Sunday, December 04, 2011

2012: Make or break facebook  

I think 2012 will be the litmus test of facebook – sustainability not a success. It is a success. Now the whole “privacy issue” is going to be tricky for Facebook to manage. With the continuous breach of trust, facebook is testing the limits of it 800mn+ users.
The fact is Facebook is now too big to fail. A 100bn+ IPO in 2012 is a fact. Now why the rush or push? I think the IPO will act more as an “insurance cover” rather than an action to raise more money for Facebook.
Why and how insurance cover?
  • A public listed facebook will have more weight and more credibility – when it makes new product releases or updates that affect our privacy. You will now have more transparency – as per the Facebook spokesperson.
  • As  a public listed company with millions of shareholders (I forecast) – if Facebook fails millions of shareholders will fail. So by listing facebook, it will not only raise some cash  but the more important thing is that they will now have – millions of underwriters in their retail shareholders  who will ensure Facebook is not a forgotten story

So the IPO is good for Facebook .

Sunday, August 28, 2011

Steve Jobs - Apple Apps store - A Platform for entrepreneurs.


This week Steve Jobs CEO of Apple resigned. Most of the press and stock market gave a pessimistic verdict that Apple's market dominance is now limited to max 2 years. It will be dethroned from its market position as soon as the product vision of Steve is exhausted with iPhone 6 and iPad 4.

I am not interested in the perennial success of Apple as I hate repeat winners. But my blog today is not about the future of Apples market cap.

I have a simple observation. Steve Jobs biggest contribution to the entrepreneurial community is creating the app store. The iPhone, iPad and iNext? are simply the tools of consumption. But the Apple Apps store is the invisible glue which will help Apple evolve.

In all the mobile competition between Apple v Google v Microsoft - What's in for the entrepreneur - well today finance or sales or  marketing guy can come -up with  profitable business idea - build it and monetize it via app store. The store is perfect for small and sole-proprietary based entrepreneurs - who are not cash rich. App store is the quickest and fairest way to reach you mobile target audience.

I don't think Microsoft or Google (?) have till date created something similar to the Apple App store - that appeals to the small entrepreneur. Google has the Apps- Android Market, but I think it will be a second fiddle and people will struggle to monetize on it - in its existing avatar.

But thanks Steve and Apple for the App store!