Microsoft and the Linux Threat

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Authors: Ravi Madapati,
Faculty Member
ICMR (IBS Center for Management Research).

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In August 1991, Torvalds posted in the Minix Usenet group an e-mail announcing that he was working on a free operating system for 386 and 486 PCs. His posting drew immediate interest. Torvalds put together a list of the 10-15 people who had responded to his e-mail, posted his first version (version 0.01), and solicited their comments and feedback. Linux started as a complement to Minix, then functioned without the help of Minix and finally ended up as a substitute for Minix.

In the early 90s, more and more software developers became involved with Linux. They were attracted to a stable operating system that would let the users add new features themselves and experiment. This idea of releasing code and encouraging users to submit feedback and modifications or improvements became a part of the Linux culture. Developers of Linux took full advantage of this idea, allowing quick releases of new versions that contained improvements submitted by many users. The Internet also played a major role in enabling this rapid creation and release of new versions of the product, as well as frequent exchanges of comments, suggestions for code patches, and sharing of code.

At first, users suggested only a few, relatively small changes to the operating system. Torvalds got to know many of them and managed to retain personal control over the platform as it evolved. He also released new versions at an astounding pace, but with mostly small modifications. In May 1992, for example, Linux was already in its 96th edition (version 0.96). The "release early, release often" philosophy allowed Torvalds to treat his users as co-developers. The kernel - the core set of basic features that Torvalds had mostly designed and written on his own – was not itself modular. But the small, stable core that Torvalds had created could easily accept additional functionality as separate modules. Some disagreements emerged among Linux users on how to move forward. But Torvalds was able to exert leadership based on his legitimacy as a talented programmer. The emergence of volunteers who specialized in particular areas and were willing to answer questions in their areas also helped guide the design. As a result, the distributed innovation process did not lead to chaos.

Linux-based Business Models

As it was developed under the GNU¹(General Public License) the source code of Linux became freely available to everyone. Though Linux and its assorted distributions are free, companies and developers can charge money for additional features and services they offer as long as the source code remained available.

A vast number of software programmers take Linux's source code and adapt it to meet their individual needs. In August 1991, Linux essentially consisted of the kernel and some GNU tools. With the help of others, Torvalds added more and more tools and applications. With time, individuals, university students and companies began distributing Linux with their own choice of packages around the kernel. The success of any operating system depends on the zeal with which application software developers and other service providers embrace it. Linux is used for a wide variety of applications including networking, software development, and as an end-user platform. It has emerged as a low-cost alternative to other more expensive operating systems like Windows.

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1] Linux is written and distributed under the GNU General Public License, which means that its source code is freely distributed and available to the general public.