Hi, 

Sorry for not snipping, but I wanted to be able to preserve the full 
context.

On Wednesday 23 March 2005 08:26, Chuck wrote:
> Lars D. Noodén wrote:
> > OOo and OpenDocument both get a mention towards the middle of
> > the article:
> >
> >  Nigel McFarlane.  "Firefox explorers." The Age.  22 Mar 2005.
> >
> > http://www.theage.com.au/articles/2005/03/21/1111253920087.html
> >?oneclick=true
> >
> >
> >     ... "I'm staggered and close to offended that some
> >     businesses choose the risk of vendor lock-in, and I'm
> >     staggered by the timidity of some IT managers," he says.
>
> I think the problem is that nobody wants to be the manager who
> recommended software that was later found out to have some
> incompatibility with MS file formats, the format that 98% of the
> rest of the business world uses.

This story reflects what Bhaskar Chakravorti calls "demi-Moore's 
law."  For those of you who like Clayton Christensen, you will also 
be interested in Chakravorti's book, "The Slow Pace of Fast 
Change".  Basically Chakravorti unpacks the chicken-and-egg problem 
of how to get a new innovation like OOo into a highly networked 
market like the software market.  

Basically, demi-Moore's law says that technology will be adopted at 
somewhat less than the pace of innovation, in part, because demand 
and supply side players hang back to see which way competitive 
battles will play out, and then everyone jumps on board when it 
becomes apparent which way the shift is going to lean.  It's what 
Chakravorti calls the "inefficiencies of networked economies."

Here is a link for Chakravorti's book:

http://www.slowpacefastchange.com/

To me and our film, "The Digital Tipping Point," the interesting 
thing is the time of approaching the point where demi-Moore's law 
runs in reverse.  To me, that is why we will see a rather dramatic 
tipping point in the adoption of GNU/Linux and OOo and other free 
open source software projects.  At some point, there are going to 
be enough major demand side players and supply side players who are 
using OOo that demi-Moore's law will run in reverse, and the 
inefficiencies of the networked software market will start to run 
in FAVOR of OOo, and AGAINST Microsoft!  

So Chakravorti works well with Christensen's team because 
Christensen's team explains the MOTIVATION for individual overshot 
customers to adopt FLOSS; and Chakravorti gives us sort of a 
fly-over shot of which way demi-Moore's law is running, and how 
fast.  

Another interesting thing about this demi-Moore's law is that it 
helps you (or at least me) think of how to when the digital tipping 
point might arrive, using tide flows as an analogy.  Here in San 
Francisco, we have huge tide changes.  The whole huge San Francisco 
Bay flows out through the relatively narrow Golden Gate which is 
spanned by the Golden Gate Bridge.  Sometimes when the tide change 
is really big, say an eight foot (2.5 meter) difference, you can 
almost feel slackwater approaching.  A big tide change means that 
all the water that wanted to rush out of the Bay now wants to rush 
back in.  

So at the height of the on-coming tide, standing on the Golden Gate 
Bridge, you can look down from the Bridge and see the water flowing 
rapidly into the Bay, like some raging river almost.  As slackwater 
approaches, you can feel the river slow down, and then there is a 
curious bit of time where the Bay is still at the height of 
slackwater.  Then, several hours later, the river is flowing back 
out to the Pacific Ocean, once again at a surprisingly quick clip 
for such a large body of water.  Major ocean liners will time their 
arrival into the bay to coincide with an in-coming tide, rather 
than risk the fuel and rocks at the mouth of the bay in the fury of 
the out-going tide.  

I'm a lawyer, and have been working in the law in once capacity or 
another since 1985, and I remember when the tide of demi-Moore's 
law switched against WordPerfect and in favor of Microsoft Word.  
It seemed that OVERNIGHT most users, and even most law firms, 
switched en masse from WP to Word.  I was shocked, because I 
thought (and still think) that WP was vastly superior to Word.  

But Word was a disruptive technology for WP, and a sustaining 
technology for Microsoft.  Word was more convenient to acquire and 
use.  This was a classic example of demi-Moore's law and disruption 
acting in concert.  Word came easily pre-packaged in many cases 
with Windows (ease of acquisition) and Word was more easy to use 
than WordPerfect (mostly because Microsoft broke WordPerfect on 
Windows).  Microsoft had connections in its Windows OEM 
distribution channel (ease of acquisition) that WP could not match, 
and so it was able to "incent" key supply-side players into 
cooperating.  Before Microsoft used its lock-in power, no 
supply-side player could touch WordPerfect, the unquestioned market 
leader.  

IMHO, the same thing is going to happen to OOo and Word.  Obviously, 
the difference is that currently, there is no single player in the 
OOo drama that has the muscle that Microsoft quickly acquired in 
the WordPerfect drama; and there probably never will be a similar 
single player due to the open, competitive nature of the software 
libre market.

But there are several very slick supply-side players in the software 
libre market.  Sun, Linspire, Novell and HP really "get" it that 5 
billion people live in markets where Microsoft is entirely too 
expensive, and where Microsoft has little or no viable business 
model.  Currently, Microsoft's solution is to try to "buy" the 
market by "lobbying" (bribing) local officials, giving its software 
to some libraries and schools, and offering package deals to 
governments like Thailand.

But that is not a sustainable business model for a company whose 
revenue is primarily derived from the SALES of the software itself!  
Windows and Microsoft Office are becoming commodities, and it is 
difficult to base a market-leader on the sales of low-margin 
commodities.  

Linspire, Novell, and HP are able to make decent margins, at least 
theoretically, by selling the service of repackaging (Linspire and 
Novell) or by selling hardware (Novell, Sun, HP) or by making deals 
with hardware providers in emerging markets (Linspire).  Each of 
those companies are also doing a good job of establishing 
distribution channels in emerging markets without having to "buy" 
the market, like Microsoft is doing. So IMHO, those companies are 
more well poised to grow with those emerging markets than is 
Microsoft.  

As a side note, I have interviewed Michael Robertson, the CEO of 
Linspire, for the Digital Tipping Point film, and you'd better 
believe that this guy "gets" Clayton Christensen.  He founded 
MP3.com, and MP3.com is now the number TWO most linked site ON THE 
PLANET!!!  Yep, MP3.com is actually more linked than any other 
site, except Yahoo.  That really has to make you think.  MP3.com is 
more linked than Expedia, or Microsoft, or Amazon or AOL or the US 
White House!!  Look at what MP3 did to the music industry, and MP3 
is a classic disruptive technology, and MP3's effects on the music 
industry are ONLY BEGINNING.  This history has gotta make you see 
Linux, open source, Linspire, and Michael Roberston in a whole new 
light.

http://tools.marketleap.com/publinkpop/plapp/publinkpop.dll/BuildChart

>
> I have OOo installed on my laptop and love it (don't tell my
> workstation support group though or they'll remove it as
> "unsupported software"). When I buy my new XP home PC this week,
> OOo will be installed and not MS or Corel. But I wouldn't dare
> save a shared document at work with it. I haven't come across
> file format problems yet but I don't want to be the one
> responsible for corrupting a file that 20 other people are using
> and have to explain why I was using OOo instead of Word or Excel
> to my boss.

See, your choice is largely dictated by your expectations of other 
players in the market, exactly as Chakravorti describes.  Again, 
it's an illustration of "demi-Moore's law".  There are already 
entire generations of kids in Sao Paulo, Brazil, who are learning 
to use *only* OOo, because their ONLY access to computers is 
through the computer centers built by the Sao Paulo government, and 
we filmed those centers, and those centers use ONLY software libre 
(or software "livre" in Portuguese).  Same thing for ALL of the 
schools in Extremadura, Spain, and soon will be the same in 
Catalonia and Valencia and Andalucia.  Same thing for Riverdale 
High School, in Portland, Oregon.  IMHO, the day is only about 3 
years away when people will wonder why they ever paid for an office 
suite, just the way that people now wonder why they ever paid for a 
browser.  (I actually paid for Netscape, twice!)  

---------------------------------------------------------------------
To unsubscribe, e-mail: [EMAIL PROTECTED]
For additional commands, e-mail: [EMAIL PROTECTED]

Reply via email to