Posts Tagged ‘internet’

The Internet Has Gone Hyperactive

Sunday, June 14th, 2009

Humans have always communicated with each other, but the ways we communicated with each other until recently changed very slowly. All of a sudden communicating over the internet has gone hyperactive. Some people are calling this Web 3.0, others are calling it 2010 web, and others are calling it real-time web. Internet communications is re-inventing itself in ever increasing cycles.

Beyond Social Networks

Beyond Social Networks – What’s Next?

How did we arrive at using hyperactive internet communications? Thousands of people started communicating over the internet decades ago using FTP, Telnet, and bulletin boards. It slowly evolved over many years to where millions of people started communicating using e-mail, digital communications, and the World Wide Web (WWW). In the last couple of years it has expanded in terms of tens of millions of people using more internet communications channels to include instant messaging (IM), virtual worlds, open-source applications, and social networks like Facebook, MySpace, and LinkedIn. Now something new is going on. It is not just Twitter It is something more. It is hyperactive internet communications involving billions of people. I am sure some of this is a fad that will just fade away like website guest books and internet portals, but some of this hyperactivity is going to change our world.

What is changing with internet communications to make it so hyperactive? Here are a few things. It is going real-time and decentralized with things like Twitter and Google’s Wave. It is going mobile where the software and telecommunications are beginning to support useful applications. Internet applications like search engines and social networks are getting smarter delivering information to you before you ask for it. Widgets continue to evolve where now anyone with no technical skills can produce web pages that are useful and entertaining. Social networks and internet communications are getting where they are self-organizing and integrated to where information can flow seamlessly across social networks and internet communications channels. Hardware and network infrastructures continue to evolve through virtualization and cloud-based approaches to support all this hyperactive internet communications. Lastly, a whole new dimension is evolving where the whole world will be using all these internet channels instead of the elite few. See Scobleizer for more on current trends with internet communications.


Back to All About Data In Motion.

The Economics of Online Abundance – the New Free Markets

Sunday, March 2nd, 2008

Increasingly computers, data storage, and bandwidth are becoming a marginal cost in market economics. This is why businesses like Google, and Yahoo! are able to offer so many things for free on the internet. Prices use to be based on the cost and scarcity of goods, but what do you do when there is an abundance of goods that cost practically nothing? This is where businesses are more and more giving away good stuff for free.

It is getting harder to tell the different between a scam and a legitimate offer for free goods anymore. Chris Anderson’ WIRED article, Free! Why $0.00 Is the Future of Business, provides a great overview of how businesses are able to make a profit in this new economy of abundance. Some of these “free” economic models are not new, but they are greatly magnified in our current economy because of marginal costs of computing power, data storage, and bandwidth. Chris categorizes our new “free” economy as follows:

1. Freemium. This is where the basic product or service is free, but the premium version is sold at a price (Example: LinkedIn).

2. Advertising. Here content or services are provided for free, and a third part advertiser pays for ad placement (Example: Google, Yahoo!, and some print media).

3. Cross-subsidies. Here the business gives away something for free in order to entice the consumer to pay for something else. (Example: a band may give away music CDs in a city just prior to a concert to entice fans to go to the band’s concert).

4. Zero Marginal Cost. Here digital media or content is just given away because there is practically no costs to distribute the electronic goods (Example: Online musicians just giving away their music or bloggers just writing content for no monetary gain).

5. Labor Exchange. Users by using a site or service provide value (Example: Rating stories on Digg, or voting on Yahoo! Answers).

6. Gift Economy. Just give away stuff for free. (Examples: open source software, Wikipedia).

The marginal cost of computing, data storage, and bandwidth is changing our entire economy. Now if we could just get silicone to produce energy, we would then be in true abundance.


Web 2.0 is Not a Bubble and Here is Why

Monday, November 5th, 2007

Markus Frind of Plentyoffish.com has an unique perspective on the Web 2.0 bubble. Basically, there is no Web 2.0 bubble. Things like social networks, ebay auctions, affiliate marketing, and online advertising are here to stay. The evidence that Web 2.0 is not a bubble like the first internet bubble, but a paradigm shift are as follows:

1. Stupid ideas are being funded, but at a lot less cost. The ROI is that only 1 in 10 ideas need to be successful if the one idea’s revenues can cover the cost of the other bad ideas. New internet business ideas can be tested for 10s of thousands of dollars versus millions asked for during the first internet bubble.

2. People are not throwing millions at internet business ideas anymore that someone came up with last night.

3. People are a lot more experienced about the internet. Instant experts are not leading major internet startup initiatives.

4. Internet businesses need to show some level of revenue now-a-days before there is any talk of an IPO.

5. Internet advertising, one of the biggest source of money on the internet, is not going to dry up. Internet advertising is cheap compared to traditional advertising media such as TV and print.

6. Hundreds of thousands, if not millions, are making money on the internet through affiliate marketing, ebay, and so on. The money to be made on the internet is not going to dry up.


Read more from Plentyoffish.com posting, Bubble Bubble Bubble.