Oracle, a firm that sells commercial ERP and database products, provides Linux for free, selling high-margin Linux support contracts for as much as five hundred thousand dollars. Oracle's motivation for this lies in:
A) accelerating the shift of open source software towards a proprietary regime.
B) using open source software to fuel sales of hardware.
C) impoverishing other open source developers and furthering its own proprietary offerings.
D) using open source software to wean customers away from competitors.
E) protecting itself from the risks of distributing code while unaware of legal implications.

Question

Quizplus · Accepted Answer

Oracle provides Linux for free as a strategy to wean customers away from competitors by using open source software. By providing Linux for free, Oracle is able to attract customers who are looking for an alternative to competitors' products. Offering high-margin Linux support contracts is a way to generate revenue from those customers who have already made the switch to Linux.

Oracle, a Firm That Sells Commercial ERP and Database Products