Quotation Business Strategy
The key to the competition in operating systems was getting lots of applications.
Bill Gates Smithsonian Interview: Bill Gates · 1993

Gates argues that competition between operating systems depended not only on the technical qualities of the systems themselves, but also on the range of software available for them. An operating system with many useful applications could attract more users because it offered greater practical value. In turn, a larger user base could encourage more developers to create applications for that platform, strengthening its position further.

The quote captures an important feature of platform competition: complementary products can be central to the success of the underlying technology. In the personal-computer industry, applications such as word processors, spreadsheets and business software helped determine which operating systems were useful to consumers and organisations. The observation therefore has a strategic as well as a technical dimension. It can be applied to modern digital platforms where success often depends on attracting developers, services or other participants that expand the value of the core product.

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