MBA 703 Final Exam: Questions With Straightforward
Solutions
Marginal cost Correct Answer - Cost of producing one more unit of a
product.
Network effects Correct Answer - The effect that one user of a good or
service has on the value of that product to other people.
Switching costs Correct Answer - Costs that a consumer incurs as a
result of changing brands, suppliers, or products.
Open source software (OSS) Correct Answer - Software that is free and
where anyone can look at and potentially modify the code.
Cloud computing Correct Answer - Replacing computing with services
provided over the Internet.
Software as a service (SaaS) Correct Answer - Firm subscribes to a third-
party software and receives a service that is delivered online.
Virtualization Correct Answer - Technology that can make a single
computer behave like many separate computers.
Linux Correct Answer - Open source software operating system. Source
code for OSS products is openly shared and can be changed and redistributed
by anyone.
LAMP Correct Answer - Acronym for Linux, Apache Web server
software, MySQL database, and Perl/Python/PHP.
Cost Correct Answer - Free alternatives to costly commercial code can
be a tremendous motivator.
Reliability Correct Answer - The more people who look at a program's
code, the greater the likelihood that an error will be caught and corrected.
,Security Correct Answer - Technology products that contain particularly
strong security features.
Scalability Correct Answer - Ability to either handle increasing
workloads or to be easily expanded to manage workload increases.
Agility and time to market Correct Answer - Vendors able to skip whole
segments of the software development process, allowing new products to
reach the market faster.
Heartbleed Correct Answer - An error in the OpenSSL security toolkit,
which was used by some two-thirds of Internet websites, leading to a
significant security breach.
Core Infrastructure Initiative Correct Answer - A multimillion-dollar
project developed by the Linux Foundation to fund open source projects that
are in the critical path for core computing functions.
Cautionary tale from Heartbleed Correct Answer - Just because a tool is
used by many doesn't mean one shouldn't audit its software products to
understand the strength of support and potential risks associated with use.
Commercial products and open source equivalents Correct Answer - Just
about every type of commercial product has an open source equivalent.
Mark Zuckerberg Correct Answer - Facebook CEO and Founder, who has
been a proponent of open sourcing tools.
Total Cost of Ownership (TCO) Correct Answer - All costs associated
with the design, development, testing, implementation, documentation,
training, and maintenance of a software system.
Platform as a Service (PaaS) Correct Answer - A cloud computing model
that provides a platform allowing customers to develop, run, and manage
applications without the complexity of building and maintaining the
infrastructure.
Infrastructure as a Service (IaaS) Correct Answer - A form of cloud
computing that provides virtualized computing resources over the internet.
, Private Clouds Correct Answer - Pools of computing resources that
reside inside an organization and can be served up for specific tasks as
needed.
Legal Risk in OSS Correct Answer - The potential legal exposure firms
face when distributing open source code without awareness of licensing
implications.
SaaS Pricing Model Correct Answer - A usage-based pricing model
similar to a monthly subscription that SaaS vendors use to earn money.
Benefits of SaaS to Users Correct Answer - Lower costs and financial risk
mitigation, faster deployment times, scalable systems, higher quality and
service levels, remote access, and availability.
Benefits of SaaS to Vendors Correct Answer - The ability to promote the
sale of upgraded or premium versions for additional fees and compete directly
with major software firms.
OSS Impact on IT Market Correct Answer - Lowers the cost of
computing, makes options accessible to smaller firms, and encourages
innovation.
Vendors' Revenue from OSS Correct Answer - Vendors make money on
OSS by selling support and consulting services.
Evolution of Cloud Computing Correct Answer - Has huge implications
across the industry, affecting the financial future of hardware and software
firms.
Complexity of Linux on Desktop Correct Answer - The complexity of
Linux can raise the total cost of ownership, making it less common on desktop
computers.
OSS Licensing Implications Correct Answer - Firms may face legal action
if they distribute OSS code without understanding the licensing agreements.
Solutions
Marginal cost Correct Answer - Cost of producing one more unit of a
product.
Network effects Correct Answer - The effect that one user of a good or
service has on the value of that product to other people.
Switching costs Correct Answer - Costs that a consumer incurs as a
result of changing brands, suppliers, or products.
Open source software (OSS) Correct Answer - Software that is free and
where anyone can look at and potentially modify the code.
Cloud computing Correct Answer - Replacing computing with services
provided over the Internet.
Software as a service (SaaS) Correct Answer - Firm subscribes to a third-
party software and receives a service that is delivered online.
Virtualization Correct Answer - Technology that can make a single
computer behave like many separate computers.
Linux Correct Answer - Open source software operating system. Source
code for OSS products is openly shared and can be changed and redistributed
by anyone.
LAMP Correct Answer - Acronym for Linux, Apache Web server
software, MySQL database, and Perl/Python/PHP.
Cost Correct Answer - Free alternatives to costly commercial code can
be a tremendous motivator.
Reliability Correct Answer - The more people who look at a program's
code, the greater the likelihood that an error will be caught and corrected.
,Security Correct Answer - Technology products that contain particularly
strong security features.
Scalability Correct Answer - Ability to either handle increasing
workloads or to be easily expanded to manage workload increases.
Agility and time to market Correct Answer - Vendors able to skip whole
segments of the software development process, allowing new products to
reach the market faster.
Heartbleed Correct Answer - An error in the OpenSSL security toolkit,
which was used by some two-thirds of Internet websites, leading to a
significant security breach.
Core Infrastructure Initiative Correct Answer - A multimillion-dollar
project developed by the Linux Foundation to fund open source projects that
are in the critical path for core computing functions.
Cautionary tale from Heartbleed Correct Answer - Just because a tool is
used by many doesn't mean one shouldn't audit its software products to
understand the strength of support and potential risks associated with use.
Commercial products and open source equivalents Correct Answer - Just
about every type of commercial product has an open source equivalent.
Mark Zuckerberg Correct Answer - Facebook CEO and Founder, who has
been a proponent of open sourcing tools.
Total Cost of Ownership (TCO) Correct Answer - All costs associated
with the design, development, testing, implementation, documentation,
training, and maintenance of a software system.
Platform as a Service (PaaS) Correct Answer - A cloud computing model
that provides a platform allowing customers to develop, run, and manage
applications without the complexity of building and maintaining the
infrastructure.
Infrastructure as a Service (IaaS) Correct Answer - A form of cloud
computing that provides virtualized computing resources over the internet.
, Private Clouds Correct Answer - Pools of computing resources that
reside inside an organization and can be served up for specific tasks as
needed.
Legal Risk in OSS Correct Answer - The potential legal exposure firms
face when distributing open source code without awareness of licensing
implications.
SaaS Pricing Model Correct Answer - A usage-based pricing model
similar to a monthly subscription that SaaS vendors use to earn money.
Benefits of SaaS to Users Correct Answer - Lower costs and financial risk
mitigation, faster deployment times, scalable systems, higher quality and
service levels, remote access, and availability.
Benefits of SaaS to Vendors Correct Answer - The ability to promote the
sale of upgraded or premium versions for additional fees and compete directly
with major software firms.
OSS Impact on IT Market Correct Answer - Lowers the cost of
computing, makes options accessible to smaller firms, and encourages
innovation.
Vendors' Revenue from OSS Correct Answer - Vendors make money on
OSS by selling support and consulting services.
Evolution of Cloud Computing Correct Answer - Has huge implications
across the industry, affecting the financial future of hardware and software
firms.
Complexity of Linux on Desktop Correct Answer - The complexity of
Linux can raise the total cost of ownership, making it less common on desktop
computers.
OSS Licensing Implications Correct Answer - Firms may face legal action
if they distribute OSS code without understanding the licensing agreements.
