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Facebook: Not just a toy...
12-May-2008Over the last few years, many people (including us) have asked whether or not Facebook can be used as a enterprise intranet. Many have dismissed this notion by stating that Facebook is really just a time-wasting toy. While that question continues to be debated in enterprises across the globe, there is no question that Facebook has caught the attention of the big boys -- namely Google and Microsoft.
We have been hearing of Facebook as a drain on Google resources for some time. When asked about the biggest challenge to Google's success, one Google employee we talked to indicated that it was the loss of talent to nearby Facebook. It's not surprising that employees would be attracted to move down the street from Mountain View to Palo Alto to find a similar collegiate, yet pre-IPO, culture; but now the defections are becoming more senior, and more strategic. Facebook's COO, VP of Global Communications, Director of Business Development, Director of Platform Product Marketing are all ex-Google employees.
In the midst of Facebook's talent threat to Google, the company has also piqued the interest of Microsoft as a way to challenge Google themselves. As Prescient Digital Media's Toby Ward points out, Microsoft may look to Facebook's platform as a way to tap into the hosted enterprise tool market where Google has found success.
I agree with Toby that the Facebook platform certainly has a ways to go to truly compete head to head with Google's current offerings, but Microsoft's interest should indicate that Facebook has some major strategic value. The platform, the 70 million users, and the ever-growing ex-Google experience, are all assets that would strengthen Microsoft's arsenal in these early stages of a possible showdown between Microsoft and Google. Clearly, Facebook is much more than just a toy.
Next week, I will be moderating a panel discussion on this and other Facebook in the Enterprise questions at the Enterprise3 conference in San Diego. The panel will be comprised of the previously mentioned President of Prescient Digital Media, Toby Ward; Serena Software's VP of Communications, Kyle Arteaga; and the Senior Director of Optaros Labs at Optaros, John Eckman. Please join us for what should be a very lively discussion.
- Submitted by: Jarrod Gingras, Analyst
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