Corante

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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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February 09, 2005

The Service-Centric Platform

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Posted by Dana Blankenhorn


Rajesh Jain (left) quotes one of my recent items today and adds this somewhat cryptic comment.

"I think the next platform will be a service-centric platform, built on the Internet and assuming the presence of computers and cellphones."

Once again, we have wisdom from the East. (If I were in California instead of Georgia, of course, it would be coming from the West.)

This is part of the long-term, mainstream transition everyone is now going through. It's a statement that explains a lot of today's conflicts, between proprietary and open source software, between broadband and mobility, between customers and vendors.

Customers want to pay for what computers do for them. Vendors want to be paid based on their costs.

It's a conflict as old as business. History shows it is always resolved, in time, on the customers' terms. Like they say, it's your money. (The key phrase in that paragraph -- in time.)

In telecommunications, for instance, the service is having the pipe there, not sipping from it. Thus communications are moving toward monthly subscriptions.

In finance the service payment has long been the rule. For years banks have been moving from making money on "spreads" to making money for services.

The open source war isn't really between free and paid. It's about when the payment will be delivered, and for what.

For instance, IBM is a leader in open source, and they're doing fine. They charge for changing software to make it useful, they charge for hardware, and they charge for what the computers they manage do.

The problem is that buying services, rather than products, is unfamiliar to many consumers, and it doesn't match costs for vendors.

But the message of the markets here is clear. We pay gladly when we see value. And with computers, we increasingly see value only after the computers have been in action.

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