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In this situation, Schadler is probably right to say that "solution providers [who] eliminate many barriers to adoption will tend to win". But I also suspect that as these markets grow and mature, they will tend to tip over into horizontal ones. If we're going have 10,000 manufacturers, we can't have 10,000 different processors or operating systems, and we don't want 10,000 different DRMs. Common standards have to emerge.
Kevin Werbach, assistant professor at the Wharton business school at the University of Pennsylvania, says: "Most of the time, and in the long run, the open platform solution will win. But not always. The successful technology companies are generally those who are not religious about vertical or horizontal approaches, but who appreciate that a platform is more valuable when other companies have appropriate incentives to build and compete on top of it.
CNN news
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