Final answer:
The Linux operating system, being open source, reshaped the economics of the tech industry by providing a cost-effective, adaptable, and powerful alternative to expensive proprietary systems which led to a decline in market share for companies like Sun and SGI.
Step-by-step explanation:
The development of the Linux operating system by Linus Torvalds in 1991 had a significant impact on the economics of the high-tech industry. Linux, being an open-source operating system, offered a cost-effective alternative to expensive UNIX systems. Its free distribution, adaptability, and the ability to configure the Linux kernel with just the desired features led to a wide variety of uses, from servers to embedded systems.
PC manufacturers like IBM and Dell embraced Linux, which enabled them to lower system costs and offer alternatives to Microsoft's OS dominance. Critically, Linux's rise also propelled the usage in specialized hardware. Organizations such as NASA harnessed the power of networked Linux-run PCs for computations previously dominated by proprietary supercomputers.
Companies like Sun and SGI witnessed a rapid decline in the market for their workstations and servers as Linux presented a capable and less expensive solution. The open-source model of Linux has allowed for continuous innovation and collaboration, further reinforcing its economic advantage over proprietary systems like Microsoft NT, Cisco, and others.