1. Origins of the Platform Business Model 1.1 Early Beginnings: From Mainframes to Ecosystems The platform business model has roots in the early days of computing, when companies like IBM bundled software with hardware to drive the adoption of mainframes in the 1950s and 1960s. Software was not a standalone product but a complementary tool to enhance hardware's value, as seen with GE's CNC machines, which included free software to differentiate their offerings. This bundling strategy laid the groundwork for platforms as ecosystems that connect multiple stakeholders. In the 1980s, Microsoft's Windows operating system marked a pivotal shift. By creating a platform that enabled developers to build applications for a standardised operating system, Microsoft transformed the PC industry. Windows became a two-sided platform, connecting developers (who built apps) with users (who consumed them), creating a virtuous cycle of value creation. This model, known as a multi-sided platf...
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