Been thinking about hardware business models and innovation lately. When a business is highly innovative and products are improving rapidly, business models are focused on selling products and upgrades. Think iPhone in the early years. Airplanes through the dawn of the jet age. But when a business runs out of ideas for how to make better products… then they turn to services. They can’t sell upgrades so they focus on milking the installed base. Think jet engines today, power turbines, airplanes… and today’s iPhone. For a hardware company, a services oriented business model implicitly says: I ran out of good ideas. For Overture, we will be running our service/support at cost. We’ll earn our next money selling future generation Overtures that are big upgrades to v1.