tangor - 8:08 pm on Aug 9, 2010 (gmt 0)
How neutrality locks in the web's 'Hyper Giants'
What Google-Verizon means for you
By the mid 1990s it had become pointless to compete with Microsoft in operating systems and office software - and investment in potential competitors dried up. The best you could hope for as a software company was to carve out a niche as part of the Windows Office system; this was a very small niche indeed.
The same thing is happening today with web services. But what Google and other web giants are doing goes largely unnoticed, even by analysts, pundits and Presidential advisors. What they are able to do is use their scale, and clever and cynical politics to obscure how they're solidifying their competitive advantage. In particular, they're swearing allegiance to (and lobbying for) an idea which doesn't apply to their operations, but which will keep smaller competitors out of the market. A Zoho, for example - or the next new YouTube.
Further analysis on this subject...