Friday, July 22, 2011
Friday, July 8, 2011
I wrote my last post about how Facebook was a bubble, so now I am going to eat my words and explain why I think Facebook might be worth its price after all.
I have long been a FB-apostate when it came to seeing the platform’s monetization potential: big, yes, but $100Bn big? Now however I’m starting to see the light. And it's not because of advertising.
I believe that Facebook has won the online identity war, and the spoils will be enormous.
Companies like MSFT and GOOG have forever been trying to create a single identity for users to use across the web, from MSN Passport cum Windows Live, to the simply titled Google Account (or is it Google Profile?) cum Google+. Other, parallel efforts have focused on being a one-stop destination for all things online, from the Yahoo! Portal to iGoogle. But FB has actually done it, and not as a bolt-on afterthought but as their core competency (granted the portal was Yahoo's core competency, they just weren't very competent at it). Because identity is a natural monopoly, this makes FB’s dominance of this space difficult to challenge.