Why Google Should Buy LinkedIn, Now Before It's Too Late
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Like most hyped tech, there's genuine value to social strategy. However, Google's core business - providing an information index - will be valuable with or without one.
As for the "should", they really don't. They could launch they're own LinkedIn-like service, or buy them, or do a different social network, or not. The article keeps hammering that Google have to "win in social". They don't, because, unlike search, there is no, currently, a good way to secure a major share of the market, which is what I'm guessing they mean by "win", because "social" is a bubble, not a real market.
This bubble will burst, sooner or later, and the less Google blows on "social", the better they'll come out of it.
I am not sure but I do think that Google has to at least make some sort of dent in the curation space.
Personally I am using google less and less because I end up with search results that are based on how well google was gamed rather than on the value of the content.
It's very hard to do algorithmic work that can't be gamed and thus the question at least to me is whether curation by humans will end up winning over recommendation by machines.
The only thing a social network has over Google is the ability to perform application-level data cross-referencing, and Google wants a hold in that. Probably before the bubble bursts and those details get lost, or sold, or leaked, or whatever.
It's not the details that's important it's the sentiment and opinion around the details that's important and that google haven't solved yet.
Second, selling the company puts money in the pockets of the shareholders, while going public means the company is getting the money. Going public, by definition, means revealing your data, your balances, budgets, revenues, it might not look as good as it is now, especially in a bubble-based market.
It's (very) basically like the usual 'let's make a deal' bargain, you can either get 1000$ now, or gamble for the envelope that might have ten times that, but might also have much less.
Facebook = Fun
Google = Work/education/information
LinkedIn = Work
These are obviously generalizations, but they hold up. After all, I'd be pretty upset if Google ever bought Facebook. But Google buying LinkedIn? It makes me think "yeah, sure, that's an excellent way to make LinkedIn even better for me".
Its experienced professionals with a largish group of colleagues. I can find nearly everyone I've ever worked with in there. And none of my nieces/nephews/kids friends.
OTOH, if Facebook chose to, they could really hurt LinkedIn by leveraging their existing network. Just expand the jobs part of the profile to support resumes and such, add support for job relationships similar to family relationships, and provide default privacy settings for "colleagues" rather than "friends". Sell access to a back-end search limited to the jobs section, and LinkedIn starts running scared.
The line between professional and personal life will shift, and this may be a generational thing. But who knows, the distinction may sharpen rather than blur. One of the big reasons I haven't left a huge web/video trail of my own stupidity on the web is that I'm old enough that the web was still an infant when I was in college, and nobody had cell phones with video cameras and recorders. Now, anything even slightly unusual on a college campus will be recorded by at least a half dozen people.
You could figure that people will blend social and professional lives as they they get more casual about these artifacts. But maybe they'll just learn to draw very fine and deliberate distinctions - kind of the difference between getting excessively drunk at a work event and getting blotto at a bar where your colleagues just happened to show up later in the evening.
Anyway, I went a little off topic there, but maybe there's a long term niche for social/professional networks that are explicity not social/casual.
I know a lot of people have on Facebook have accepted invites from their boss or professional contacts and they stop participating in it as a social network and start using it as a glorified email/im system. If everyone did this, it would harm Facebook's ecosystem in the long run.
Even with privacy controls and grouping people together, keeping mental context about who can see what at any given time is just too hard for most people. Seeing facebook.com and thinking social and linkedin.com and thinking professional is far easier.
* Disclaimer - I used to work for LinkedIn in analytics as a product manager and did a lot of user interviews, but I may have drank the kool-aid.