A big problem investors and pundits have with companies like Google, Microsoft and Apple is that they are seemingly incapable of creating a successful social network, despite being successful in many other areas of the software world. Something they don’t consider, though, is that the reason these companies are historically successful is the same reason that is keeping them from being successful with social networks.
Look at the traditional model of software publishing. A company like Apple would create a home run product like GarageBand. Apple then has two options. On the one hand, it can publish GarageBand on as many platforms as possible to maximize its reach. On the other hand, it can keep GarageBand exclusive to OS X, thereby giving Apple an incredible advantage over competing platforms. Of course, Apple chooses to leverage it to increase the value of OS X.
Similarly, look at Microsoft. They are working on a version of Microsoft Office for tablets, but apparently have no plans to release it for the iPad or iPhone. Why? Because having Office be a platform-specific product is an incredibly valuable selling point for Windows, and will likely sell many tablets and PC’s.
Contrast this model of software publishing with the strategy of social networks. You have services like Facebook and Twitter pushing a cross-platform model, with the service available everywhere. iOS apps? Check. Android? Check. Windows Phone? Check. Web? Double check. This gives these services an incredible reach, allowing friends to interact with each other regardless of operating system.
As a side note – as someone will bring it up – I should address the issue of Google+. Google appears to be being open with Google+, so why aren’t they winning the social wars? The reason for this specific failure is that they are not adding significant value to the user experience (however much Scoble may think Hangouts are awesome). This is the second hurdle a company needs to overcome to run a successful social network. Apple has had no problem with this issue, by adding value with GameCenter and Find Friends. Google, though, is not adding value, and despite being open is not seeing success.
While these may seem like insignificant – and immaterial – comparisons, understanding the difference in strategies is critical to understanding the inability of companies like Apple, Microsoft and Google to create successful social networks.
On the one hand, you have the old-school strategy that states that exclusivity is the best way to boost the value of a platform. On the other hand, you have the new-school strategy which states that cross-platform compatibility is critical to the success of a social network, and really any web service.
This conflict is the central reason explaining why older companies like Apple have been unsuccessful at creating a social network. Apple hasn’t pursued a cross-platform model, and instead forced users to interact with Ping on a specific platform and inside of a specific application. This is Apple trying to use a 20-year old model of software publishing, on a 10-year old idea. Inherently, they are incompatible.
These makeshift adaptations for the social networking age won’t work. Why? The answer is simple: people want to be on the same network as their friends, and they can’t be if their friends are locked onto a specific platform. It doesn’t work in the end, because not everyone is going to be on the same hardware, and not everyone is going to be on the same platform.
In the end, the two strategies cannot coexist. You cannot have a social network be a feature product, and at the same time force lock-in. On top of that, you cannot have the strategy of lock-in for all services and products, and expect them to be as popular as you want them to be. It’s one or the other.





I understand the fun of calling it Scoble+ and all, but how many people need to obviously use and sign up for G+ before we stop (I can't believe we didn't even give it much more than 6 months chance!) calling Google+ a failure? It may never meet Facebook's user numbers, but over 100 million people have signed up, millions use it every day, photographers have taken to it so much so that soon it looks like it will pass Facebook in daily photo uploads despite having a fraction the user base...how's that for a 'feature' to draw users? Strongest online community of photographers? (You can thank Yahoo!'s failures with Flickr for that, probably.) Google+ may yet "fail" in the end, but when all signs point to continued growth (dare I say "strong"? 750k per day according to Paul Allen on G+) and it's only been 8 months...can we maybe not call it a failure yet? Unless anything that doesn't have 800 million users is a failure, in which case every blog that reports on start-ups can close their doors and replace their front page with "Company [x] is gonna fail. Back to New York Times?" :)
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Like[...] to help introduce real-time searching. - A look at why the older technology companies will never win the battle of social media, despite their efforts. - Amazon expected to start selling 10-inch Kindle Fire before the summer, to help compete against [...]
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LikeReblogged this on MesaBoogie007.
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Like[...] tradotto da The Older You Are, The Harder It Is To Win At Social, di Trevor Gilbert. Post correlati:L’ascesa del Social SpamSo.cl, il social network di [...]
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Like[...] tradotto da The Older You Are, The Harder It Is To Win At Social, di Trevor [...]
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Like[...] tradotto da The Older You Are, The Harder It Is To Win At Social, di Trevor [...]
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Like[...] tradotto da The Older You Are, The Harder It Is To Win At Social, di Trevor [...]
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LikeReally with the scarf, Trevor? What are you, a 50 year-old woman?
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LikeWhat about Instagram? It's tied only to the iPhone and is having TONS of success.
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LikeThere's another easier explanation. "Winning at social" is as much chance as intent. If you have 500 companies trying 500 different things and 5 of them win, the chances that it will be one of the big established players is pretty small. Even the small payers like Path iterate multiple times before finally "catching". The big players do fool themselves into thinking it's working just because they start with such an advantage of being able to bring critical mass instantly, but fooling themselves is about their only disadvantage. They would do far better to pay up for social networks that already work and hypercharge them (read: YouTube, which was a successful acquisition).
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Like[...] Gilbert, explaining in beautifully curt form just why major companies like Apple and Google are so awful at ...: “people want to be on the same network as their friends, and they can’t be if their [...]
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LikeWhy was this article on techmeme?
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LikeBeats me. Why am I here reading it? I don't know the answer to that one either.
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LikeMaybe the "author" is a part of the Techmeme syndicate. I hear that the Techmeme dude sends his friends some traffic now and then. http://www.realdanlyons.com/blog/2012/02/13/hit-men-click-whores-and-paid-apologists-welcome-to-the-silicon-cesspool/
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LikeActually, Microsoft IS planning on releasing Office for iPad (but not for Android tablets): http://www.thedaily.com/page/2012/02/21/022112-tech-apps-office/
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Likehttp://www.thedaily.com/page/2012/02/21/022112-tech-apps-office/ Ehh.
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LikeThey don't need to 'win', they just need to know how to leverage social. Although, win-in-social is a relative term. Apple 'wins' via social because their great products have tremendous word-of-mouth effect, and the marketing feeds on itself. But they 'fail' in the tech sense of 'social'. (How do you quantify the unquantifiable? Profits? Sales?)
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Like> They are working on a version of Microsoft Office for tablets, but apparently have no plans to release it for the iPad or iPhone. Why? microsoft has been producing apple software for decades (before DOS) and office for ipad is about to be announced. what you are describing is both apple and microsoft as being vertical, when they are at polar ends of the distribution spectrum with one being the proto-vertical and the other the proto-horizontal (they each pioneered their model). that said, I don't think the reason why Microsoft and Apple haven't produced a successful social network is because of their software distribution models. It is more because one of them hasn't really tried and the other owns a good slice of the most popular one (and is in the same keiretsu)
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LikeThis is a great topic to cover, Trevor... however you have 8 paragraphs of "setup" with a three sentence "payoff." In other words, WHERE'S THE BEEF?
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LikeFirst we have to consider these so called social networks. While som special-case ones may be useful - most are not. Even if you have a consistent social graph for anyone you still need to know the context. I and all my friends might be vegans - but the search engine doesn't know context when I look for a restaurant. I may be looking for dinner with a client. And in a generic social application like Facebook you don't have a consistent social graph. Sure many of them has friends in them. But many, many others use Facebook to keep contact with distant relatives, old school friends and colleagues you never see or hear from. In this case the social graph is an anti-social-graph. VC:s love social. The software is simple and hit-oiented. A few of them will be runaway hits. This is what VC:s like. But do not mix the VC-world with the world of actual serious software products.
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LikeI would add the need to have a cool name and be a cool company.
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LikeWow, some big comments here. All I wanted to say was... that picture is a WIN!
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LikeThere is one huge reason Google, Microsoft, and Apple will not win at social. The investors behind Facebook, Twitter and others would do anything to have 10,000% gains on exit. Then you have the people who bought options on secondmarket.com. Then you have Goldman Sachs, and the other underwriters who were actually stopped by the SEC for selling shares to US customers short of a public offering years before the S-1 was filed. GOOG, MSFT, AAPL will never see returns like a startup exit. They've already been split multiple times. Yes, the original theFacebook.com did gain hundred of thousands of followers on it's own merit, but so did myyearbook, fubar, and countless others. The rest was wholly on the back of pump & dumpers. The pump & dumpers got it on CNN, and in the mainstream media channels. Nobody's going to stand to make enough money to do that for Microsoft barring Bill Gates who at this point really doesn't car. Larry Page obviously cares, but there aren't enough people to care with him at Google who stand to make money off of it. It all boils down to money. This is America.
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LikeI don't think the VCs investing in Facebook have more resources at their disposal than Apple, Google and Microsoft, not by a long shot. If spending $10 billion is all it took to create the most successful social network Microsoft would have done it in 2006. To attribute Facebook's success primarily to receiving mainstream media coverage shows a serious lack of understanding around how innovation and social media works. You can't just spend the most money, your culture and existing corporate structures will prevent you from succeeding in certain markets. Microsoft is struggling online compared to Google, and Google is struggling in social compared to Facebook.
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LikeNone of these pump-and-dumpers have the power you think they do. Oprah doesn't take calls from hedge fund managers, or even Yuri Milner. Facebook et al started with pure viral spread (first stage rocket) which took them high enough to get media buzz (booster rocket). From there it was a virtuous circle. Money was secondary.
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LikeThere is another, more prosaic explanation for the failure of almost everyone in the world to build a successful social network - if you start late, it is almost impossible to overtake a competitor who is enjoying greater network effect (unless they screw up, i.e. Friendster, Myspace, Bebo, etc.) Google, Apple and Microsoft were all simply too late to the party. There is a perception that there are several successful networks, but really there is now only one of each kind. LinkedIn for professional networking, Facebook for shooting the shit with your friends and wasting time, Twitter for blurting to the masses. The only way to create a new social network now is to find a new model that's not one of the above. Google+ has not attempted to do that, instead they've created a hybrid that has a bit of all of the above and some other stuff like hangouts chucked in for good measure. There's no reason to believe that strategy is going to work for them.
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Likeinterest-based social graphs and social networks divided by vertical function. I blogged about it on the weekend (although I certainly wasn't the first to air the idea). I don't think facebook will go far outside of photos/notes and the bigger opportunities are yet to be won.
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