Rob, the major barrier to entry here is the fact that Visio software is relatively complex and specialized...although Microsoft is a strong developer, they simply never got started in this area. I don't see Microsoft suddenly jumping into this area as it would take several generations of product to meet or beat Visio's. And, I know Microsoft--I eat lunch there and workout at their health club--this is just an area they don't consider a high enough priority with everything else going on. At the same time, Visio has never attempted to tread on Microsoft's turf.
Moreover, there is another subtle- yet key--factor at work here. Visio is one of the "Microsoft offshoots" in the Seattle area. This means that talented engineers who are tired of Microsoft gravitate towards Visio. Not only that, but Visio is in "very very tight" with Microsoft as far as advanced OLE technology goes...probably due to the fact that Visio is made up of many "Microsoft-caliber" engineers. In short, Visio is a "friend in Microsoft's backyard" more than anything else--a friend who helps advance OLE technology, and doesn't bother Microsoft.
At the "late stage of the game" in this niche, I would see Microsoft buying out Visio rather than trying to develop the same type of product. Consider my opinion here to be "expert", as I am very familiar with Microsoft, Visio, and the software involved...and I am a Senior Software Engineer.
You said:
"Dan, I have followed your MRVC posts on AOL and a common acquaintance, COVbECKERS speaks very highly of. That said, I would be MOST interested in your views regarding the barriers to entry to this market -- what's to keep MSFT etc at bay?"
Dan |
