"So a race to the bottom"
Sort of - Yes in the sense that everything becomes very price sensitive. More like a race to the kind of market share that allows you to dictate the "bottom" through the scale you are able to achieve.
Whoever is able to achieve mass scale in the most cost-efficient way possible, defines the service.
The best example is Amazon, they commodities everything they touch. No one buys a server from IBM or HP any more, you rent one from AWS for cents per hour. It isn't that there are fewer servers being bought, there are WAY more servers being bought, the dynamic for consuming them shifted from a product to a service.
"So a race to the bottom"Sort of - Yes in the sense that...
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