Tuesday, November 18, 2008
The Age of App Platforms
Internet businesses seem to set new management paradigms than their offline counterparts. Revenues are earned by sharing them with each other and costs are apportioned between competitors in innovative ways through clever use of hardware and software solutions. An important way of doing business currently is the App Platform. The App platforms are application servers that companies such as SalesForce.com, FaceBook, Apple, Amazon.com and others make available to people who want to target their audiences not through their products and services but through their own applications. App developers have a variety of business models to monetize including sharing application download fees with app platform providers and supplying advertising revenues and traffic. If you are a start-up seeking to build a large subscriber based business, then app platforms are a MUST as a component, if you wish to see better valuations for your business. Just as with other businesses, there are certain Internet-based businesses such as retailing where revenues may become stagnant in the new American "savings" era. Innovative revenue sharing and growth models may become a necessity now.