Google+ Blasted From Within

Google's (NASDAQ: GOOG ) new social network, Google+, definitely has some
nifty features. One that is at the core of the system is Circles, which allows
you to control who sees your posts and comments. Of course, using that core
feature might not be inherent to users or even Google employees. Company
software engineer Steve Yegge made a post on the network blasting Google+ that
was meant only for the Google internal Circle. Well, somehow he misfired and it
became public (the social world can be a dangerous place). Yegge's post was
visceral, calling G+ a "pathetic afterthought" and a "knee-jerk
reaction." His rant actually goes on for more than 4,000 words. While the
situation is immediately embarrassing, this kind of debate is a good thing, and
it is encouraging that Google allows it. After all, the company faces some
serious threats, especially from Facebook. The social giant has been mostly
taking away market share from laggards like Yahoo (NASDAQ: YHOO ) and AOL (NYSE:
AOL ), but eventually, Facebook will be trying to grab a bigger chunk from
Google itself. Yegge believes Google's G+ response is just another symptom of
the company's failed strategy. He thinks there is too much focus on creating
breakout products, which can be extremely hard to do on a consistent basis its
something Apple (NASDAQ: AAPL ) exceeds in, but few others do. Instead, Yegge
thinks Google should build a platform. He points out that this is what has made
Facebook a powerhouse. By allowing for third-party development, it has created a
thriving social media ecosystem, and companies like Zynga have emerged to make
Facebook highly engaging. And strong platforms can be difficult to disrupt. Just
take a look at Microsoft (NASDAQ: MSFT ). Despite many attacks, its Windows and
Office franchises remain supremely dominant even after more than two decades.
But as for Google, it has a sprawling number of apps that mostly are loosely
connected, which can make the user experience frustrating and confusing. And it
also leaves the door open for competitors. Its important to remember that
Facebook itself did not originally start as a platform. It was a few years after
its launch that it moved in that direction. The same can be said about Amazon
(NASDAQ: AMZN ). So Google still has time and definitely has the resources to
make some changes to Google+. But as evidenced by Yegges insightful post, the
company should have some sense of urgency considering the massive task ahead.
Tom Taulli is the author of "All About Short Selling" and "All About
Commodities." You can also find him at Twitter account @ttaulli. He does not
own a position in any of the stocks named here.