A note from Daniel

To understand the tech industry, it is essential to understand that when one layer in a "tech stack" becomes commoditized, another layer becomes more profitable. When layers get commoditized, that means they lose their pricing leverage. In the physical world, this usually means competition is so fierce, and the resulting products so undifferentiated, that profits trend toward zero. Such is the case among actual commodities, like wheat or corn.

Daniel Read Write Own, page 122 · March 6, 2024 Save to shelf
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