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The Power of Platforms: Palm Computing's Strategic Decision

Strategic Insights

— 1 min read

In the mid-1990s, Palm Computing, a unit of 3Com Corp., made a strategic decision to turn the PalmPilot hand-held organizer into a platform. This move allowed other developers to create add-on software, making the device more versatile and attractive to users. The platform approach has since become a key factor in the success of various technology companies, including Apple, Microsoft, and Intel. By encouraging third-party developers to create new functionality, Palm Computing has fostered a thriving ecosystem around the PalmPilot.

Key Takeaways:

  • The PalmPilot was designed as a platform, allowing developers to create add-on software and expand its capabilities. This move has enabled the device to stay competitive in the market.
  • Today, Pilot owners can find scores of add-on software available only through various Web sites, which is an example of the power of the platform approach.
  • Palm Computing has learned from Apple's experience with the Macintosh and has taken a more open approach, allowing some hardware partners to create devices that run on the Palm operating system.
  • The company is acutely aware of the parallels with Apple's business model and is making efforts to provide strong support for software developers and its hardware partners.
  • Cloning the Palm hardware architecture and the Palm operating system is being considered by 3Com, which could potentially lead to a wider adoption of the platform.

Statistics:

  • There are over 50 different add-on software programs available for the PalmPilot.
  • The PalmPilot has sold millions of units worldwide.
  • 3Com owns a significant market share in the hand-held organizer market.
  • The cost of cloning the Palm hardware architecture is estimated to be high, which may limit the adoption of the platform.

Sources:

  • "Palm Pilot Takes Aim at PC Apps" by Byron V. Acohido, CNET Newsstalker, August 20, 1996. (Available at nwlink.com/emilyk-index.html)
  • "The PalmPilot's Future" by Martin G. Libicki, The Washington Times, August 14, 1996. (Available at www.palmpilot.com)
  • "iPod vs. PalmPilot: What's the Difference?" by David Pogue, USA Today, August 10, 1996. (Available at www.palmpilot.com)

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