Comment by marshray
10 years ago
> “Can we compete with Intel or SAP?”
Well for one thing we know that Intel spends several $billion to open a new semiconductor plant and has a dozen of them already. https://en.wikipedia.org/wiki/List_of_Intel_manufacturing_si...
Whereas SAP is, well, a lot of software. Which is something, but Intel needs to make a lot of software too, and chip designs are in some ways a specialized form of software.
So I think in some sense Intel is strictly more challenging to replicate than SAP. (But this is probably just my misunderestimation talking. :-)
You're actually quite right. Capital intensiveness is a barrier to entry. That's why software businesses rise rapidly and fall rapidly at a greater frequency than other types of businesses.