TweetFollow Us on Twitter

Competition
Volume Number:10
Issue Number:4
Column Tag:Inside Information

The Competition of The Future

Do you know any dinosaurs headed for extinction?

By Chris Espinosa, Apple Computer, Inc., MacTech Magazine Regular Contributing Author

In the personal computer software industry we’re extremely fortunate to have a couple of natural forces that help keep ahold of our customers. First, there is the normal upgrade cycle, where for a small amount of work we can make an improvement on the products our customers already own, and do a "trade-in" at a very low cost of goods. You can’t do that with refrigerators, for example, because most of the costs are in materials and manufacturing. The revenue stream from upgrade products is what keeps most companies profitable in the software industry.

Second is the "switching costs" that keep customers on that upgrade path. Once you’ve bought a product, learned its interface and features, committed a lot of your data to its file format, and (consciously or unconsciously) designed your everyday habits around it, you’re pretty reluctant to switch to another product, even if it promises to be A Whole Lot Better. It has to be so much better that it overcomes the pain of learning a new feature set and user interface, the time-consuming and inaccurate process of file conversion, and the discomfort of losing old habits and gaining new ones.

In many cases, the switching cost is always higher than the benefit. A modern application has so many features that it’s rare for a different product to completely satisfy its users. Everybody has one crucial feature that they love in one application and won’t give up. It’s hard for a competitor to cover all of the cherished features well enough to really steal customers from an established product.

As long as software remains large and hand-crafted, with each application having its own file format and user interface, the switching costs for users will remain high. That means that you can generally trust that your installed base will be a ready market for your upgrades, and you can focus most of your effort on adding features that please them, get the attention of new computer purchasers, and (maybe) attract some people who already own your competitors’ products.

But OpenDoc and the component software revolution change the technical basis for many of these switching costs. Because the information edited by part editors is stored in the Bento file format, it’ll be easier for one application to read another’s data. Because OpenDoc lets you add part editors to any document, you can keep the user interface and cherished features of the most important data, and integrate them easily into another application. So when someone creates a compound document with your application and a lot of OpenDoc part editors, it’s not that difficult for them to take those parts and move them to another application without a major upheaval in file format, user interface, or features.

It will be a long time before software components become truly interchangeable parts, but just a little interchangeability can make a serious difference in how you develop your products -- and how you keep a hold on your customers.

In development, you should see your application as a whole, not just (to use the cliché) the sum of its parts. For example, consider constructing your graphics-editing application so that the bulk of the work is done in a graphics part editor, but your “container” application adds automation, management, and control. Though people might be tempted to just use your part editor in other applications (as well they could), they’d soon miss the advanced features only available in the container.

Or focus on customizability. One of the tempting things about General Magic’s Magic Cap environment is that it’s terrifically personal, and people will get attached to it: not to the environment itself, but to what they’ve done to it. When users personalize your software to the degree that moving away from it is like moving out of their homes, your chances of keeping them are stronger.

As software becomes interchangeable, the less it will cost to switch. Ultimately we’ll have to deal with the fact that some kinds of software will become commodities, just like clone PC hardware today. And that means that a lot of the things that are important in today’s software business (like upgrades and new features) may become less important, and things that are most important in other industries might become most important in software as well.

Things like great customer service, personal customer support, high quality (the first time, not in the .1 version), and heavy direct marketing. Things like licensing terms that are not only convenient, but understandable (have you even read the license agreement you put on the software you sell?). Things that make YOU different, not just things that make your product different.

For many technologists this will be extremely annoying. At its worst it’s a “marketing-driven” industry. At its best, it’s a great foundation for innovation, though your innovations of two years ago don’t give you a natural customer base for next year. In any case, a lot of the things that we have gotten away with so far must end: bugs and instability, rampant featuritis, and “upgrades” that are bigger and slower than the current version. When your users can take their data and use a different product, they’ll be less tolerant of your mistakes and foibles.

Perhaps this will never happen. It’s possible that interchangeable software parts are still a long way away. If so, we can probably get away with proprietary data formats, buggy code, and feature bloat for a few more happy years, dragging our poor customers with us. But even if the component revolution doesn’t happen on schedule, it might be a good idea to clean up our act anyway: remember that phones, TVs, and video games are creeping up on our personal computer industry just like we crept up on minicomputers ten years ago. If we don’t pay attention to what people really want, we could be the next dinosaurs.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Ableton Live 11.3.11 - Record music usin...
Ableton Live lets you create and record music on your Mac. Use digital instruments, pre-recorded sounds, and sampled loops to arrange, produce, and perform your music like never before. Ableton Live... Read more
Affinity Photo 2.2.0 - Digital editing f...
Affinity Photo - redefines the boundaries for professional photo editing software for the Mac. With a meticulous focus on workflow it offers sophisticated tools for enhancing, editing and retouching... Read more
SpamSieve 3.0 - Robust spam filter for m...
SpamSieve is a robust spam filter for major email clients that uses powerful Bayesian spam filtering. SpamSieve understands what your spam looks like in order to block it all, but also learns what... Read more
WhatsApp 2.2338.12 - Desktop client for...
WhatsApp is the desktop client for WhatsApp Messenger, a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS. WhatsApp Messenger is available for... Read more
Fantastical 3.8.2 - Create calendar even...
Fantastical is the Mac calendar you'll actually enjoy using. Creating an event with Fantastical is quick, easy, and fun: Open Fantastical with a single click or keystroke Type in your event details... Read more
iShowU Instant 1.4.14 - Full-featured sc...
iShowU Instant gives you real-time screen recording like you've never seen before! It is the fastest, most feature-filled real-time screen capture tool from shinywhitebox yet. All of the features you... Read more
Geekbench 6.2.0 - Measure processor and...
Geekbench provides a comprehensive set of benchmarks engineered to quickly and accurately measure processor and memory performance. Designed to make benchmarks easy to run and easy to understand,... Read more
Quicken 7.2.3 - Complete personal financ...
Quicken makes managing your money easier than ever. Whether paying bills, upgrading from Windows, enjoying more reliable downloads, or getting expert product help, Quicken's new and improved features... Read more
EtreCheckPro 6.8.2 - For troubleshooting...
EtreCheck is an app that displays the important details of your system configuration and allow you to copy that information to the Clipboard. It is meant to be used with Apple Support Communities to... Read more
iMazing 2.17.7 - Complete iOS device man...
iMazing is the world’s favourite iOS device manager for Mac and PC. Millions of users every year leverage its powerful capabilities to make the most of their personal or business iPhone and iPad.... Read more

Latest Forum Discussions

See All

‘Junkworld’ Is Out Now As This Week’s Ne...
Epic post-apocalyptic tower-defense experience Junkworld () from Ironhide Games is out now on Apple Arcade worldwide. We’ve been covering it for a while now, and even through its soft launches before, but it has returned as an Apple Arcade... | Read more »
Motorsport legends NASCAR announce an up...
NASCAR often gets a bad reputation outside of America, but there is a certain charm to it with its close side-by-side action and its focus on pure speed, but it never managed to really massively break out internationally. Now, there's a chance... | Read more »
Skullgirls Mobile Version 6.0 Update Rel...
I’ve been covering Marie’s upcoming release from Hidden Variable in Skullgirls Mobile (Free) for a while now across the announcement, gameplay | Read more »
Amanita Design Is Hosting a 20th Anniver...
Amanita Design is celebrating its 20th anniversary (wow I’m old!) with a massive discount across its catalogue on iOS, Android, and Steam for two weeks. The announcement mentions up to 85% off on the games, and it looks like the mobile games that... | Read more »
SwitchArcade Round-Up: ‘Operation Wolf R...
Hello gentle readers, and welcome to the SwitchArcade Round-Up for September 21st, 2023. I got back from the Tokyo Game Show at 8 PM, got to the office here at 9:30 PM, and it is presently 11:30 PM. I’ve done what I can today, and I hope you enjoy... | Read more »
Massive “Dark Rebirth” Update Launches f...
It’s been a couple of months since we last checked in on Diablo Immortal and in that time the game has been doing what it’s been doing since its release in June of last year: Bringing out new seasons with new content and features. | Read more »
‘Samba De Amigo Party-To-Go’ Apple Arcad...
SEGA recently released Samba de Amigo: Party-To-Go () on Apple Arcade and Samba de Amigo: Party Central on Nintendo Switch worldwide as the first new entries in the series in ages. | Read more »
The “Clan of the Eagle” DLC Now Availabl...
Following the last paid DLC and free updates for the game, Playdigious just released a new DLC pack for Northgard ($5.99) on mobile. Today’s new DLC is the “Clan of the Eagle" pack that is available on both iOS and Android for $2.99. | Read more »
Let fly the birds of war as a new Clan d...
Name the most Norse bird you can think of, then give it a twist because Playdigious is introducing not the Raven clan, mostly because they already exist, but the Clan of the Eagle in Northgard’s latest DLC. If you find gathering resources a... | Read more »
Out Now: ‘Ghost Detective’, ‘Thunder Ray...
Each and every day new mobile games are hitting the App Store, and so each week we put together a big old list of all the best new releases of the past seven days. Back in the day the App Store would showcase the same games for a week, and then... | Read more »

Price Scanner via MacPrices.net

Apple AirPods 2 with USB-C now in stock and o...
Amazon has Apple’s 2023 AirPods Pro with USB-C now in stock and on sale for $199.99 including free shipping. Their price is $50 off MSRP, and it’s currently the lowest price available for new AirPods... Read more
New low prices: Apple’s 15″ M2 MacBook Airs w...
Amazon has 15″ MacBook Airs with M2 CPUs and 512GB of storage in stock and on sale for $1249 shipped. That’s $250 off Apple’s MSRP, and it’s the lowest price available for these M2-powered MacBook... Read more
New low price: Clearance 16″ Apple MacBook Pr...
B&H Photo has clearance 16″ M1 Max MacBook Pros, 10-core CPU/32-core GPU/1TB SSD/Space Gray or Silver, in stock today for $2399 including free 1-2 day delivery to most US addresses. Their price... Read more
Switch to Red Pocket Mobile and get a new iPh...
Red Pocket Mobile has new Apple iPhone 15 and 15 Pro models on sale for $300 off MSRP when you switch and open up a new line of service. Red Pocket Mobile is a nationwide service using all the major... Read more
Apple continues to offer a $350 discount on 2...
Apple has Studio Display models available in their Certified Refurbished store for up to $350 off MSRP. Each display comes with Apple’s one-year warranty, with new glass and a case, and ships free.... Read more
Apple’s 16-inch MacBook Pros with M2 Pro CPUs...
Amazon is offering a $250 discount on new Apple 16-inch M2 Pro MacBook Pros for a limited time. Their prices are currently the lowest available for these models from any Apple retailer: – 16″ MacBook... Read more
Closeout Sale: Apple Watch Ultra with Green A...
Adorama haș the Apple Watch Ultra with a Green Alpine Loop on clearance sale for $699 including free shipping. Their price is $100 off original MSRP, and it’s the lowest price we’ve seen for an Apple... Read more
Use this promo code at Verizon to take $150 o...
Verizon is offering a $150 discount on cellular-capable Apple Watch Series 9 and Ultra 2 models for a limited time. Use code WATCH150 at checkout to take advantage of this offer. The fine print: “Up... Read more
New low price: Apple’s 10th generation iPads...
B&H Photo has the 10th generation 64GB WiFi iPad (Blue and Silver colors) in stock and on sale for $379 for a limited time. B&H’s price is $70 off Apple’s MSRP, and it’s the lowest price... Read more
14″ M1 Pro MacBook Pros still available at Ap...
Apple continues to stock Certified Refurbished standard-configuration 14″ MacBook Pros with M1 Pro CPUs for as much as $570 off original MSRP, with models available starting at $1539. Each model... Read more

Jobs Board

Omnichannel Associate - *Apple* Blossom Mal...
Omnichannel Associate - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Read more
Cashier - *Apple* Blossom Mall - JCPenney (...
Cashier - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Blossom Mall Read more
Operations Associate - *Apple* Blossom Mall...
Operations Associate - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Read more
Retail Key Holder- *Apple* Blossom Mall - Ba...
Retail Key Holder- APPLE BLOSSOM MALL Brand: Bath & Body Works Location: Winchester, VA, US Location Type: On-site Job ID: 03YM1 Job Area: Store: Sales and Support Read more
Omnichannel Associate - *Apple* Blossom Mal...
Omnichannel Associate - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.