On Aug 10, 6:50 pm, Mark Derricutt <[email protected]> wrote:
> Two dying companies joining forces to make one uber corpse? :-)
> In part it feels like VMWare trying to find a new market now that
> virtualisation is commodotized, and also Springsource the same now that
> DI/IoC is.

If you mean "commodity" in an economic sense, then I think you're
wrong.  It's popular to assume just because there's a free (as in
beer) operating system / database / application server then that
respective market has now been commoditized, but this doesn't make any
more right.  ;-)

Take a look at this excellent PDF which talks about software,
commodity and open source licensing / business models:
http://stephesblog.blogs.com/presentations/BrentWilliamsEclipseConV02.pdf
If you just look at one page, look at page 35.  The short version: In
commodity markets there's no switching cost between products and no
excess profits for producers, pricing moves quickly, the lowest-cost
producer wins, and producers can't affect demand, only supply.
Examples are milk, electricity, oil or gold.  None of that is true for
enterprise software - IBM, Oracle and Microsoft still make a lot of
money, there are switching costs that prevent you from switching,
Oracle only raises prices once a year, Linux / MySQL / JBoss hasn't
taken over the world, and producers create new categories all the time
(relational databases, portals, app servers).
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