Microsoft-Redhat Analysis

Topics: Costs, Cost, Difference Pages: 3 (1048 words) Published: October 27, 2010
The business model of Microsoft is on a very different spectrum than that of Red Hat. Microsoft’s business model seems to focus strongly on revenue. When reading about Microsoft’s model there were a few words that jumped out. They include hidden, pure profit and rejuvenating. Redhat seems to have a different focus with words that jump out such as volunteer, open and available, as well as best in the world. The companies also have some similarities such as their desire to make revenue and keep costs down as well as to constantly rejuvenate their software in order to make it better.

The differences in the models of Microsoft and Red Hat are very noticeable. The first difference is that Microsoft focuses on keeping their source codes private while Red Hat discusses. I do not think that one strategy is a lot more beneficial than the other but Red Hat does have a smaller advantage because they get the minds of many at a smaller cost. Microsoft hires highly skilled programmers in order to develop their software, which could be expensive but keeps all of their information and “secrets” within the company. This provides security for Microsoft. Red Hat on the other hand relies strongly on the work of volunteer programmers around the world to help them develop their software. This helps them to reduce cost as well as get ideas from many different types of people with different thought processes. I believe that if the two models were combined than the business model would be better. If a company could keep the information they already had private but allow volunteer programmers to contribute to their software than I think that they would be much more successful. The second difference between the two models is that Microsoft has a bigger focus on pure profit than Red Hat. Microsoft is very open that they want to run ninety percent of the market share of the 150 million computers sold annually. Red Hat has a much different perspective on this in their business...
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