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Economic network theory: "Economists who have studied the software industry concluded that the value of a software business is about equal to the total costs o
by looofooo0 2y ago
Economic network theory:
"Economists who have studied the software industry concluded that the value of a software business is about equal to the total costs of its customers switching out to the competition; both are equal to the net present value of future payments from the customers to the software vendor. This means that an incumbent in a maturing market, such as Microsoft with its Office product, can grow faster than the market only if it can find ways to lock in its customers more tightly. There are some ifs and buts that hedge this theory around, but the basic idea is well known to software industry executives. This explains Bill G's comment that `We came at this thinking about music, but then we realized that e-mail and documents were far more interesting domains'."
- lifeisstillgood 2y agoOhhh - do you have a link ? That is interesting… Also it strikes me that as a developer my investment of learning is more in code d So it’s easier to switch
- looofooo0 2y agohttps://www.cl.cam.ac.uk/archive/rja14/tcpa-faq.html https://www.cl.cam.ac.uk/archive/rja14/tcpa-faq.html Quote from here and the idea is from this https://www.researchgate.net/publication/200167344_Information_Rules_A_Strategic_Guide_to_The_Network_Economy https://www.researchgate.net/publication/200167344_Informati...
- masfuerte 2y agoThis is tangential, but seeing a Ross Anderson article reminded me... Does anyone know if <https://www.lightbluetouchpaper.org/ https://www.lightbluetouchpaper.org/> is permanently gone or just temporarily down?
- deleted 2y ago[deleted]