The economics of software have always been strange: near-zero marginal cost, enormous fixed cost, and winner-take-most dynamics. Understanding those forces explains more about the tech industry than any product roadmap. It is why platforms chase scale relentlessly and why network effects are so prized.
But the same dynamics create fragility. Concentration invites regulation, and lock-in breeds resentment that competitors exploit. The advantages that build a giant can also make it a target.
To read the industry clearly, follow the cost curves and the network effects, not the press releases.