Showing posts with label Long Tail. Show all posts
Showing posts with label Long Tail. Show all posts

Office Apps on the Web just got a kick in the shorts.....

I almost missed this one, but Google has announced the availability of Google Apps Enterprise and are actually moving away from their "advertising revenue" model and charging a monthly fee per user of $50 (which is really pretty good, considering for a company of 10, that relates to $500 a year - compare that to the cost of Microsoft Office 2007 [standard edition] @ $399.

I read several posts about how the market for Office Suites (online or off) is not necessarily a price play - there are other considerations, like the actual users, integration with back-office applications or data - all of these are correct (or at least I believe they are correct for the current consumers/users of MSFT Office. Where they have limited or no relevance is for any emerging economy - think Asia (not US, Europe, ANZ, etc.).

If you are Google and you have the cash stores to think beyond next month's payroll requirements, why not think in terms of decades or quarter centuries? Right now, there are two men that own 20% of Google - they are still in their 30's and could conceivably be around for the next 40. That's not true of Microsoft, there's one guy that owns a significant amount of MSFT stock (at about 10%) and he is in his 50's - he could be around for the next 20 years, but there's evidence that he's tiring of the whole thing ( i.e. he gave up the reins of CEO). That's not to say he won't be intimately involved, it's just saying that he's not as involved today as he was a few years ago.

So, if you fast forward just 10 years, you now have an established economy in India, Pakistan and all the former Soviet States (and by way, they are still growing). You have an emerging economy in China and the SE Asia markets. What does the world of technology look like then - what happens when English is not the [primary] language of Business? What happens when Google China works with the Chinese government to "socialize" all the Google applications and the Chinese government decides to charge a "tax" on every citizen to support this initiative, say the equivalent of a $1 a year?

So, all those pundits out there, we who see all, should step back and understand that as little as 10 years ago, most people didn't even know who Google was and could have cared less.

Why being at the end of the line sucks (or What are the economics of the Long Tail?)

Just happened to be doing a little surfing and catching up on blog reading - and ran across an interesting entry by Mark Cubin about the Long Tail. It's interesting for two reasons....
  1. It's sandwiched between some serious rants about GooTube (he's not a fan) and how wonderful the NBA is right now (of course it's always fun to own a professional sports team).
  2. He brings up some interesting points about Long Tail dynamics - as in, it's great to be in line, but it's really great to be in the front of the line. Or get to wag the tail as it were.

Now, since he brought up the issue, I have to make sure I get my two cents in the mix. I agree with the basic premise of the Long Tail - that there are niches out there for almost anything. But no one aspires to be at the end of the line - Only Steve Martin (in the movie "The Jerk") gets excited because his name is in the phone book. Being the leader of the "niche of one" won't get you any parades through downtown.

But when do you move from the being the tail, to being the dog? That's Mark's question - and I thinks it's a good one.

Is it the Long Tail or just great self promotion?

Lot's to good stuff about about the Long Tail (the article, turned manifesto, turned book, turned iconoclast) by Chris Anderson has lots to say about the "unfortunate 5 million" out there that make up "bulk" of internet traffic and one of his favorite industry - music. Well, I've got an example of Long Tail success for you from YouTube...

There is a musician by the name of Terra Naomi that is one of the most popular artists you never heard of. Her self produced music videos get over thousands of hits (one has had over 100K hits) meaning she is a very popular on YouTube. Now, for the music industry (and artists/songwriters) the internet has totally changed the rules of the game. Sure, there are still the major acts - but smaller bands, that wouldn't have an audience beyond a college town, now can allow the internet to carry their music around the world (but I digress of my point)...



The fact that Terra Naomi has decided to let the internet carry her music is only part of the story - what I believe is interesting, is that she created a video showing people HOW to play her song. Going through cords, words, transitions, the whole bit - and there are about 100 variations of one of her songs on YouTube - think about that. There are at least one hundred people willing to take the time to learn how to play her song - this is not U2 or Rush or Britney or Usher - this is an unknown artist in SoCal!!

Now, she has a CD on sale, been featured on several websites, gotten her songs on iTunes, been on a few TV shows, etc. and so on. This is an internet success story and she is the poster child of the new music industry. But of course, once she gets signed with a major label, the YouTube stuff will have to stop - she'll probably have to stop blogging and take down her web site. I guess success does have a high price to pay.

Welch vs Anderson -- what does market dominance mean?

Today, there is one article (from Fortune Magazine - link below, don't what to get into any copyright issues here) and one new book released -- that will start a dialogue within the business world (or maybe just in the USA). And it's about how you attain market dominance -- by being BIG or being SPECIALIZED.

And maybe it only comes down to personal preference...do I want to own/be employed by a big company or do I want to own/be employed by a niche company. I can sit here and tell you my experiences with both types, what I believe is important, which provides the most "fun" -- but here are a couple links for you to do your own investigation...

Fortune Magazines Article: Tearing up the Jack Welch playbook
http://money.cnn.com/2006/07/10/magazines/fortune/rules.fortune/index.htm

New Book: The Long Tail by Chris Anderson
http://www.longtail.com

In my opinion, either works (or doesn't work) and either can be enjoyable places to be. It's really more about what "rocks your world" than anything else - because, without fun and excitement, it just plain work (and that's boring). So figure out what rocks your world -- underdog, challenger, champion, big, or small -- and have fun with it.