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Open source as a strategic competitive weapon

I had an interesting conversation yesterday with Juanjo Hierro from the Morfeo Project, a Spanish community of open source communities set up to speed up the development of Service Oriented Architectures-related software standards and create business opportunities for local suppliers.

Hierro explained that the Morfeo Project is based on “The Law of Conservation of Attractive Profits”, articulated by Clayton Christensen in his book The Innovator’s Solution:

“When attractive profits disappear at one stage in the value chain because a product becomes modular and commoditized, the opportunity to earn attractive profits with proprietary products will usually emerge at an adjacent stage.”

Christensen’s law has also been used by Tim O’Reilly …

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