Software in Flux

Chapter 10

Software in Flux: Partly Cloudy and Sometimes Free

Cloud computing

Cloud-computing is about replacing computing resources--either an organization's or an individual's hardware or software--with services provided over the Internet.

Benefits for clients firm and software vendor

Cloud computing has low barrier of entry and the expenses are variable which can fit either big organizations or small companies. The client firm can rent what they need and no need to buy the equipment that they may not use every day. This can reduce their cost and increase their efficiency on other places. The software vendor has more reliability than companies that have their own IT team. The vendor can provide all time technical support and they also have more experiences to support the infrastructure. For a new company, they do not have enough security system and knowledge about it. The vendor can provides these hardware and knowledge for new companies.

Risks for clients firm and software vendor

If there is a internet outage, no one can reach their data in the software vendor. It could cause delay or lost data for companies. If companies have sensitive information, they would rather store these information in their own IT services. The clouding computing is depend on internet which the information can hacked or intercept by people if they are skilled enough.

Open Source Software(OSS)

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

Benefits for clients firm and software vendor

The software is free and anyone can modify it. This gives a unlimited improvement for the software. People who know how to code it can apply the software to everywhere you can think. It gives a great potential of developing a tremendously group of users and markets. This also can create a network effect to attract more users.

Risks for clients firm and software vendor

If every developer can modify the code, it can be good or bad. There will be a risk of developer use the OSS for their own good such as leaving a backdoor for themselves to steal sensitive information or more. There are too many developers, so it is very hard to know which version is most up to date.