Summary: What will it take for companies to show value to their users through their network? Why do some companies die out while others continue to thrive? In this episode, Brian and Malinda consider the network effect and the challenges companies face when trying to create continued value on their platform. While Malinda takes listeners on the value barrier journey, explaining what companies need to build up their network and provide value to the customer, Brian explores the turning point where devices can begin choosing their own network without human input. Is this a positive or a negative? The next big companies will be building devices that automatically connect with the networks of their choosing—these networks will bring value. If they don’t, they won’t exist.
What We Covered:
1:00 - Tech company development trends and the value they bring.
3:00 - The network effect, more users create more value in the network.
6:00 - History of networks - Friendster, Myspace, and what made them die out?
12:00 - Definition between internal and external network effect.
14:00 - How Microsoft added value to their platform.
20:00 - VMWare built a powerful ecosystem.
26:00 - The hardware to software evolution and where it is going.
29:00 - IoT - Western Digital and more - creating risc processors, storage devices, to help reduce burden on the network.
41:00 - Will machines start choosing their own network without your input?