With Google’s recent release of Google Apps, suggestions that web services are a move towards the idea of the ‘comoditization of computing’ are flying. Nick Carr elucidates this idea well with a strong comparison to the historical centralization of the generating of electricy and Marshall Kirkpatrick over at ReadWriteWeb tries it on for size as well. The question is, however, what does the commoditization of computing through web services really mean for Information Systems Management?
A commodity is a thing of value which has lost it’s price differential across the entirety of a market. Functionally, a commodity bought from any supplier is effectively identical to that from any other supplier, and the price commanded will also be identical. In the physical world, a buyer simply buys from whoever is closest, and a seller can only increase profit by driving down costs. In the virtual world, the internet provides a relatively homogeneous environment for delivery, (for the westernized and plugged-in business environments, at least), so it would seem as though web services for basic computing is ripe for a move towards commodotization.
If Information Systems Management follows this trend, it means that everyone will be able to do the same basic computing at the same price. As develloppers jump on, identical engines will be embedded in even the most specialized software. The ability to handle the basics of computing will be taken for granted, but only as long as you want your business to do exactly the same as everyone else. For those who are quirky enough to do something different, the relative cost of doing business will rise. This view of the new world of work worries some, who say that this opens the door to monopolization of a business necessity (by Google, of course…), and additionally will have the effect of stifling creativity and innovation in digital technology.
Remember that an Information System is still just a model of the business. The basic computing tasks we speak of are a small part of the model, just as is a recruiting system, the fax machine, or even the supply closet. In the early days of business, and I mean the very early days, a firm’s ability to acquire, distribute, and use writing paper, quills, and ink could be a distinctive advantage. Nowadays, paper and pens are a commodity. Every business has them and scarce thought is given to them. Having them is no longer a source of advantage, and they are simply part of ‘the cost of doing business’. And of course, very few would argue that having pens and paper in the business world has led to anything but general benefit.
In summary, web services are moving towards commoditization, which will add value to the new world of work as a whole by decreasing the cost of doing the basics. The Boogiemen worry that creativity and innovation will be stifled, but metaphors of the past have provided little evidence for this.
