Collecting data is less valuable than connecting people

Metcalfe Law

Creative words that convey the following message “Why companies like Facebook,Twitter, Ebay and Apple (but not Google) will determine the future of the internet?”

Why indeed?

Sean Parker, a venture capitalist, adds a twist to web 2.0/web3.0 debate. He believes that there are information services like Google, and then there are the network services like FB,twitter etc. And the future lies with the latter. Due to the power of the network effect, the big will get bigger because the value of the product increases  by factor “n squared” as more and more people join in.

The network services core value is facilitating a relationship between people, unlike the information services whose core value is collecting and processing information.

Is that why Google incorporated twitter feeds in its real time search?

Take a look at Sean’s detailed argument here . Also check out the TechCrunch view on Sean’s thoughts here

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