{"id":137,"date":"2018-06-14T19:04:37","date_gmt":"2018-06-14T19:04:37","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/bus3060\/chapter\/ch08-2\/"},"modified":"2026-02-17T18:44:37","modified_gmt":"2026-02-17T18:44:37","slug":"ch08-2","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/bus3060\/chapter\/ch08-2\/","title":{"raw":"8.2 What\u2019s the Big Deal?","rendered":"8.2 What\u2019s the Big Deal?"},"content":{"raw":"<div id=\"slug-8-2-whats-the-big-deal\" class=\"chapter standard\">\r\n<div class=\"ugc chapter-ugc\">\r\n<div id=\"fwk-38086-ch07_s02_n01\" class=\"bcc-box bcc-highlight\">\r\n<div class=\"textbox textbox--learning-objectives\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\"><span style=\"font-family: 'Cormorant Garamond', serif; font-size: 1em; font-style: normal; font-weight: bold;\">Learning Objectives<\/span><\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<p id=\"fwk-38086-ch07_s02_p01\" class=\"nonindent para\">After studying this section you should be able to do the following:<\/p>\r\n\r\n<ol id=\"fwk-38086-ch07_s02_l01\" class=\"orderedlist\">\r\n \t<li>Recognize that Facebook\u2019s power is allowing it to encroach on and envelop other Internet businesses.<\/li>\r\n \t<li>Understand the concept of the \u201cdark Web\u201d and why some feel this may one day give Facebook a source of advantage vis-\u00e0-vis Google.<\/li>\r\n \t<li>Understand the basics of Facebook\u2019s infrastructure, and the costs required to power the effort.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n\r\n<\/div>\r\n<p id=\"fwk-38086-ch07_s02_p02\" class=\"nonindent para editable block\">The prior era\u2019s Internet golden boy, Netscape founder Marc Andreessen, has said that Facebook is \u201can amazing achievement one of the most significant milestones in the technology industry\u201d (Vogelstein, 2007). While still in his twenties, Andreessen founded Netscape, eventually selling it to AOL for over $4 billion. His second firm, Opsware, was sold to HP for $1.6 billion. He joined Facebook\u2019s Board of Directors within months of making this comment. Why is Facebook considered such a big deal?<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p03\" class=\"indent para editable block\">First there\u2019s the growth: between December 2008 and 2009, Facebook was adding between six hundred thousand and a million users a day. It was as if every twenty-four hours, a group as big or bigger than the entire city of Boston filed into Facebook\u2019s servers to set up new accounts. Roughly half of Facebook users visit the site every single day, (Gage, 2009) with the majority spending fifty-five minutes or more getting their daily Facebook fix<sup>1<\/sup>. And it seems that Mom really is on Facebook (Dad, too); users thirty-five years and older account for more than half of Facebook\u2019s daily visitors and its fastest growing population (Hagel &amp; Brown, 2008; Gage, 2009).<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p04\" class=\"indent para editable block\">Then there\u2019s what these users are doing on the site: Facebook isn\u2019t just a collection of personal home pages and a place to declare your allegiance to your friends. The integrated set of Facebook services encroaches on a wide swath of established Internet businesses. Facebook has become the <em class=\"emphasis\">first-choice<\/em> messaging and chat service for this generation. E-mail is for your professors, but Facebook is for friends. In photos, Google, Yahoo! and MySpace all spent millions to acquire photo sharing tools (Picasa, Flickr, and Photobucket, respectively). But Facebook is now the biggest photo-sharing site on the Web, taking in some three billion photos each month<sup>1<\/sup>. And watch out, YouTube. Facebookers share eight million videos each month. YouTube will get you famous, but Facebook is a place most go to share clips you only want friends to see (Vogelstein, 2009).<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p05\" class=\"indent para editable block\">Facebook is a kingmaker, opinion catalyst, and traffic driver. While in the prior decade news stories would carry a notice saying, \u201cCopyright, do not distribute without permission,\u201d major news outlets today, including the <em class=\"emphasis\">New York Times<\/em>, display Facebook icons alongside every copyrighted story, encouraging users to \u201cshare\u201d the content on their profile pages via Facebook\u2019s \u201cLike\u201d button, scattering it all over the Web. Like digital photos, video, and instant messaging, link sharing is Facebook\u2019s sharp elbow to the competition. Suddenly, Facebook gets space on a page alongside Digg.com and Del.icio.us, even though those guys showed up first.<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p06\" class=\"indent para editable block\">Facebook Office? Facebook rolled out the document collaboration and sharing service Docs.com in partnership with Microsoft. Facebook is also hard at work on its own e-mail system (Blodget, 2010), music service (Kincaid, 2010), and payments mechanism (Maher, 2010). Look out, Gmail, Hotmail, Pandora, iTunes, PayPal, and Yahoo!\u2014you may all be in Facebook\u2019s path!<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p07\" class=\"indent para editable block\">As for search, Facebook\u2019s got designs on that, too. Google and Bing index some Facebook content, but since much of Facebook is private, accessible only among friends, this represents a massive blind spot for Google search. Sites that can\u2019t be indexed by Google and other search engines are referred to as the <span class=\"margin_term\"><a class=\"glossterm\">dark Web<\/a><\/span>. While Facebook\u2019s partnership with Microsoft currently offers Web search results through Bing.com, Facebook has announced its intention to offer its own search engine with real-time access to up-to-the-minute results from status updates, links, and other information made available to you by your friends. If Facebook can tie together standard Internet search with its dark Web content, this just might be enough for some to break the Google habit.<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p08\" class=\"indent para editable block\">And Facebook is political\u2014in big, regime-threatening ways. The site is considered such a powerful tool in the activist\u2019s toolbox that China, Iran, and Syria are among nations that have, at times, attempted to block Facebook access within their borders. Egyptians have used the site to protest for democracy. Saudi women have used it to lobby for driving privileges. ABC News cosponsored U.S. presidential debates with Facebook. And Facebook cofounder Chris Hughes was even recruited by the Obama campaign to create my.barackobama.com, a social media site considered vital in the 2008 U.S. presidential victory (Talbot, 2008; McGirt, 2009).<\/p>\r\n\r\n<div id=\"fwk-38086-ch07_s02_n02\" class=\"bcc-box bcc-highlight\">\r\n<div class=\"textbox shaded\">\r\n<h4 class=\"title\">So What\u2019s It Take to Run This Thing?<\/h4>\r\n<p id=\"fwk-38086-ch07_s02_p09\" class=\"nonindent para\">The Facebook <span class=\"margin_term\"><a class=\"glossterm\">cloud<\/a><\/span> (the big group of connected servers that power the site) is scattered across multiple facilities, including server farms in San Francisco, Santa Clara, and northern Virginia (Zeichick, 2008). The innards that make up the bulk of the system aren\u2019t that different from what you\u2019d find on a high-end commodity workstation. Standard hard drives and eight core Intel processors\u2014just a whole lot of them lashed together through networking and software.<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p10\" class=\"indent para\">Much of what powers the site is <span class=\"margin_term\"><a class=\"glossterm\">open source software (OSS)<\/a><\/span>. A good portion of the code is in PHP (a scripting language particularly well-suited for Web site development), while the databases are in MySQL (a popular open source database). Facebook also developed Cassandra, a non-SQL database project for large-scale systems that the firm has since turned over to the open source Apache Software Foundation. The object cache that holds Facebook\u2019s frequently accessed objects is in chip-based RAM instead of on slower hard drives and is managed via an open source product called Memcache.<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p11\" class=\"indent para\">Other code components are written in a variety of languages, including C++, Java, Python, and Ruby, with access between these components managed by a code layer the firm calls Thrift (developed at Facebook, which was also turned over to the Apache Software Foundation). Facebook also developed its own media serving solution, called Haystack. Haystack coughs up photos 50 percent faster than more expensive, proprietary solutions, and since it\u2019s done in-house, it saves Facebook costs that other online outlets spend on third-party <span class=\"margin_term\"><a class=\"glossterm\">content delivery networks (CDN)<\/a><\/span> like Akamai. Facebook receives some fifty million requests per second (Gaudin, 2009), yet 95 percent of data queries can be served from a huge, distributed server cache that lives in over fifteen terabytes of RAM (objects like video and photos are stored on hard drives) (Zeichick, 2008).<\/p>\r\n<p id=\"fwk-38086-ch07_s02_p12\" class=\"indent para\">Hot stuff (literally), but it\u2019s not enough. The firm raised several hundred million dollars more in the months following the fall 2007 Microsoft deal, focused largely on expanding the firm\u2019s server network to keep up with the crush of growth. The one hundred million dollars raised in May 2008 was \u201cused entirely for servers\u201d (Ante, 2008). Facebook will be buying them by the thousands for years to come. And it\u2019ll pay a pretty penny to keep things humming. Estimates suggest the firm spends $1 million a month on electricity, another half million a month on <span class=\"margin_term\"><a class=\"glossterm\">telecommunications bandwidth<\/a><\/span>, and at least fifteen million dollars a year in office and data center rental payments (Arrington, 2009).<\/p>\r\n\r\n<\/div>\r\n&nbsp;\r\n\r\n<\/div>\r\n<div id=\"fwk-38086-ch07_s02_n03\" class=\"bcc-box bcc-success\">\r\n<div class=\"textbox textbox--key-takeaways\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\"><span style=\"font-family: 'Cormorant Garamond', serif; font-size: 1em; font-style: normal; font-weight: bold;\">Key Takeaways<\/span><\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ul id=\"fwk-38086-ch07_s02_l02\" class=\"itemizedlist\">\r\n \t<li>Facebook\u2019s position as the digital center of its members\u2019 online social lives has allowed the firm to envelop related businesses such as photo and video sharing, messaging, bookmarking, and link sharing. Facebook has opportunities to expand into other areas as well.<\/li>\r\n \t<li>Much of the site\u2019s content is in the dark Web, unable to be indexed by Google or other search engines. Some suggest this may create an opportunity for Facebook to challenge Google in search.<\/li>\r\n \t<li>Facebook can be a vital tool for organizers\u2014presenting itself as both opportunity and threat to those in power, and an empowering medium for those seeking to bring about change.<\/li>\r\n \t<li>Facebook\u2019s growth requires a continued and massive infrastructure investment. The site is powered largely on commodity hardware, open source software, and proprietary code tailored to the specific needs of the service.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n\r\n<\/div>\r\n<div id=\"fwk-38086-ch07_s02_n04\" class=\"bcc-box bcc-info\">\r\n<div class=\"textbox textbox--exercises\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\"><span style=\"font-family: 'Cormorant Garamond', serif; font-size: 1em; font-style: normal; font-weight: bold;\">Questions and Exercises<\/span><\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ol id=\"fwk-38086-ch07_s02_l03\" class=\"orderedlist\">\r\n \t<li>What is Facebook? How do people use the site? What do they \u201cdo\u201d on Facebook?<\/li>\r\n \t<li>What markets has Facebook entered? What factors have allowed the firm to gain share in these markets at the expense of established firms? In what ways does it enjoy advantages that a traditional new entrant in such markets would not?<\/li>\r\n \t<li>What is the \u201cdark Web\u201d and why is it potentially an asset to Facebook? Why is Google threatened by Facebook\u2019s dark Web? What firms might consider an investment in the firm, if it provided access to this asset? Do you think the dark Web is enough to draw users to a Facebook search product over Google? Why or why not?<\/li>\r\n \t<li>As Facebook grows, what kinds of investments continue to be necessary? What are the trends in these costs over time? Do you think Facebook should wait in making these investments? Why or why not?<\/li>\r\n \t<li>Investments in servers and other capital expenses typically must be depreciated over time. What does this imply about how the firm\u2019s profitability is calculated?<\/li>\r\n \t<li>How have media attitudes toward their copyrighted content changed over the past decade? Why is Facebook a potentially significant partner for firms like the <em class=\"emphasis\">New York Times<\/em>? What does the <em class=\"emphasis\">Times<\/em> stand to gain by encouraging \u201csharing\u201d its content? What do newspapers and others sites really mean when they encourage sites to \u201cshare?\u201d What actually is being passed back and forth? Do you think this ultimately helps or undermines the <em class=\"emphasis\">Times<\/em> and other newspaper and magazine sites? Why?<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n\r\n<\/div>\r\n<p class=\"indent\"><sup>1<\/sup>\u201cFacebook Facts and Figures (History and Statistics),\u201d Website Monitoring Blog, March 17, 2010.<\/p>\r\n\r\n<h2>References<\/h2>\r\n<p class=\"nonindent\">Ante, S., \u201cFacebook: Friends with Money,\u201d <em class=\"emphasis\">BusinessWeek<\/em>, May 9, 2008.<\/p>\r\n<p class=\"indent\">Arrington, A., \u201cFacebook Completes Rollout of Haystack to Stem Losses from Massive Photo Uploads,\u201d <em class=\"emphasis\">TechCrunch<\/em>, April 6, 2009.<\/p>\r\n<p class=\"indent\">Blodget, H., \u201cFacebook\u2019s Plan To Build a Real Email System and Attack Gmail Is Brilliant,\u201d <em class=\"emphasis\">Business Insider<\/em>, February 5, 2010.<\/p>\r\n<p class=\"indent\">Gage, D., \u201cFacebook Claims 250 Million Users,\u201d <em class=\"emphasis\">InformationWeek<\/em>, July 16, 2009.<\/p>\r\n<p class=\"indent\">Gaudin, S, \u201cFacebook Rolls Out Storage System to Wrangle Massive Photo Stores,\u201d <em class=\"emphasis\">Computerworld<\/em>, April 1, 2009, http:\/\/www.computerworld.com\/s\/article\/9130959\/Facebook_rolls_out_storage_system_to_wrangle_massive_photo_stores.<\/p>\r\n<p class=\"indent\">Hagel J., and J. S. Brown, \u201cLife on the Edge: Learning from Facebook,\u201d <em class=\"emphasis\">BusinessWeek<\/em>, April 2, 2008.<\/p>\r\n<p class=\"indent\">Kincaid, J., \u201cWhat Is This Mysterious Facebook Music App?\u201d <em class=\"emphasis\">TechCrunch<\/em>, February 2, 2010.<\/p>\r\n<p class=\"indent\">Maher, R., \u201cFacebook\u2019s New Payment System Off to Great Start, Could Boost Revenue by $250 Million in 2010,\u201d <em class=\"emphasis\">TBI Research<\/em>, February 1, 2010.<\/p>\r\n<p class=\"indent\">McGirt, E., \u201cHow Chris Hughes Helped Launch Facebook and the Barack Obama Campaign,\u201d <em class=\"emphasis\">Fast Company<\/em>, March 17, 2009, http:\/\/www.fastcompany.com\/magazine\/134\/boy-wonder.html.<\/p>\r\n<p class=\"indent\">Talbot, D., \u201cHow Obama Really Did It,\u201d <em class=\"emphasis\">Technology Review<\/em>, September\/October 2008.<\/p>\r\n<p class=\"indent\">Vogelstein, F., \u201cHow Mark Zuckerberg Turned Facebook into the Web\u2019s Hottest Platform,\u201d <em class=\"emphasis\">Wired<\/em>, September 6, 2007.<\/p>\r\n<p class=\"indent\">Vogelstein, F., \u201cMark Zuckerberg: The Wired Interview,\u201d <em class=\"emphasis\">Wired<\/em>, June 29, 2009.<\/p>\r\n<p class=\"indent\">Zeichick, A., \u201cHow Facebook Works,\u201d <em class=\"emphasis\">Technology Review<\/em>, July\/August 2008.<\/p>\r\n\r\n<\/div>\r\n<\/div>","rendered":"<div id=\"slug-8-2-whats-the-big-deal\" class=\"chapter standard\">\n<div class=\"ugc chapter-ugc\">\n<div id=\"fwk-38086-ch07_s02_n01\" class=\"bcc-box bcc-highlight\">\n<div class=\"textbox textbox--learning-objectives\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\"><span style=\"font-family: 'Cormorant Garamond', serif; font-size: 1em; font-style: normal; font-weight: bold;\">Learning Objectives<\/span><\/p>\n<\/header>\n<div class=\"textbox__content\">\n<p id=\"fwk-38086-ch07_s02_p01\" class=\"nonindent para\">After studying this section you should be able to do the following:<\/p>\n<ol id=\"fwk-38086-ch07_s02_l01\" class=\"orderedlist\">\n<li>Recognize that Facebook\u2019s power is allowing it to encroach on and envelop other Internet businesses.<\/li>\n<li>Understand the concept of the \u201cdark Web\u201d and why some feel this may one day give Facebook a source of advantage vis-\u00e0-vis Google.<\/li>\n<li>Understand the basics of Facebook\u2019s infrastructure, and the costs required to power the effort.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<p id=\"fwk-38086-ch07_s02_p02\" class=\"nonindent para editable block\">The prior era\u2019s Internet golden boy, Netscape founder Marc Andreessen, has said that Facebook is \u201can amazing achievement one of the most significant milestones in the technology industry\u201d (Vogelstein, 2007). While still in his twenties, Andreessen founded Netscape, eventually selling it to AOL for over $4 billion. His second firm, Opsware, was sold to HP for $1.6 billion. He joined Facebook\u2019s Board of Directors within months of making this comment. Why is Facebook considered such a big deal?<\/p>\n<p id=\"fwk-38086-ch07_s02_p03\" class=\"indent para editable block\">First there\u2019s the growth: between December 2008 and 2009, Facebook was adding between six hundred thousand and a million users a day. It was as if every twenty-four hours, a group as big or bigger than the entire city of Boston filed into Facebook\u2019s servers to set up new accounts. Roughly half of Facebook users visit the site every single day, (Gage, 2009) with the majority spending fifty-five minutes or more getting their daily Facebook fix<sup>1<\/sup>. And it seems that Mom really is on Facebook (Dad, too); users thirty-five years and older account for more than half of Facebook\u2019s daily visitors and its fastest growing population (Hagel &amp; Brown, 2008; Gage, 2009).<\/p>\n<p id=\"fwk-38086-ch07_s02_p04\" class=\"indent para editable block\">Then there\u2019s what these users are doing on the site: Facebook isn\u2019t just a collection of personal home pages and a place to declare your allegiance to your friends. The integrated set of Facebook services encroaches on a wide swath of established Internet businesses. Facebook has become the <em class=\"emphasis\">first-choice<\/em> messaging and chat service for this generation. E-mail is for your professors, but Facebook is for friends. In photos, Google, Yahoo! and MySpace all spent millions to acquire photo sharing tools (Picasa, Flickr, and Photobucket, respectively). But Facebook is now the biggest photo-sharing site on the Web, taking in some three billion photos each month<sup>1<\/sup>. And watch out, YouTube. Facebookers share eight million videos each month. YouTube will get you famous, but Facebook is a place most go to share clips you only want friends to see (Vogelstein, 2009).<\/p>\n<p id=\"fwk-38086-ch07_s02_p05\" class=\"indent para editable block\">Facebook is a kingmaker, opinion catalyst, and traffic driver. While in the prior decade news stories would carry a notice saying, \u201cCopyright, do not distribute without permission,\u201d major news outlets today, including the <em class=\"emphasis\">New York Times<\/em>, display Facebook icons alongside every copyrighted story, encouraging users to \u201cshare\u201d the content on their profile pages via Facebook\u2019s \u201cLike\u201d button, scattering it all over the Web. Like digital photos, video, and instant messaging, link sharing is Facebook\u2019s sharp elbow to the competition. Suddenly, Facebook gets space on a page alongside Digg.com and Del.icio.us, even though those guys showed up first.<\/p>\n<p id=\"fwk-38086-ch07_s02_p06\" class=\"indent para editable block\">Facebook Office? Facebook rolled out the document collaboration and sharing service Docs.com in partnership with Microsoft. Facebook is also hard at work on its own e-mail system (Blodget, 2010), music service (Kincaid, 2010), and payments mechanism (Maher, 2010). Look out, Gmail, Hotmail, Pandora, iTunes, PayPal, and Yahoo!\u2014you may all be in Facebook\u2019s path!<\/p>\n<p id=\"fwk-38086-ch07_s02_p07\" class=\"indent para editable block\">As for search, Facebook\u2019s got designs on that, too. Google and Bing index some Facebook content, but since much of Facebook is private, accessible only among friends, this represents a massive blind spot for Google search. Sites that can\u2019t be indexed by Google and other search engines are referred to as the <span class=\"margin_term\"><a class=\"glossterm\">dark Web<\/a><\/span>. While Facebook\u2019s partnership with Microsoft currently offers Web search results through Bing.com, Facebook has announced its intention to offer its own search engine with real-time access to up-to-the-minute results from status updates, links, and other information made available to you by your friends. If Facebook can tie together standard Internet search with its dark Web content, this just might be enough for some to break the Google habit.<\/p>\n<p id=\"fwk-38086-ch07_s02_p08\" class=\"indent para editable block\">And Facebook is political\u2014in big, regime-threatening ways. The site is considered such a powerful tool in the activist\u2019s toolbox that China, Iran, and Syria are among nations that have, at times, attempted to block Facebook access within their borders. Egyptians have used the site to protest for democracy. Saudi women have used it to lobby for driving privileges. ABC News cosponsored U.S. presidential debates with Facebook. And Facebook cofounder Chris Hughes was even recruited by the Obama campaign to create my.barackobama.com, a social media site considered vital in the 2008 U.S. presidential victory (Talbot, 2008; McGirt, 2009).<\/p>\n<div id=\"fwk-38086-ch07_s02_n02\" class=\"bcc-box bcc-highlight\">\n<div class=\"textbox shaded\">\n<h4 class=\"title\">So What\u2019s It Take to Run This Thing?<\/h4>\n<p id=\"fwk-38086-ch07_s02_p09\" class=\"nonindent para\">The Facebook <span class=\"margin_term\"><a class=\"glossterm\">cloud<\/a><\/span> (the big group of connected servers that power the site) is scattered across multiple facilities, including server farms in San Francisco, Santa Clara, and northern Virginia (Zeichick, 2008). The innards that make up the bulk of the system aren\u2019t that different from what you\u2019d find on a high-end commodity workstation. Standard hard drives and eight core Intel processors\u2014just a whole lot of them lashed together through networking and software.<\/p>\n<p id=\"fwk-38086-ch07_s02_p10\" class=\"indent para\">Much of what powers the site is <span class=\"margin_term\"><a class=\"glossterm\">open source software (OSS)<\/a><\/span>. A good portion of the code is in PHP (a scripting language particularly well-suited for Web site development), while the databases are in MySQL (a popular open source database). Facebook also developed Cassandra, a non-SQL database project for large-scale systems that the firm has since turned over to the open source Apache Software Foundation. The object cache that holds Facebook\u2019s frequently accessed objects is in chip-based RAM instead of on slower hard drives and is managed via an open source product called Memcache.<\/p>\n<p id=\"fwk-38086-ch07_s02_p11\" class=\"indent para\">Other code components are written in a variety of languages, including C++, Java, Python, and Ruby, with access between these components managed by a code layer the firm calls Thrift (developed at Facebook, which was also turned over to the Apache Software Foundation). Facebook also developed its own media serving solution, called Haystack. Haystack coughs up photos 50 percent faster than more expensive, proprietary solutions, and since it\u2019s done in-house, it saves Facebook costs that other online outlets spend on third-party <span class=\"margin_term\"><a class=\"glossterm\">content delivery networks (CDN)<\/a><\/span> like Akamai. Facebook receives some fifty million requests per second (Gaudin, 2009), yet 95 percent of data queries can be served from a huge, distributed server cache that lives in over fifteen terabytes of RAM (objects like video and photos are stored on hard drives) (Zeichick, 2008).<\/p>\n<p id=\"fwk-38086-ch07_s02_p12\" class=\"indent para\">Hot stuff (literally), but it\u2019s not enough. The firm raised several hundred million dollars more in the months following the fall 2007 Microsoft deal, focused largely on expanding the firm\u2019s server network to keep up with the crush of growth. The one hundred million dollars raised in May 2008 was \u201cused entirely for servers\u201d (Ante, 2008). Facebook will be buying them by the thousands for years to come. And it\u2019ll pay a pretty penny to keep things humming. Estimates suggest the firm spends $1 million a month on electricity, another half million a month on <span class=\"margin_term\"><a class=\"glossterm\">telecommunications bandwidth<\/a><\/span>, and at least fifteen million dollars a year in office and data center rental payments (Arrington, 2009).<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div id=\"fwk-38086-ch07_s02_n03\" class=\"bcc-box bcc-success\">\n<div class=\"textbox textbox--key-takeaways\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\"><span style=\"font-family: 'Cormorant Garamond', serif; font-size: 1em; font-style: normal; font-weight: bold;\">Key Takeaways<\/span><\/p>\n<\/header>\n<div class=\"textbox__content\">\n<ul id=\"fwk-38086-ch07_s02_l02\" class=\"itemizedlist\">\n<li>Facebook\u2019s position as the digital center of its members\u2019 online social lives has allowed the firm to envelop related businesses such as photo and video sharing, messaging, bookmarking, and link sharing. Facebook has opportunities to expand into other areas as well.<\/li>\n<li>Much of the site\u2019s content is in the dark Web, unable to be indexed by Google or other search engines. Some suggest this may create an opportunity for Facebook to challenge Google in search.<\/li>\n<li>Facebook can be a vital tool for organizers\u2014presenting itself as both opportunity and threat to those in power, and an empowering medium for those seeking to bring about change.<\/li>\n<li>Facebook\u2019s growth requires a continued and massive infrastructure investment. The site is powered largely on commodity hardware, open source software, and proprietary code tailored to the specific needs of the service.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div id=\"fwk-38086-ch07_s02_n04\" class=\"bcc-box bcc-info\">\n<div class=\"textbox textbox--exercises\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\"><span style=\"font-family: 'Cormorant Garamond', serif; font-size: 1em; font-style: normal; font-weight: bold;\">Questions and Exercises<\/span><\/p>\n<\/header>\n<div class=\"textbox__content\">\n<ol id=\"fwk-38086-ch07_s02_l03\" class=\"orderedlist\">\n<li>What is Facebook? How do people use the site? What do they \u201cdo\u201d on Facebook?<\/li>\n<li>What markets has Facebook entered? What factors have allowed the firm to gain share in these markets at the expense of established firms? In what ways does it enjoy advantages that a traditional new entrant in such markets would not?<\/li>\n<li>What is the \u201cdark Web\u201d and why is it potentially an asset to Facebook? Why is Google threatened by Facebook\u2019s dark Web? What firms might consider an investment in the firm, if it provided access to this asset? Do you think the dark Web is enough to draw users to a Facebook search product over Google? Why or why not?<\/li>\n<li>As Facebook grows, what kinds of investments continue to be necessary? What are the trends in these costs over time? Do you think Facebook should wait in making these investments? Why or why not?<\/li>\n<li>Investments in servers and other capital expenses typically must be depreciated over time. What does this imply about how the firm\u2019s profitability is calculated?<\/li>\n<li>How have media attitudes toward their copyrighted content changed over the past decade? Why is Facebook a potentially significant partner for firms like the <em class=\"emphasis\">New York Times<\/em>? What does the <em class=\"emphasis\">Times<\/em> stand to gain by encouraging \u201csharing\u201d its content? What do newspapers and others sites really mean when they encourage sites to \u201cshare?\u201d What actually is being passed back and forth? Do you think this ultimately helps or undermines the <em class=\"emphasis\">Times<\/em> and other newspaper and magazine sites? Why?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<p class=\"indent\"><sup>1<\/sup>\u201cFacebook Facts and Figures (History and Statistics),\u201d Website Monitoring Blog, March 17, 2010.<\/p>\n<h2>References<\/h2>\n<p class=\"nonindent\">Ante, S., \u201cFacebook: Friends with Money,\u201d <em class=\"emphasis\">BusinessWeek<\/em>, May 9, 2008.<\/p>\n<p class=\"indent\">Arrington, A., \u201cFacebook Completes Rollout of Haystack to Stem Losses from Massive Photo Uploads,\u201d <em class=\"emphasis\">TechCrunch<\/em>, April 6, 2009.<\/p>\n<p class=\"indent\">Blodget, H., \u201cFacebook\u2019s Plan To Build a Real Email System and Attack Gmail Is Brilliant,\u201d <em class=\"emphasis\">Business Insider<\/em>, February 5, 2010.<\/p>\n<p class=\"indent\">Gage, D., \u201cFacebook Claims 250 Million Users,\u201d <em class=\"emphasis\">InformationWeek<\/em>, July 16, 2009.<\/p>\n<p class=\"indent\">Gaudin, S, \u201cFacebook Rolls Out Storage System to Wrangle Massive Photo Stores,\u201d <em class=\"emphasis\">Computerworld<\/em>, April 1, 2009, http:\/\/www.computerworld.com\/s\/article\/9130959\/Facebook_rolls_out_storage_system_to_wrangle_massive_photo_stores.<\/p>\n<p class=\"indent\">Hagel J., and J. S. Brown, \u201cLife on the Edge: Learning from Facebook,\u201d <em class=\"emphasis\">BusinessWeek<\/em>, April 2, 2008.<\/p>\n<p class=\"indent\">Kincaid, J., \u201cWhat Is This Mysterious Facebook Music App?\u201d <em class=\"emphasis\">TechCrunch<\/em>, February 2, 2010.<\/p>\n<p class=\"indent\">Maher, R., \u201cFacebook\u2019s New Payment System Off to Great Start, Could Boost Revenue by $250 Million in 2010,\u201d <em class=\"emphasis\">TBI Research<\/em>, February 1, 2010.<\/p>\n<p class=\"indent\">McGirt, E., \u201cHow Chris Hughes Helped Launch Facebook and the Barack Obama Campaign,\u201d <em class=\"emphasis\">Fast Company<\/em>, March 17, 2009, http:\/\/www.fastcompany.com\/magazine\/134\/boy-wonder.html.<\/p>\n<p class=\"indent\">Talbot, D., \u201cHow Obama Really Did It,\u201d <em class=\"emphasis\">Technology Review<\/em>, September\/October 2008.<\/p>\n<p class=\"indent\">Vogelstein, F., \u201cHow Mark Zuckerberg Turned Facebook into the Web\u2019s Hottest Platform,\u201d <em class=\"emphasis\">Wired<\/em>, September 6, 2007.<\/p>\n<p class=\"indent\">Vogelstein, F., \u201cMark Zuckerberg: The Wired Interview,\u201d <em class=\"emphasis\">Wired<\/em>, June 29, 2009.<\/p>\n<p class=\"indent\">Zeichick, A., \u201cHow Facebook Works,\u201d <em class=\"emphasis\">Technology Review<\/em>, July\/August 2008.<\/p>\n<\/div>\n<\/div>\n","protected":false},"author":217,"menu_order":2,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[49],"contributor":[],"license":[],"class_list":["post-137","chapter","type-chapter","status-publish","hentry","chapter-type-numberless"],"part":134,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/chapters\/137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/wp\/v2\/users\/217"}],"version-history":[{"count":3,"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/chapters\/137\/revisions"}],"predecessor-version":[{"id":776,"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/chapters\/137\/revisions\/776"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/parts\/134"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/chapters\/137\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/wp\/v2\/media?parent=137"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/pressbooks\/v2\/chapter-type?post=137"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/wp\/v2\/contributor?post=137"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/bus3060\/wp-json\/wp\/v2\/license?post=137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}