Monday, October 11, 2004

Biggest business blunder of the last 50 years? - Why, Apple's failure to license the Mac OS, of course. Cost of blunder? A mere $580 billion. Almost the size of the deficit this year.

v-twin SEZ: i gotsta throw in the COUNTERPUNCH from paul graham:
When we were making the rounds of venture capital firms in the 1990s, several told us that software companies didn't win by writing great software, but through brand, and dominating channels, and doing the right deals.

They really seemed to believe this, and I think I know why. I think what a lot of VCs are looking for, at least unconsciously, is the next Microsoft. And of course if Microsoft is your model, you shouldn't be looking for companies that hope to win by writing great software. But VCs are mistaken to look for the next Microsoft, because no startup can be the next Microsoft unless some other company is prepared to bend over at just the right moment and be the next IBM.

It's a mistake to use Microsoft as a model, because their whole culture derives from that one lucky break. Microsoft is a bad data point. If you throw them out, you find that good products do tend to win in the market.


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