Cloud Computing as Commodity

All products are in a constant commoditization process always, or a "race to the bottom" as James Urquhart refers to it. Period. Therefore, in order to maintain differentiation smart vendors continuously innovate and add additional features and "crust" capabilities, which over time will themselves be commoditized. Rinse and repeat. Therefore, in economic theory, all industries are destined to become commodity industries (known as the Industry Lifecycle). Let's see how this plays out in cloud computing (intentionally simplified greatly to make a point):

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