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Microsoft-Redhat Analysis

Decent Essays

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 …show more content…

This is a very profitable idea because companies are constantly upgrading their software because they are trying to stay up to date with their clients. Red Hat has the same idea. They “provide subscribers with updater versions of Linux every 12-18 months”. This strategy seems to cause Red Hat to struggle profit wise because the subscriber is not paying for the upgrade but is still paying for the same service. In the emerging future of changing technological trends, I believe that Microsoft has a more advantageous business model. I think this because the model that Microsoft has created has seemed to prove to be successful bringing in millions of dollars in profit and putting the name “Microsoft” to be a name that everyone knows. The model that Red Hat has shows that as years pass the software is costing more than it is bring in and causing the company to lose money year after year. I also believe that they have a better business model because they focus on keeping their more important source codes private. I do think that if the company also allowed volunteer programmers to help with their development they could benefit from it. A huge benefit for Microsoft in the fast changes in technology is that their products cost arises from the front end. This helps when they develop because all of their cost

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