Tuesday, September 27, 2011

Open vs closed

This post is about an open system vs a closed system.

   More directly related to phones, Apple operates their iOS economy in a closed matter.   With the exception of accessories, you can only buy apps, songs, hardware, etc from apple.   Only Apple makes the device and only Apple can service the device.   Any violation of the above will violate your warranty and/or get you sued.

  Android on the other hand is a like a frat party.   Anybody can do anything they want for any price and for any reason.   However there are some restrictions.  In order for a phone to have the Google name on it and have the stock Google apps installed, Google has to approve the device.

Most people probably don't care about open vs closed and that is fine.   However this topic will directly relate to the next one on "market share"

Consumers have seen this battle play out multiple times.   Here are some examples of previous open system vs closed system battles, and their outcomes.

Betamax vs VHS - Betamax was a superior product, but operated by Sony in a closed nature.   Only Sony made Betamax players, while VHS was made by anybody who wanted too.   Guess who won, even with an inferior (albeit slightly) product.

AC  vs DC.    This battle was the the standard for electric current.   Thomas Edison backed DC current and had many patents and inventions in place to ensure their success.   Westinghouse, Siemens and Oerlikon all backed AC current.    When Edison realized he was losing, he went on a negative publicity campaign trying to halt the success of AC.   Sound familiar?

Mac VS Windows.   Perhaps this is the best example.    In the early 80's Steve jobs essentially perfected the personal computer.  Apple fought with IBM and a number of other competitors throughout the 80s.    In the late 80's early 90's Bill Gates licensed Windows to manufacturers, while Apple remained a closed system, manufacturing their own computers.   These manufacturers competed with each other, drove down pricing, and won (and are still winning by FAR) the marketshare wars.  

Apple wants complete control of their OS and they are going to lose AGAIN because of it.

Historically, even though somebody MAY have a better product, if they operate within a closed system, they will lose the marketshare wars.

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Fun facts:
  -Car manufacturers cannot void your warranty if you service your car somewhere other than a dealership.
  -Long ago when I was looking to switch from my blackberry, I was up in the air about Android or iOS.   I chose Android because i had read that Apple recently denied the Google Voice app from the iPhone.
  -Apple has recently required software developers to get thier applications signed in order to work on their computers.
  - Apple charges $99/year for software developers.   The first submittal is free, but if your app gets rejected it costs $50 to try again.
   -An iOS developer had submitted an iCloud similar app to the appstore and it was denied, about 6 months prior to the announcement of iOS5.  

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