The Funnel Framework
The Funnel Framework
For folks who weren’t there, it’s difficult to describe just how dominant Microsoft was at the end of the 20th century. It wasn’t just that the company and its products were everywhere, both literally and figuratively, but also the longevity of said domination: Microsoft and Windows were the most important company and product in the industry for 23 years. 1
Platforms Versus Ecosystems
That longevity was built on the fact that Windows was not only a platform but also the cornerstone of a massive ecosystem. These two terms are often used interchangeably, but I think it’s important to draw a clear distinction:
- A platform is something that can be built upon. In the case of Windows, the operating system had (has) an API that allowed 3rd-party programs to run on it. The primary benefit that this provided to Microsoft was a powerful two-sided network: developers built on Windows, which attracted users (primarily businesses) to the platform, which in turn drew still more developers. Over time this network effect resulted in a powerful lock-in: both developers and users were invested in the various programs that ran their businesses, which meant Microsoft could effectively charge rent on every computer sold in the world.
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