetization and less cooperation between consumer and corporation. With this in mind, I believe more and more that prices will go up for new closed source software released by big tech companies like Microsoft in the future. This will be done in order to reap more profits from their loyal customer base and I only fear this will lead to a lot more anticompetitive behavior in the IT industry. Hopefully, more open source software is released and less of this corporate greed is encouraged.

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  12. Yes, I can see open source being used as a business strategy. Additionally, it’s worth mentioning that the concept of open source driving down competition is weak, namely because open source lowers the barriers of entry. In this case, open source drives competition because access is unrestricted, thereby anyone can use code for their own purposes. Further, information security is a challenge in any industry whether open source is a factor or not. Open source is theoretically more secure due to its’ inclusivity, therefore there are more opportunities for multiple parties to review code and detect bugs, malware, etc. In fact, the most notable security breach incidents in the past two years were not due to open source weaknesses. These were all closed software architectures. The JBS meat company and Colonial Pipeline were the largest targets with huge consequences. In both incidents, open source was not involved. The Colonial Pipeline disruption was in part due to a compromised VPN. Since 2010 there have only been 43 incidents of open source software being targeted, out of a much larger bucket of incidents not targeting open source. This is not to say that there are no vulnerabilities in open source supply chains, but in practice black hats find a way, closed source or otherwise.

    Microsoft already has regained a significant foothold in emerging technologies. As it has been noted, due to failed social media acquisitions, they have finally poured nearly a quarter of a trillion dollars into gaming. Their cloud technology boosts this ability, providing players with exposure to what they can do with cloud computing. Additionally, as previously noted, Intel is gambling on the semiconductor market. This is under the assumption that they are able to compete at the same level as TSMC and Nvidia and that the chip shortage bleeds beyond 2024. Should this not be the case, they could create an oversupply of chips. However, the key difference between their semiconductor placement and behemoths like TSMC’s is placement. Intel will be opening their factory here in the United States. TSMC has theirs in Taiwan. The pandemic has exposed many of the vulnerabilities surrounding long foreign supply chains. Localizing supply chains, not only drives down cost, but provides safety nets against the unknown variables of pandemics and other global catastrophes. Intel still faces an uphill battle, as they will need to carefully forecast and accurately assess the demand of chips for the next 5-10 years. There is a good chance here. The pandemic has also provided the opportunity for corporations to test the feasibility of maintaining operations outside of expensive real estate. As we speak and even within the first few months of quarantining, corporations seek to escape decade long lease agreements and projects to renovate spaces. What does this mean for chips? As organizations indulge more employees’ requests to work from home, the need for equipment will rise. In the realm of innovation, there is still exploration in surface computing and other prominent technologies that will transform even the home work space, including metaverse. This will run on chips. Intel is gambling, but the strategy is to be a cost effective local supply.

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    1. Hey Jesse, great thoughts here. I complete agreed in my explanation that open source software can actually drive competition more. Like you said, Microsoft is already a giant and has a great stance in the competitive field, and Intel has a chance if they apply their strategy right.

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  13. After reading through this information, I am not surprised that open source software could be used as a part of a business strategy. Competing businesses could use open source software as a basis for developing their strategy. It all depends on how they use these softwares and what they build them up to that sets the companies apart from the others. I do not think that open source software would be considered anti-competitive, if anything it could actually bring forward more competition. If multiple companies in the same area of business utilize the same open source software as groundwork for their business strategy, the competition could be even greater.

    I definitely feel that if a company begins to fall behind another, there are many chances for it to pull itself back up, although this is not always guaranteed. Microsoft is certainly one of the leading brands in technology, and has made itself a frontrunner in the cloud area. It is possible for Intel to regain its foothold in the competition, but only if it finds a way to use open source software in a more beneficial way, compared to the other companies. While it is possible for Intel to re-enter the competition, with Microsoft and especially Apple, iot could be incredibly difficult. There are always ways for companies to make a comeback, or in many cases, they could lose against the big names. A good example is BlackBerry, which was one of the biggest phone companies before Apple and Samsung made their mark. In the end, this concept is very hard to address given the current circumstances, and would really depend on the ideas the company has, in this case for Intel.

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    1. What’s up Jared,

      Great thoughts, I said the opposite about open-source software however I enjoyed what you had to say about it. I did say something similar to what you said about Microsoft and Intel in terms of both companies being giants. Overall great job with your post.

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  14. 1. I would not have anticipated that open-source software could be part of a business strategy. I for one feel as if open-source software will get rid of competition amongst tech companies leading to a decline in the pace at which tech has advanced over the years rather than increase its pace.
    2. I do have some faith in both Microsoft and Intel in terms of becoming dominant again. If anything both companies have a ton of money that can throw into hiring the best people and developing new tech, they’re not going anywhere as far as I’m concerned. I am also not so sure about how both companies can use open-source software to their benefits but I am confident they can figure it out.

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    1. Hey Arman,

      Great post! I agree with you that I initially did not think that open-source software could ever be a part of a competitive business strategy. Yet, with its liberal and modifiable nature we’re seeing it progress more and more in terms of the ability to help consumers and companies interact withe each other and improve the greater IT industry. In my response, I talked about Mozilla Firefox and how it greatly improved the connection between the consumers and their company by allowing the software to be open source and modifiable. This allows for consumers to change the software to make it more suitable for their own needs and thus improve its overall functionality and efficiency in the IT environment. It should still be mentioned that I don’t think open source software is going to become the future of the IT industry anytime soon due to the fact that more and more companies are more interested in monetizing their businesses then with providing satisfaction to consumers. This can be seen with the very recent repeal of Net Neutrality during the Trump Administration. This allows for more data carriers to charge more for faster data speeds and artificially delay internet speeds for the company’s own financial benefit. Hopefully, during the Biden administration we see less anticompetitive regulations passed and more open source software in the It environment to ensure less barriers to entry and more freedom of competition in the industry.

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  15. 1. Would you have anticipated that open source software could be part of business strategy? From within the metaphor of a playing field we can see that the use of a non-market force –such as software that resists being a commodity –Can be used to reshape the playing field. In the same way that regulation shapes / reshapes the playing field would you see the use of open source as an anti-market / anti-competitive practice?

    I would not have anticipated that open source software would be used as part of business strategy. The reason why this is the case for me is because open source software is less about corporate profit and more about providing access to free software to everyone with no price on it at all. Additionally, open source software is modifiable and changeable unlike closed software. This experimental nature of open source software provides another degree of freedom to it. And I just don’t see many competing businesses not wanting to use software as a commodity. Businesses in the IT field are always trying to out do each other to be leaders of change that push society to innovate more. In order to do that they need to spend more money on research and development costs. These costs can only be matched if companies like: Microsoft, Google, and more monetize a lot of their computer technology business which is arguably what’s happening more and more in the industry. However, it should be noted that there are other companies like Mozilla Firefox make their own web browser an open-source tool that allows consumers to modify and use it to their own will. This helps Mozilla Firefox reach out to more consumers as well as remain more competitive in the market. The reason why is because by making their browser open source this allows for consumers to have more opportunities to improve upon the existing framework of the browser. By reaching out to their consumer base, Mozilla Firefox is arguably one step ahead of their competitors due to their willingness to accept change in their products. Meanwhile, largely declining in popular use, Internet Explorer has remained closed source and less open to consumer modification. This has allowed them to stagnate in terms of growth as they haven’t really reached out to their customer base at all (along with a host of security flaws and other issues as well). In the end, this leads me to believe that open source software can never make the market anticompetitive no matter how it is modified in the greater competitive environment. It’s simply just better because of its ability to mesh well with consumers.

    2. Microsoft has moved into the cloud market and established itself as one of the significant actors. Intel is still struggling to find a new foothold. Do you believe that these two giants can rebuild their dominance and do you see ways in which open source will be used to reshape both the two emergent markets — cloud and AI?

    I do think that Microsoft can rebuild itself in the cloud market because they have a lot of resources available to them as one of the largest IT companies in the world. For Intel, I believe they will struggle mightily without Microsoft around to help them out. Microsoft just has more resources available to them and is bigger than Intel in every metric. This will allow them more chances to correct any errors in their attempt to retake dominance in the cloud and AI market. Meanwhile, In tel will struggle due to its small size. Only if Microsoft acquires Intel, then can both profit from advancements in cloud and AI technology. The one step they need to do in getting there is maybe sharing open source technology with each other that way both can work off each other’s modifiable software codes in order to improve every successive attempt at getting closer to a perfect cloud structure and helpful AI technology. However, currently at the moment it seems that Microsoft may have an edge on Intel due to their overall size and large access to multiple resources to help them in their attempts at perfect AI/cloud technology.

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    1. Great post! I completely agree with your initial take on open-source software being less about corporate profit and more about providing greater access. Your comparison of Mozilla Firefox and Internet Explorer was quite enlightening and it made me wonder if there was an in-between. With some quick research- I discovered that Google Chrome, which is not open-source software, is actually based on an open-source project called Chromium. This made Google Chrome more popular because it was able to collaborate with developers and consumers in its initial stages and thus, gain a competitive edge – further providing support that open source software is not antimarket or anticompetitive.

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    2. I enjoyed reading your discussion! i agree that Microsoft can rebuild itself in the cloud market because they have a lot of resources available to them. I also believe that intel can as well though. both are still huge companies in their fields. While intel might have more competition now with other companies like AMD and Apple, they are still a leader in the tech industry. These two companies will definitely make moves into AI/cloud technology since the market seems to moving that way and they do not want to miss out on a lot of money

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  16. 1. I would not have anticipated that open source software could have been a part of a business strategy. Since open-source software is available to anyone for public use, I never thought that it could be utilized to give a company its competitive advantage. However, in today’s day and age, open-source software brings a competitive edge and stimulates innovation. Resources like GitHub, which allows users to upload and share their own code, has allowed people to be inspired and build upon open source software that exists. The collaborative spirit of open source software has a wide range of applications in a variety of industries including pharmaceuticals, gaming, cosmetics, and even scientific research. This has fostered even further innovation, particularly from large companies, in order to maintain competitiveness in today’s market. Thus, I do not believe that the use of open-source is an anti-market/ anti-competitive practice.

    2. I do believe that Microsoft can rebuild its dominance in both the cloud and AI markets. Already, Microsoft has successfully repositioned itself as a major player in the business world with the relaunch of its Microsoft Office product suite as web applications powered by cloud technology, rebranded as Office 365. Office 365 is utilized daily for both internal and external communications by thousands of companies and according to the New York Times, has fueled 41% of Microsoft’s growth. Microsoft has also positioned itself as a prominent player by backing OpenAI, which is an organization that is researching how to safely operate AI. In fact, Microsoft recently built Azure- an AI supercomputer that is currently run by OpenAI. Microsoft’s journey into AI has powered 91% of Microsoft’s growth according to The New York Times post linked below. However, when it comes to Intel, I think they will have a much more difficult time rebuilding their dominance. Intel missed the opportunity to get into cloud computing and AI is quite a competitive field. Additionally, the current chip shortage does not help Intel’s outlook, especially since Intel is known for its chips.
    Open source can be used to reshape the cloud and AI markets by fostering innovation. Openstack is an open source cloud infrastructure based on Apache 2.0 and is already utilized by powerful public companies including IBM, Dell, and HP. Microsoft backed OpenAI (mentioned earlier) has its own github page and people from over the world have contributed to its code and this open collaboration has greatly improved the speed at which AI will be ready to operate in a safe manner.

    Sources:

    https://www.theverge.com/2022/1/26/22903138/intel-q4-2021-january-2022-earnings-best-year
    https://www.protocol.com/microsoft-cloud-ai-supercomputer
    https://azure.microsoft.com/en-us/overview/ai-platform/#customer-stories
    https://7investing.com/articles/can-intel-make-a-comeback-in-the-battle-with-amd-over-ai/
    https://www.networkworld.com/article/2176960/15-most-powerful-openstack-companies.html
    https://github.com/openai/

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  17. I think that open source software can play a big role in business strategy. With the internet being such a profound element in today’s world, let alone the business world, it allows less prominent companies who wish to grow the opportunity to create their own platform and code. Hypothetically, without regulations, if all companies had access to certain codes regardless of their size or capital, they would be able to construct their platform with the code from any open source software.

    Microsoft and Intel could be players in the Cloud and AI world. Both companies already have cloud storage systems, and while it’s tough to compete with Apple, both Microsoft and Intel are large enough to have a say in the competition. While MS and Intel might not be as prominent in the smartphone industry, they are widely used in other tech devices (desktops, laptops, gaming devices etc) where cloud technology could gain traction.

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  18. 1. Open-source software allows for the creativity to resolve and advance in business activities. It allows for a free source where experts or any specialist can provide commentary on the issue at hand. Open source has its advantages over closed proprietorships. I do not see the use of open source as an anti-market or anti-competitive practice. If a company wants to use a commercial software vendor, then I do not think that puts them in a less competitive state. Open source allows for a company (small or corporate level) to collaborate freely with specialists to further advance their company. There are some advantages to using a commercial software vendor such as reliability and the ability to utilize a 24/7 hotline for support. I think ultimately the decision on using open source versus commercial software vendor is a business strategy.

    2. I think based on the previous discussion and reading about the downfall of WINTEL, Microsoft is in a better position than Intel to maintain their dominance. Microsoft has been able to use its strategies and partnerships to maintain its dominance in the market. Intel has been making decisions that have unfortunately not been successful. I think with Microsoft utilizing the Cloud, they are in a better position to evolve. I do not think Intel is in a good position even if they used open source to rebuild its dominance. Microsoft and Intel are still partners to an extent, but they are not in the same state as they were 10 years ago.

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    1. Hey Natalie, after reading your second part about Microsoft and Intel’s ability to become dominant in the Cloud and AI field, it definitely makes sense that Intel is probably not suited to to succeed the way Microsoft might be. I was hopeful in reading some articles that stepping away from the 5G, that they might be able to put more attention into other areas like Cloud technology but the reality is clear that Intel is struggling to keep up with other companies like Microsoft and Apple.

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  19. 1. Software is traditionally expensive, which is why the thought of it as a commodity has often been true. It was once thought that software was a commodity exclusively, mostly because of the steep price tag that many companies have set. the mindset has truly shifted to that of software as a utility; a solution that generates revenue through increased efficiency, and truly proved profit and benefit.

    open source plays central role between the competitors.

    Yes, When operating system becomes mainstream, managing demands a strategy. Linus Torvalds, 21-year-old student of computer science at the University of Helsinki Posted ““I’m doing a free operating system” as a hobby resulted in the development of the world’s first free operating system, the Linux kernel, and kickstarted the open source software movement. Exactly three decades later, “open” has become one of the major ways in which software is developed. Companies use open source software extensively, and it’s increasingly shaping enterprise software architectures. Developing and deploying open source now It’s a strategic necessity in a fast-changing digital world.

    There’s no way around open source software, which can be defined as software that developers can inspect, copy, modify, and redistribute. Proprietary software-providers still dominate the market, but open source software plays an equally important role. For instance, open source Linux powered 75% of the public cloud workload in 2020, and its share is expected to rise to 85% by 2024. most popular software development stacks – such as the LAMP (Linux, Apache, MySQL, and PHP) and MEAN (MongoDB, Express.js, AngularJS, and Node.js) stacks – are open source software. around 85% of the world’s smartphones ran on Android, the open source operating system built on the open Linux kernel. Unsurprisingly, the ability to work with open source software is fast becoming a requirement. Software developers and data analysts, the driving forces of digital transformations, rely heavily on the open source community. They often prefer to use open source software, especially as a foundation, because the software selection and screening process is simple and lengthy negotiations are unlikely. That choice therefore allows the rapid roll-out and adoption of innovative applications.

    2. After helping to launch the Partnership on AI with Google, Facebook and others; and doubling down on AI research, today Microsoft unveiled a new initiative that points to how it plans to target specific verticals in what can potentially be a very nebulous field.

    Microsoft is looking for projects that are using AI to find solutions to problems of introducing AI for Earth program is a little different. Microsoft might want to acquire or invest in the AI field and to get those startups and organizations to build on Microsoft platforms; but also to help Microsoft position itself as a responsible player in this space who wants to use AI for wider and sustainable benefits.

    https://www.bcg.com/publications/2021/open-source-software-strategy-benefits

    https://zbrains.net/software-as-a-utility-vs-a-commodity/

    https://techcrunch.com/2017/07/12/microsoft-launches-ai-for-earth-to-give-2m-in-services-to-environmental-projects/

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  20. 1. Open-source software was integrated with the strategies of giants like Microsoft and IBM despite the reality that open-source software doesn’t include all the tools, documentation, and security measures. It only provides free access to source code and enables corporations to build and enhance from the ground up in order to build the required software.
    Standardized or branded software is much more expensive, including all services, because coding efforts are minimized. However, there could be fewer complications with vulnerabilities and protection, as product vendors such as Microsoft and Oracle ensure thorough testing is undertaken. So, most multinational organizations generally opt to acquire standardized technology from reputed software vendors.
    Small and medium-sized businesses would prefer to use open-source software more owing to the budgetary conditions, though the trend is equally adopted by large organizations. In general, open-source is freely available. But, developers across the globe move their code in. Ensuring quality and vulnerability check is the task that is generally adopted by the organizations who have initiated the open sourcing of that software (e.g.RedHat). They offer support at a cost to the organizations. Traditionally, the main issue with Open source software was the scalability when compared to standard software.
    Large software developers are tapping into this market share as large development communities are using open-source software. They started partnering or acquiring open-source organizations. For example, Redhat was the owner of LINUX prior to getting acquired by IBM, and prominent open-source software GITHUB/ GITLAB had been acquired by Microsoft.
    Open-source software brings competition to the marketplace challenging the high prices of standardized software. A good example of that is Apple IOS vs Android. As a result, open-source is not anti-market, and it helps build competitiveness.

    2. At this moment, I don’t see the two titans regaining their reign. Since they were both headed to two separate directions and aims. Microsoft has already established itself as a powerful Cloud Platform at cheaper rates. for example-Red hat
    In terms of offering and technology, Azure is on par with AWS. And capture a significant share of the market whereas Intel struggles with a suitable resolution to move forward.
    According to Statista, Microsoft has a 21 percent market share compared to AWS’s 32 percent and Google Cloud’s 8 percent as of Q3 2021.
    Microsoft has already bought other startups focused on artificial intelligence, and it competes with Apple in the cloud platform space. We may see big advancements in cloud infrastructure and AI in the near future

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  21. I would have not anticipated that open source software could be part of business strategy. I think that it can give fresh and new ideas to software that companies might have not thought of. Open software gives users the rights to use,and change, the software and its source code to anyone. This can really enhance the software in my opinion. I do not believe that the use of open source as an anti-market / anti-competitive practice since most major companies can and do use it.

    I think that Micoosoft and Intel can definitely rebuild their dominance since they have not really fallen off. Microsoft and Intel had been huge early in the tech industry but now many other companies and competition have entered the market. These companies are still well known and established in their fields. I believe that Micoosoft and Intel will be at the forefront in both cloud and AI in the next coming years. If these companies do move in that direction they will miss out on huge opportunities with in turns losing a lot of money.

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