What are fixed costs?
Costs that do not change with the level of output
What are variable costs?
Costs that vary with the level of output, also known as marginal costs
What are digital goods?
Anything that can be digitized, such as movies, music, and images
What is a key characteristic of open source software (OSS)?
The source code is viewable/editable by anyone
What is an example of open source software?
Google, Linux
List three advantages of open source software.
- Cost
- Reliability and security due to many contributors
- Agility and flexibility
List two disadvantages or risks of open source software.
- Unpredictable development support
- Legal risks related to ownership and rights
What is a common business model for firms offering open source software?
Charging for help, technical support, and installation
What is the difference between open source and closed source software?
Closed source software is locked down and not editable by users
What does ‘cloud’ refer to in computing?
Accessing computer resources remotely
What is Software as a Service (SaaS)?
A cloud computing service model where software is accessed remotely
List two advantages of SaaS.
- Low startup cost
- Scalable
What is a disadvantage of SaaS?
Limited choice due to reliance on vendor offerings
What is cloud bursting?
A method that allows access to additional capacity in the cloud
What are black swan events?
High impact but impossible to predict events
Define virtualization in computing.
A trend that allows a computing device to act like multiple different computers
What is the make/buy/rent decision in business?
A strategy to determine whether to create, purchase, or lease a product or service
What is one consideration when deciding to make, buy, or rent?
Do you have the resources such as skill, time, and expertise?
What is a potential competitive advantage of making software in-house?
Possibility to gain a competitive advantage, unlike buying or renting
True or False: You can quickly achieve competitive parity by buying or renting software.
True
What should be evaluated if choosing to buy or rent software?
Vendor evaluation
