[sanchitbareja]

Every technology will become commoditized sooner or later eventually.

But here are some signs to tell when a technology goes from an innovation to a commodity

1) An increase in competitors is a sure sign of commoditization.

Increase in competitors -> price war mostly -> existing core technology becomes commoditized as players start to differentiate with value-added services/products.

2) A new technology emerges that's 10x better on some dimension but still out of reach and a few years out of most customers' hands. It forces existing market for the technology to demand lower and lower prices for old tech -> commoditization of that tech as original innovator no longer might find it worth it to pursue that product.

3) Regulation could some time force commoditization. Often seen in healthcare/drugs production.

I'm sure there are others. The common vain is that there's a rapid increase in competition.