2002/09/25

Eddie Kessler describes programming at Napster.

Ray Ozzie has more on platforms. “Finding the ‘right’ price point for a software platform is critical.” To me this sounds like a fancy way of saying, “I groove all that stuff about how platforms need to be cheap and ubiquitous, but I can’t bring myself to do it.” The price, Ray says, “must be high enough both 1) to maintain a perception of value in the platform, and 2) to create significant margins well before ubiquity is assured so that the ecosystem is assured of the platform’s ultimate viability.” What he doesn’t mention: if you lower the price on the only product you’re selling, you have a revenue hit, which will not make your investors happy, and you may run out of money and have to close. But that must be what he’s thinking.

About the author.

I'm Joel Spolsky, co-founder of Trello and Fog Creek Software, and CEO of Stack Overflow. More about me.