6 ms·

> In the case of maps, there weren't many great alternatives for a long time, due to Google sucking all the oxygen/profit potential out of the field with their

> In the case of maps, there weren't many great alternatives for a long time, due to Google sucking all the oxygen/profit potential out of the field with their excellent free offerings. There was a related discussion[0] on HN a few weeks ago that I found enlightening. Commentator ucaetano's phrasing of the strategy was "create a desert of profitability around you". The discussion of moats vs deserts found here [1] is also useful. [0] https://news.ycombinator.com/item?id=17047348 https://news.ycombinator.com/item?id=17047348 "Laws of Tech Economics: Commoditize Your Complement" [1] https://news.ycombinator.com/item?id=17048492 https://news.ycombinator.com/item?id=17048492

ucaetano 8y ago
Ha, that was me! Thanks for the bump!
komali2 8y ago
Almost every conversation I've had with someone working at a startup in this city inevitably turns to the "so, are you worried Google will simply start offering your service for free?" I remember like 3 or 4 years ago having this conversation at a hackathon with a bunch of "Machine Learning" / "Sentiment Analysis" APIs present... right as google started offering both for free on their cloud platform.
- ucaetano 8y ago
  Which most likely meant the startup was a feature or a product, not a company with a viable business model.
  - imron 8y ago
    Being bought/aquihired by Google/others seems to be a business model several companies aim for.
    - sullyj3 8y ago
      A lot of the time they have enough in house talent to not need to
      - imron 8y ago
        That doesn't stop other companies seeing it as a viable business model.
    - ucaetano 8y ago
      That's not a business model for the company. But it is for the investors.
  - hueving 8y ago
    Gmail is free. Does that mean email service is not a product? Why does fastmail exist?
    - Tom4hawk 8y ago
      Because there are people (like me) who value their privacy/data.
    - ucaetano 8y ago
      It is free for consumers, not for organizations. Gmail for consumers doesn't have a business model by itself, but it fits into Google's larger business model.
  - worble 8y ago
    What it actually means is that google has more money, so they can muscle their way in with cheap/free offerings that are as good or better as the competition, kill it and then hike prices.
  - Scarblac 8y ago
    If it wasn't a viable business model, Google wouldn't move into the space. It's just that they first use their infinite pocket money to kill off all the competition, then switch to making money.
    - ucaetano 8y ago
      > If it wasn't a viable business model, Google wouldn't move into the space. Wrong, maybe that "space" (feature or product) goes well with Google's business model, but wouldn't support a viable business mode by itself.
- oblio 8y ago
  This is funny: Paul Graham, September 2001: > "And if you manage to write something that takes off, you may find that you were merely doing market research for Microsoft.” Google is today's Microsoft :)

ucaetano 8y ago

Ha, that was me! Thanks for the bump!

komali2 8y ago

Almost every conversation I've had with someone working at a startup in this city inevitably turns to the "so, are you worried Google will simply start offering your service for free?" I remember like 3 or 4 years ago having this conversation at a hackathon with a bunch of "Machine Learning" / "Sentiment Analysis" APIs present... right as google started offering both for free on their cloud platform.

ucaetano 8y ago
Which most likely meant the startup was a feature or a product, not a company with a viable business model.
- imron 8y ago
  Being bought/aquihired by Google/others seems to be a business model several companies aim for.
  - sullyj3 8y ago
    A lot of the time they have enough in house talent to not need to
    - imron 8y ago
      That doesn't stop other companies seeing it as a viable business model.
  - ucaetano 8y ago
    That's not a business model for the company. But it is for the investors.
- hueving 8y ago
  Gmail is free. Does that mean email service is not a product? Why does fastmail exist?
  - Tom4hawk 8y ago
    Because there are people (like me) who value their privacy/data.
  - ucaetano 8y ago
    It is free for consumers, not for organizations. Gmail for consumers doesn't have a business model by itself, but it fits into Google's larger business model.
- worble 8y ago
  What it actually means is that google has more money, so they can muscle their way in with cheap/free offerings that are as good or better as the competition, kill it and then hike prices.
- Scarblac 8y ago
  If it wasn't a viable business model, Google wouldn't move into the space. It's just that they first use their infinite pocket money to kill off all the competition, then switch to making money.
  - ucaetano 8y ago
    > If it wasn't a viable business model, Google wouldn't move into the space. Wrong, maybe that "space" (feature or product) goes well with Google's business model, but wouldn't support a viable business mode by itself.
oblio 8y ago
This is funny: Paul Graham, September 2001: > "And if you manage to write something that takes off, you may find that you were merely doing market research for Microsoft.” Google is today's Microsoft :)