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The Paradox of Commoditization

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The Paradox of Commoditization
Topic: Technology 2:46 pm EDT, Apr 12, 2003

The monopoly control of customers by Legacy networks is destroying the economic benefits that could be obtained from the ongoing pervasive and inexorable commoditization of telecom and information technology.

We face a paradox. While we have eyes, we cannot see.

We act as though we could wish away what is happening to new products and prices. But the fact is that the on-going commoditization of technology cannot be undone. Products will continue to get better but they will also continue to fall in price. In the face of these dynamics, jobs will melt away. The only growth in the industry will be come from a variety of education, customer support, strategic evaluation and consulting positions. Additional growth can come only from use of the technologies in an open architecture that preserves the freedom to innovate.

This is just one of many worthwhile articles in the latest issue of the Cook Report.

The Paradox of Commoditization



 
 
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