Cases write up Case question 1 (MySQL) Open source business model is used by software technology industry. The companies which develop different software for individual or commercial use generally make huge investments in research and development of the products…
After 1990, worldwide software companies discovered a new phenomenon called open source business model, and they started developing and distributing open source software. These types of software are distributed free both for private and commercial use. MySQL is the world’s most popular Relational Database Management System. It provides multi-user access to, and runs as a server of, a number of databases. MySQL was first released in 23rd July in 1995 by three Scandinavian founders, Axmark, Larsson, and Widenius. The company was incorporated in 2011 as MySQL AB in Uppsala, Sweden (MySQL, “About MySQL”). MySQL used open source business model and used it as a viral marketing vehicle for penetrating in the global information technology market. For its open source status, it has gained a higher extent of visibility among the software developers community, including individuals and companies. Using the open access model, MySQL made available its products under a dual licensing policy allowing anyone to download them under GPL and use them for individual or commercials purposes. They required no fees for the use, and commercial users can purchase them at the minimum price, much lower than competitive market prices of other database management systems (O’Reilly 8). ...
This type of business culture allowed MySQL to become a virtual organization. 120 employees of this organization are scattered across 17 countries across the world, and they efficiently communicated with each other through email and other means of internet communication. It can be stated that this model has provided the company with effective global penetration at a very low cost of operation. MySQL marketing strategy was developed based on the open source business followed by the company. The strategy was to supply a better product at a lower price. Its goal was to penetrate global information technology market to develop a positive distribution network trough a wide installed base (Krishnamurthy 11). This strategy of open source business model helped the company to achieve a tremendous growth in its specific segment of target customers. Thus, open source business model has eventually superseded more traditional business models, and the companies that implemented this model enjoyed higher demand of their open source products. Case question 2 (Google) Google is recognized as the most successful and innovative business in the current internet-based business world. Microsoft has proved its rapid growth through innovations in the sphere of computer technology, whereas Google has showed its innovation in information technology, analytical decision-making, efficient product development, experimentation and other types of relatively unusual and uncommon ways of innovation. Google has been successfully balancing innovative ideas, evaluation methods, and the use of advanced technologies for the evaluation of innovative ideas. Google has made itself recognizable as a leading exponent or a creator of new ...
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