“He who controls the hardware, controls the platform. He who controls the platform, wins the war.”
This quote from Jeff Bezos, CEO of Amazon, is the hallmark of the current analog wars. Apple is at the forefront of this strategy by announcing the removal of their YouTube App, they also recently blocked Google Maps. Apple’s actions have received some backlash, but Mr. Bezos’s comment gives us perspective into why Apple is fighting to keep customers within its walled gardens. In the past five years software companies like Google and Amazon have become major players in the analog world. Facebook is the one company that seems to be holding out (for now). Some think that this analog/ecosystem customer-lock is a short-term strategy by stating that the real way to control distribution is through the “fourth utility”, connectivity. There is a strong argument for this point of view if one looks at the increasing jurisdictional power companies like Comcast and AT&T have. Also, let’s not forget that Google recently tested out a broadband service in Kansas City.