A discussion about the software industry and their coders

In the Technology Industry Network Effects are considered crucial for success. Free products like Adobe PDF and Macromedia Flash Player became successful due to the usefulness of these offerings to a growing number of people. However Network effects can be seen beyond the Technology world in several other spheres.

Let me first give an example of Network effects in technology. Adobe Reader is free but Adobe earns money from people who buy Adobe Acrobat to do advanced PDF related work. It took time for Adobe's PDF business to become valuable to Adobe. But once the critical mass of people using, exchanging, and creating PDF files was reached Adobe's PDF business became one of its fastest growing Businesses.

The basic concept in network effects is that a good or service becomes more valuable with more people using it. The cost of manufacturing reduces as demand rises when critical mass is reached, Network Effects kick in and everyone benefits. The interesting issue is that Network effects go beyond goods and services and are applicable to languages also. How?

In a previous post I had discussed how France was limiting its own growth by discouraging the use of English. I had stated:

Vast networks of Knowledge workers (speaking mainly English) are creating value in the Software / IT industry today -- by  using, sharing, improving or innovating on each other's ideas. The links between Bangalore and Hyderabad in India and the Silicon Valley in US are well known. France however has locked itself out from the talents of the internationally available Human Capital that does not speak French!

This is a clear example of Network effects not related with a Technology but related with a Language. The more people speak English, the more it becomes valuable and economically useful for Businesses to communicate in English. On the other hand the fewer the number of people speak a language the less valuable it becomes in the Business world as a communication tool.

In several fields success depends upon an individuals ability to keep abreast of new information. Can savvy scientists and researches afford to wait for translations from English to French or Spanish or Hindi to update themselves about the cutting edge research happening in their field? Quite clearly language is a medium to traverse through a network of people and tap into their ideas. Network Effects are thus not just limited to the Technology world and at times (as mentioned in my quote above) have a major impact on the Business of the Tech Industry.