This is easily one of the best books I've read in years. I only wish there was a newer edition because so much has happened since 2006. The iPhone debuted and iOS became a two-sided marketplace for apps (but not music), Android trounced iOS with a Wintel-like three-sided model (hardware, apps, customers), Microsoft lost the plot with Windows Mobile, and in ecommerce, Amazon is at war with publishers to avoid becoming a marketplace (preventing publishers from setting prices for Kindle editions).

Despite it being eight years old, you should read this book. It'll help you understand the major trends in economic models of the microprocessor era since the 80s.

Om recommends it: http://gigaom.com/2006/11/30/profit-f...

Ryan Sarver @twitter recommends it highly.

Great view of some business concepts in the software industry. A little light on content.

This shows up as a reference on page 77 of Business Model Generation.

This is a must read for understanding how some of today's technologies have developed economic systems that can be understood to consummate multiple transactions among multiple consumers. Fascinating. A brilliant descriptive text that solidifies Roche and Tirole's theories. The only question that begs to be answered is how do you determine the price levels for each customer?

Muito bom para entender a dinâmica das plataformas criadas por software. Mas é importante destacar que o conteúdo é os casos estudados estão um pouco datados, embora suas conclusões permaneçam válidas!!

Published in 2006, one year before the introduction of the iPhone and two years after the founding of facebook, this book looks at software platforms through an economic lens. The early chapters of the book contain a description of programming languages, operating systems, networks, computers in general, APIs, and Open Source. The next few chapters are dedicated to case histories of 1970’s to early 2000’s computer industry history including programming languages, operating systems, mobile phones, personal computers, digital music players, and digital music platforms. These case studies feature Palm Pilot, iPod, RealNetworks, Microsoft, Apple, and DoCoMo.

The last section of the book discusses key decisions that platform owners need to make. First it the scope and level of integration that the business undertakes. Second is pricing, enticing all parties to participate, and overall business model. Finally, features and functionality for the platform must be selected.

Although the examples are all pre-2006, there's a lot of history to enjoy and compare to today's landscape. If you're looking for a more current book on platforms, try Platform Scale by Sangeet Paul Choudary or Platform Ecosystems by Amrit Tiwana. Platform Scale covers the dynamics of platforms, their underlying models, and how to achieve growth. Platform Ecosystems is a vast textbook that covers all aspects of platforms from technology through governance.

Highly worth the read despite being out-dated. Would love to have seen these guys' faces when iPhone came out. Fun examples and references (including Britney Spears' "Toxic"), skip the last 3 chapters if you've read anything about business, platforms, pricing before.