Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
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Stan Beer
Monday, 10 April 2006 05:01
This has resulted in the present reality where the API lock-in enables Microsoft to make 10 or 20 times higher margins on its platform than the hardware vendors make building computers. It has also provided Microsoft with the financing and leverage it needed to snare most of the major desktop productivity application market segments.
These
apps in turn provided Microsoft with both user-interface as well as the
more important document format lock-in. Users who learn on
Microsoft's
major applications often find it difficult to move to competitors'
applications. And as Microsoft's applications churn out data and
documents in formats which are almost always proprietary, they in turn
make it harder and harder for the users to migrate to alternative applications
in future. Applications that run on Linux, for instance. Once again,
this isn't Linux's or the open source community's fault.
Proprietary
formats and user interfaces are examples of lock-in provided through
network effects. The more people who know how to use a particular
application, the more that application gets cemented into the industry.
Employers demand that new hires know that application's user
interface and businesses adopt that software knowing that a larger
portion of prospective hires will know that application's user interface.
No one thinks about the long-term consequences of giving such
monumental power and control over one's business software, to a single proprietary vendor.
And
all such lock-in machinations further feed the whirling accretion disk
of market-share and revenue surrounding Microsoft.
This has further
implications. Competition debilitating implications. Users tend to shy
away from applications who compete head-on against Microsoft, as
those competitors aren't likely to be around in the long haul. Because
if you did buy into such applications, what would happen to all that
data or documents you create in any applications from such vendors?
Isn't it better to stick with the vendor which controls the platform and is most likely to cut off the air supply of the third party vendors? i.e Microsoft? This
was the reality, and one by one, all of Microsoft's former competitors
bit the dust, until open source reared up as a challenger. And open
source changed the competitive landscape for ever. Certainly from
Microsoft's perspective. You see, you can't cut open source's air
supply.
Users eventually come to understand that if it's a viable piece of
software, an open source app can essentially live forever, even if it's
up against Microsoft. This gives users wings. They increasingly buy
into the mindset that there are alternatives to everything that
proprietary vendors like Microsoft offer.
And
what's more, because the creators of open source do not have a vested
pecuniary interest in locking users into any specific platform, user
interface or proprietary format, users gain through freedom and
flexibility. Or in the language of business, control. Total control.
Stallman
talks about freedom, but if you're in business, I want you to think
about control - it's the other side of the same coin.
How does
open source give you control? And why is it different to Microsoft?
Here's why. If you're locked into Microsoft's world-view, there is
nothing except Windows. You use Outlook for email, Internet Explorer
for browsing and Office for most everything else. All these are stuck on
Microsoft's Windows, meaning that all your data, documents, mail,
pretty much everything else, is stuck on Windows. And so are you - unless someone else can drop you an escape ladder. And that's just what the open source crowd are trying to do.....more
This article is also available here
Also see
Novell: it’s the Linux desktop user stupid – part 1
Maddog says desktop the final frontier for Linux

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