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No because on-premise software has not been regulated by SaaS providers. Customers are choosing SaaS. SaaS is indicative of greater concentration and the possi
by jackcosgrove 9y ago
No because on-premise software has not been regulated by SaaS providers. Customers are choosing SaaS.
SaaS is indicative of greater concentration and the possibility of oligopoly, though. I think it's only a matter of time before the cloud platforms begin coordinating price rises beyond the value they provide.
If they try to regulate on-premise software then it's time to break the glass.
- jbooth 9y agoIt doesn't have to be regulated to be rent extraction. You just need to make the switching costs really high, no help needed from the legal system. Look at Oracle.
- pm90 9y agoYou're making good points but the nice thing about capitalism is that if a business finds switching costs too high, then another business will come up with a cheaper technology and kick the older businesses' ass. What we really need is to ensure that in these scenarios, the older business doesn't use its power and resources to stifle the upstart. That is one purpose of AntiTrust laws, I believe.
- svachalek 9y agoThat's an effect of competition, not capitalism. As mentioned in the feature article, capitalism itself has a tendency to create monopolies and extract rents since that produces a much higher ROI than engaging in competition to produce useful goods.