Scott Wickham’s blog post “Social Networking and Buffy the Vampire Slayer” [1] brought my attention to the post on TechCrunch “Bear Stearns: Yahoo Must Form A Social Networking Strategy [2].“ In short, the TechCrunch article summarizes and discusses a Bear Stearns Internet analyst’s view that Yahoo needs to get into the Social Networking space by acquiring someone like Facebook, different valuations of Facebook, and the reality that it might actually be Facebook acquiring Yahoo. Scott’s post questions the logic of Yahoo needing to acquire a social network, but more so, he’s really questioning what social networks bring that email and bulleting boards and the basic building blocks of the web don’t already bring us.
Scott, Robert Peck (the Bear Stearns analyst), and Michael Arrington, the author of the TechCrunch post are all right in some sense. Yahoo needs to keep playing catch up to keep people using the services their empire offers. Yahoo needs to let people know they care about social networks. Facebook should leverage the valuation of their company by either being bought or acquiring. And, just like Web 2.0, the term Social Network, is really short hand for a number of things that have been out already, and there really isn’t one precise definition.
Just as years ago, when the Web and the Internet were getting noticed beyond the early adopters we saw standardization and interoperability. Email systems could communicate with each other. Bulletin boards or forums, while different, were not as vastly different as they once were. And we came to understand what certain basic features were and the metaphors used to represent these features in the 2D not exactly real time world that is the Internet. Social networks offer this. We’re more connected to each other, and our friends, contacts and colleagues can keep track of what we’re doing. Some social networks even actually interoperate. The Facebook API offers ways to use Facebook authentication so you don’t need separate user names and passwords everywhere. Drupal, the open source content management system we use to build social networks has ways to allow authentication to work across sites. Others will share information on what you’re doing on your site or blog or even other networks.
Is there value in acquiring an existing social network? Sure. You get an already active community. But in Yahoo’s case, they already have an active community and lots of features that draw users. Enhancing the connection between their properties and adding features might be enough. I’d encourage some restraint on their part, though. If you use Yahoo Mail I think you’ll understand my concerns of over using available technology.
What about Facebook’s valuation? Just as with so many other players over the brief history of the Internet, there is a point for each niche when the valuation of top players hits an amazing high. I think this might be Facebook’s point, and they could really benefit from capitalizing on that.
What about those who can’t afford to buy a $7 billion company, or don’t have the vast programming resources of a company like Yahoo? Amazing things are possible to those with significantly smaller budgets by using open source software like Drupal. We’re always excited to talk about what you could do with Drupal, so give us a call. What's your Social Networking strategy?