Microsoft pours more Steam into the Social Networking Band Wagon!
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We have recently written quite a bit about Microsoft’s stake in Facebook, Facebook itself, and Social Networking as a whole.
Microsoft gives us more reason to write about them. A few days back they purchased WebFives, a Seattle based, Mobile focused, Social Networking Site for an amount that has not been disclosed to the media.
(I think the amount has not been disclosed because its simply not newsworthy enough – I doubt its anywhere close to Microsoft’s minority stake in Facebook!)
One also needs to note that Microsoft has not made a ‘community buy’ (‘buying’ the users who are already a part of the social network); it has only acquired the technology of WebFives. WebFives is thus slated to stop at the end of this year and their users will not migrate to wherever Microsoft take WebFives.
Part of the reason why Microsoft may have only considered a technology buyout is that webfives.com probably has as many visitors as my personal blog (actually maybe a few more but what the hell I like to feel good about myself!) according to site analytics at compete.com.
So it’s quite clear that Microsoft is going to do nothing with the WebFives brand – it will probably fade into oblivion.
I think theres a bigger reason why Microsoft acquired only the technologies of WebFives.
If one looks at it, WebFives offers all the standard Social 2.0 services such as blogging, photoshare, videoshare, slideshare, audioshare – the works. The biggest asset of WebFives however is the fact that it has a facility where content (photos, videos, audio) can be uploaded directly from the mobile phones of users.
Users who sign up for WebFives generally have an account like www.webfives.com/user (much like blogger etc). What they also have is a WAP account. WAP or Wireless Application Protocol is an open international standard for applications that use wireless communication. Its principal application is to enable access to the Internet from a mobile phone or PDA.
So essentially this indicates that Social Networking is soon going to be shared between the PC and the mobile platform. I think Microsoft may just be catching the right trend this time round because as an observer I have noticed that people like to check their social networks anytime they get an opportunity to!
One also needs to know that the quantity of conversations on social networks is steadily increasing and that is feeding the ‘I need to check my account’ mindset.
WAP has its flaws. Also, gadgets like the iPhone that make the internet surfing experience on phones great (because they have successfully been able to migrate computer based web browsers like Mac’s Safari to the mobile format) prove to be worthy competitors. So im not sure how Microsoft will use the WAP format but they surely will use the learnings that WebFives has accumulated in creating a mobile page to help in optimizing all their content (Windows Live etc.) for mobile devices. This is mandatory as social 2.0 content for mobile phones needs to be fine-tuned and presented in a different way for optimization.
I also see, the technology of WebFives being integrated into Windows Live services to strengthen their already strong offering and make it more ‘engaging’ i.e. allow members to interact more easily (which is not Windows Live’s USP).
Another interesting point to note is that WebFives has widgets that can be embedded into social networks such as Facebook, Hi5, MySpace, and very soon, Orkut.
So its quite clear that Microsoft is trying to create bridge between user generated content and Social 2.0, which is smart. Think about it, how many people who blog, actively blog on Facebook or MySpace . So there’s a void here which can be filled using the technologies of WebFives. A bridge between the 2 pillars of Social 2.0 so to speak. Flickr has already followed a similar strategy on Facebook with much success.
With such a move I also see the services of Windows Live and Facebook getting more closely related. Actually not just Facebook – all the other social networking sites as well! It seems like Windows Live will now be deeply integrated into social networks.
WebFives, unlike Facebook, is probably a low key investment for Microsoft, but one that holds a lot of keys for its integration and future strategy development plans in order to optimize the returns generated by web 2.0 and social 2.0.
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Hi Harshil,
According to you, why is mobile social network sites not picking up momentum in India?
Remember frenzo.com?
Primarily mobile social networking cannot happen via SMS (because its full posibililtes cannot be explored which does not make the proposition appealing to users).
It needs EDGE, GPRS, 3G or now 4G to be widely percolated among customers. Frenzo.com too requires a GPRS connection and additionally it has a daily charge for some operators such as Airtel and Vodafone.
So they need to make it free.
Also unless the internet is not accessible from a majority of the phones of Indian mobile subscribers, social networking on mobiles wont really be ’social’.
In the future as such technologies gain more acceptance, India too will have a balance between online and mobile social networking.
I do not have the exact figure on the no. of Indians connected to the internet via their phones - il try and do a write up on it if i can soon.
Thanks for your comments they are always valuable.
I also think that a site like frenzo does not have a valuable brand. Social networks that will be successful on mobiles will probably need to have a substantial web presence as well! so mobile versions of popular social networks are likely to be the order of the day! As of now its easier to build a brand online.
Accoring to the latest TRAI report, the no. of Indians logging on to the internet via their phones has jumped to 38 million! Thats a huge market! so i need to revise my stand - maybe it will take off in india in a big way soon.
Thats actually more than the number of broadband subscribers!
So true there is an opportunity to build a buzz for a social network via mobile but i still think that popular social networks, ones with the highest awareness and recall will be popular on the mobile platform if they customize content for mobiles.
Microsoft is doing to Live platform, what they did to the dot NET development platform.
Yes, it will be social. But social networking will just be a part of it.
Mobile is an interesting space, and as you noted, Harshil, its this space that Microsoft is targetiing via this acquisition. However, WAP died long time back, and Microsoft knows this. Its too smart a company to invest in a company for WAP. I think Microsoft sees integration possibility in it. Integration of WebFive technology with its LIVE platform.
Good stuff. Keep writing.
@Harshil: I agree with your second comment, maybe content developed specially for mobile is the problem and in INDIA “Free” is the magic word.
Thanks for your insights.
@Ankit: I am tempted to think that Microsoft must be busy exploring the possibility of a Massively multi player games on mobile flatform connected to its X box ;0
I wouldnt agree that WAP has died atleast in India. Companies like hungamamobile survive on WAP. Plus Not many companies have really explored the complete opportunity that WAP has to offer.