September, 2007


4
Sep 07

Economist on Google

The Economist devotes this weekend’s cover to Google, asking the question “Who’s afraid of Google?” Readers of my blog will know that I’ve got a healthy fear of the company, but I was pleased to see the Economist ask the question I’ve been asking for quite some time (if privately to not appear over-paranoid).

Google is often compared to Microsoft (another enemy, incidentally); but its evolution is actually closer to that of the banking industry. Just as financial institutions grew to become repositories of people’s money, and thus guardians of private information about their finances, Google is now turning into a custodian of a far wider and more intimate range of information about individuals. Yes, this applies also to rivals such as Yahoo! and Microsoft. But Google, through the sheer speed with which it accumulates the treasure of information, will be the one to test the limits of what society can tolerate.

Indeed. It’s no secret that Google is in the data business; between your search history (Google search), your mail (Gmail), browsing history (Google toolbar), your financial transactions (Google payments), your blog habits (Blogger + Feedburner) and all other behaviors reported by Adsense cookies and Google analytics, it can be argued that Google has a “complete” view of many of our online behaviors. Now, imagine what would happen if your “Google Dossier” got out? If a branch of the federal government had as much data about as many of us as Google does, how would we feel about it?

This is not to say that Google plans on releasing our Dossiers. As the data gets more complete, more centralized and more wide ranging, the cost of the accidental (or non-accidental) release increases exponentially. The Economist points to the example of Nick Leeson, a trader who single-handedly brought down the Bearings Bank. Imagine how much a political operative would pay for the search logs for Hillary Clinton or Mitt Romney’s home or offices.

Google would rather us not think about this possibility. According to the Economist, millionaire managers are forced to abide by a proletarian dress code to play up Google’s friendly image.

[A former executive] started receiving detailed e-mails “enforcing” Google’s outward informality by reminding her that high heels and jewellery were inappropriate. Before the corporate ski trip, it was explained that “if you wear fur, they will kill you.”

Of course, the folksy dress and casual image are all constructed, tuned precisely and framed to make Google appear as our “corporate friend”. As we buy into it, our willingness to share data grows. When will our moment of comprehension come, and how many of us will it touch? I think we all want to avoid that day, but as Google’s size and appetite for data grows, it appears increasingly inevitable.


4
Sep 07

Rheingold on Facebook

Howard Rheingold, a guy who knows a bit about virtual communities, has turned bearish on Facebook. And you know what, I can’t blame him. Rheingold says:

I am getting half a dozen Facebook friend requests a day from people who claim not to remember friending me. When I complained in my status message, another Facebooker told me that the “Friend Finder” overrides user privacy settings and spams friend requests via users’ gmail contact lists. Between that and the really awful message board feature that renders groups near meaningless, I’m beginning to conclude that Facebook growth will start slowing, then stagnate, and eventually it will die a slow death. It’s too much work to respond to friend requests, too little ability to set my own boundaries, too many silly apps, and not enough return on the investment of my time. They seriously should have taken the big money when it was offered. If Facebook founders think they are going to be the “social operating system of the web,” they are delusional. They won’t even be AOL. It’s definitely an interesting fad at that moment, and if I ignore all demands on my attention, it can be a useful broadcast channel. But as an online social network, it’s sinking itself.

Howard’s point about “return on investment” is essential. Facebook distanced itself from competition because it delivered relevant social information in a sleek, efficient manner. As networks expand and my messages and newsfeeds get spammed, I get a lot less signal per noise. Facebook should refocus on delivering relevant social information without spam. There is a very clear inverse relationship between spamminess and information utility – FB should be mindful of that.