Difference between revisions of "Metcalfe's law applied to social networks"
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Metcalfe's law states that the value of a (telecommunications) network is proportional to the square of the number of connected users of the system (n2) [1]. Metcalfe's law has also been said to appy to (social) networking websites. This presents interesting prospects for sites such as Wikipedia, Facebook, LinkedIn, etc. with growing numbers of users each year. | Metcalfe's law states that the value of a (telecommunications) network is proportional to the square of the number of connected users of the system (n2) [1]. Metcalfe's law has also been said to appy to (social) networking websites. This presents interesting prospects for sites such as Wikipedia, Facebook, LinkedIn, etc. with growing numbers of users each year. | ||
For example, the number of facebook users grew by a factor of more than 5 between 2007 (40 million users) and 2009 (250 million users). This would suggest the value of the site increased by a factor 25 in two years time. | For example, the number of facebook users grew by a factor of more than 5 between 2007 (40 million users [http://news.cnet.com/8301-13577_3-9803872-36.html 3]) and 2009 (250 million users). This would suggest the value of the site increased by a factor 25 in two years time. | ||
==Enablers== | ==Enablers== | ||
Revision as of 20:29, 15 September 2009
Metcalfe's law applied to social networks
!!!TAKE NOTE: This page is under construction by Daniel Peters EMBA09. In case of any questions/remarks or if you feel like sharing thoughts on the topic, by all means contact me.
Description
Metcalfe's law states that the value of a (telecommunications) network is proportional to the square of the number of connected users of the system (n2) [1]. Metcalfe's law has also been said to appy to (social) networking websites. This presents interesting prospects for sites such as Wikipedia, Facebook, LinkedIn, etc. with growing numbers of users each year.
For example, the number of facebook users grew by a factor of more than 5 between 2007 (40 million users 3) and 2009 (250 million users). This would suggest the value of the site increased by a factor 25 in two years time.
Enablers
- Reduction of organizational and technological complexity
- Development of informatiion search technologies
- Increasing use of digital media on internet
- Increasing user-generated content
- Low cost of Internet Connections
- The Increasing Use of Internet
Inhibitors
1. ToDo
Paradigms
What we see happening now: Microsoft buys Facebook, Google wants to muscle in on Facebook...
Timing
2007: Microsoft acquires 1.6% stake in Facebook for $240M, valuing Facebook at $15 billion [4]
2009: Google unveils plans to launch 'Google Wave', its own collaboration and social networking application [5]
2010: ....
2015: ....
2020: ....
2025: ....