Browse Definitions :
Definition

commodity

Contributor(s): Ivy Wigmore

A commodity is a type of widely-available product that is not markedly dissimilar from one unit to another.

Within a category of commodity, one item or unit can be substituted for another with similar results. Examples of commodities, in the traditional sense, include sugar, wheat, rubber, fuel oil, cattle, gold, aluminum and wool – among a great number of other products. Other products, such as wind and solar power and greenhouse gas offsets are considered to be emerging commodities, for which the market is developing but not yet mature.

By definition, a commodity product lacks a unique selling point. In an IT context, the term usually differentiates typical consumer products from specialized or high-performance products. A commodity, in this context, is a low-end but functional product without distinctive features.  A commodity computer, for example, is a standard-issue PC that is widely available for purchase. 

As technologies and markets for a given product mature, it is more likely to be considered a commodity, at least in its more basic implementations.  According to some market analysts, the increasing ubiquity of smartphones and the consistency of features from one brand to another means that the products are becoming commodities.

This was last updated in September 2013

Continue Reading About commodity

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

can a commodity be called money
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • Web application firewall (WAF)

    A web application firewall (WAF) is a firewall that monitors, filters and blocks data packets as they travel to and from a ...

  • spyware

    Spyware is a type of malicious software -- or malware -- that is installed on a computing device without the end user's knowledge.

  • application whitelisting

    Application whitelisting is the practice of specifying an index of approved software applications or executable files that are ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • DRAM (dynamic random access memory)

    Dynamic random access memory (DRAM) is a type of semiconductor memory that is typically used for the data or program code needed ...

  • RAID 10 (RAID 1+0)

    RAID 10, also known as RAID 1+0, is a RAID configuration that combines disk mirroring and disk striping to protect data.

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

Close