Just finished reading Chris Anderson’s book The Long Tail, which is not a bad read, however you can probably get the point of the book, by reading the Wikipedia page on it…This will save you $24.99, so I suppose this is free!!!. Chris is also the editor of weird I mean Wired magazine where there was an interesting article on making money on the web with free offerings. Not new in business, in fact this has been done for centuries – disposable razors and cell phones without plans and now it’s web mail, free storage, and word processors.
What the article doesn’t mention is that as items become free or pretty cheap, when they become commoditized and number of people have been saying that Office 2007, is an expensive commodity. Well this is not true. Because people’s expectation rise, with product offering. It’s now not un common for companies to integrate CRM and a Word file to an accounting system, or something integrated. I’d like to see this done with Google apps, without employing an army of coders.
So as more players enter the market, it’s value to the business user is important, not the $2.5 cost of ownership per day.
Also if everyone is using a commodity tool, there’s no way the user or an organization can get an inside edge when competing against their competitors.