the guys in between...

Just read that CA (Computer Associates) is outsourcing R&D and future product development for part of its security portfolio to HCL. CA keeps control of the brand and handles all the sales and marketing.

It's one thing for a product to be outsourced but software is something proprietary, especially since it invloves product knowhow and/or source code.
I mean I can't think of Google or Microsoft outsourcing their software development activity to a thirdy party vendor.

This could be a harbinger of sorts:
1. Maybe retaining and developing inhouse software code is not as value additive as we think out to be. Maybe the field is being levelled and extrnal talent is available that can replicate as well as innovate software code as competent as one would expect.

2. Maybe the outsourcing of development itself could mean a commoditisation of the particular service. This maxim is generally true in manufacturing products which is why outsourcing began with products tending towards commodities.

3. Maybe marketing as a 'value add' creates a high enough entry barrier that may not be easy to replicate for a competing firm, CA at least believes so. To an extent this is true, marketing is about relationships, and though we know a better price wins, marketing is not that facile as better price, market presence and first mover advantage don't get the market.
There are relationships and nexus between the user and seller, and dislodging any one takes more than price and knowhow.

4. In effect all this outsourcing makes marketing itself a commodity. I mean if the marketer is not the user nor the producer but just the 'transporter', is it going to be that value additive being just a 'deliverer'.

Imagine a Pizza Business running on the skill and acumen of the Pizza delivery man.
That probably is what marketing is getting to be, today.

I think the next big paradign shift is 'delivery' and it is not going to be marketing as we know it.

I think Dell managed to do that wonderfully in its market.
I mean here the process and not the product. (I won't swear by a Dell.)

My point is when a product and service is tending to get commoditised, the innovation is in the 'process'/'delviery', unless we want to be the guys in between rather the Pizza delivery guy.

Maybe CA has the oneup in the market on 'delivery'.