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My Ten Favorite Tweets – Week Ending 031309

From the home office in Austin, Texas…

#1: @defrag has been saying he thinks the economy is slowly coming around. To that end: http://bit.ly/pP5bd and http://bit.ly/nRkzv

#2: “I think the days of the traditional San Francisco startup approach are numbered.” http://bit.ly/jyw4H

#3: @petefields Companies should follow all who follow them. I’d bet companies’ tweet reading is more keyword & @reply based, not person based.

#4: Maybe it’s just me, but Techmeme has improved a lot recently in terms of the variety of interesting stories. Human editor + user tips = +1

#5: “Facebook is the SharePoint of the Internet” http://bit.ly/4fu73o

#6: This shouldn’t be too controversial…The Case Against Breast-Feeding in April’s Atlantic Magazine http://bit.ly/Xs4ZG

#7: If browsers were women http://bit.ly/kO1su (h/t @mona)

#8: I’ve been blissfully unaware of what Sophie’s Choice is about all these years. My wife told me about it last night. Never gonna watch that.

#9: Actively banishing artists showing up in my Last.fm recommendations: Peter Cetera, Richard Marx, John Parr.

#10: In an email f/ my son’s preschool: One kid: “We’ll take them home in the future”. My son Harrison: “But I’ve never been to the future.”

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Microsoft Is Getting Much More from Its Investment in Facebook

When Microsoft invested $240 million in Facebook at a $15 billion valuation, the general reaction was one of disbelief. The valuation is too high to justify. But some people at the time felt like the dollar amount was well within the comfort zone of a giant like Microsoft. Here’s how commenter Prashant put it on TechCrunch:

I don’t think that MSFT expects to make money on the $250MM at a $15B valuation. Internally for them it is a $250MM investment to get an exclusive advertisement deal over the next 4 years. The 2% stake is only icing on the cake. Had they announced that they have given $250MM to Facebook for a 4 year exclusive ad deal, no one would have flinched, this is cheaper than the Google/MySpace deal.

Over the past few days, I’ve read a couple other blog posts that make me think Microsoft may be getting much more from its investment. Here’s a quick list of what what Microsoft seems to be getting:

  1. Exclusivity on a huge number of page views, and experience with social context advertising
  2. Insight into an emerging competitor to its operating system and productivity apps hegemony
  3. Model for bringing social networking into the enterprise

Let’s look at #2 and #3.

Operating System and Productivity Apps

Dan Kimerling wrote a great piece on TechCrunch about how Generation Y looks to the new wave of social media apps for functionality previously provided by Microsoft’s desktop and web offerings. As Dan notes:

Facebook succeeds because it is the killer web application for communications and personal information management

These are in-the-flow tools. Facebook users don’t leave Facebook, open email and send a separate message. They do it all, right there. The level of functionality is just right for their usage.

The original Microsoft email and productivity apps were pretty simple, but they did just what people needed, and with skillful marketing tie-ups, Microsoft became the standard for millions of us. Over time, Microsoft has added new features to each release, because that’s how they grew their revenues. You had to get the latest. But what happened was we got to feature bloat.

Via Kathy Sierra, Creating Passionate Users Blog, 2005

Via Kathy Sierra, Creating Passionate Users Blog, 2005

I think Kathy Sierra’s graphic is spot-on for general mainstream users. Personally, I probably use only 5% of the functionality available with the applications.

I’ve talked previously about the Innovator’s Dilemma here. As market incumbents grow, they tend to move up-market in terms of functionality in their offerings. What this does is open the door for competitors with new functions that are simpler to use. These new competitors target a niche, and grow slowly upward from there.

Facebook’s niche is still heavily Gen Y. But they’re gaining a foothold. Microsoft’s investment gives them a ringside seat for what’s happening there.

Social Networking Inside the Enterprise

I was reading a blog post by Doug Cornelius where he reported out notes from a session at the Real World SharePoint Experiences conference. A Microsoft Solution Specialist was describing the roadmap for SharePoint. If you don’t know, SharePoint is Microsoft’s enterprise collaboration software, where teams can build out individual sites to shhare and work on documents and to communicate. Each employee has a MySite, which includes their corporate directory information as well as the the list of groups and documents that are theirs.

Here’s a quote from Doug’s post:

Social networking. Mysite will be the hub of the social network. There will likely be Knowledge Network integration. They are looking to take some lessons from their investment in Facebook.

The Enterprise 2.0 space is hot, and social networking is a big focus for companies and vendors. Through its investment in Facebook, Microsoft can learn a lot of what drives interactions, how people connect and watch the mistakes the young company makes. As Dave Ferguson put it:

Good judgment comes from experience. Experience comes from bad judgment. The corollary is that the bad judgment doesn’t have to be yours.

Microsoft continues to evolve its SharePoint offering, and I look forward to SuperPoking my colleagues one day.

Wrapping Up

At first, the only purpose for the Facebook investment appeared to be advertising related. I’m sure that’s still primary, because of the huge dollars involved.

But Microsoft is also gaining an information advantage for the new wave of social computing that is finding its way into both consumer and business experiences. Given the vast reach of the company’s product lines, that’s pretty valuable as well.

*****

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How Are Enterprise 2.0 Vendors Pitching Web 2.0? Using Wordle to Find Out

Recently, a website called Wordle debuted. What is Wordle? You can think of it as similar to a tag cloud, except Wordle analyzes words, not tags. You can see people’s blog Wordles on FriendFeed. Wordles are only graphics – you can’t use them for navigation.

A nice use of Wordles is that you can quickly pick up the pulse of a website. Higher word counts show up as larger fonts, the way tag clouds do.

I wondered what enterprise 2.0 vendors are talking about now. We’re a couple years into the introduction of the term “enterprise 2.0“, made popular by Harvard professor Andrew McAfee. The market is still young, but a decent number of companies have entered the space. Given that they’re selling to corporate customers every day, I was curious as to how their message has evolved.

So I “Wordled” the websites of the following ten enterprise 2.0 vendors:

  1. Jive Software
  2. SocialText
  3. Connectbeam (my company)
  4. Atlassian Confluence
  5. Six Apart Movable Type
  6. Newsgator
  7. Traction Software
  8. Near-Time
  9. SpikeSource SuiteTwo
  10. Worklight

I focused on these pages for the vendors: home page, product pages, “about” page. Let’s see what’s going on out there.

Ten Enterprise 2.0 Vendors’ Wordle

For the Wordle, I removed company and product names to keep it focused on themes.

So looking at this Wordle, what do we see?

Content and information get a lot of play, while knowledge shows up less often in the messaging. That seems about right, doesn’t it? Knowledge is information that you’ve internalized. Well, enterprise 2.0 should help people with that task. Still, it does seem that the focus is on the inputs (content, information), not the outcome (knowledge).

Search shows up a lot. If you’re familiar with the enterprise 2.0 philosophy, creating and finding the good stuff that is locked up in workers’ heads is a key value proposition. Search as a basis for let workers’ connect with one another makes sense. As Nemertes Research notes:

Enterprise search is catching on with enterprises.

If search is the leading use case, what’s the next one? Collaboration. Very much in keeping with the web 2.0 ethos. After that, we see learn and networking as important use cases.

Note that RSS is only slightly bigger than email. A good acknowledgment of what the leading application in the enterprise continues to be.

Social as a top word is no surprise. Isn’t that the premise? Community falls in a similar vein.

Two other words I found interesting: can and new. Can is very much in keeping with the spirit of enterprise 2.0. Companies continue along the adoption curve, but there’s lot of opportunity out there. So emphasizing what you can do is in keeping with the state of the market. New has a similar vibe. The sector is continually iterating and innovating. Web 2.0 moves fast, and vendors have to be nimble to keep up.

Finally, note that Microsoft and SharePoint show up in the Wordle, but not Oracle, SAP or IBM. In terms of incumbent corporate software, Microsoft is the most pervasive and has enterprise 2.0 aspects with the collaborative features of its SharePoint application. As InformationWeek notes:

SharePoint dominates collaboration.

Companies’ use of SharePoint and the importance of Microsoft to the enterprise ecosystem is seen in the Wordle.

There are probably other interesting things to be gleaned from this Wordle. What do you see?

I’m @bhc3 on Twitter.