The Web as a loose federation of contractors

Matt McAllister has a great post about the dangers of taking taking the label of Web OS too literally. He writes that an operating system is about “command and control” while the loose collection of services that make up the internet is more like the network of vendors that a contractor might call in to build your house.

Jeremy Zawodny shed light on this concept for me using building construction analogies.

He noted that my building contractor doesn’t exclusively buy Makita or DeWalt or Ryobi tools, though some tools make more sense in bundles. He buys the tool that is best for the job and what he needs.

My contractor doesn’t employ plumbers, roofers and electricians himself. Rather he maintains a network of favorite providers who will serve different needs on different jobs.

He provides value to me as an experienced distribution and aggregation point, but I am not exclusively tied to using him for everything I want to do with my house, either.

Similarly, the Internet market is a network of services. The trick to understanding what the business model looks like is figuring out how to open and connect services in ways that add value to the business.

I like Jeremy’s illustration – an OS gives you the impression of an integrated stack which leads to strategies which favor things like user lock-in to guarantee performance and consistency of experience. If you think of the web as a loose collections of services that work together on discreet projects, then you start to think of value in other ways such as making your meta-data as portable and accessible as possible so it can be accessed over and over again in many different contexts.

read on: The Business of Network Effects

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