Clayton Christensen, a management guru, gave Microsoft a seemingly impossible answer to how to face the challenge of open-source software: Investing in Linux applications on top devices.
Christensen, an associate professor at Harvard Business School, has an innovator's dillema, the 1997 best-selling book that describes why good companies often fail to accept "disruptive) technology fails.
Christensen said in his speech at the Future Forward Technology Conference last Thursday (14) that open source code is a major disruption to Microsoft and the entire software industry. "Linux is rooted in new application products, such as web servers and palm-mounted devices," he said. With the development of these things, the application functions of desktop computers will be absorbed by the Internet, which will lead to the destruction of Microsoft ."
Christensen said that Microsoft can cope with this market disruption by setting up an individual business that would "Destroy Microsoft. He said that Microsoft would miss a wave of new application waves and market opportunities if it did not respond to Linux desktop and palm computers. Microsoft has acknowledged that open source software poses a major threat to its business. The company has not responded to Christensen's suggestion.
Christensen also observed that companies often fail when they begin to follow the plan and listen to the customer's voice and other widely accepted management actions. He said that to succeed, operators must establish different units not only to cater to customers and continuously improve existing products, but also to use new technologies, whether or not those products are of low quality or poor profits. For example, digital equipment, the company grew rapidly in the 1980 s by selling simple, low-cost mini computers. However, when other types of PCs began to become popular, the company was discouraged for two economic reasons: the PC's gross profit was too low and did not meet the technical needs of existing mini-computer customers.
As Microsoft is concerned, the use of Linux in palm-mounted devices poses a major threat to the profitable business of selling Windows operating system applications. He pointed out: "As computer operations become Internet-centric, rather than regional networks (LAN)-centric, their things will use Linux, because it is brand new ." He said that laptops have gradually become household appliances, and most people are using palm-mounted devices, such as Research In Motion's Blackberry.
Linux also provides a cheap and item-type option that is different from Windows. Although Linux was not as functional as Unix or Windows in the past, the usage of such operating systems is now growing rapidly because of its simple application and low price. Chirstensen said that similar growth trends are also emerging in the database market, such as the increasingly popular MySQL.
Cristensen said Microsoft should invest more actively in Linux application software in the next six or seven years, because that part will provide better growth opportunities than operating systems or databases.
He suggested that Microsoft acquire Research In Motion to increase investment In Linux, rather than continuing to improve the operating of Windows on-palm devices. "As BlackBerry's utility improves, it will attract more application features," he said. Those are the growing areas .... If Microsoft finds this point, they will be safe ."