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	Economics glossary - Wikipedia, the free encyclopedia
		Commoditization is a term from both economics and the social sciences which is used to describe the process by which a good becomes saleable in the market.
		Commoditization can be considered as positive, in that it makes the good available to a broader audience, or as a negative, implying the cheapening of a class of "goods" in the philosophical sense.
		Diminishing marginal utility occurs when the more of an item is had, the less utlity it has for the haver.
	en.wikipedia.org /wiki/Commoditization (702 words)

	LinuxLinks News: ZDNet: The commoditization of software (Site not responding. Last check: 2007-10-15)
		Today, the shoe is on the other foot, as software is commoditized by the appearance of free (as in cost) open-source software.
		Commoditization is a powerful force for consumer benefit.
		Commoditization, taken to the point where software is practically free, would run contrary to the interests of software developers who have an interest in earning a living from their craft.
	www.linuxlinks.com /portal/news/article.php?story=20030317161018571&mode=print (264 words)

	Commoditization of higher education -DAWN - Business; May 12, 2003
		Commoditization of university education has resulted in the reallocation of university resources towards its research function to meet the new types of demand which has further resulted in transforming courses into course wares, the activity of instruction itself into commercially viable proprietary products that can be owned and bought and sold in the market.
		Since university function is being rapidly commoditized, and is turning into intellectual capital and economic activity, universities have become too important to be left to the universities.
		Commoditization of education and the new technology are not without economic consequences.
	www.dawn.com /2003/05/12/ebr3.htm (1275 words)

	AT&T: The External EH&S Site: The Commoditization of Nature by Dr Brad Allenby
		This dynamic - the pricing, and therefore commoditization, of the sacred that, by definition, is beyond price - is of particular interest in the environmental arena: genomes are commoditized; the right to pollute is commoditized; "nature" is purchased at specialty stores in malls, or experienced in parks run by large corporations.
		In short, commoditization is not the means by which an otherwise unachievable control of natural systems is obtained, but a reflection of the fact that such influence over the dynamics of natural systems has already occurred.
		Commoditization of natural systems arises from the Industrial Revolution with its concomitant explosive growth in the scale of human economic activity and population levels, and the evolution of technological and cultural systems that accompanied it.
	www.att.com /ehs/ind_ecology/articles/commoditization.html (711 words)

	IT INSIGHTS - Commoditization moves forward in multiple IT hardware markets
		Commoditization is currently moving forward in several hardware markets, driven by a loose confederation (21st century keiretsu) of commodity vendors led by Dell, Intel, and Microsoft.
		One result of commoditization is that, as hardware becomes commoditized and software remains value-differentiated, the buying decisions for hardware and software become decoupled.
		Commoditization is well established in the personal systems hardware market, particularly in desktops and laptops.
	www.itworld.com /nl/it_insights/09242002/pf_index.html (1672 words)

	The Commoditization Conundrum - It isn't pure competition but the fear of it that drives companies to compete. By James ... (Site not responding. Last check: 2007-10-15)
		What corporations fear is the phenomenon now known, rather inelegantly, as "commoditization." What the term means is simply the conversion of the market for a given product into a commodity market, which is characterized by declining prices and profit margins, increasing competition, and lowered barriers to entry.
		Commoditization can only take place, after all, in a world in which second-tier companies can compete in terms of quality and efficiency with top-of-the-line companies.
		What it does mean, though, is that commoditization does its work not by becoming a reality (which would entail ever-shrinking margins and stagnant stock prices) but by remaining a perpetually present threat.
	slate.msn.com /id/2638/: (1403 words)

	The COOK Report On Internet
		The innovation and cost performance benefits of commoditization are all on the side of the open access, end-to-end, packet-based inter-networks.
		This new commoditized, powerful, and cheap technology can be used to deliver value and new jobs through preserving for everyone the ability to tinker and to innovate.
		Commoditization has removed the incentive for value creation from the monopoly network and left it with only the incentive to squeeze every penny of return for as long as it can prevent encroachment.
	www.cookreport.com /12.03.shtml (4159 words)

	Ian Murdock’s Weblog » Open source and the commoditization of software
		This essay argues that the open source movement is just another commoditization event; and that, like other commoditization events, it represents a disruptive shift in the software industry as well as an opportunity for entrant firms to unseat the established firms against seemingly overwhelming odds.
		That being said, commoditization does not equate to certain death to the established firms, if they have the vision to see beyond the disruptive events that may befall them in the short term and can adapt themselves to the new commodity environment.
		Above all, this essay aims to convey that commoditization is a natural, and unstoppable, force that is good for everyone involved—if that force is allowed to develop on its natural course.
	ianmurdock.com /?page_id=222&page=1 (926 words)

	Dell’s biggest enemy: Commoditization
		As a consequence of this commoditization other low brand — low cost assemblers will enter the PC market and the challenge for Dell will be to remain a major low-cost provider for the majority of the market,
		The commoditization allows PCs to be sold in retails channels that require less margin such as discounters, general department stores and super markets.
		In the low-cost segment, commoditization will expose Dell up to extreme low-cost producers who will “dump” low-branded standardized systems, packaging cheap components on the market through low cost channels while Dell will be tied up to its own business model.
	yeald.com /Yeald/a/29821/dell_s_biggest_enemy___commoditization.html (930 words)

	Fast Company Now
		Commoditization is all about exploiting the low price strategy.
		The impact commoditization is having on the game of business is tremendous and Wal-Mart seems to be killing nearly everyone with their quest to deliver the lowest price possible.
		Companies that are meaningfully unique to consumers and that focus supremely on their uniqueness are successful in the face of Wal-Mart's commoditization approach.
	blog.fastcompany.com /archives/2003/12/09/slouching_to_commoditization.html (964 words)

	Beware the Commoditization of GIS (Site not responding. Last check: 2007-10-15)
		Commoditization sends chills down the spine of any company executive, because "differentiation disappears, margins fall through the floor and customers buy solely on the basis of price, price, price."
		The "service economy" has peaked, and Pine and Gilmore suggest that if we're to avoid the commoditization of services, then the service economy must be replaced by an "experience economy." The four types of economic offerings--commodities, goods, services and experiences--may be differentiated in several ways.
		Emphasizing experiences can reverse the commoditization process and greatly increase the value of what's being offered as well as the enjoyment of the product.
	www.geoplace.com /gw/2000/0009/0900en.asp (1243 words)

	VenChar: Commoditization and startups (or channeling Clayton Christensen) (Site not responding. Last check: 2007-10-15)
		He identifies commoditization as a force within the tech industry acting at various levels: that of hardware (propelled by Moore’s law-style improvements in price-performance), operating systems (driven by Linux/open source software) and talent (through offshoring to low-labor-cost areas like China and India).
		Commoditization -- the process by which technology products become standardized and their prices are shoved relentlessly downward -- has now driven the cost of the building blocks of tech so low that hardware expense has been all but eliminated from the equation of creating new products.
		In my story, The Rise of the Instant Company, I pointed out how commoditization and standards were roiling the hardware business, ala Sun Microsystems, and how some smart start-ups were using that trend to their advantage by developing products that...
	www.venchar.com /2003/11/commoditization.html (821 words)

	The Industry Standard: Guest Blog: Ross Mayfield: Tech Commodities 101
		For most, its simply a chicken littlish "my prices are falling!" But I know a little too much about commoditization from a former life, co-founding a commodity exchange for bandwidth and leading a risk management software company for a time.
		Common wisdom in the valley is that when commoditization occurs in your market, you have to move up the stack.
		Embracing commoditization doesn't just have to happen in areas where the software is core infastucture or the market player arose from open source.
	www.thestandard.com /movabletype/rossmayfield/archives/003605.php (1240 words)

	Techdirt:How Nicholas Carr Misunderstands Commoditization
		Once a product is commoditized he seems to believe that all power to profit is gone.
		The power of commoditization is that it becomes a cheap input, rather than a final output.
		He quite clearly and forcefully states that it is only by becoming a standardized, commoditized input that IT can reach its full potential as a component of the products and services companies produce as outputs.
	www.techdirt.com /articles/20040511/1227243.shtml (455 words)

	Commodity shuffle \| InfoWorld \| Analysis \| 2002-12-13 \| By David L. Margulius
		THE RAPID COMMODITIZATION of hardware in recent years is yielding great benefits for customers but brutal consequences for vendors increasingly forced to compete on price.
		Commoditization, well-known in the hardware world, is invading the software stack from the bottom up, driven by componentization, standardization, the open-source movement, and increased vendor competition in a bear market.
		In a way, commoditization is like Ten Little Indians: Everyone thinks his or her neighbor in the stack has been or will be commoditized, but no one expects that he or she will be next.
	www.infoworld.com /article/02/12/13/021216plcommod_1.html (1640 words)

	How to Avoid the "Commoditization Trap" in the Recruiting Process - The Stern Opportunity - Voices
		The truth is, once we grab the meaning of commoditization, applying it to different situations makes us feel real B-School students.
		In other words, while the Career Development Program put together by OCD is an extremely valuable tool that you must leverage to maximize your chances of landing in your dream job, do not stop there.
		Remember that you are playing in an increasingly competitive market, that all of your competitors have access to similar resources, and that the best tool against the "commoditization" of candidates is differentiation: understanding what characteristics of yourself are both unique and valuable.
	www.sternopportunity.com /news/2004/09/14/Voices/How-To.Avoid.The.commoditization.Trap.In.The.Recruiting.Process-720005.shtml (862 words)

	The commoditization of software \| Tech News on ZDNet
		At the time, some responded that I shouldn't pay any attention to the man behind the red curtain as he isn't representative of the open source community at large.
		Yet, commoditization driven by free software is a growing reality, and every day freer, open source software becomes available on the internet.
		However, I think the role that software commoditization and its driving force, open source software, is given too little attention.
	news.zdnet.com /2100-9595_22-992824.html (1582 words)

	Wired 12.05: VIEW
		The way big IT companies are acting in the marketplace is actually accelerating the commoditization of their products and services.
		Commoditization lies at the very heart of their competitive strategies.
		Other companies are finding that commoditization is a great weapon to use against an archenemy.
	www.wired.com /wired/archive/12.05/view.html?pg=2 (732 words)

	The CEO Refresher - Driving Forces of Commoditization
		Rapid commoditization of products and services is exasperating even the most skilled professionals.
		The solution provider is struggling to differentiate their unique products and services and simultaneously customers are putting the squeeze on margins and driving unique value to the lowest common denominator - price.
		You and your competition may believe you have a high-value product or service, but if your customers can't comprehend, calculate or measure that value, they see a sameness and will respond by ignoring the features they do not need or simply won't care.
	www.refresher.com /!jftforces.html (1341 words)

	Wireless phone makers stave off 'commoditization' :: AO (Site not responding. Last check: 2007-10-15)
		Yet commoditization - in which goods plunge in price even as they grow more sophisticated - has yet to strike the wireless phone industry.
		Commoditization is starting to happen with low-end models, but isn't expected to spread quickly.
		Even if technological breakthroughs lessened the threat of commoditization, fierce competition is likely to drive down profits over the long run - and force companies heavily reliant on phone sales such as Nokia to branch into other markets.
	www.alwayson-network.com /comments.php?id=5826_0_6_0_C (1572 words)

	Commodity shuffle
		And as the capabilities of open-source OSes, Web servers, and application servers begin to rival their commercial counterparts, it's clear that commoditization is creeping into the software stack as well.
		Everyone seems to agree that the lower levels of the stack, including enterprise middleware, are commoditizing.
		But if commoditization results in a major vendor shakeout, fresh thinking may be harder to come by.
	www.infoworld.com /articles/pl/xml/02/12/16/021216plcommod.html (1829 words)

	Business Wire: Will Commoditization Force HP to Retreat to the Past or to Invent the Future? The Sageza Group Analysis ...
		The Sageza Group's recently released paper, Commoditization, Standards and the Enterprise, points out that the emergence of commodity components is driving a fundamental change in the IT marketplace.
		HP and Compaq, this should not be viewed negatively, but rather as a confirmation of the strategic directions both companies embarked upon several years ago.
		"Commoditization, Standards and the Enterprise" details the opportunities and challenges implicit in the commoditization of the IT marketplace and is available from The Sageza Group at http://www.sageza.com.
	www.findarticles.com /p/articles/mi_m0EIN/is_2002_March_13/ai_83732364 (775 words)

	Ross Mayfield's Weblog
		With standard definitions and interfaces, essentially becoming commoditized, components can be efficiently sequenced with low transaction costs to realize Economies fo Span.
		Commoditization, in that it has a standard definition and interface.
		Functional commoditization is another way to describe Loose Coupling.
	radio.weblogs.com /0114726/2002/10/22.html (702 words)

	Streamingmedia.com: Commoditization and the Future of Content Delivery Networks: Part Two
		In Part One of this article—posted last week— we dealt with how CDNs are working to differentiate themselves in the face of the commoditization of bandwidth.
		The realities of a commodity-type market are such that there’s little wiggle room when it comes to trying to turn a profit in a low-margin business.
		“Bandwidth is about as commoditized as it can be,” says John Cahill, VP of sales for Invisible Hand Networks.
	www.streamingmedia.com /article.asp?id=9121 (567 words)

	BeyondVC: On technology commoditization
		The crux of his discussion is that standardization and commoditization is not terrible as it inevitably opens up new market opportunities for industry players (just look at the railroad industry as an example).
		In some respects, one could view commoditization as a bad thing as it is difficult to differentiate one product from another as they are easily replaceable based on price alone.
		The one thought that could cause worries is that if you buy into Jonathan's story of commoditization, the inevitable result is that the industry will consolidate leaving only those with scale and monopoly power to survive.
	www.beyondvc.com /2004/07/on_technology_c.html (513 words)

	Techdirt:Commoditization And Innovation - IT Does Matter
		Varian makes the point that we've discussed here in the past: commoditization, by itself, does not mean the end of innovation or the end of business opportunities.
		The fact that they are commoditized actually means it's easier and cheaper to use them innovatively to gain a competitive advantage.
		In other words, it's about taking advantage of the fact that they are commoditized and realizing that they're now resources and not end products themselves.
	www.techdirt.com /books/20040506/1217213_F.shtml (690 words)

	Otaku, Cedric's weblog: Commoditization? I don't think so
		None of these industries are anywhere near commoditization.
		Even free IDE's such as Eclipse can't commoditize the IDE space, as JBuilder and IDEA have been showing for several years now.
		What drives commoditization is user needs, not producers.
	beust.com /weblog/archives/000112.html (400 words)

	IT in the Age of Commoditization :: MostlyCreativeWorkshop :: Reviews and News Done Right (Site not responding. Last check: 2007-10-15)
		If your IT infrastructure is largely commoditized than you have the flexibility of walking away from any vendor and moving on to an new vendor.
		With the work force becoming commoditized also, there are a host of issues to consider on outsourcing versus in house.
		The latter should be focused on fitting in with the over all "commoditization" of IT rather than disrupting it.
	www.mostlycreativeworkshop.com /Article273.html (1776 words)

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