Organisational Warfare (Simon Wardley) — notes on the commoditisation of software, with interesting analyses of the positions of some large players. On closer inspection, Salesforce seems to be doing more than just commoditisation with an ILC pattern, as can be clearly seen from Radian’s 6 acquisition. They also seem to be operating a tower and moat strategy, i.e. creating a tower of revenue (the service) around which is built a moat devoid of differential value with high barriers to entry. When their competitors finally wake up and realise that the future world of CRM is in this service space, they’ll discover a new player dominating this space who has not only removed many of the opportunities to differentiate (e.g. social CRM, mobile CRM) but built a large ecosystem that creates high rates of new innovation. This should be a fairly fatal combination.