In this chapter, I understand that sellers are experiencing the pricing pressures. the book states that Microsoft technology is the most appropriate for small workloads and companies, Unix for medium, and IBM mainframe for large. This rule looks like so right for me. Even though, in this rule, Microsoft is limited in the small business and can not get more form the medium and large companies. However, the small companies are growth very fast than before. Therefore, Microsoft’s appropriate target market is already much greater than the market for Unix and IBM. Even though, some of research said that in the future, Microsoft’s operating system will be good as the same as Unix or IBM. About this, I doubt very much. For example, even though, Microsoft’s operating system is cheaper than others and let the companies save millions of money in the operating system, but Microsoft’s operating system is usually shut down during the operating time in the companies. That is the quality issue. However, I am not saying that spending more and getting better quality. Only express the quality of Microsoft’s operating system. The other way, the open-source software is increasing and some companies are adopting it. Even though, the open-source software can let the company reduce the cost of purchasing the software, but it let the company increase the maintenance cost for the software. The open-source may let the company get a lot of unnecessary software for operating their business. That might be slow down the system in the company. Thus, the company might spend a lot of time and money to maintain the open-source software. However, the open-source has some advantages. For example, custom programming accounts for two-thirds of all software spending. With freeware, the source code is available for free which provides a great savings in cost for those companies seeking to build custom solutions from existing software.
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The reality of the situation is there will always be competitors attempting to gain some edge on the overall industry. In cases such as Microsoft, they are willing to offer their product at a cheaper price, and increase its ability to be user friendly. I feel that companines need to prepare for this and determine how they are going to handle the competiton instead of trying to adapt when the situation occurs.
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