Benedict Evans captured the essence of tech disruption in one line: _“Everyone in tech is giving someone else’s business model away for free”_. This is a guiding strategy behind some of the most transformative companies of our time. They redefine industries by taking what others charge for and offering it free or cheap, funded by indirect models like advertising or subscriptions. So why does this work so well, and what can we learn from it? --- ### **The Playbook of Disruption** #### **Google: Turning Search into an Empire** Remember when looking up a business meant flipping through a bulky Yellow Pages? Google replaced the directory and made finding information as natural as breathing. The cost to you? Nothing. The price for advertisers who wanted to reach you? Billions. Google commoditized access to information and built a $1.8 trillion ecosystem around it. #### **Spotify: Rewriting Music Ownership** Owning CDs or MP3s used to symbolize your love for music. Then Spotify arrived, making millions of tracks accessible for free (or a modest subscription). Ownership became irrelevant when your entire music library lived in the cloud, forever accessible. Ads and freemium models paid the bills, while Spotify’s valuation soared. #### **AWS: The Infrastructure Revolution** Amazon Web Services didn’t just compete with traditional data centers; it made enterprise-grade infrastructure accessible to startups and hobbyists. By offering pay-as-you-go pricing, AWS transformed software development, enabling the SaaS explosion. Companies that once had to invest millions in hardware now launch globally scalable apps with a credit card. --- ### **Why Giving Away Works** 1. **Commoditize the Core, Monetize the Edge** Disruptors thrive by giving away what used to be premium—search, storage, music—and building revenue streams elsewhere. Google monetizes ads. Spotify monetizes subscriptions. AWS monetizes scale. 2. **Network Effects** The more users adopt the “free” model, the more valuable the ecosystem becomes. Spotify's vast library attracts users, which attracts artists, which reinforces the platform. 3. **Data as Currency** Free often comes at a hidden cost—your data. TikTok doesn’t charge users but earns billions from attention metrics advertisers crave. --- ### **But There’s a Catch** The “free” model has its critics. Consumers are increasingly aware of privacy costs. Competitors find it nearly impossible to dislodge first movers who dominate with scale and data. And regulators are waking up, questioning the fairness of these models. Yet, the paradigm persists because the value created far outweighs the disruption caused—at least for now. --- ### **The Future of Open source Disruption** As industries evolve, so must strategies. Here’s where future disruptors might focus: - **Reinventing Trust:** Companies that find ethical ways to monetize data or avoid monetizing it altogether may win in an increasingly privacy-conscious world. - **[[Decentralization]]:** Blockchain and Web3 technologies offer alternatives to centralized models, potentially upending today’s tech empires. - **New Frontiers:** From AI to quantum computing, the next wave of disruptors will make today’s models look as quaint as a floppy disk. --- ### **Closing Thought: Can You Afford Not to Adapt?** Businesses that cling to outdated models risk extinction. But those who adapt—by finding ways to coexist with “free” or carving niches where free doesn’t work—have a chance to thrive.