15: Software in Flux: Open source, cloud, virtualized, and app-driven shifts

LAMP

"the lamp stack" =An acronym standing for Linux, the Apache Web server software, the MySQL database, and any of several programming languages that start with P (e.g., Perl, Python, or PHP). =Powers many of the sites visited each day; from FB to Youtube

Virtual Desktops

(another type of Virtualization) When a firm runs an instance of a PC's software on another machine and simply delivers the image of what's executing to the remote device. Using virtualization, a single server can run dozens of PCs, simplifying backup, upgrade, security, and administration. This allows firms to scale, back up, secure, and upgrade systems far more easily than if they had to maintain each individual PC.

Huge implications of Cloud Computing

- Financial future of hardware and software firms -Cost structure and innovativeness of adopting orgs -Skill sets likely to be most valued by employers.

Make, Buy, or Rent

- The make, buy, or rent decision may apply on a case-by-case basis that might be evaluated by firm, division, project or project component. Firm and industry dynamics may change in a way that causes firms to reassess earlier decisions, or to alter the direction of new initiatives. - Factors that managers should consider when making a make, buy, or rent decision include the following: competitive advantage, security, legal and compliance issues, the organization's skill and available labor, cost, time, and vendor issues. - Factors must be evaluated over the lifetime of a project, not at a single point in time. - Managers have numerous options available when determining how to satisfy the software needs of their companies: purchase packaged software from a vendor, use OSS, use SaaS or utility computing, outsourcing development, or developing all or part of the effort themselves. - If a company relies on unique processes, procedures, or technologies that create vital, differentiating, competitive advantages, the functions probably aren't a good candidate to outsource.

APPS

-Over 1 billion smartphones are sold a year, providing a rich platform for app deployment. -Compared with packaged software, apps lower the cost of software distribution and maintenance. -Apps offer a richer user interface and integrate more tightly with a device's operating system, enabling more functionality and services such as app-delivered alerts. -Several billion-dollar firms have leveraged smartphone apps as their only, or primary, interface with consumers. -Mobile apps do provide additional challenges for developers, especially when compared against browser-based alternatives. Among them, more challenging updates, version control, and A/B testing. -Critics of apps say they force consumers into smartphone-walled gardens and raise consumer-switching costs. -While development and distribution costs are cheaper for apps than packaged software, discovery poses a problem, and it can be increasingly difficult for high-quality firms to generate consumer awareness among the growing crowd of app offerings.

Why open source? (over commercial?)

1. Cost: using free alternatives to expensive commercial codes can save ALOT of money. No longer have to pay for each copy used. 2. Reliability: the more people who look at a program's code, the greater the likelihood that an error will be caught and corrected. OSS products often outeprforms commercial comparisons. 3. Security: "many eyes" allow vulnerabilities of OSS products to be addressed quicker. Many OSS vendors offer security-focused versions (Also known as "hardened.") They contain particularly strong security features. 4. Scalability: Ability to either handle increasing workloads or to be easily expanded to manage workload increases. In a software context, systems that aren't scalable often require significant rewrites or the purchase or development of entirely new systems. - OSS efforts can run on everything from cheap commodity hardware to high-end supercomputing. -allows companies to grow without having to constantly rewrite code. (saves software development costs) 5. Agility & Time to market: Vendors who use OSS as part of product offerings may be able to skip whole segments of the software development process, allowing new products to reach the market faster than if the entire software system had to be developed from scratch, in-house.

SaaS Risks

1. Dependence on a single vendor. 2. Concern about the long-term viability of partner firms. 3.Users may be forced to migrate to new versions; Possibly incurring unforeseen training costs and shifts in operating procedures. 4. Reliance on a network connection, which may be slower, less stable, and less secure. 5. Data assets stored off-site may lead to security and legal concerns. 6. Limited configuration, customization, and system integration options compared to packaged software or alternatives developed in-house. 7. User interface of Web-based software is less sophisticated and lacks the richness of most desktop alternatives. 8. Ease of adoption may lead to pockets of unauthorized IT being used throughout a firm.

Virtualization

=A type of software that allows a single computer (or cluster of connected computers) to function as if it were several different computers, each running its own operating system and software. Virtualization software underpins most cloud computing efforts, and can make computing more efficient, cost-effective, and scalable. Think of virtualization as being a kind of operating system for operating systems. A server running virtualization software can create smaller compartments in memory that each behave as a separate computer with its own operating system and resources. The key benefit: Firms can stop buying separate servers for each application they want to run. Instead, organizations can create many virtual computers on a single machine (or cluster of machines that provide a pool of capacity) so hardware is used more efficiently. (AKA saves lots of money)

Containers

=A type of virtualization that allows for shared operating systems for more resource savings and faster execution. However, containers still isolate applications so they execute and move to different computing hardware, just like conventional virtualization..

Cloud Computing

=Replacing computing resources—either an organization's or individual's hardware or software—with services provided over the Internet. -is making it more common for a firm to move software out of its own IS shop so that it is run on someone else's hardware. Software as a Service: users access a vendor's software over the Internet, usually by simply starting up a Web browser. Hardware clouds can let firms take their software and run it on someone else's hardware—freeing them from the burden of buying, managing, and maintaining the physical computing that programs need. Virtualization: A type of software that allows a single computer (or cluster of connected computers) to function as if it were several different computers, each running its own operating system and software. Virtualization software underpins most cloud computing efforts, and can make computing more efficient, cost-effective, and scalable. Helps consolidate computing resources and creates additional savings and efficiencies.

Open Source Software (OSS)

=Software that is free and where anyone can look at and potentially modify the code. -free alternatives where anyone can look at and potentially modify a program's code— pose a direct challenge to the assets and advantages cultivated by market leaders. The source code is openly shared. Anyone can look at the source code, change it, and even redistribute it, provided the modified software continues to remain open and free. (Big businesses see Linux as a threat)

Marginal Cost

=The cost added by producing one additional unit of a product or service. The costs associated with each additional unit produced. Is effectively 0 for software product. -allows business's to "gush cash" Network effects and switching cost can also offer a leading software firm a degree of customer preference and lock-in that can establish a firm as a standard and, in many cases, creates winner-take-all (or at least winner-take-most) markets.

Open Source

=refers to any software whose source code is made available free for any third party to review and modify Linux: an open source software operating system; Can be found just about everywhere. Can be changes and redistributed by anyone. -Most significant product in the OSS arsenal. In the majority of smartphones, tablets, and supercomputers, and supporting most Web servers. Approx 92% of servers in Amazon's AWS cloud. -seen by some firms as a threat that undermines their economic model. In stark contrast to conventional software firms who: 1. treat their ip as closely guarded secret 2. almost never provide the source code for their commercial products. The majority of people who work on open source projects are paid by commercially motivated employers. OpenSSL: "Heartbleed" bug opened a hole that could potentially have been used to allow hackers to gather passwords, encryption keys, and other sensitive information, triggering "the largest security breach in the history of the human race." ----Because of this: Linux Foundation developed a multimillion-dollar project called the Core Infrastructure Initiative, designed "to fund open source projects that are in the critical path for core computing functions." -Helped people to realize how important OSS is.

Defining Cloud Computing

=replacing computing resources—either an organization's or an individual's hardware or software—with services provided over the Internet. Two separate categories of cloud computing: (1) software as a service (SaaS), where a firm subscribes to a third-party software-replacing service that is delivered online. (2) Utility Computing: A form of cloud computing where a firm develops its own software, and then runs it over the Internet on a service provider's computers; can include variants such as platform as a service (PaaS) and infrastructure as a service (IaaS). Firm develops its own software and then runs it over the internet on a service provider's computers. -Platform as a service (PaaS) delivers tools (a.k.a., a platform) so an organization can develop, test, and deploy software in the cloud. These could include programming languages, database software, and product testing and deployment software. -Infrastructure as a service (IaaS) offers an organization an alternative to buying its own physical hardware. Computing, storage, and networking resources are instead allocated and made available over the Internet and are paid for based on the amount of resources used. IaaS offers the most customization, with firms making their own choices on what products to install, develop, and maintain (e.g., operating systems, programming languages, databases) on the infrastructure they license. SaaS typically requires the least amount of support and maintenance; IaaS requires the most, since firms choose the tech they want to install, craft their own solution, and run it on what is largely a "blank canvas" of cloud-provided hardware.

Server Farm

A massive network of computer servers running software to coordinate their collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale Internet services. -extremely expensive to operate and maintain. -requires plenty of cheap land, low cost power, ultrafast fiber-optic connections and benefit from mild climates. Demonstrates how by By lowering the cost to access (using cloud system) powerful systems and software, barriers to entry also decrease.

Cloudbursting

Describes the use of cloud computing to provide excess capacity during periods of spiking demand. Cloudbursting is a scalability solution that is usually provided as an overflow service, kicking in as needed. Cloudbursting is appealing because forecasting demand is difficult and can't account for the ultra-rare, high-impact events sometimes called black swans

Open Source Software Examples

Just about every type of commercial product has an open source equivalent. ---WordPress—software for running a blog or website, powering about a third of websites --Firefox—a Web browser that competes with Chrome, -Safari, and Internet Explorer ---LibreOffice—a competitor to Microsoft Office ---Gimp—a graphic tool with features found in Photoshop ---Shotcut for video editing and Audacity for audio editing ---Magento—e-commerce software ---TensorFlow—open source machine learning software ---Alfresco—collaboration software that competes with ---Microsoft Sharepoint and EMC's Documentum ---Marketcetera—an enterprise trading platform for hedge fund managers that competes with FlexTrade and Portware ---Zimbra—open source e-mail software that competes with Outlook server ---MySQL, Ingres, and PostgreSQL—open source relational database software packages that go head-to-head with commercial products from Oracle, Microsoft, SAP, and IBM ---MongoDB, HBase, and Cassandra—nonrelational distributed databases used to power massive file systems (used to power key features on Facebook, Twitter, LinkedIn, and Amazon) ---SugarCRM—customer relationship management software that competes with Salesforce.com and Siebel ---Docker—tools for "containerization," an evolution beyond virtualization ---Asterisk—an open source implementation for running a PBX corporate telephony system that competes with offerings from Nortel and Cisco, among others ---Git—version control software, critical to managing most commercial software products ---Free BSD and Sun's OpenSolaris—open source versions of the Unix operating system

Legal risks of OSS

Legal exposure is a major concern with open source software. -firms adopting OSS may be at risk if they distribute code and aren't aware of the licensing implications -some commercial software firms have pressed legal actions against users of OSS products when there is a perceived violation of software patents -Also complicating issues are the varying open source license agreements, each with slightly different legal provisions.

SaaS Benefits

SaaS firms may offer their clients several benefits including the following: 1. lower costs by eliminating or reducing software, hardware, maintenance, and staff expenses 2. financial risk mitigation since startup costs are so low 3. potentially faster deployment times compared with installed packaged software or systems developed in-house 4. costs that are a variable operating expense rather than a large, fixed capital expense 5. Scalable systems that make it easier for firms to ramp up during periods of unexpectedly high system use. 6. higher quality and service levels through instantly available upgrades, vendor scale economies, and expertise gained across its entire client base 7. remote access and availability—most SaaS offerings are accessed through any Web browser, and often even by phone or other mobile device Vendors of SaaS products benefit from the following: 1. limiting development to a single platform, instead of having to create versions for different operating systems 2. tighter feedback loop with clients, helping fuel innovation and responsiveness 3. ability to instantly deploy bug fixes and product enhancements to all users 4. lower distribution costs 5. accessibility to anyone with an Internet connection 6. greatly reduced risk of software piracy SaaS (and the other forms of cloud computing) are also thought to be better for the environment, since cloud firms more efficiently pool resources and often host their technologies in warehouses designed for cooling and energy efficiency. Vendors frequently sign a Service Level Agreement (SLA) A negotiated agreement between the customer and the vendor. The SLA may specify the levels of availability, serviceability, performance, operation, or other commitment requirements. With their customers to ensure a guaranteed uptime and define their ability to meet demand spikes.

Crowdsourcing

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call. -many top brands have engaged in some form of crowdsourcing -leveraged by several public markets --for innovation, to create a better product or service -as an alternative to standard means of production

Black Swans

Unpredicted, but highly impactful events. Scalable computing resources can help a firm deal with spiking impact from black swan events. The phrase entered the managerial lexicon from the 2007 book of the same name by Nassim Taleb.

The Business of Open Source

Vendors make money on OSS by selling support and consulting services. Many open firms also sell their premium add-ons on top of the free stuff. $60B dollar industry = Lower cost of computing, means more computing options accessible to smaller firms. =more reliable, secure computers also lower costs OSS also diverts funds that firms would otherwise spend on fixed costs, like operating systems and databases, so that these funds can be spent on innovation or other more competitive initiatives. Total Cost of Ownership: An economic measure of the full cost of owning a product (typically computing hardware and/or software). TCO includes direct costs such as purchase price, plus indirect costs such as training, support, and maintenance. -The Linux OS can only be found on a tiny fraction of desktop computers. Linux simply isn't as easy to install and use as Windows or the Mac OS. This complexity can raise the (TCO) of Linux desktops, with additional end-user support offsetting any gains from free software.

virtual desktop

When a firm runs an instance of a PC's software on another machine and simply delivers the image of what's executing to the remote device. Using virtualization, a single server can run dozens of PCs, simplifying backup, upgrade, security, and administration. Allows firms to scale and upgrade systems more easily than if they had to maintain each individual PC.

Infrastructure as a Service (IaaS)

Where cloud providers offer services that include running the remote hardware, storage, and networking (i.e., the infrastructure), but client firms can choose software used (which may include operating systems, programming languages, databases, and other software packages). In this scenario, the cloud firm usually manages the infrastructure (keeping the hardware and networking running), while the client has control over most other things (operating systems, storage, deployed applications, and perhaps even security and networking features like firewalls and security systems).. -This is a good alternative for firms that want even more control. -clients can select their own operating systems, development environments, underlying applications like databases, or other software packages (i.e., clients, and not cloud vendors, get to pick the platform), while the cloud firm usually manages the infrastructure (providing hardware and networking).

Platform as a Service (PaaS)

Where cloud providers offer services that include the hardware, operating system, development tools, testing, and hosting (i.e., the platform) that its customers use to build their own applications on the provider's infrastructure. In this scenario, the cloud firm usually manages the platform (hosting, hardware, and supporting software), while the client has control over the creation and deployment of its application.

n00b

Written with two zeros, pronounced "newb." Geek-slang (leet speak) derogatory term for an uninformed or unskilled person.