E/13/073 well-known company that forcing the users

E/13/073 Dissanayake T.D.P.T
Assignment 2
Economic Impact of OSS
Open Source Software (OSS) is a software that the source code is available to anyone
for inspection and modification. People prefer using OSS because of its controllability,
educational nature and security. The users can examine the code and make sure the code is not
doing something else related to the thing they want. The users can change the parts that they
don’t like. The students can study at the source code and gain knowledge. Also, students can
share their work with others and invite them to contribute. If someone made a mistake then the
community can help them as well. Since OSS can be modified and accessible people prefer
OSS over traditional software.
OSS impact economy in various ways. Some of them are positive for example, cost
saving, flexibility, obtaining negotiation power against big software companies, fighting piracy,
building its own software industries, and even increase the national security. The negative
impacts would be maintaining the software quality and updating the service when the
requirement changes.
Companies like Microsoft have dominated the software market on countries like China.
But a small portion of the software was actually legally purchased. Microsoft is a well-known
company that forcing the users to update the software to avoid losing support. Still, there are
small costs to associated with OSS as well. But Linux has been expected to cost up to 70% less
than Windows. Not only China most of the developing countries prefer using OSS, such as
Linux. The biggest advantage of OSS is saving money. Companies in South Koria also have
adapted to OSS systems slowly compared to other countries like China. A survey conducted in
2003 shows that only 3% of the surveyed companies use Linux. The major reasons for that were
unfamiliarity, difficult to use and application limitations. But after few years they have switched to
Linux since the OSS had tremendous improvements over the years. India has adopted to using
OSS software over commercial software. India has one of world’s best IT industries. The
flexibility of OSS gives India the freedom to participate in the ricing software development
market.
Obtaining negotiation power is also one of the advantages of using OSS. The availability
of OSS gibes government and businesses a strong negotiation power. Also by using an OSS will
reduce their dependability on a single vendor.
Considering the national security Microsoft had signed a contract with the Chinese
government to allow controlled access to source code. Like other countries that try to fully
depend on OSS China believes that adaptation of OSS such as Linux may reduce the
dependency on Microsoft while keeping full control over their systems. Unlike most of OSS,
software Linux has been developed in GNU licence. When switching between a commercial
software and OSS, the companies can check the OSS gives desired functionality. According to
China Ministry of Information Industry, almost 70% of the software that purchased in 2004 were
OSS products. For example, Chinese railway ministry has deployed TurboLinux operating
systems in their railway bureaus.
From a financial point of view, the main advantage of OSS is its cost-effectiveness and
flexibility. According to those cases OSS have been economically benefiting for most of the
countries.
Reference:
https://opensource.com/resources/what-open-source
The Social and Economical Impact of OSS in Developing Countries

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