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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: PMG who wrote (7029)8/13/2001 10:36:13 AM
From: elmatador  Read Replies (2) of 74559
 
The theory is perfect. But in practice the theory is another one:

Let everyone pirate our software until there are 10 million people out there that knows how to use it. Can spread by word of mouth the benefits and do the marketing for us. Pretty soon we have a standard product while all those Lotus and VisiCalc that are trying to sell their stuff go out of business. Bu then -and only then- you can extract the profits. We have Office 97 and sent a document produced created with it to our client, that had Office 2000. And then there is a chart or drawing or whatever that it will not appear or print and our client gets pissed with us. So we go and buy an upgrade for Office 2.000.

But if flash back to the beginning of this thing it was pirating that created a standard and got the competition squeezed. But lots of people benefited from the product. Compare the with TV: NTSC, SECAM, PAL.

If you had the only single fax machine in this planet how much was it worth? Nothing. Because you couldn't fax to anyone. But the more fax machines you have out there the more valuable your fax machine is. The problem with economics is that it is a province of Austrians and Scotsmen. Because of those countries' limited resources the theory of economics are based on scarcity. Now that we have economies that do not depend on mass, (limited) but on knowledge (plenty) it can't apply.

I think MSFT as a one-stop shop. As a good software integrator. Look the damage done to the wireless industry balkanisation: EPOC, Symbian and Palm OS. Where are the terminals for 3G? Nowhere to be seen. Because no one wants to hand over this market to WindowsCE. I am here waiting to see how the OS for 3G mobiles will be handled.
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