[davidw]

The network externalities are not nil for a bug tracker, but most of the value you get out of it is the value you get out of the product itself. "Externalities" refers to value that's not included in the transaction: buying the software, in other words.

For instance, a cheap land line style phone is basically completely worthless without a phone network to hook it up to - the value is entirely in the network. You'll get some small benefits out of your bug tracker having more users, but they don't seem all that large when compared with more network-centric products like eBay or facebook.

[rleisti]

Agreed. But the amount of value you get out of the product vs network is subjective to the user and to the product. It depends on how independent you are as a product user, and how easy the product itself is to use.

Take Microsoft Windows for example. Regardless of its own intrinsic value, I think that a lot of people would chose it over, say, a Mac (or Linux) purely based on their own social network, due to the ease of which they might be able to get help and share experiences. The opposite is also probably true (if everyone you know uses a Mac, you'd be more inclined to use one yourself).

For those that like what some other OS has to offer, and they aren't afraid of figuring things out for themselves, then they would go with that regardless of any network effect, because they're more interested in the value of the product itself.