Why businesses commoditize

Marco Arment:

It’s usually in a business’ best interests to commoditize its complements. Microsoft commoditized PC hardware because its software needed a home. Companies that contribute heavily to open-source, such as modern-day IBM, commoditize software because they sell consulting and support services. Google commoditizes applications, platforms, and web technologies because it needs places to put its ads and people to see them. (Google also tries to commoditize anything required to get online: web browsers, DNS, and in some cases, even internet connectivity.) Apple commoditizes apps to make iPhones and iPads more attractive (and exclusive).

via Marco.org – Facebook’s Open Compute Project.


Tagged with , , ,

Posted by Jake Spurlock April 9th, 2011 — No Comments