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While it was possible, then, for Apple to make up ground in software very quickly, doing so in the world of data was substantially more challenging even for a company of its resources. There are no shortcuts, as data simply cannot be generated overnight. There are only two means of producing it: collecting it over time, or acquiring an entity who has done so. Unlike software, then, which is a thin shield against would-be market entrants, organizations that amass a large body of data from which to extract value for themselves or their customers are well protected against even the largest market incumbents. Every software organization today should be aggregating data, because customers are demanding it. Consider, for example, online media services such as Netflix or Pandora. Their ability to improve their recommendations to customers for movies or music depends in turn on the data they’ve collected from other customers. This data, over time, becomes far more difficult to compete with than mere software. Which likely explains why Netflix is willing to open source the majority of its software portfolio but guards the API access to its user data closely.
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Stephen O’Grady (The Software Paradox: The Rise and Fall of the Commercial Software Market)