- A software platform is a place. A marketplace.
- This marketplace is multi-sided and can be open or closed; the more open it is, the more “sides” it has.
- Conversations happen between these sides: consumers, software developers, hardware providers, whatever.
- Marketplace participants obtain value from the marketplace provider by sharing services they would otherwise not be able to afford.
- There is an implied long tail in the shared services model, no single participant consumes any significant proportion of the shared services.
- As a result, while the “infrastructure” provided by the marketplace is commoditised, it is used in many diverse ways by the participants, allowing competitors to differentiate themselves, usually on presentation, simplicity, convenience, access and complementarity.
- A marketplace often consists of a series of smaller marketplaces, often overlapping partially.
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