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Numbers That Explain Why Facebook Acquired WhatsApp

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Re: Numbers That Explain Why Facebook Acquired WhatsApp

#31

Post by adventured »

habosa wrote: post #13

So I understand the value of WhatsApp now that the network is absolutely enormous, but can anyone shed some light on how WhatsApp differentiated itself at first? It seems like it's just basic user-to-user messaging over data, with a list-like interface that looks like every messaging app on my phone. How did they convince people that this particular proprietary solution was the best? Did they somehow remove friction…

I'm trying to find an explanation for how WhatsApp's network is supposedly worth drastically more than Gmail / Yahoo / Hotmail webmail is. Just because users connect, doesn't mean you have a pot of gold. I believe this is a critical, flawed assumption that is being nearly universally made. Last generation's instant messaging apps were nearly worthless monetarily, and are still nearly worthless even today with tons of users. Why the assumption that today's mobile versions of instant messaging will be worth ... over a hundred billion dollars (apparently)?

I've got an alternate theory. Today's WhatsApps and Snapchats will turn out to be terrible businesses, that aren't worth anywhere near what's being speculated. Today's user (mobile based) obsession will be viewed as not all that different from yesterday's eyeballs (web based) obsession. What are the consequences of that scenario?

Re: Numbers That Explain Why Facebook Acquired WhatsApp

#32

Post by mertd »

habosa wrote: post #13

So I understand the value of WhatsApp now that the network is absolutely enormous, but can anyone shed some light on how WhatsApp differentiated itself at first? It seems like it's just basic user-to-user messaging over data, with a list-like interface that looks like every messaging app on my phone. How did they convince people that this particular proprietary solution was the best? Did they somehow remove friction…

Zero signup = zero friction. You install the software, and your contacts who have WhatsApp immediately show up on your WhatsApp contact list.

It was basically a free SMS replacement at first.

Of course that came with a massive security hole, where your "behind the scenes" login password was MD5 of your phone's imei. That, as far as I understand, has changed now.

Re: Numbers That Explain Why Facebook Acquired WhatsApp

#33

Post by gknoy »

Irishsteve wrote: post #21

America Online President and Chief Operating Officer Bob Pittman said: "Acquiring ICQ fits perfectly into our multiple-brand strategy. Like CompuServe, ICQ substantially broadens our reach in important markets not served by AOL-branded products. In addition to its international reach, ICQ has tremendous appeal among young, technically sophisticated Web users and there is remarkably little overlap with AOL."

... shortly before they shuttered the ICQ service and merged it with AIM.

Re: Numbers That Explain Why Facebook Acquired WhatsApp

#34

Post by kybernetikos »

s_kilk wrote: post #14
brownbat wrote: post #5

I'm astounded at how frequently people are apparently making breakthroughs in sending raw text between people. I keep thinking that's a mousetrap, and people somehow keep making money off of* better ones. Shows how much I know. * Or at least building huge userbases on...

It's never really about the raw text itself, but the context. Facebook, Whatsapp, Forums, Twitter, SMS, Etc... are all just text but in radically different contexts. Something tells me we haven't seen the last of the innovations in good ol' plain-text.

I really don't think plain text communication has innovated much since email and IRC.

The money is mainly about users. Facebook are buying users, not technology.

Re: Numbers That Explain Why Facebook Acquired WhatsApp

#35

Post by revelation »

4. The number of times WhatsApp has through unprecedented incompetence compromised the privacy and security of its users and failed to keep even basic authenticity guarantees in what is a decades old central server model.

Why muck around, they were bought because of their massive user base and user base only. They succeeded regardless of their constant attempts at sabotaging their success, and its testament of massive market failure. We need to abolish the closed gardens to ensure inertia doesn't stop bad products from failing.

Re: Numbers That Explain Why Facebook Acquired WhatsApp

#39

Post by d23 »

rwissmann wrote: post #12
josephjrobison wrote: post #7

From 5 minutes of reading it seems that it's huge in overseas markets where people want to avoid the cost per SMS message fee, am I correct? If you have a standard plan with the phone giants in the US, all calls and texts are generally unlimited, but you pay for data now. Is that why it's not as big in the US?

Not that alone. Here in the UK SMS is often unlimited. People still prefer to use Whatsapp. I and most of my friends have virtually stopped using SMS. Another advantage are international SMS. Again more relevant for say Europeans than for Americans.

I guess I still don't get it. I can send images and group chat via SMS. Does this really do anything any different? I'm not asking just to be contrarian -- I'm just wondering if I should try it out and try to convince my friends to do the same.
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