Chapter 16: Software In Flux

Marginal Costs

The costs associated with each additional unit produced.

Open Source Software

Software that is free and where anyone can look at and potentially modify the code.

Cloud Computing

Replacing computing with services provided over the internet.

Software as a Service (SaaS)

A form of cloud computing where a firm subscribes to third-party software and receives a service delivered online.

Virtualization

Technology that makes a single computer behave like many separate computers; helps consolidate computing resources and create efficiency and cost savings.

Linux

An open source operating system commonly used in mobile phones, consumer electronics, and enterprise solutions.

Source Code (in OSS)

The underlying code of open source software that is openly shared, can be modified, and redistributed by anyone.

Motivations for Using Open Source Software

Cost savings, reliability, security, scalability, agility, and faster time to market.

Cost (Open Source)

Free alternatives to commercial software reduce computing costs and make it more accessible for smaller firms.

Reliability (Open Source)

The more people reviewing code, the more likely bugs will be caught and fixed.

Security (Open Source)

Publicly viewable code allows vulnerabilities to be detected and resolved more quickly.

Security-Focused Technology

Products that contain particularly strong security features.

Scalability

The ability to handle increasing workloads or to expand easily to meet demand.

Examples of Open Source Software

WordPress, Firefox, LibreOffice, GIMP, Shotcut, Magento, TensorFlow.

Risks of Open Source Software

Legal exposure; difficulty in installation and maintenance.

LAMP Stack

A group of open-source software (Linux, Apache, MySQL, and programming languages like PHP, Perl, or Python) used together to run dynamic websites.

Total Cost of Ownership

All costs associated with software design, development, testing, implementation, documentation, training, and maintenance.

Two Categories of Cloud Computing

Software as a Service (SaaS) and Utility Computing.

SaaS Revenue Models

Usage-based pricing, subscription models, and ad-supported free services.

Benefits of SaaS

Lower cost, scalability, remote access, faster updates, tighter feedback loop.

Drawbacks of SaaS

Vendor lock-in, forced updates, reliance on internet connection, security concerns, limited customization.

Utility Computing

A firm develops its own software and runs it over the internet using a service provider's infrastructure.

Platform as a Service (PaaS)

Cloud computing services that provide tools for developing, testing, and deploying software.

Infrastructure as a Service (IaaS)

Offers basic services like hardware, storage, and networking, as an alternative to buying physical infrastructure.

Cloudbursting

Using cloud computing to handle excess demand during spikes in usage.

Black Swan Events

Unpredictable events; scalable cloud resources help businesses respond to these events.

Server Farm

A large collection of networked servers that support SaaS, hardware cloud efforts, and large-scale internet services.

Virtualization Software

Allows a single computer or cluster of computers to run as multiple virtual machines.

Benefits of Virtualization

Reduces hardware needs, supports private cloud creation, lowers environmental impact.

Containers (in Virtualization)

A lightweight type of virtualization that shares the operating system for greater efficiency and speed.

Virtual Desktops

Running a desktop operating system remotely and delivering the visual interface to a local device.