One of the world’s most powerful monopolies puts 10,000 people to work for five years to create one new product. And nobody is really sure if anyone wants it.

I found this brilliant article by Dean Takahashi in the Seattle Times. It really confirms Joseph Schumpeter theory of “creative destruction”. Monopolists can’t innovate.
    Basically he says that the age of big operating systems that lie on the hard disk and get updated evey 3 (or 5 years in this case) is over. Apple and Linux get updated every year or half year. Google is providing ad-supported office programs for free. MIcrosoft is facing more and more competition. Their business model no longer works.

“Suddenly, the market changed and competitors started delivering technology at the speed of the Internet,” said James McQuivey, professor of market research at Boston University. “In some cases, they do it for free, and that’s painful for Microsoft.”

The Seattle Times: Business & Technology: Why Vista might be the last of its kind

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