A point I’m trying to make for some time now is that in the data space, you very likely have to embrace open-source. In the open-source & data space, you’re headed into a winner takes all market.
But that means you are not building “another ETL tool” or “another CDP solution”. You’re either building the only one — the winner, or a company headed for bankruptcy sometime in the next 10–15 years.
I really like the search engine market analogy because it displays this dynamic very well. The search engine market is much older than either the data or the open-source market, and developed a very clear structure:
- One winner: Google
- Two follow-ups because they enforce monopolies (Yandex & Baidu)
- One well-differentiated player, duckduckgo, with an uncertain future (Google did try to take down Baidu, but got stopped, I am not sure what’s really stopping Google from taking down duckduckgo once it becomes big enough).
That’s it, that’s 99% of the complete search market. Here you can find everyone else: