Tuesday, December 28, 2010

The Unwelcome Return of Platform Dependencies

Editor's Note: The following guest post is written by a Silicon Valley CEO. Frank Dupree is a pen name In the late 1990s, the rise of the browser was supposed to usher in an era of unprecedented opportunity for startups. A great part of that increased opportunity came as a result of the significant reduction in platform dependencies. No longer did the users' operating system dictate their access to services or information. Even a behemoth like Microsoft was fighting hand-to-hand combat with small startups for the first time in decades. Fast forward ten years, and it's 1985 all over again. But even as the risks of dependencies become better understood by startups and investors, the ascent of Facebook and Twitter seem to point to an ever increasing number of startups with significant business dependencies. Recent changes to both Facebook and Twitter show that neither startups nor their investors can assume much when it comes to support for a given API in the future. Today, even the OS seems subject to dramatic shifts in record time. One only need look to Apple?s iOS to see how dramatic and unpredictable developments can change the landscape for startups, customers and investors. Today, most startups build with significant external platform dependencies, whether it is Facebook, iOS, Google Apps or Twitter. There are a few types of dependencies. A simple distinction might be to call a dependency on a platform symbiotic or parasitic. Symbiotic dependencies are those for which both sides agree to terms of the dependency and for which both sides seem to derive a benefit. Developers on Facebook?s platform, for example. The most successful here being Zynga, which grew completely and?probably for the team and its investors?nervously within the Facebook ecosystem.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/TItrpr4Qg6Q/

Romain Grosjean Olivier Grouillard Brian Gubby André Guelfi

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