Fred Wilson shares his take on software being a commodity and one way to building up its defensibility is building up a platform around it.
We saw the cloud coming but did not want to invest in commodity software delivered in the cloud. So we asked ourselves, “what will provide defensibility” and the answer we came to was networks of users, transactions, or data inside the software. We felt that if an entrepreneur could include something other than features and functions in their software, something that was not a commodity, then their software would be more defensible. Via Link
I especially like the part on anyone can build a cheaper, better and faster software.
A good read for fellow entrepreneurs and time for me to rethink some of our defensibility.