Consider PCs: also used for gaming, and certainly much more powerful than xone/P4, but PC sales have slowed.
907 karma · joined December 6, 2013
Consider PCs: also used for gaming, and certainly much more powerful than xone/P4, but PC sales have slowed.
"The Innovator's Dilemma" traces back the disk drive industry, and in each generation, people choose smaller memory capacity, for the sake of a smaller package (there used to be 8 inch drives, for example). The theoretical idea is that once users' need for performance is satisfied (it's "good enough"), they turn their attention to other issues - such as price, convenience/ease-of-use, customization etc.
It has happened with desktops: that's what caused the brief "netbook" popularity, and what made smartphones successful. Desktops had overshot what was needed for many tasks (browsing, email); but the smaller devices were just becoming powerful enough to manage. So although desktops were more powerful, that extra power didn't matter to many users.
The underlying idea is twofold: (1) all technologies improve over time, as engineers find better ways to do things (Moore's law is just one example); (2) what users demand also increases over time, but at a slower rate
Therefore, if you start with new approach that really struggles with many tasks, eventually it will become powerful enough for what users need; during the same period, the old technology started off powerful enough, and became even more powerful - but users didn't care, because it was more than they needed (or, at least, they didn't want it as much as they wanted other qualities, like convenience etc).
I would expect something like the Apple watch is essential for Apple, because that small form factor has lots of runway, as each increase in power would be a benefit to users.
> "The joy of it is, there was nothing there, and now something that was in my head, is out there."
"Dead" is misleading hyperbole - pg emphasises that MS is "highly profitable". His data point is that MS, in his and startups' experience, is no longer a threat. It's just another big company.
I was wrong to say "constant" revenues. But I think my main point, the contrast between a rapid growth period and a steady mature phase, is accurate. The MAX graph shows it, but it's hard to appreciate the exponential growth on the left, because it's so small - expanding the scale would help show it. But MS was seen as astonishingly successful leading up to 1986 - data isn't even displayed for that far back. MS was founded in 1976, DOS released in 1981, which was an instant best seller, on the coattails of IBM's PC, which opened floodgates to the pent-up demand for desktop computers, with the reassurance of "I.B.M.".
So maybe "past its prime" isn't accurate either, but "past its period of incredible meteoric rise". Depends on the definition of "prime".
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Above is the quantitative data you're asking about. But there is qualitative data, too, which is the basis of predicting what will happen next. By looking at the basis of MS's business success, and knowing how businesses tend to evolve from studying other business, we can try to predict what will happen next. MS's success was based on IBMs -> DOS -> Windows -> Office, leveraging each to the next. With IBMs, DOS and Windows no longer dominant, they are left with Office fileformats and skill at serving business customers. These are strong skills, but the aren't the terrifying killer competitive advantages MS used to have.
So, maybe it's mostly the dramatic constrast with what MS used to be. If you didn't see what MS was before, the contrast wouldn't strike you.
I see that MS are having success with cloud-based enterprise stuff. This makes sense, if it's the same software; they are good at serving enterprise customers, who would prefer not to have to switch. It may also represent going up-market - which is typical for incumbents whose low-end is under threat. It often leads to better and better profits until the low-end is eventually good enough and takes over. (Christiansen's The Innovator's Dilemma). Resources and technical talent and business skill aren't enough to save a company when the grounds of their advantage erodes.
I think the basis of pg's idea is especially for web-based companies. You may have heard of startups getting killed by google moving into their space (or, buying them). It's especially dangerous for people making add-ons for twitter, facebook etc. Now, MS used to do with with Windows: you'd make a product, it was good, MS would roll out that feature in Windows itself... you are dead. But that doesn't happen for the web, because it isn't MS's platform. And so people aren't scared of MS - that's pg's point, I think.
Google is double the good guy: (1) helps users for free, because advertisers pay for it (like free-to-air TV); (2) advertisers can't complain about google's high prices, because it's the other guy who bid it up (like selling munitions in an arms race).
I believe google came up with this independently BUT goto/overture did it first, patented it, sued, and google settled.
So far as revenue is concerned, this is Google's only product.
Of course, different near the equator, and phase-shifted in the southern hemisphere, and... much less pronounced in modern times, with supermarkets, refrigeration, air-conditioning/heating, imported foods, and wider social presence (newspapers, TV, radio, internet, phone) etc.
Can Microsoft reverse this? It's hard for them, because they are so successful. Most other successes look small: e.g. their incredible and profitable xbox business isn't in the same league. To rejuvenate themselves would be like Google coming up with a better business than adwords, or xerox a better business than copiers. It's like Apple TV: a wild success for anyone else, but for a long time, a "hobby" for Apple.
BTW: Apple's rejuvenation, and creating several new categories, is incredibly unusual.
Can Microsoft maintain constant revenues? Windows still has a huge amount of software for it, and businesses rely on it. They also rely on Office. Phones and tablets have not really began to displace these business roles. Microsoft has made Office for them anyway; and it also has Windows for tablet (on Intel). These won't displace current phones/tablets - but they will enable businesses to keep using their software and Office.
Of course, there is an opportunity for new ways to serve businesses, using mobile devices, that will make the old Windows software obsolete. This is how Windows could die. Office might be harder to kill.
Warning: the file format has changed slightly.
At least the study shows a genetic behavioural difference between dogs and wolves.
> This is what I sent: https://www.youtube.com/watch?v=Nqn-EmU5KPw
> This is what they got back to me with: http://i.imgur.com/LuPHqiN.png
> [1]:http://en.wikipedia.org/wiki/Treo_600 (gallery of 2-6,8-9 here: http://imgur.com/a/Gu70R) [2]:http://i.imgur.com/xVdpUST.jpg [3]:http://i.imgur.com/2Yy8fkM.jpg [4]:http://i.imgur.com/nZ7GwC1.jpg [5]:http://i.imgur.com/OJuZmh3.jpg [6]:http://i.imgur.com/z9mNkHt.jpg [7]:http://en.wikipedia.org/wiki/Acid1 [8]:http://i.imgur.com/9VKcxlY.jpg [9]:http://i.imgur.com/5KeI9TI.jpg
(links as comment so clickable)In short, to inform and develop a sense of direction.
Getting billions online would have incredible effects, especially productivity. It really will be a different world, with different market structures.
But I'm not so sure about ad-supported internet at such a fundamental level - reminds me of a Philip K Dick story with ads everywhere (even on toilet paper).
I agree on in-group/out-group (and, eg, monomanical movie villains, abusing their blindly obedient minions, are unrealistic). I'm claiming the benefits of civil cooperation are so enormous that these in/out-group clashes will occur on an increasingly higher base of mutually beneficial cooperation. Because an in-group too separated is too weak.
Essay Time. But DDG + NSA is interesting. Google was attractive to users because it gave them what they wanted - instead of the busy "portals" and paid placement. It was fast, honest, clear and had a better ranking algorithm.
Today, people don't want to be tracked/monitored, and unfortunately that is key to Google's business model. They were right to aggressively try to head off facebook, but wrong to abuse users to do it. They are definitely "evil" (their "don't be evil" meant don't be like microsoft or IBM, who pushed users around as it suited. Arguably, a publically traded corp is legally obliged to put profit above people - ie be "evil"; but it is possible to serve both, as google once did).
So, DDG is giving users what they want, and out-googling google, in a specific sense.
It's been said it's difficult to create sustainable competitive advantage in search, because users can trivially switch. But one thing google has been great at is fast response times. Users really care about this, and because it's so expensive to build huge server farms all over the world, this aspect is a SCA. DDG is far slower than google; and google suggest often feels local to me. Perhaps this could be replicated with AWS, but DDG hasn't done it.
But I think you're right: previously DDG was a niche success. But with the change in what users want (because of NSA/snowden revelations, and likely there'll be others), that is absolutely inconsistent with Google's business model for ads, then DDG really could overthrow them. But DDG make enough money to afford comparable server-farm investment? (Still, that gets cheaper all the time...)
Google could of course go back to being purely about search, and not acquire user data so aggressively... but giving up user modeling would massively undermine their ad profits, and they are now slaves to Wall Street.
So... interesting.
Illustrative example: hooligans riding loud motorbikes stopping at red lights.
recently on HN, great for perfectionists: http://finishonethingtoday.com/
Wintel is making a push, with extra cheap quad-core Atoms and Windows 8. I wonder if this might be easier to get full linux on?
BTW: The big problem with proper linux distributions on ARM/Atom is not not getting them to run, but power management.
It seems reasonable they might next apply this to the iPhone - and it seems the different battery sizes you suggest would be easily accommodated. (Unless there's another reason they want to constrain battery sizes).
EDIT just thinking of Christiansen's ideas on evolution of products, basically from "integrated for performance" to "componentized for customization", it does seem that iPhones are now overpowered for... well... phones (they are pretty much last-gen console/low end PC level now, or will be soon). Therefore, people might soon stop being willing to pay for even more performance (maybe). This is a problem for Apple, because they don't like commoditized products, not from a margin point of view, not from a building cool new stuff point of view. A way out of this is cool designed customization - it's something that Apple likes, and has great margins (like Beats).
also, 4K looks incredible - but where do you get 4K shows?
BTW I'm sick of refreshing HN 3 times to make sure my vote was counted. I'm not voting anymore.