Platforms are for Suckers: Why you shouldn't build your business on one.
spencerfry.com
spencerfry.com
If a single vendor gains control of the "market" for web browsers, as Microsoft did for a while, you are at their mercy. If there are multiple, competing web browsers and control of the APIs (e.g. HTML, CSS, JS) is decentralized, you are at the mercy of the whims of the marketplace, but no one person can wake up in the morning and decide to shut you out.
The concerns raised in this post are isomorphic to Apple's concerns about Flash. They don't mind developers using web standards to develop apps because no one vendor controls HTML, CSS, and JS. If developers write their apps in HTML, JS, and CSS, Adobe cannot flip a switch overnight and break every app on iPhone because their proprietary tools no longer emit a flavour of JS that runs on iPhone without errors.
So...
Proprietary Platforms are for Suckers.
In fact, I'd say that almost 5 minutes after the meeting Steve and I knew in our hearts that it wasn't time — that we didn't want to join Apple (yet). We maybe went through the motions of "deciding" on the flight back home, but I think we knew the truth. And the truth went something like this:
"This is our only chance to do Panic. We don't have kids, we're not married, we don't have huge obligations. We didn't invest our life savings into it, just a few hundred dollars. We don't even have life savings. We probably won't get this opportunity again in our lifetime — the full chance to take a complete risk, to experiment, quit our day jobs, start a business that certainly may fail, put our hearts into the soul of it, and try to make it fly — making the best possible Macintosh software we can without the threat of mortgages or the cost of braces or kids wondering why we're never home. And while there may be a time in our life where we crave some stability, or there may be a time in our life when things don't work out with Panic and we return to be a player in a larger, awesome team like Apple, that time is certainly not now. Panic's time is."
We can agree that Panic did consider a sale to AOL and Apple without taking anything away from the fact that a content-neutral proprietary platform still carries the risk that you will wake up one morning to discover that the vendor is giving away competition.
I think the risks vary from platform to platform, market to market, and even possibly from executive making the decision to executive making the decision.
What are the risks of Apple competing with or even rejecting iDeco, an iPhone application for estimating decompression diving profiles? Minimal. Does that weaken the argument that building on a proprietary platform places you at Apple's mercy? I don't think so.
It's true that with iDeco they could reject it whereas with VPlanner desktop software they can only give away free decompression software. But this is like arguing the difference between living with a school principal who can expel you vs. a bully who can beat you up at recess.
If school looks good to you, go and enjoy yourself. The fundamental situation remains that when you build on a proprietary platform you expose yourself to risk of harm from the vendor. Manage that risk wisely and keep your eyes open.
Depends on the primary source of your visitors/customers. If that's Google (as is the case with many web companies) then they could introduce a service much like yours and direct people there instead.
For example, Ventrilo was free to raise their rates because their success and profits really weren't dependent on the profits of the end users. They could jack their prices all over the place and most of their customers would have to pay if they wanted to keep their business going. They had lock in and they used it. They really don't care about how your company does, just that they extract maximum profit from you.
On the other hand, a company like Google has its success and profits dependent on your website being awesome. The more people who use the web and the more time they spend on it the more money Google will make. Google wants your site to succeed because it makes them money in the long run. They won't be as interested in jerking you around because they're not making money directly from you.
This is the right question to ask. If A depends on B, but B doesn't depend on A, then B might shaft A. But if A and B are mutually dependent, both can assume it's unlikely the other with shaft them.
Now Apple/Twitter/Facebook is going crazy and nobody does nothing...
That said, there are many difference between the Windows platform and the iPhone. When the DOJ started investigating Microsoft in 1991 they did have a monopoly on PC operating systems, and (as the DOJ investigation found) was using this power to unfairly give Internet Explorer an edge.
The iPhone platform may command the lion's share of the attention in the smartphone market, it is nowhere near a monopoly [3, 4]. The same cannot be said about the iTunes Music Store [5]. It seems, however, that the investigation into Apple's practices are moving beyond music [6], so we'll see in 7 years time about "does nothing".
[1] http://en.wikipedia.org/wiki/United_States_v._Microsoft [2] http://topnews.us/content/221070-apple-under-doj-investigati... [3] http://mashable.com/2010/02/09/android-iphone-market-share/ [4] http://en.wikipedia.org/wiki/Smartphone [5] http://www.apple.com/pr/library/2008/04/03itunes.html [6] http://newsblog.thecmuwebsite.com/post/DOJs-Apple-investigat...
[Hope this wasn't too citation heavy, I tend to get a bit verbose when I am tired.]
If not, I have no trust in your platform
The point of platforms is that they make things easier, which is something that most businesses desperately need. You just have make sure that you understand the risks-- but they are oftentimes worth it. Zynga would never have built what they've built without Facebook. Yelp would be a tiny fraction of what it is without Google. Quickbooks would have a rough time without Windows.
That said, picking a really early platform has more risks (read: Twitter). Picking a platform run by a company that isn't really experienced being a platform (your Ventrilo example and, again, Twitter) has more risks.
But punting platforms as a concept is just dumb. 85% of venture-backed startups are dead in 3 years. More than that, likely, in the bootstrapped world. You need every advantage you can get.
tl;dr version: Windows is a platform nobody wants to develop for. Windows developers have moved to the web (or to other platforms eg: Mac). The rest of the article justifies these two assertions.
Mostly because they have decisively lost the search market in the United States. I deal with one of the most non-technical niches imaginable, and Google gives me 10x the traffic that Bing does. (It is an interesting question of whether this is solely because Google is crushing Bing in market share, or if it is a reflection of adaptation of my business to meet Google's demands. That is largely academic, though. Its a factor of freaking ten.
Bing and Yahoo could both go dark tomorrow permanently and I might not even notice. The last time Google went dark, for 45 minutes, I started fielding customer support queries about how I "broke the Internet". And while that is amusing phrasing, I don't think it is false. Google is navigation on the open Internet. (Insert obligatory disclaimer: for English speaking Americans. It is a bit different in Japan. It is even more lopsided in the UK in Google's favor.)
Edit to add: Do not get me started on their PPC services. Its like Bill Gates said "We want this to have the technical chops of Google and the dedication to service of a convent!" and the memo got horribly, horribly misread.
Today, Google Search sends the vast majority of that site's traffic and Google Adsense pays me for that traffic. I wasn't tied when I started, but I sure am now.
What platforms are for is speedy cash. The access you'll get to large numbers of people is a great help. Just keep your efforts cheap and dirty and put the money in your pocket as soon as you get it.
I am also dependent on a single platform and am acutely aware of the fact that this is not a good long term (6 mo +) investment of my time. However, building for a popular platform is a good way to make some quick cash without having to worry about anything but the quality of your product (ie. getting discovered, marketing, payment processing, etc.)
Perhaps this is possible with Javascript web apps for mobile devices?
Platforms have their positives and negatives. What you should do depends on the unique combination of your goals and market forces. Broad, sweeping generalizations like this are sad because they miss the real point, which is that you should carefully consider potential future ramifications of building on a platform. Not that you shouldn't do it, but that you need to give serious thought about what success might mean.
You always build on a stack of platforms, but the only one that matters is the one directly underneath your application. If it is proprietary, and/or you have no influence on the way it works, you might get into a trouble as described by Spencer.
See, those who do well outside of platforms are those funny, smart people that are always the center of attraction. They somehow have this magical ability to get people to gather around them - they become they center of attention wherever they go.
Those who do well within the platforms are the people who are willing to spend time studying the quirks of the platforms, and optimizing for it. Within a platform, the popular people who are usually the center of attention just by the force of their personality can get overshadowed by the meticulous researcher dude.
So often, you'll find that people who are already popular and famous say to work outside of the platform. Those who know they are not the type of person to draw people to themselves by magic will prefer to work within a platform.
I agree though. Building on top of platforms is one way of being bitten in the derriere at some point.
It seems like it's turtles all the way down.
I mean, yes, technically speaking, I am dependent on electricity. But that doesn't mean there is a $8 an hour representative at the power company whose job is to shut down 24 businesses today to preserve the power company's vision for what proper use of electricity looks like, and whose decision is beyond repeal.
It's not so much the fact of a platform. It's the nature of the ecosystem that lives on that platform. How open is it? Is it subject to whims and sudden change? Are these alternatives? Are there open standards? Is there competition between implementations?
Also, at some point it's not platform, it's infrastructure. You could assume that your business will use credit cards and online payment since this is part of the infrastructure but when you are using the payment API of company MegaCorp to have those payments, you might get burned with their particular Platform.
> I mean, yes, technically speaking, I am dependent on electricity. But that doesn't mean there is a $8 an hour representative at the power company whose job is to shut down 24 businesses today to preserve the power company's vision for what proper use of electricity looks like, and whose decision is beyond repeal.
This isn't a good comparison. The thing is the electricity provider is much more regulated by laws, more stable and slower in changes compared to some other companies. Also -- it's infrastructure.
Technically, some "power company vision" is kept since you can't actually put any two wires to make a gizmo and sell it on the market as a product.
Another interesting factoid: home users have a limit on how much electricity you can consume. After a given limit you have to ask special permit from the electricity provider and probably pay extra. The trick is all these things are stipulated somewhere and public.
That said, it makes more sense, to me, to suggest that each business perform a cost/benefit analysis for every platform they use, and quantify risks.
1. For some business categories, such as games, you will be on a platform. Perform cost/benefit analysis for your market. Does flash make sense? Does ActiveX? What are your risks, and what are your benefits? (Some would suggest the game market itself is for suckers.)
2. Many platforms, such as Facebook, are glorified advertizing and lead generation. Do not create for these platforms, but rather advertize through it. The best example to me is PopCap Games, which directs people to their casual games through their flash games.
3. The further you wish to push the envelope, the more risk a platform entails. Porn? Be as independent as possible. Corporate apps? .NET is not your worry point.
Setting himself up for failure by claiming that the coming point brooks no rational argument . . .
> is that at any time Twitter, Facebook, etc., can make any change to their Terms of Service that their heart desires, leaving you high and dry.
And fails. Although this is a reason to be wary of platforms, sometimes to have a business at all you have to build it under the dominant platform. This may not be true of your level of risk tolerance, but for some people a risky business is better than no business at all. I'm sure that Zynga's owners feel this way after their recent partnership agreement with Facebook.
In the world outside software, avoiding platforms can be equally hard. If you sell lawnmowers, cheap meat, car parts, then you may depend on respectively WalMart, McDonalds, GM, which are all platforms in their own way.
I wonder if there will be 'leakage' from iPhone software towards Mac software as the screws tighten somewhat on the App store.
Amazon seems pretty solid, stable, and flexible to me. And many startups are using them to scale.
I do think you have a legitimate point, but I'm not sure how to fix this problem. There's so much potential in web platforms...
in both cases people will fail from things out with their control - its just easier to point at if its someone else changing the rules. (and easier to grumble about)
edit: like the guy above says - you need to tailor your risk. On someone else's platform - look for quick rewards and work on the basis its only a matter of time until it goes away