Friday, October 21, 2005

Friday's point to ponder...

The primary goal of a software company is to become a media company.
The primary goal of a hardware company is to become a software company.

Just healthy points in the business cycle? The difference? Software companies admit it.

And then...a few weeks later...we have on cnet:

"Indeed, thanks to the iPod, the iTunes Music Store, and other digital-media efforts, Apple’s image as a company has undergone a dramatic shift to the point where the age-old question about Apple—is it a hardware company or a software maker—has morphed into a new query. Is Apple a computer maker or a media company?"

next question.

2 comments:

kim said...

Hmm....

I'm not sure I agree with your comments. Perhaps if you qualify each of the subjects as "the goal of a large, market leading hardware company..."

The goal of 90% of HW companies is to become the biggest/baddest HW company in their segment. Only once they've become market leader, they start to look for new business.

Companies that lose their focus don't tend to do as well.

Many examples for or against this point, but I'd argue it's the case.

Once you are INtel, you say "hmmm... how to get more biz?"

If you are arguing that content is king, and that SW is more content-ish than HW; then I agree. I just think that most smaller HW/SW companies don't have time to worry about that, they are busy trying to kick their competitors' butts.

adam lake said...

i need to add adjective 'mature' in front of hardware and software.

i also realize that the primary goal is to make money. i mean the next big mound they climb as a company to get more $.

i was not speaking of places that are not even established in their own domains yet, they are too busy.