Does IT Matter
December 7th, 2005The day job is running a trial of Books24x7, a commercial service offering on-line access to technical books. Unlike Google Books or Amazon’s Search Inside, it offers the text of books as text, rather than scanned pages. Whether this makes it any easier to read or not is a different matter – but I digress.
I noticed Books24x7 has in its virtual shelves Does IT Matter?: Information Technology and the Corrosion of Competitive Advantage by Nicholas G. Carr, published by Harvard Business School Publishing (as does Google Books now), a full-length book based on his notorious Does IT Matter article where he argued IT was bound to become just a commodity product. One footnote gives the flavour:
A resource becomes a commodity, in this view, when it is readily available to all competitors and therefore provides no lasting distinction to any one company. A commodity input for a user is not necessarily a commodity product for a supplier. Think of Microsoft Office. No company gains an edge by buying a license to use Office—it’s a commodity input shared by most companies. For Microsoft, however, Office is anything but a commodity. Through various means—control of the PC desktop, manipulation of standards and compatibility, network effects, and high user switching costs—Microsoft has been able to continue to sell Office at a premium price and earn enormous profits from what is now a mundane product.
This is of course music to my ears, and there’s a lot more like it. But what really captured my interest was a passing reference to the origins of open-source, fifty years ago. I’m away to look up some of his references – this threatens to be an interesting historical dig.

December 11th, 2005 at 2:27 pm
[...] I mentioned a few days ago I was reading Nicholas G. Carr’s Does IT Matter? In it he mentions possibly the earliest recorded example of open-source development – back in the 1950s – quoting from Martin Campbell Kelly’s From Airline reservations to Sonic the Hedgehog – a History of the Software Industry. [...]
April 10th, 2007 at 1:17 pm
[...] As Nicolas Carr has pointed out, software such as operating systems, email servers and clients, web servers, office productivity suites, etc are commodities which bring no business benefits. Therefore, companies have a duty to find the lowest cost of acquisition while maintaining whatever element of control they feel appropriate. [...]
April 17th, 2007 at 7:33 pm
[...] my words, but from Harvard Business School’s Nicholas G.Carr. Why buy Microsoft Office when OpenOffice.org does the same for [...]