Three Competing Business Models (Part 2)

Apple, Google and Microsoft are competing for your attention and money! Internet browser, PC operating system, mobile operating system and PC/Cloud applications. Apple manages all aspects of the ultimate solution – you buy a solution from Apple and only Apple – hardware and software come from the same company. Google and Microsoft sell only part of the solution, with reliance on hardware vendors and other software vendors to really bundle the ultimate deliverable. You might buy the PC from Dell, license the operating system from Microsoft and the virus protection from Symantec. In the Apple scenario, all come from Apple. The other Microsoft and Google difference is closed versus open source approach – for the most part, Microsoft’s closed approach relies on the value of the software itself, while Google is betting on incremental exposure and marketing revenue it will gain by giving software away for free or heavily subsidized. Three different models – which will win? Or will there be different winners in different market segments such as business enterprises versus consumer.

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