Investing Quote by Eric S. Raymond
““For purposes of examining the software market itself, it will be helpful to sort kinds of software by how completely the service they offer is describable by open technical standards, which is well correlated with how commoditized the underlying service has become.””
About This Quote
Source Speech: Talk on Software Market, 2000s
The quote classifies software by how much its functionality follows open standards, indicating how commoditized it is.
In simple terms: Software can be ranked by openness and commoditization.
Key Takeaway
Assess a product’s openness to gauge market maturity.
Themes
technology
standards
commoditization
market analysis
Mood
analytical
critical
neutral
Type
business
technical
When to use this quote
- evaluating new software
- choosing platforms
- strategic planning
- investment decisions
Key Concepts
open standards
commodity theory
software ecosystems
Questions to Reflect On
- How does openness affect competition?
- When is commoditization beneficial?
A Different Perspective
Open standards may limit differentiation and innovation.
