4 ms·

Right. Another way of highlighting the absurdity of dismissing things like Priceline as non-assets is to look at the history of computing. Microsoft commoditize

by shimon 9y ago

Right. Another way of highlighting the absurdity of dismissing things like Priceline as non-assets is to look at the history of computing. Microsoft commoditized PC hardware, and became tremendously valuable selling the dominant OS. Google is doing the same thing with Android. Is Windows or Android not an asset? Is it not the dominant asset in terms of value, even if manufacturing electronics at scale is larger in physical terms?

dragontamer 9y ago
> Microsoft commoditized PC hardware No. Tandy (aka Radio Shack), Dell, Compaq, and so forth commoditized PC Hardware. Microsoft made the OS a commodity, reducing the cost of an OS from thousands of dollars to only $100. Android / iOS have done the same thing except reduced the cost to $0. The hardware manufacturers don't make as much as the software guys. Because people and habits are tied to the software, not hardware.
- sbarre 9y ago
  I think OP meant that Microsoft commoditized PC hardware through software, in other words by making Windows the thing that people wanted to have, and the hardware under it could be interchangeable. Most people didn't care if they had a Dell or a Compaq, as long as it ran Windows. So in this case: I don't care what hotel I stay in or who rents me a car, as long as I know that through Priceline I'm getting a good deal.
  - dragontamer 9y ago
    I personally didn't read it like that, but your interpretation makes sense. After thinking about it, I think your interpretation of the post is superior.
  - shimon 9y ago
    Yes, that's what I meant. Windows was a commoditizing force on PC hardware makers. Microsoft did the commoditizing here by taking their market power that came from controlling the thing people wanted most, and enforcing standards that hardware makers had to meet in order to reach the market MS controlled. It's the same in travel, where the airlines and hotels are selling commodity products, and the high value is in the brokers people trust to select among the commodities. But the brokers here are also in still competitive positions, because it's still easy for consumers to switch compared to something like an OS or social network.

by shimon 9y ago

dragontamer 9y ago

> Microsoft commoditized PC hardware No. Tandy (aka Radio Shack), Dell, Compaq, and so forth commoditized PC Hardware. Microsoft made the OS a commodity, reducing the cost of an OS from thousands of dollars to only $100. Android / iOS have done the same thing except reduced the cost to $0. The hardware manufacturers don't make as much as the software guys. Because people and habits are tied to the software, not hardware.

sbarre 9y ago
I think OP meant that Microsoft commoditized PC hardware through software, in other words by making Windows the thing that people wanted to have, and the hardware under it could be interchangeable. Most people didn't care if they had a Dell or a Compaq, as long as it ran Windows. So in this case: I don't care what hotel I stay in or who rents me a car, as long as I know that through Priceline I'm getting a good deal.
- dragontamer 9y ago
  I personally didn't read it like that, but your interpretation makes sense. After thinking about it, I think your interpretation of the post is superior.
- shimon 9y ago
  Yes, that's what I meant. Windows was a commoditizing force on PC hardware makers. Microsoft did the commoditizing here by taking their market power that came from controlling the thing people wanted most, and enforcing standards that hardware makers had to meet in order to reach the market MS controlled. It's the same in travel, where the airlines and hotels are selling commodity products, and the high value is in the brokers people trust to select among the commodities. But the brokers here are also in still competitive positions, because it's still easy for consumers to switch compared to something like an OS or social network.