Metcalfe’s law states that the value of a telecommunications network is proportional to the square of the number of users of the system (n2). First formulated by Robert Metcalfe in regard to Ethernet, Metcalfe’s law explains many of the network effects of communication technologies and networks such as the Internet and World Wide Web.

The law has often been illustrated using the example of fax machines: A single fax machine is useless, but the value of every fax machine increases with the total number of fax machines in the network, because the total number of people with whom each user may send and receive documents increases.

In the case of eStudio (as collaboration software) n2 describes accurately two factors. First, the number of users registered to an eStudio squares the likelihood of successful ecosystem launch. Second, the adoption rate of the network per market.