Changing Business Models

OK, we’ve heard a lot of negative press – and industry bluster – about the actions of the RIAA against file-swappers and SCO vs. well, everyone it seems.

In both cases these companies/groups just can’t get grasp that their well-defined, years-old business models are, well, old.

As in outmoded.

However, instead of going with the flow and attempting to make a profit (not to mention make a good impression to the masses) by embracing and – potentially – expanding this new model (as Apple with iTunes and RedHat with Linux have done, for example), they are digging their heels in, strapping those business blinders on tightly and screaming bloody murder.

Or more correctly, having their lawyers say “I sue you … and you … and you…..”

But we all know about that, and we also know that – no matter the outcome of all this (music or open source software) – the genie is out of the bottle in both cases, and there is not going back to the old way. Sorry, the new horseless carriages are upon us.

One nice thing I’ve noticed recently is something I have not noticed: Even with the job situation in the crapper, especially for the tech industry, there has been very little hue and cry about jobs going overseas. For example, India (esp. Bangalore) seems to be getting every job that used to be in Silicon Valley. Wow.

Yet – fortunately – you don’t read much about this. News reports, yes, and many are concerned etc…but this is, again, a change in business models.

Tech can’t dig it’s heels in and scream bloody murder. It has to adapt. Right now, labor is so much cheaper overseas, and the global economy and wired world makes it almost the same to hire a group in India as one down the road to do whatever. You never (well, rarely) meet the employees who actually produce the work, just the talking heads.

So what’s the difference – in a general sense – where they are?

Really isn’t.

So it’s good to see this issue not blown all out of proportion.

Good for us.