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I would say like any other commentary on the web, consider the source!

Jason makes some good (if generic) points about any industry where large incumbents will try to absorb or nullify innovative competitors or startups.

Microsoft did it in the 90s and 2000s as well..

But we all know how much Jason hates Facebook, so he's using them as the bogeyman in this example, because, well, he hates Facebook!

Mapquest learned this the hard way when they got stomped by Google Maps.. If your product doesn't have built-in "hard to replicate" or proprietary features (or data), then a better-funded competitor can just buy their way past you by using more resources to replicate what you have.

Maps are an interesting example because map data is actually hard to replicate. Google went ahead and built their own database anyway, after several years of licensing from NavTeq and then Tele Atlas. http://blog.daveburrows.com/2009/10/08/google-drops-teleatla...

This allows Google to do whatever they like with the data, including offering turn by turn directions on Android.

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