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There is no doubt that the software industry has been and is likely to further be a booming business. However, despite the profiteering trend, a lot of change is being witnessed today in the industry regarding the consumers’ perception of “Software”, owing to Linus Torvalds. There are two major inventions outlined in the chapter that have stimulated the revolution of software industry: ‘Open Source Software’ (OSS) and ‘Cloud Computing’. The underlining concept behind the two inventions is that software is free for all. Open Source Software (OSS) provides free alternatives to all people with technological ability to see the program and modify its code. Meaning, many people now have the opportunity to access programs they would have not if the status quo in the software industry remained unchanged (Brockmeier, 2004).

Cloud computing is another factor embedded in the concept of free software programs for all users. This service is particularly common with firms, which opt to transfer or move their software from the firm’s IS shop to someone else’s hardware and run it there. Two subsets have been developed in respect of this development, that is: Software as a Service (SaaS) and virtualization. What is needed for Software as a Service (SaaS) is just internet connection, and there you will be able to get connected to the vendor’s software. It is to be realized that installation of software programs on a computer has got its own costs of buying, managing and even maintaining the physical nature of the hardware; all these problems are solved using SaaS. Virtualization also seeks to supplement the free theory of software by making it possible for one simple computer to act as if it was a series of computers. This trend makes it viable for firms to consolidate all their computing resources in one single computer hence saving a great deal of expense (Kirkpatrick, 2004).

The transition in the software industry has impacted to a greater extent two giant companies, that is, Microsoft led by Bill Gate’s and Oracle led by Larry Ellison. The transition has caused a lot of jitters among managers and investors of giant software companies because it is difficult to compete something that is free in the market. That is, software programs that are to be bought with money are now found free of any monetary attachment. This worries investors who loose return on their software investments (King, 2008 and Sarah, 2011).

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