Monthly Archives: June, 2007

Facebook (24m users)

Marc’s new blog is worth a read – this is one I mentioned today – with a list of the his top posts so far on his new blog site – plenty on dealing with capital and growth topics (Marc Andreessen – Netscape, (Loudcloud -became OPSware), Ning)

http://blog.pmarca.com/2007/06/analyzing_the_f.html

This is happening in an environment with 24 million active users — active users defined as users active on the site in the last 30 days. 50% of active users return to the site daily. 100,000 new users join per day. 45 billion page views per month and growing. 50 million users, and a lot more page views, predicted by the end of 2007.

An application that takes off on Facebook is very quickly adopted by hundreds of thousands, and then millions — in days! — and then ultimately tens of millions of users.

Unless you’re already operating your own systems at Facebook levels of scale, your servers will promptly explode from all the traffic and you will shortly be sending out an email like this

In our first 20 hours of opening doors we had 50,000 users sign up, and it is only accelerating. (10,000 users joined in the first 12 hrs. 10,000 more users in the next 3 hrs. 30,000 more users in the next 5 hrs!!)

Yesterday, about two weeks later, ILike announced that they have passed 3 million users on Facebook and are still growing — at a rate of 300,000 users per day.

They didn’t say how many servers they’re running, but if you do the math, it has to be in the hundreds and heading into the thousands.

Translation: unless you already have, or are prepared to quickly procure, a 100-500+ server infrastructure and everything associated with it — networking gear, storage gear, ISP interconnetions, monitoring systems, firewalls, load balancers, provisioning systems, etc. — and a killer operations team, launching a successful Facebook application may well be a self-defeating proposition

This is a “success kills” scenario — the good news is you’re successful, the bad news is you’re flat on your back from what amounts to a self-inflicted denial of service attack, unless you have the money and time and knowledge to tackle the resulting scale challenges.

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Solutions Marketing – The New Product Marketing

Before the advent of Tylenol, Advil, Motrin or Excedrin, the world somehow got by on aspirin for general aches and pains.  But marketers never rest in looking for ways to gain competitive advantage, hence, the myriad of pain relievers available today for every discomfort imaginable.  For example, there’s Tylenol for a cold, flu, sinus, arthritis and a slew of other ailments.

 

The difference between aspirin and many of the pain relievers available today is more about packaging and positioning than it is about ingredients.  Each brand of pain reliever uses a common ingredient or platform plus a sprinkling of additional ingredients for specific ailments.

 

Translate this concept to B2B products and services and witness how ERP software in the 90’s has become enterprise solutions for retail, healthcare, non-profit and automotive. Telephone service has matured into telecommunication solutions for large enterprises or small and medium businesses.  The concept can be applied to any product or service.  The key is RELEVANCE. 

 

Much like pain relievers, most B2B products and services use a common platform and emphasize specific features that constitute an industry specific solution. 

Why make the transformation?

For starters, solutions drive higher ticket sales because they generally offer multiple products or services.  Who doesn’t want more revenue?  Throw in the stickiness factor because multi-product solutions reach a broader base of users within each customer account.  And finally, history has proven that companies offering solutions have far greater market appeal than those just selling generic products or services.  Apple didn’t invent downloadable music or the portable music player.  They simply delivered both as an integrated solution. 

 

Three Steps to Make it Happen

  1. Determine the best way to segment your target customers. It’s usually a good idea to refer to them as they refer to themselves to keep the relevance factor high, i.e., pharmaceutical, retail, small business, etc. Begin with the segments where your products or services are the best fit today.

  2. Formalize the product marketing function (not to be confused with product management) and organize it according to your chosen industry segments.  Assign solutions marketing managers by market segment instead of the traditional product centric alignment.  

  3. Develop value propositions around common problems in each segment and deliver those value propositions in communications targeted to specific audiences.

 

The essence of solutions marketing is to utilize your marketing horsepower, which is limited in most companies, to the segments where you can succeed the fastest.  IT shouldn’t prohibit you from selling into other segments if the product is a good fit.  It just means you’re not going to dedicate any resources to segments beyond your chosen priorities.

 

Focus is the biggest challenge in every company.  Those who make a habit of it become market leaders.

Escrow Template

Hi guys and gal

For those that have an interest in Software Escrow but don’t know what you’re talking about, see the software-and-technology-escrows-word.doc. I forwarded on this morning to Richard. It’s a simple (for the men out there) overview of Escrow. Hope this helps. I will get a template from Wayne Hudson after his return from France. Cheers, Chip

Action Asia Business Summit

Sent: Tuesday, June 19, 2007 1:56 PM

Subject: World experts visiting Auckland for Action Asia

I encourage you to register for the Action Asia Business Summit and Gala Dinner, on 9 & 10 July, at Sky City: http://www.actionasia.co.nz/

Your attendance at Action Asia could be critical because Asia is home to the world’s fastest growing markets; five Asian economies are among New Zealand’s top ten trading partners, India now has over eighty thousand millionaires and China is fast becoming a global superpower. At Action Asia, 10 visiting international experts will help you to: –

  • Fine tune your business strategy to better engage with Asian nations  –
  • Negotiate better deals with Asian business partners and suppliers  –
  • Brand, market and sell your products & services to Asian consumers  –
  • Overcome cross-cultural challenges 

Key speakers include:  

  • HE Long Yongtu, Chair, Boao Forum for Asia, Ex Vice Minister of Trade, China
  • Clyde Prestowitz, President of the Economic Strategy Institute, Washington DC 
  • Dr Michael Yeoh, CEO, Asian Strategy & Leadership Institute
  • Dr. Ifzal Ali: Chief Economist, Asian Development Bank, Manila
  • Viv Lines: President and COO Asia Pacific, Hill & Knowlton, Singapore 
  • Ram Ramakrishnan: Exec President, Bajaj Group, India
  • Andrew Clark: Managing Director, Boston Consulting Group, Asia Pacific  

With a clear business focus and a world class programme, Action Asia is essential if your company wants to benefit from the transformation of Asia.  I encourage you to register your place now at:

actionasia.co.nz/

yours sincerely, 

Bob Walters,CEOExport New Zealand