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Question: Microsoft's divisions include PC operating systems, PC application software, and non-PC software like the programs that run its X-Box game console. All of this software was devised by Microsoft's employees or contractors and is kept as secure from outsiders as possible. Recently, "open source" software like Linux has threatened Microsoft's dominance in operating systems and applications. Open source software has publicly available codes, and anyone can attempt to improve its functionality or bring new applications as long as their work is available to the public without charge. Assume open source software becomes a more significant competitor to Microsoft's operating systems and application programs. How (if at all) would you reorganize Microsoft to better cope with Linux's threat to its existing operating systems and application software? There is no formal organization that produces Linux code, save for a central office that approves or disapproves of new code that might be incorporated into the system. Why does such an informal organization make sense for open-source software but not for Microsoft?

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