Netbooks Strain the Win-tel Ecosystem
An earlier post noted the rise of the “good enough netbooks” and asked what would this mean for the industry? Well, Business Week reports that it is beginning to strain the Microsoft-Intel alliance. What does ecosystem thinking tell us about this development?
Business ecosystems evolve into a cooperative equilibrium. Just as a range of animals gather at a watering hole, differnent companies co-exist in a balance of power and profits. For years, Microsoft and Intel have dominated the PC ecosystem, captured the lion’s share of profits, and enabled hundreds of other businesses (or species) to co-exist (developers, integrators, resellers, etc.).
What happens when PC’s are expected to grow at 9% — but mobile devices are growing at 18% and Netbooks at 50%? As the underlying technology shifts, the equilibrium of the ecosystem is threatened — and new species can emerge to get a piece of the pie. Expect Microsoft and Intel to try to protect their existing business models while also trying to hedge their way into new businesses.
