so i thought i would break this new blog in with something simple, light hearted, and easy to digest.
i would like to use this blog as a way to explore ideas and spark discussion regarding the upcoming dynamic field of start ups, internet, and information technology. posts can be as short as a paragraph that pose a question or a long drawn out analysis of current industry trends.
i would say that right now is pretty exciting, with google, microsoft, and apple butting heads in mobile apps, facebook and twitter in the social networking, and a myriad of independent players trying to eke out a great existence in this universe.
mike, if you were asked to give a short summary of what is going on in the tech industry right now, what would you say? (in terms of where the big companies are positioned, where possible trends might be heading, etc).for this post, i would like to talk very broadly about the idea of making money with the internet.
imagine a giant field that stretches on forever in all directions and on each point on plane there is a domain name (every possible combination of letters and .coms, .nets, .orgs, etc). however, this plane is not flat; instead the height of every domain name's point on the plane is directly correlated with how much the domain name is worth (how much it can sell on the free market, so now we can see a largely flat landscape with a few towering peaks--google, yahoo, etc). and what is it behind just a string of letters attached with a '.com' that lives in a box in a building somewhere that makes it worth upward of $140 billion?
a business model, perhaps. is there anything really tangible, like for an energy company (plants, equipment, accounts receivable, etc) that can be effectively valued? or is the value based on a, perhaps too optimistic, outlook and future cash flows? how much is the brand worth, apart from the business model? but maybe it has to do with how many users are there, how many unique visitors, how 'sticky' the website is, whether or not it is able to generate content, whether or not ad-revenue is consistent. the valuation for all of these is too difficult to exact into a science.
and then was the crazy tech bubble frenzy in early 2000s, when everyone believed anything with a '.com' can be worth several million dollars. welcome to the baby internet.
but now, the internet has matured somewhat. although we don't have a solid means of distributing media to all end users (piracy is still a major concern, although the RIAA is almost dead, the next may be the movie industry), nor a solid means of monetizing said distribution, there are several phenomena that are taking shape.
some questions:
how to make internet better experience/more efficient for end user?
how to organize all data on the internet? (google is trying to be the best indexer of all information on the internet, although now with twitter and real-time search, there has been a lot of twitter only search modules that have sprang up, should be interesting to see that race and who will acquire the most market share)
how to better connect buyers and sellers on the internet?
just to think about,
andy