http://news.bbc.co.uk/2/hi/technology/6506027.stm

As we have been discussing in class operating systems are one of the products that shows positive network effects with expanding user base. This makes sense because with a larger user base reduceds concerns of interoperability which is a concern for business users. Also once there is a larger user base then more developers will produce programs, luring more users.

The model we look at in class on 4/4 needs some small generalizations to model usage of linux. The “price” of using linux is not in purchasing the operating system, but in time configuring and maintaining linux. The way companies make money on linux is by providing support (RedHat,Novell,Linspire). The second modification that the model needs is the addition of a hard core of users that will use linux regardless of the cost.

This is an important issue because of the prevalence of computers in our society. Most tasks done on computers, web browsing, word processing, spread sheets, and email are fairly basic tasks. It would be very easy to replace all proprietary software for these tasks with open source counterparts. If we assume that a standard microsoft/mac package consisting of the OS, basic software, and an office suite costs ~$300 then for a mid sized company which owns 1,000 machines this is a savings of around $3 million. Similarly large sums of public money could be saved by moving all government computers away from proprietary software.