If Google’s power over the web wanes, and I think it will in time, it will not likely be the result of Microsoft or someone else replacing it as the default search service. It will be because new default functions emerge that lessen the number of times we want to use the search function.
So what does this mean for entrepreneurs and VCs? Well for one, don’t make a frontal assault on a default service. Build or finance a service that can become a new default function in the Internet operating system. And if you have a shot at becoming one of these default functions, invest all of your time and energy attaining and solidifying that default position before working on monetizing it. Because its a very tough position to secure and once you get there it’s pretty hard to knock you out.”