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Bono and the Facebook IPO

An alternative innovation I can see - as opposed to an across the board flat fee - would be an opt-in 'premium' service whereby members receive preferential deals; connecting consumers with retailers, and - in doing so - stepping out of the equation. This is a lot more effective than generic advertising.

We've all seen how popular Groupon has become which, essentially, are highly polished economies of scale. Groupon, albeit successful, uses organic means to distribute its message; email, word of mouth, virals. The same 'weight of numbers' model could be integrated into Facebook, yet - crucially - extremely tailored to your interests, so you're a lot more likely to click-through to the retailer deal you've been 'introduced' to. Facebook apply a small % to this relationship as a finders fee.

Therein, Facebook generate an annual fixed revenue stream from the exclusivity of the Premium account and also the % levy from the relationship between consumer and retailer. Popularity would drive exponential growth: more members opting-in; more retailers harnessing the marketplace; more retail relationships created.

Potentially, Facebook could blow Groupon completely out of the water.

I honestly don't see any sort of paid service working Sheikh. I think what you've suggested above is much more likley as passing any cost on to the consumer will see a new service take it's place almost immediately. There are plenty of other sites waiting to pop and all it takes is a little disinterest with facebook for other sites to be noticed. I've been invited to beta test a site called Zurker, which essentially gives you shares in the company the more members you introduce. Novel idea but the interface is shocking.
 
Paid model won't work (not for a while anyway)

If they did that tomorrow, I expect Google, Microsoft or Apple would pounce and offer a credible social networking site funded by their other revenue streams

However, in the future, I can see premium content being the norm

When people start paying for music, TV, film, news and other content, all the time, then Facebook could charge for premium content

I tried Groupon once. The second I started getting bombarded with irrelevant emails, my account was destroyed

fudge knows how that become popular, it's like a fudging Nigerian scam site
 
Paid model won't work (not for a while anyway)

If they did that tomorrow, I expect Google, Microsoft or Apple would pounce and offer a credible social networking site funded by their other revenue streams

However, in the future, I can see premium content being the norm

When people start paying for music, TV, film, news and other content, all the time, then Facebook could charge for premium content

I tried Groupon once. The second I started getting bombarded with irrelevant emails, my account was destroyed

fudge knows how that become popular, it's like a fudging Nigerian scam site

But what is the content? Premium content is currently offered direct through hardware/os (bluray/xbox/iphone/android/tv etc.), in terms of music, movies, tv etc. I don't see why or how a website could intervene to offer something you can already receive at a very good price wrapped up in a dedicated service that doesn't require you to go into a browser.

Then you look at what's coming with AR glasses, in built wall projecters in mobile devices etc. and people will circumvent websites more and more. Xbox has dabbled with trying to make Sky Go a social experience by bordering the TV screen with a "TV Lounge" that contains your and your friends avatars that are online so that you can interact. I think the thinking is that for sporting events you can have banter. This is the only sort of way I can see a social network piggy backing onto that sort of content, but I don't think there is actually that much interest in it, as reducing the screen in that way reduces the viewing experience.
 
But what is the content? Premium content is currently offered direct through hardware/os (bluray/xbox/iphone/android/tv etc.), in terms of music, movies, tv etc. I don't see why or how a website could intervene to offer something you can already receive at a very good price wrapped up in a dedicated service that doesn't require you to go into a browser.

Then you look at what's coming with AR glasses, in built wall projecters in mobile devices etc. and people will circumvent websites more and more. Xbox has dabbled with trying to make Sky Go a social experience by bordering the TV screen with a "TV Lounge" that contains your and your friends avatars that are online so that you can interact. I think the thinking is that for sporting events you can have banter. This is the only sort of way I can see a social network piggy backing onto that sort of content, but I don't think there is actually that much interest in it, as reducing the screen in that way reduces the viewing experience.

In the future almost all content will be delivered via the cloud

e.g. In the not so distant future (in fact we already have the tech to do it), you will be able to download a bluray sized movie on your mobile device in the time it takes to take a brick

Music and films won't be delivered via hardware. Your HiFi and TV will be connected to the internet.

Nor will newspapers, books, magazines etc

The only hardware left will be mobile / tablet displaying your premium content (delivered from the cloud for a fee)
 
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In the future almost all content will be delivered via the cloud

e.g. In the not so distant future (in fact we already have the tech to do it), you will be able to download a bluray sized movie on your mobile device in the time it takes to take a brick

Music and films won't be delivered via hardware. Your HiFi and TV will be connected to the internet.

Nor will newspapers, books, magazines etc

The only hardware left will be mobile / tablet displaying your premium content (delivered from the cloud for a fee)

That's already the case mate. "The Cloud" is just a branding exercise, live streaming has been about for ages for those in the know. And that's the point of the cloud, you DON'T download to your machine, it stays in the cloud, freeing up space. It is all still hardware dependent though (regardless of whether that is a hub, TV or mobile device) as you need some form of media to display and there still is no impending use in using a browser to access content.
 
One of the last pieces of work I put together in my last role, was to compile costings for a transition to cloud computing, away from the current means: desktop devices.

The figures involved were astronomical; any implied 'savings' from license and maintenance reductions were more than offset by the storage costs involved in hosting an entire users image on a server. Once I'd applied requisite resilience, it just wasn't a commercially viable option.

In time, great idea. But very, very expensive at the moment.
 
Yeah....but don't you think that because the hardware vendors are all bricking themselves due to the implications for server and other related kit sales?

SaaS is already massive, and IaaS is growing massively.

I don't doubt your experience in the past, but in terms of new IT spend cloud/hosted services is where it's at.
 
In the future almost all content will be delivered via the cloud

e.g. In the not so distant future (in fact we already have the tech to do it), you will be able to download a bluray sized movie on your mobile device in the time it takes to take a brick

Music and films won't be delivered via hardware. Your HiFi and TV will be connected to the internet.

Nor will newspapers, books, magazines etc

The only hardware left will be mobile / tablet displaying your premium content (delivered from the cloud for a fee)

What? 20 minutes? I thought we were already there!
 
Yeah....but don't you think that because the hardware vendors are all bricking themselves due to the implications for server and other related kit sales?

SaaS is already massive, and IaaS is growing massively.

I don't doubt your experience in the past, but in terms of new IT spend cloud/hosted services is where it's at.

Oh yeah definitely. I mean, I recall listening to a room full of CIOs back in 2007 talking about the growth in Cloud computing, indeed instigating a feasibility study to scope out thin-client terminals. We rolled-out 50 such terminals and it just wasn't fit-for-purpose as so many different areas of the business had different hardware needs; a 'one size fits all' solution wasn't workable and we shelved it.

A couple of years ago saw cloud computing reenergised and I believe it's the big IT companies realigning their businesses. Indeed, one of the main projects I oversaw was a duel server rationalisation and virtualisation exercise; less physical racks sitting in some field out in Skegness. As you'll know, many inherent benefits there both for the client and the supplier. Likewise, a step-change in software; less bespoke, more vanilla = reduced helpdesk tickets.

Cloud computing isn't a hardware precipice though; you'll still need a laptop to access the cloud-based services. Equally - for security reasons - there were quite a few servers which had to be held in very secure areas, one or two bunkers I believe. So, whether you use 90% or 10% of that server space then becomes irrelevant.

The in-thing at the moment is discussing 'Big Data', and concurrent to that is the idea that Cloud computing is the answer. It's only the answer, if the big IT houses can design software which uses their data centres in the most efficient way possible. But there's still a huge cost involved, whether you price the SLS image as a service onto the physical bit of kit, or you host that image up on a server somewhere. That's where 'Big Data' is going to get ridiculous; Gigabytes of data - which would normally be held locally on a device - now imaged onto a server.

That's a monstrous figure you're talking about on its own, I can't remember the exact figure I was given to do that, but it was in the hundreds of Terabytes range. Then you have to factor-in resilience; mirrored images, which - again - inflates that storage requirement to whichever level of service you wish to pay for. Storage is BIG money these days, and it's growing at an alarming rate.
 
Just look at EMCs revenue for evidence. The growth of datacenters to accommodate this data is a big issue in terms of green it and costs. The move to shared services and more hosted services is the way people are going. Interesting you mention security. HMRC are just taking DC back in house from Fujitsu to save money and due to concerns over where their data is sat. Delivering a Cisco Nexus 7000 project at the moment. FCoE is monster technology.
 
That is a wonderful investment. Shame we didn't all get involved. Well done to the lad. For those slating the wealthy and successful, they don't have to do a fudging thing. They can just spend their money and get on with it so I'd suggest any good they do is a positive. Hell that is just my optimistic view on life. It would probably be different on the BBC. Mr Vox clearly has some quite useful advisers. If it was his own idea then that is even better. 99% of us want to make more money, to provide more etc so when someone does. He got where he is today by being good at what he does and providing entertainment.
 
I honestly don't see any sort of paid service working Sheikh. I think what you've suggested above is much more likley as passing any cost on to the consumer will see a new service take it's place almost immediately. There are plenty of other sites waiting to pop and all it takes is a little disinterest with facebook for other sites to be noticed. I've been invited to beta test a site called Zurker, which essentially gives you shares in the company the more members you introduce. Novel idea but the interface is shocking.

I'm not so sure.

I think Facebook has reached a point - a critical mass - whereby its now accepted as a networking necessity that most people either have, or - at the very least - have heard of. They're a huge brand, spoken about with the same respect as that of Apple, Microsoft and Google. We're not talking early days, dog-eat-dog internet anymore - these sites are maturing into proper, well-known and well-used services and every move/change they make is heavily strategic.

We've got to a point now, where - okay you can decide to leave Facebook if you want - but you have so many connections on Facebook, that all you're actually doing, is merely ostracising yourself. Eventually, more than likely, you'll come back. And Facebook know this. Why? Because there isn't a viable alternative out there; no established networking site which will have all of your friends on it too. We're not talking supermarkets here: don't like Tesco? Cool, go shop in Sainsburys, Waitrose or M&S. At the moment, the only real choice to receive this particular product, is Facebook.

Also, what would another site offer? Errrm, exactly the same. People are going to put a value on their time: can I really be bothered to join another smaller site, spend hours setting it up and maintaining it, and then hope all my other friends migrate across too? For the sake of a few quid, I think people would chose to avoid having to even worry about it. Anyone with half a brain would think ahead 'okay, so I don't like Facebook charging ... I could join this other free site but - guess what - they're probably gonna eventually charge too'. So, what do you do, just keep migrating around the internet like some kinda gypsy?

People just won't do it; they'll chose to stay with the most established, less hassle option: Facebook. Small charge to use? 'Okay, I'm fine with that and I justify it to myself as being a service which I recieve and I'd miss were I without it'. People happily pay penny charges for applications on their smartphones, and it's because they find it comfortable paying for that particular service. Okay, you could argue that there's a choice in that, and people like having a choice - I agree; no-likes like being forces to pay anything (Licence Fee, exhibit 1!) But the choice here, is do you stay with Facebook for a small charge or leave it and lose all your buddies?

Google - a massive 'blue-chip' technology company - have tried to grow an alternative with their G+ platform. But it's not really taking off at all. And this is with a team of worldclass programmers, marketers and strategists weighted behind it. It's because that boat has already sailed: it's Facebook for social networking, and the rest are simply going to be tinkling in the wind. Facebook is now a bone fide service and, in time, one that people will find no problem paying to receive.
 
I don't see it myself. The second they start charging, somebody will set something up with a quirky USP and more importantly for free and that will be the slide. Look how quickly MySpace dropped out of the universe. The whole point about micro transactions is that they are throw away money for impulse buys, you get people to stop and think about it and a lot actually won't bother to spend the money, especially if there's a free option. Seems silly seeing as Zynga et al have made millions through micro transactions ON Facebook, but I honestly think it'll kill them if they do it.

At the end of the day, the success of Facebook is all about critical mass, without bums on seats they can't survive in this current behemoth guise. Ask people to PAY to have their details harvested isn't a model that works in my mind.
 
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That is a serious Yule tide log

My point though, is that you will get that speed on the move, using your mobile phone!!!

Can't wait.....


if I didn't take that time there'd be even more of it in my posts!!!!!!

Seriously, we were discussing the other day whether the wifi/web developments in the last 5 years are actually as impactful a the industrial revolution...I feel it is the case...
 
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