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Sunday, April 15, 2012

Why Facebook needs to build a browser

Facebook can no longer rely on Microsoft to keep Google Chrome at bay. It needs to fight back with its own browser.
Microsoft is getting its ass kicked by Google.

Sometime in the next 12 months, Google Chrome will become the world's most popular browser, knocking Microsoft's Internet Explorer off the mountain it has ruled for more than a decade.
This fact should scare the pants off of Facebook.
In July 2008, IE controlled 68.5 percent of the market, according to Statcounter, while Chromewasn't even on the market. Now Microsoft's browser is down to 34.8 percent market share while Chrome controls 30.9 percent of total browser usage. Chrome has grown by a percentage point the last few months, while IE has dropped by around the same amount.
It's only a matter of time until Google dominates the browser market.
Now you may be asking yourselves: why should Facebook care about the fate of the browser market? Facebook's a social network, not a desktop software company -- why do the browser wars matter?
The answer lies in Google's ambitious plans for Google+, the company's "social spine." It's no secret that Facebook and Google are at war, and that Google would love to take the wind out of Facebook's sails. Nothing less than control of the Web (and billions in ad dollars) is at stake.
Google+ as a standalone product hasn't made a dent in Facebook's growth, though. Google+ may have 170+ million users, but Facebook is still on track for the IPO of the decade.
Google+ wasn't designed as a standalone product, however. It was made to augment and unifyall of Google's products. Google wants to become Voltron -- each separate piece (Gmail, Chrome, Android, Google Search, and so on) is strong on its own, but combined it's unstoppable. That's why Google launched Search + Your World, and that's why Google+ integration in Chrome is inevitable.
Google wants to become Voltron.

Think about that for a moment. In a single update, Google could turn Chrome into its own version of Rockmelt -- it would be a social browser that puts Google+ in front of users before they even have a chance to type Facebook.com in the address bar.
Don't think Google will do it? It's already started releasing extensions that integrate Google+ into Chrome. I suspect that these extensions are just precursors to their eventual integration into Chrome.
Facebook may be king of the Web right now, but the browser is still the gateway users must pass through to access the Web. Facebook can't allow Google to control how 30.9 percent of its users access its Web site, especially as its ally (and investor) Microsoft continues to falter in the browser wars.
Facebook could try to counter Chrome with Facebook integration in IE, but it wouldn't be the game-changing move Facebook needs to put Google on the defensive. The only way Facebook can knock Google off its feet is to build its own browser and use its massive reach to promote it.
The next battle in the war for dominance over the Web is going to be waged at the browser level. The only question is whether Facebook will take up the fight before it's too late.

Facebook buys Instagram for $1B


Social networking giant Facebook has acquired image-sharing mobile app Instagram for US$1 billion in cash and stock, in a move which analysts say was primarily motivated by its aim to strengthen its dominance in photo sharing, particularly in the mobile space.
Instagram has only about 1/14th the audience size of Facebook but it is a "formidable competitor [and] Facebook wanted to own it", said Jake Wengroff, global director of social media strategy and research at Frost & Sullivan, on the acquisition.
According to him, Facebook's motivation to acquire two-year-old Instagram was rooted in user photo sharing for the mobile platform--where the social network juggernaut has been building momentum, notably with iPad app launch last October. "Photo sharing is the lifeblood of social networking, and Instagram was building an audience fast, and specifically a mobile audience, which is an area and expertise where Facebook is lagging."
Another analyst, Phil Hassey, founder of capioIT, concurred, noting that Facebook will not only gain a mobile user base but also an "improved experience with photos".
Dane Anderson, vice president, research director and region manager at Forrester Research, said Instagram will also benefit from the investment, scale and reach of Facebook. "Already on an unprecedented growth trajectory, its user base should be boosted by the acquisition as long as Facebook allows it to retain its identity and autonomy; subsuming it into Facebook would be a mistake."
Both Facebook and Instagram each announced the acquisition Monday in separate blog postings. Facebook CEO Mark Zuckerberg said: "For years, we've focused on building the best experience for sharing photos with your friends and family. Now, we'll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests."
"This is an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users. We don't plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together," he added.
Instagram CEO Kevin Systrom said the company "couldn't be happier to announce that Instagram has agreed to be acquired by Facebook". Instagram, which recently released an Android versionof their original iPhone app, allows user to take photos with their smartphone and apply various filters to them, before sharing them with their followers.
While both companies dropped hints of new and improved features for each of their services, they also emphasized that Instagram would remain intact despite the acquisition. Zuckerberg said Facebook was "committed to building and growing Instagram independently", and it would be "mindful about keeping and building on Instagram's strengths and features rather than just trying to integrate everything into Facebook". Systrom, too, said "it's important to be clear that Instagram is not going away… The Instagram app will still be the same one you know and love".
According to Facebook in a statement Tuesday, it will fork out approximately US$1 billion in cash and stock for Instagram. News of the acquisition comes ahead of the social networking company's plans to go public in May.
Asked how Instagram's acquisition by Facebook will impact its users, Wengroff said he did not think most will care, "but when certain features of Instagram start disappearing, there will be an exodus of users".
Hassey, on the other hand, said "backlash from Instagram users" would be expected since arguably, users from Facebook and Instagram expect different social experiences.
User reactions on Twitter have so far been mixed, although a seeming majority of tweets expressed disbelief and disappointment over Instagram's new ownership.
On twitter, Singaporean blogger Xiaxue said: "As long as Facebook doesn't change Instagram's timeline to some confusing shit once every few months or make the interface blue... Not that I dislike Facebook but let's face it it's not known for making things pretty... Not sure how it'd fare with a company so artsy."
Instagram user mtl_steve said he planned to delete his account, and tweeted: Goodbye Instagram, it was a good run. #sellout."
AlyxG tweeted: "Facebook has bought Instagram, smug hipsters everywhere weep." Another user, missciccone tweeted: "First, Facebook bought Instagram. Next, who knows? Perhaps tumblr. After that, maybe Path too. Slit your wrists, hipsters."
There were some positive reactions, including from aspiegeek who said: "Why does everyone think that Facebook will ruin Instagram just because it was bought? This just means both services will improve greatly."
Pinterest next?
With news of Instagram being acquired, Frost & Sullivan's Wengroff said Pinterest, an online photo "pinning" Web site, will "definitely be acquired" in the future, although the valuation may not be as high as that of Instagram.
"There will definitely be a bidding war for Pinterest," he said.
Hassey said an acquisition of Pinterest may or may not take place, but did not rule out Google as a potential buyer, as its Google+ social network "needs to do something to be considered relevant".

Bangladesh blocks Facebook pages on religious grounds


Bangladesh is blocking access to five Facebook pages and an unidentified Web site for posting blasphemous remarks and cartoons about the Prophet Mohammed, the Koran and other religious subjects.
According to an AFP report Thursday, a Bangladeshi court ordered telecom regulator Bangladesh Telecommunication Regulatory Commission, home ministry officials, as well as the police to block the pages immediately on religious grounds.
Nawshad Zamir, a lawyer representing petitioners who filed the suit, told the newswire that the pages contained "disparaging remarks and cartoons about Prophet Mohammed, the Muslim holy book of Koran, Jesus, Lord Buddha and Hindu gods".
"They mostly targeted the prophet and the Koran. These pages hurt the sentiments of the country's majority Muslim population and the followers of other religions. Some of the cartoons are very close to pornography," Nawshad added. The petition was filed by a Dhaka University teacher and the head of a law school, said AFP.
In mid-2010, the country blocked access to Facebook temporarily on religious grounds as well. However, this latest move marked the first time Bangladesh ordered a permanent block on Facebook pages, said AFP.
The government in January set up a cybercrime watchdog unit to monitor harmful content on the Internet and on mobile phones.

Facebook reportedly buys 750 patents from IBM


Facebook has reportedly bought some 750 patents from IBM to beef up its intellectual property (IP) defense in the wake of a legal tussle with Yahoo, which has sued it for patent infringement.
The purchase was confirmed by a Facebook spokesperson, according to a report on Thursday by news daily The Wall Street Journal.
Newswire Reuters cited an unnamed source who said the patents from IBM covered various technologies including search and semiconductors. The acquisition will bolster Facebook's IP strength, which has 56 issued patents and 503 filed U.S. patent applications, according to the company's recent filing with the U.S. Securities and Exchange Commission (SEC), added Reuters in its report Thursday.
Yahoo, on the other hand, has over 3,300 patents and published patent applications, according to a U.S. government database, the report added.
In February, Yahoo claimed Facebook was infringing on its patents on technologies including advertising, messaging and privacy controls, and demanded licensing fees, according to Reuters. It later filed a patent infringement lawsuit against Facebook on Mar. 12.
Facebook's patent purchase also comes amid the social networking juggarnaut prepares for itsinitial public offering (IPO), having filed its intention to go public in February with the SEC.
Incidentally, Facebook's patent maneuver appears to mirror Google's motives in its US$12.5 billion acquisition of Motorola Mobility, which market observers said was primarily aimed at boosting Google's patent portfolio.

Google's Sergey Brin: Facebook and Apple a threat to Internet freedom

In an interview with the Guardian, Google co-founder Sergey Brin said that the openness and accessibility that led to the creation of the Internet is under serious threat.

Sergey Brin at the press conference
Google's Sergey Brin

In an interview with the Guardian, Google co-founder Sergey Brin warned that the "open" Internet is in danger from very powerful forces, including Facebook and Apple.
"I am more worried than I have been in the past ... it's scary," he said
Brin identified the serious threats to the open Internet as repressive governments trying to control access to the Internet, entertainment industry crackdowns on piracy and so-called "wall gardens" that maintain more strict control over what can be done on their technology platforms, citing Facebook and Apple.
He said that Facebook and Apple are stifling innovation and risk Balkanizing the Web, and went as far as to say that Google would never have come into existence if Facebook were dominant.
"You have to play by their rules, which are really restrictive. The kind of environment that we developed Google in, the reason that we were able to develop a search engine, is the web was so open. Once you get too many rules that will stifle innovation."
Of course, there is some self-interest and sour grapes in Brin's assessment. He would like to make all the information inside Facebook and Apple apps accessible to Google's search engine. A more open Web is certainly very good for the world but it's also very good for Google's bottom line. And, Google's main effort at social networking, Google+, has a long way to go to catch Facebook, which has more that four times the number of users and continues to gain momentum, including its recent purchase of the mobile photo-sharing app, Instagram. In addition, Apple, which has ridden it's proprietary approach to become the most valued company in the world, is Google's main competitor in the smartphone and tablet arena, another area critical to Google's business success.
Brin also complained about Facebook making it difficult for users to move their data to other services, presumably Google+. "Facebook has been sucking down Gmail contacts for many years," he said.
Brin's comments on his chief competitors may be the start of an escalating war of words and technology as the giant colonizers of the Web continue their competitive quests for dominance. Keep in mind what the Web's inventor Tim Berners-Lee has said:
A related danger is that one social-networking site--or one search engine or one browser--gets so big that it becomes a monopoly, which tends to limit innovation. As has been the case since the Web began, continued grassroots innovation may be the best check and balance against any one company or government that tries to undermine universality.
The Brin interview is part of the Guardian's week-long investigation, "Battle for the Internet," which will cover the "struggle for digital control that is being played out across the globe between governments, companies, military strategists, activists and hackers."