PRESENTATION ON

MICROSOFTVs

LINUX

- ROHIT DHUNGANA

MICROSOFT CORPORATION

Microsoft Corporation

Type Public

Traded as

NASDAQ: MSFT SEHK: 4338 Dow Jones Industrial Average component NASDAQ-100 component S&P 500 component

IndustryComputer softwareOnline servicesVideo games

FoundedAlbuquerque, New Mexico, United States (April 4, 1975 (1975-04-04))

Founder(s) Bill Gates, Paul Allen

Headquarters Microsoft Redmond Campus, Redmond, Washington, U.S.

Area served Worldwide

Founder(s) Bill Gates, Paul Allen

Headquarters Microsoft Redmond Campus, Redmond, Washington, U.S.

Area served Worldwide

Key people Steve Ballmer (CEO) 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 subsidiaries

Website Microsoft.com

SWOT ANALYSIS OF MICROSOFT

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 Window's interface and is an example of smart software

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%

World's largest software company with global name recognition and strong reputation for innovative products

WEAKNESSES

Between 1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the Internet

Bill Gates has become Microsoft's chief software architect but has not yet developed a substantially new line of products

Dependency on hardware manufacturers to pre-install Microsoft's 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

IRS audits in 1989 and 1990 revealed employment status of contingent workers for whom Microsoft did not withhold taxes nor allow to participate in Microsoft's 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 competition's 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

OPPORTUNITIES

Cheaper global telecommunication costs open new markets as people connect to the Internet

Federal trial Judge Thomas P. Jackson's breach of judicial discretion and conduct in the Microsoft antitrust case clouded the proceedings in Microsoft's 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

THREATS

Apple and Linux threaten Microsoft's 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

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

LINUX

Company / developer Many

Programmed in Various

OS family Unix-like

Working state Current

Source model Free and open source software

Initial release 1991

(2012-09-01)

Marketing target Personal computers, embedded devices, mobile devices, servers

Supported 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, Xtensa

License Many[3] ("Linux" trademark owned by Linus Torvalds[4] and administered by the Linux Mark Institute)

SWOT ANALYSIS OF LINUX

STRENGHTLinux 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 issuesConsistent revenue growth with strong

customer base

WEAKNESS

It is designed for server application.Less user friendly then the Windows

OSLack of standardized graphical user

interfaceCompatibility issuesDon’t have large number of software

designed for itLack of product standardization

OPPORTUNITIES

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

THREATS

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

Competitive Profile Matrix Of Microsoft And Linux

Microsoft

Linux

Critical SuccessFactors

Weight Rating Weighted Score

Rating Weighted Score

Product Quality

0.15 4 0.60 4 0.60

Price 0.15 3 0.45 3 0.45

Technology and Innovation

0.2 4 0.80 3 0.60

Management 0.15 4 0.60 3 0.45

Financial 0.1 3 0.45 2 0.30

Customer 0.2 3 0.60 3 0.60

Market Share 0.05 2 0.10 3 0.15

Total 1.00 3.60 3.15

ANALYSIS OF CPM 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.

CONCLUSION OF THE CASE

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.

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.