Thanks for that. I think there's some kind of a distinction between a technology company, and technology company that is directly tied to a non-technology business, so that it also is a non-technology company.
Buildsoft (the acquired company) develop software for the building industry. At some point, this is the same business as developing physical tools for the building industry. Once there's a known task and a standardized way to solve it, we can develop our tool for doing that. There's less uncertainty.
I think the distinction is to do with uncertainty, generality and abstractness. A "technology" company is doing something new and unknown, that is applicable to many different industries - but hasn't settled down yet. Once the application becomes concrete, and specific to a particular industry, and the way of solving it is pretty well established, I guess it becomes just a regular business like any other.
Moore's "Crossing the Chasm" talks about customizing a product to a specific industry, as a way to get a measure of security - you won't get wiped out (until the next revolution in computers).
I was thinking that Warren might not have anything to do with this acquisition, but he's very attentive to capital redeployment, so I would guess he did personally approve this purchase.
Buildsoft (the acquired company) develop software for the building industry. At some point, this is the same business as developing physical tools for the building industry. Once there's a known task and a standardized way to solve it, we can develop our tool for doing that. There's less uncertainty.
I think the distinction is to do with uncertainty, generality and abstractness. A "technology" company is doing something new and unknown, that is applicable to many different industries - but hasn't settled down yet. Once the application becomes concrete, and specific to a particular industry, and the way of solving it is pretty well established, I guess it becomes just a regular business like any other.
Moore's "Crossing the Chasm" talks about customizing a product to a specific industry, as a way to get a measure of security - you won't get wiped out (until the next revolution in computers).
I was thinking that Warren might not have anything to do with this acquisition, but he's very attentive to capital redeployment, so I would guess he did personally approve this purchase.