I think there are places for both. However, reading up on a lot of business case studies, I noticed that a major tipping point for a company is often when they decide to step out of their niche.
Diversifying can handicap a company if they aren't careful, because it reduces resources to the core product.
However, it can also be a real boon (see: Microsoft + Azure, which now makes most of their revenue)
Amazon disclosed in its quarterly earnings announcement that AWS revenue totaled $18.44 billion in the quarter [snip]. That works out to about 16% of Amazon’s total revenue.
I think there are places for both. However, reading up on a lot of business case studies, I noticed that a major tipping point for a company is often when they decide to step out of their niche.
Diversifying can handicap a company if they aren't careful, because it reduces resources to the core product.
However, it can also be a real boon (see: Microsoft + Azure, which now makes most of their revenue)