

Privacy and the Treacherous Middle Ground - bjonathan
http://www.avc.com/a_vc/2010/05/privacy-and-the-treacherous-middle-ground.html

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tewks
Fred is right on the money here. Facebook was the original private channel in
the space. It gained an enormous amount of trust and users as a result.

They don't seem to realise that the social graph was not their competitive
advantage for the endgame: that can and will be duplicated. The diaspora
bonanza indicates this.

Trust is the ultimate lock-in for any consumer product or service, especially
one dealing intimately with people's social lives! It is the hardest advantage
to build and is nearly impossible to regain.

The diversion over the past year of trying to be the jack of all trades has
cost them a lot and they haven't stopped the hemmorage. The fact that they've
waited till this week to realize they have a massive problem and call the
rumoured company wide meeting indicates that these people are asleep at the
wheel.

