Thursday, 25 October 2007

Microsoft investing in Facebook

Microsoft is interested in Facebook - as it Google - but Microsoft is putting its money where its mouth is with a 240 million dollar investment in the company.

Why is Microsoft, or Google, or anyone else interested in Facebook?

Facebook's value is not in the software itself—which could be duplicated relatively easily by a small group of programmers—but in the vast social networks the site has gathered, networks that contain information about people's interests and desires that would be invaluable for any marketing company.

So be careful what you put up there folks. This one social network that is going to become an advertising network in the near future, and if that isn't enough to stop you putting confidential information up there how about the identity theft risk that sites like Facebook pose.


Gary Paluk said...

I understand concerns of this nature, but it good to keep a realistic view on this stuff. Adverts have been an associated part of the internet for years, and all that both of these companies are interested in is provided targeted information to its users. Google have been doing it for a long time with ad-sence and it never hurt me. These companies 'should not' simply sell your information, it would damage them to much, but I guess its a balance of what you put on there, could it damage you privicy?? I guess anything on the internet leaves an electronic trail so just using the internet is damaging your privicy!

The Recursion King said...

This is of course very true, it's really about the level of trust that people are putting into a faceless corporate website that is the issue.

If someone had said to me five years ago that people would volunteer personal information about themselves to anyone on the internet, including uploading all their photos, I would have said they were crazy - not even the government could force us to do that. Yet here we are all the same ;)