I'm a reader of Jonathan Schwartz's blog. He's the CEO of Sun Microsystems and, interestingly, is a software person by background. In his most recent posting, he made a very interesting point about where the value is in systems - hardware or software. Jonathan said:
"I was talking to a software analyst today who wanted to know why we bothered with the hardware business when so much value was in our software assets - this is a perfect example, the value isn't in the software or the hardware, it's in the systems we build with both."
I thought this very insightful and a point that deserves a lot of thought.