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  • feedwordpress 13:54:54 on 2017/09/28 Permalink
    Tags: , , , , Internet Big Five,   

    Amazon’s HQ2 Isn’t a Headquarters. So What Is It? 

    The post Amazon’s HQ2 Isn’t a Headquarters. So What Is It? appeared first on John Battelle's Search Blog.

    Crossposted from NewCo Shift.

    Everyone’s favorite parlor game is “where will Amazon go?” Better to ask: Why does Amazon needs a second headquarters in the first place?

    It’s the future! Rendering of Amazon’s new Seattle HQ. The first and original one. 

    Why does Amazon want a new headquarters? Peruse the company’s RFP, and the company is frustratingly vague on the question. “Due to the successful growth of the Company,” Amazon says of itself in the royal third person, “it now requires a second corporate headquarters in North America.”

    It requires”?

    Is this a request for bulk discounts on toner ink? Did Jeff Bezos outsource this momentous and extremely public communication to his purchasing department? Is there really no more room in Seattle?

    So…Why? Why is Amazon doing this? If I were one of the hundreds of Mayors and local civic boosters huddling in meeting rooms around North America, that would be my first — and pretty much my only question. After all, if you don’t know why Amazon is looking for a “second headquarters,” then your response to their RFP is going to end up pretty rudderless. If Amazon’s true reason for another HQ boils down to, say, Latin American expansion, then Chicago, Toronto, and Philly should pretty much pack in in, no?

    While the RFP is comprehensive in requirements (transportation networks, nearby international airports, sustainable office space, etc.), it nevertheless demonstrates a stunning lack of vision — the very vision that once defined “startups” like Amazon. The current accepted mythology about our fabled tech companies, those lions of our present economic theatre, is that they are fonts of vision — driven not just by profit, but by outsized missions to change the world, and to make it better. So what mission, exactly, will this new headquarter actually be charged with? Can anyone answer that? Absent any serious data, the default becomes “to expand Amazon.” And what, exactly, might that mean?

    Amazon’s lists of current and projected businesses include e-commerce (its core), entertainment, home automation, cloud services, white label products, logistics and delivery, and any number of adjacent businesses yet to be scaled. It also harbors serious international expansion plans (one would presume). Any and all of these businesses might inform the “why” of its Bachelor-like RFP. But nowhere in the RFP does the company deliver a clue as to whether these factors play into its decision.

    I have a theory about why Amazon issued such a vision-free RFP — and why the world responded with a parlor game instead of a serious inquiry as to the motivations of “the most valuable company in the world.” And that theory comes down to this: Amazon needs a place to put workers that are secondary but necessary — back office service, lower level engineering talent, accounting, compliance, administrative support. It will move those support positions to the city that has the cheapest cost per seat, and consolidate its “high value” workers in Seattle, where such talent is already significantly concentrated.

    Put another way, “HQ2” isn’t a headquarters at all. But calling it one insures a lot more attention, a lot more concessions, and a lot more positive PR. Maybe Amazon doesn’t have an answer to the question, and is hoping its call for proposals will deliver it a fresh new vision for the future. But I doubt it.

    I’d love to be wrong, but absent any other vision the most likely reasoning behind this beauty pageant boils down to money. It may sound like the cynical logic of a rapacious capitalist — but more often than not, that’s what usually drives business in the first place.

    The post Amazon’s HQ2 Isn’t a Headquarters. So What Is It? appeared first on John Battelle's Search Blog.

     
  • feedwordpress 20:46:21 on 2017/08/23 Permalink
    Tags: Internet Big Five, ,   

    The Data Deal Is Opaque. We Should Fix It. 

    The post The Data Deal Is Opaque. We Should Fix It. appeared first on John Battelle's Search Blog.

    I wrote this post over on NewCo Shift, but it’s germane to the topics here on Searchblog, so I’m cross posting here…

    What Did You *Think* They Do With Your Data?

    Admit it, you know your data is how you pay for free services. And you’re cool with it. So let’s get the value exchange right.

    Topping the charts on TechMeme yesterday is this story:

    So as to be clear, what’s going on here is this: AccuWeather was sharing its users’ anonymized data with a third-party company for profit, even after those same users seemingly opted out of location-based data collection.

    But the actual story is more complicated.

    Because….come on. Is anyone really still under the impression that your data isn’t what you’re trading for free weather, anywhere, anytime, by the hour? For free e-mail services? For free social media like Instagram or Facebook? For pretty much free everything?

    All day long, you’re giving your data up. This is NOT NEW. Technically, what AcccuWeather did is more than likely legal, but it violates the Spirit Of Customers Are Always Right, Even If They Don’t Know What They Are Talking About. It also fails the Front Page Test, and well, when that happens it’s time for a crucifixion!

    Hold on, a reasonable person might argue, sensing I’m arguing a disagreeable case. The user opted out, right? In this instance the user (and we can’t call them a “customer,” because a customer traditionally pays money for something) did in fact explicitly tell the app to NOT access their location. Here’s the screen shot in that story:

    But what does that really mean? Access for what? Under what circumstance? My guess is AcccuWeather asked this question for a very specific reason: When an app uses your location to deliver you information, it can get super creepy, super fast. It’s best to ask permission, so the user gets comfortable with the app “knowing” so much about where the user is. This opt out message has nothing to do with the use of location data for third party monetization. Nothing at all.

    In fact, AccuWeather is not sharing location data, at least not in a way that contradicts what they’ve communicated. Once you ask it not to, the AccuWeather app most certainly does NOT use your location information to in any way inform the user’s experience within the app.

    Here’s what AccuWeather should ask its users, if it wanted to be totally honest about the value exchange inherent in the use of free apps:

    “Ban AcccuWeather from using your anonymized data so AccuWeather, which really likes giving you free weather information, can stay in business?”

    But nope, it surely doesn’t say that.

    Yet if we want to get all huffy about use of data, well, that’s really what’s going on here. Because if you’re a publisher, in the past five years you’ve had your contextual advertising revenue* stripped from your P&L. And if you’re going to make it past next Thursday, you have to start monetizing the one thing you have left: Your audience data.

    AcccuWeather is a publisher. Publishers are under assault from a massive shift in value extraction, away from the point of audience value delivery (the weather, free, to your eyeballs!) and to the point of audience aggregation (Facebook, Google, Amazon). All of these massive platforms can sell an advertiser audiences who check the local weather, six ways to Sunday.** If you’re an advertiser, why buy those audiences on an actual weather site? It’s easier, cheaper, and far safer to just buy them from the Big Guys.

    Publishers need revenue to replace those lost direct ads, so they sell our data — anonymized and triangulated, mind you — so they can stay in business. Because for publishers, advertising as a business sucks right about now.

    Anyway. AcccuWeather has already responded to the story. Scolded by an industry that fails to think deeply about what’s really going on in its own backyard, AccuWeather is now appropriately abject, and will “fix” the problem within 24 hours. But that really won’t fix the damn problem.***

    • * and that’s another post.
    • **and with a lot more detailed data!
    • ***and that’s probably a much longer post.

    Walmart and Google: A Match Made By Amazon

    The retail and online worlds collided late yesterday with the news that Google and Walmart are hooking up in a stunning e-commerce partnership. Walmart will make its impressive inventory and distribution network available to shoppers on Google’s Express e-commerce service. This market the first time Walmart has leveraged its massive inventory and distribution assets outside its own e-commerce offerings. A few weeks ago I predicted in this space that Walmart would hook up with Facebook or Pinterest. I should have realized Google made more sense — though I’m sure there’s still room for more partnerships in this evolving retail landscape.

    Those 1.3 million Records We Wanted? Never Mind.

    Defenders of citizen’s rights briefly went on high alert when the Department of Justice subpoenaed the IP addresses (and much more) for every single visitor to an anti-Trump website. The web hosting company at the business end of that subpoena, DreamHost, went public with the request, which alerted the world to the government’s unreasonable demands. As the outcry grew, the DOJ relented, saying yesterday, in effect, “never mind, just kidding.” Here’s what chills me — and should chill you: What if DreamHost hadn’t stood up to the man?

    The post The Data Deal Is Opaque. We Should Fix It. appeared first on John Battelle's Search Blog.

     
  • feedwordpress 02:42:37 on 2017/08/11 Permalink
    Tags: , , Internet Big Five, , , ,   

    No. Social Terrorists Will Not Win 

    The post No. Social Terrorists Will Not Win appeared first on John Battelle's Search Blog.

    Social Terrorist

     

     

     

     

     

     

     

     

     

     

     

     

     

    small group of social terrorists have hijacked the rational discourse led by society’s most accomplished, intelligent, and promising organizations.

    (cross posted from NewCo Shift)

    Let’s start with this: Google is not a perfect company. It’s easy to cast it as an omniscient and evil villain, the leader of a millennium-spanning illuminati hellbent on world subjugation. Google the oppressor. Google the silencer of debate. Google, satanic overlord predicted by the holy text!

    But that narrative is bullshit, and all rational humans know it. Yes, we have to pay close attention — and keep our powder dry — when a company with the power and reach of Google (or Facebook, or Amazon, or Apple…) finds itself a leader in the dominant cultural conversation of our times.

    But when a legitimate and fundamentally important debate breaks out, and the company’s employees try to come together to understand its nuances, to find a path forward …..To threaten those engaged in that conversation with physical violence? That’s fucking terrorism, period. And it’s damn well time we called it that.

    Have we lost all deference to the hard won lessons of the past few hundred years? Are we done with enlightenment, with scientific discourse, with fucking manners? Do we now believe progress can only be imposed? Have we abandoned debate? Can we no longer engage in rational discourse, or move forward by attempting to understand each other’s point of view?

    I’m so fucking angry that the asshat trolls managed to force Google’s CEO Sundar Pichai to cancel his planned all hands meeting today, one half hour before it started, I’m finding it hard to even write. Before I can continue, I just need to say this. To scream it, and then I’m sure I’ll come to my senses: FUCK YOU. FUCK YOU, asshats, for hijacking the conversation, for using physical threats, implied or otherwise, as a weapon to shut down legitimate rational discourse. FUCK YOU for paralyzing one of our society’s most admired, intelligent, and successful engines of capitalism, FUCK YOU for your bullying, FUCK YOU for your rage and your anger, FUCK YOU for making me feel just like I am sure you feel about me: I want to fucking kick your fucking ass.

    But now I will take a breath. And I will remember this: The emotions of that last paragraph never move us forward. Ever.

    Google was gathering today to have an honest, difficult, and most likely emotional conversation about the most important idea in our society at present: How to allow all of us to have the right to our points of view, while at the same time insuring the application of those views don’t endanger or injure others. For its entire history, this company has had an open and transparent dialog about difficult issues. This is the first time that I’ve ever heard of where that dialog has been cancelled because of threats of violence.

    This idea Google was preparing to debate is difficult. This idea, and the conflict it engenders, is not a finished product. It is a work in progress. It is not unique to Google. Nor is it unique to Apple, or Facebook, Microsoft or Apple — it could have easily arisen and been leapt upon by social terrorists at any of those companies. That it happened at Google is not the point.

    Because this idea is far bigger than any of those companies. This idea is at the center of our very understanding of reality. At the center of our American idea. Painstakingly, and not without failure, we have developed social institutions — governments, corporations, churches, universities, the press — to help us navigate this conflict. We have developed an approach to cultural dialog that honors respect, abjures violence, accepts truth. We don’t have figured it out entirely. But we can’t abandon the core principles that have allowed us to move so far forward. And that is exactly what the social terrorists want: For us to give up, for us to abandon rational discourse.

    Google is a company comprised of tens of thousands of our finest minds. From conversations I’ve had tonight, many, if not most of those who work there are fearful for their safety and that of their loved ones. Two days ago, they were worried about their ability to speak freely and express their opinions. Today, because social terrorists have gone nuclear, those who disagree with those terrorists — the vast majority of Googlers, and by the way, the vast majority of the world — are fearful for their physical safety.

    And because of that, open and transparent debate has been shut down.

    What. The. Fuck.

    If because of physical threat we can no longer discuss the nuanced points of a difficult issue, then America dies, and so does our democracy.

    This cannot stand.

    Google has promised to have its dialog, but now it will happen behind closed doors, in secrecy and cloaked in security that social terrorists will claim proves collusion. Well done, asshats. You’ve created your own reality.

    It’s up to us to not let that reality become the world’s reality. It’s time to stand up to social terrorists. They cannot and must not win.

    The post No. Social Terrorists Will Not Win appeared first on John Battelle's Search Blog.

     
  • feedwordpress 13:12:35 on 2017/08/05 Permalink
    Tags: Internet Big Five,   

    My New Column – Please Sign Up! 

    The post My New Column – Please Sign Up! appeared first on John Battelle's Search Blog.

    Hi Searchblog readers. I know it’s been a while. But I’m writing a new column over at NewCo Shift, and instead of posting it verbatim here every other day (it comes out three times a week), I figured I’d let you know, and if you’d like to read it (my musings are pretty Searchbloggy, to be honest), you can get it right in your inbox by signing up for the NewCo Daily newsletter right here.

    Here are my columns so far:
    Is Social Media The New Tobacco?

    Dow 36,000?

    Bears and Dragons Bite Tech Where It Hurts

    Memo to Tech’s Titans: Please Remember What It Was Like to Be Small

    Don’t Quite Grok Blockchain? We Got You Covered.

    This Is How Walmart Will Defend Itself Against Amazon

    Facebook’s Data Trove May Well Determine Trump’s Fate

    Google and Amazon Hit the Feed Trough

    A Trio of Tech Takedowns

    Thanks for reading Searchblog. I’ll continue to post stuff here – but probably not every column, which are meant to be short takes on key news of the day.

    The post My New Column – Please Sign Up! appeared first on John Battelle's Search Blog.

     
  • feedwordpress 22:11:05 on 2017/05/17 Permalink
    Tags: , , , , Internet Big Five, , ,   

    The Internet Big Five Is Now The World’s Big Five 

    The post The Internet Big Five Is Now The World’s Big Five appeared first on John Battelle's Search Blog.

    Back in December of 2011, I wrote a piece I called “The Internet Big Five,” in which I noted what seemed a significant trend: Apple, Microsoft, Google, Amazon, and Facebook were becoming the most important companies not only in the technology world, but in the world at large. At that point, Facebook had not yet gone public, but I thought it would be interesting to compare each of them by various metrics, including market cap (Facebook’s was private at the time, but widely reported). Here’s the original chart:

    I called it “Draft 1” because I had a sense there was a franchise of sorts brewing. I had no idea. I started to chart out the various strengths and relative weaknesses of the Big Five, but work on NewCo shifted my focus for a spell.

    Three years later, in 2014, I updated the chart. The growth in market cap was staggering:

    Nearly a trillion dollars in net market cap growth in less than three years! My goodness!

    But since 2014, the Big Five have rapidly accelerated their growth. Let’s look at the same chart, updated to today:

    Ummm..HOLY SHIT! Almost two trillion dollars of market cap added in less than seven years. And the “Big Five” have become, with a few limited incursions by Berkshire Hathaway, the five largest public companies in the US. This has been noted by just about everyone lately, including The Atlantic, which just employed the very talented Alexis Madrigal to pay attention to them on a regular basis. In his maiden piece, Madrigal notes that the open, utopian world of the web just ten years ago (Web 2, remember that? I certainly do…) has lost, bigly, to a world of walled-garden market cap monsters.

    I agree and disagree. Peter Thiel is fond of saying that the best companies are monopolists by nature, and his predictions seem to be coming true. But monopolies grow old, fray, and usually fail to benefit society over time. There’s a crisis of social responsibility and leadership looming for the Big Five — they’ve got all the power, now it’s time for them to face their responsibility. I’ll be writing much more about that in coming weeks and months. As I’ve said elsewhere, in a world where our politics has devolved to bomb throwing and sideshows, we must expect our businesses — in particular our most valuable ones — to lead.

    The post The Internet Big Five Is Now The World’s Big Five appeared first on John Battelle's Search Blog.

     
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