Products Vs. Services On The Internet - What's The Difference?

When you're offering something on the Internet - should we call it a 'product' or a 'service'? Traditionally, a product is something that you can physically touch while service was something that you'd do using your skills and efforts in exchange of money. But on the Internet - everything remains in the virtual world - so how do we distinguish between a service and a product on the Internet?

Take Gmail from Google for example. Should we call it as a 'product' or a 'service'? I think 'service' could be the most appropriate word in the Gmail's context because it lets you manage your electronic mail on the Internet. Take Facebook - the social network. I've heard a few people call it a 'product' launched by Facebook Inc. and there can be equal and opposite argument about Facebook being a service.

So is everything a 'service' on the Internet?

That's an important question, I think. Is it that 'products' do not exist on the Internet and is everything a 'service'? I'd like to hear from you.

Product Companies Vs. Services Companies On the Internet

There's always a discussion about disappointing number of 'product' companies coming up from India in the IT space. When asked to name a few product based companies, people would name Google, Facebook, FourSquare, GroupOn etc. But what these companies offer are all 'services' and not 'products'.

The term is confusing. I look forward to your opinions & thoughts on the same.

Replies

  • Anand Tamariya
    Anand Tamariya
    Wordpress is a product. However, if Wordpress decided to provide crazyengineers.com a platform for hosting a forum, that would be service. That's why Google, Facebook, FourSquare are product companies whereas Infy, Wipro are services company.
  • Kaustubh Katdare
    Kaustubh Katdare
    #-Link-Snipped-# - Right, wordpress.org offers a downloadable product; but ultimately it's something that resides on the server and is used as a service. Infosys, Wipro are primarily into the services and they're known as IT services company. We're specifically talking about product companies on the Internet.

    Facebook - requires no installation and it's ultimately a service offered by Facebook Inc. Let's narrow down the discussion to be more specific -

    What attributes would make 'Facebook' a product and not a service? I'll tag #-Link-Snipped-#, #-Link-Snipped-# , #-Link-Snipped-#, #-Link-Snipped-#, #-Link-Snipped-#, #-Link-Snipped-# .
  • Saandeep Sreerambatla
    Saandeep Sreerambatla
    To answer it in layman terns, All the companies mentioned above provide service. Like Microsoft , Facebook etc.
    The difference here is, Facebook or microsoft offers services directly. They are in the business because of their products , they sell their products as a service.

    So all microsoft doing is serving people who use windows. And Facebook is a free service but it is getting money in its own way.

    So Facebook is a product made by their company but the product if used in the marked it finally serves you!

    So they are into serving people who want to interact socially with others 😀
  • Anand Tamariya
    Anand Tamariya
    A piece of software is product as long as the market is willing to pay a price to use it as such or with slight modification - think commodities. Any company building that kind of software is a product company.

    Services company, on the other hand, build application based on their clients' specification.

You are reading an archived discussion.

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