Open-Source Forces Commoditization?
OReilly recently reports that JBuilder is open-sourcing their IDE. Is this more proof of IDE commoditization?
It makes me wonder; does open-sourcing force commodization? You might argue this as a tactic used by second or third place competitors to grab market share, forcing the commoditization process. It's hard to argue that this can't at least be partially successful.
Another view might be that commoditization is orthogonal to open-sourcing. In this view, regardless of open-sourcing, certain technology runs low-to-empty on innovative potential with lots of low cost, low margin alternatives. Perhaps this is the current state for IDEs.
But then maybe not. In the case of Java IDE's, there are only a few big players in the game. One of them makes their product free. Imagine GM suddenly deciding to give cars away. It would definitely reduce buyers' willingness to buy a new Kia (no offense to Kia).
In JBuilder's case, I believe they're merely trying to save some of the value their excellent product has built up over the years and I commend them for engaging in the Eclipse community. Oh, and yes, it is interesting that they picked Eclipse...
Thoughts?
If GM started giving stuff away Kia would be screwed, but what if Kia started giving stuff away or Hugo, would that do any real damage to Mercedes? I do not think it would do as much. If the low end gives product away it eats at the middle and has some effect on the top. But it is when the middle starts giving product away that the product is commoditized. This is a weakening, the patient is not dead yet.
Posted by: | April 22, 2005 at 03:18 PM