Insider's Eval of Amazon, Google, MS, FB ...
 

Definitely my nomination for:

Best Rant Ever

Richard Dennis

Re: Insider's Eval of Amazon, Google, MS, FB ...
 

Hi Richard,

Thanks for pointing that "rant" out... I think what he says is true! If you want to "control the world" then you gotta have a "platform"...

A "platform" is something that lets others develop software to be used on that platform. Operating systems (like Windows, Mac OS X, iOS, Android) are all "platforms" and Facebook is also a platform (since companies can create games and other things, all which "work" on Facebook)... Amazon Web Services (which many people don't know about, apart from web developers) is also a platform...

I wonder if the "little guy" can benefit from this concept somehow, though? It's worth pondering, I think...

Looking at it from one point of view, a "platform" is in fact a massive "toll position" - because all these other companies, and everyone who uses products from those companies, are dependent upon your platform... That's (in my opinion) where it's power comes from...

Hmm...

Best wishes, :)

Dien

Re: Insider's Eval of Amazon, Google, MS, FB ...
 

Good point about platform being a toll Dien.

Actually, a platform is harder than a toll position. Its more like a well dug in a desert. You dig a well in a desert and a village grows around it. Toll is charging a fee to folks to use the water from the well.

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So Apple has had an awesome run this past few years. And its gotten a lot of press and publicity. There is another equally big company that also has had an awesome run. But no one talks about it. IBM.

Where Apple has focused on platforms, IBM has focused on creating toll positions. I mean - IBM has even positioned their salesmen into a toll position -- there are companies who actually tap IBM's sales force to sell their products!

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I think before thinking if you want to focus on creating a platform or a toll position, you need to look at another factor:

The flow of money.

Some times, you can see the trends of how and where the money is going to flow and dig a well. Other times, you can find a well and build a toll around it. But the main thing is to find the flow.

Re: Insider's Eval of Amazon, Google, MS, FB ...
 

Android is also a platform that supports hundreds (thousands?) of applications. I'm a new smart phone user, and I'm constantly amazed at what can be done with the apps. Read bar codes in the store, scan documents, email, and even make your phone function as a flashlight.

They mostly seem to be ad supported and most of them are free to the user.

Re: Insider's Eval of Amazon, Google, MS, FB ...
 

Hi Ankesh - I had to think about this for a little while, but I "get" your metaphor of a well, and of a "village" growing around it, as a metaphor for a platform. Very smart and very appropriate too!

I don't know much about this. I read Louis Gerstner's book "Who says elephants can't dance?" (about how he turned around IBM after its "downfall"), but that was several years ago. Could you explain further what you mean, with respect to IBM?

I agree that where there is an existing flow of money, it is often possible to get a part of it! If you can identify a toll position to help you with that, it's probably easier to succeed in doing so... :)

Best wishes,

Dien