Wednesday, July 21, 2010

Yawn- Facebook reaches 500 million users

Unless you just descended from out of space, you've probably been bombarded enough with the news that Facebook has reached 500 million users. I am also very much impressed no doubt with the growth of the site.

I'm just a bit curious about the relationship that the number of users of the network have with the bottom line of the company. Last year for instance, revenues were estimated to be around $800m US.

Taking that figure to be true, we then wonder how much it costs to keep the servers running that power this behemoth of a network. The number of users- which does not take into account multiple account registrations- will only reflect true success if it shows improved profits and revenues.

In as much as I am impressed with the numbers, I very much prefer to see a direct reflection of those numbers in the bottom line of the company. Until then, the massive numbers to me will only be what they are- just numbers that are impressive but not necessarily producing a comparable profit.

Then too it will be interesting to see how the numbers continue to grow when Google finally comes out with their much rumored social network dubbed Google Me. I also wonder how much money Google would make if people spent all those billions of minutes on Google's Orkut.


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By Seeraj Muneer with No comments

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