If you made money on Google (or if you wished you had made money on Google), you might try using The Google Test to evaluate your next investment. According to Matt Marshall of VentureBeat, “Entrepreneur William Jolitz posits a contrarian view on YouTube, praising its expensive use of bandwidth as a key to its success. Read on about how YouTube meets the “Google Test.“
Bandwidth-driven business models may seen counter-intuitive to a technologist – after all, we like to make products that make money, and when we fail we tend to face a firing squad. So I can understand it when a techie gets all worked up about those $1M/mo bandwidth bills without getting anything in the way of dollars back. It’s always bothered me that companies like Google, YouTube, and MySpace seem to violate laws of nature. But guess what, kids – making these big Internet moves doesn’t seem to have as much to do with moving $$ product (after all, any techie can upload a movie or make a GenY webpage with a plethera of packages) and more to do with getting eyeballs and mindspace. Yes, this was true when I was at IGN Networks way back in the dotcom bubble, and it’s still true today.
So I heartily recommend that tech guys and gals read this little piece, not to depress you, but to allow you to learn how those top-flight venture firms like Sequoia make their decisions. After all, if they want to spend the money, aren’t we up to the challenge of making it work out?
On another exciting topic, looks like Intel and UC Santa Barbara have made a a promising breakthrough in using laser light to make a much faster interchip switch. According to the article “The breakthrough was achieved by bonding a layer of light-emitting indium phosphide onto the surface of a standard silicon chip etched with special channels that act as light-wave guides. The resulting sandwich has the potential to create on a computer chip hundreds and possibly thousands of tiny, bright lasers that can be switched on and off billions of times a second.” As one of my engineering friends said when we chatted, this makes low-power SiliconTCP all the more valuable (see InterProphet for more information).
Finally, an interesting essay from up-and-coming Renkoo CTO Joyce Park on women role models in business and her dismay over the HP Dunn affair. Since I’ve written on this topic often, I couldn’t help putting in my own two-cents. 🙂
Happy weekend reading – there will be a “Google test” on Monday.