Rich Karlgaard of Forbes writes:
The Cheap Revolution, as I have written, boils down to three factors:
1. The incredible power of low-priced technology… Google’s server farm, Skype’s free phone services, etc.
2. Emergent global talent pools, from Eastern Europe to India, from China to Southeast Asia.
3. The Internet, which connects technology to talent at transparent prices.
The Cheap Revolution is good for China and India as well as newer, clever companies in the West, such as Google, Skype and Craigslist.
But is it good for older Western companies with higher cost structures and lots of legacy? That’s an open question…
As I see it, the only path available for older, high-cost companies is to innovate… innovate as if their lives depended on it… which would be the truth.