Software is a gas; it expands to fill its container.
The ever-growing size of software applications is what makes Moore's Law possible: 'If we hadn't brought your computer to its knees, why would you go out and buy a new one?'
Why pay a fee for Internet content when a million free sites are just a click away? There's no incentive until people are too addicted to the Net to turn off their computers, yet are bored with what's available.
Regardless of how it's done, transaction costs will continue to plummet as computers get more powerful. Low transaction costs are a wonderful thing if you're in the transaction business. They're wonderful for consumers too, making it cheaper and easier to buy things and creating new things to buy.
Software-industry battles are fought by highly paid and out-of-shape nerds furiously pounding computer keyboards while they guzzle diet Coke. The stakes aren't very dramatic. Life? Liberty? The pursuit of happiness? Nope, it's about stock options.
The whole hardware industry has experienced the phenomenon in which every time computers get cheaper, they appeal to a new set of users; every time they get more powerful, old customers upgrade.
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