
Economics of Software - gaika
http://blogs.sun.com/bmc/date/20040828
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pchristensen
Great article on open source, the peculiarities of software economics, etc.

"To put this in retail terms, open source software has all of the properties
of a loss-leader -- minus the loss, of course."

"either the demand-side will ultimately force sufficient improvements to the
existing open source databases, or the supply-side will force the open
sourcing of one of the viable competitors."

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augustus
One thing he didn't mention is how the Internet has affected the economics of
software.

Internet drastically reduces the distribution costs creating close substitutes
widely available for free.

This makes the other economics of software kind of irrelevant. Just ask
Microsoft.

