Metcalfe’s Law in Reverse (Jacob Nielsen’s Alertbox)

[ via Scripting News ] Jacob Nielsen chastises several companies for trying to wall-off portions of the Internet. His analysis is correct: in that trying to isolate customers, and tie them to your portion of the network reduces the whole value of the network. Unfortunately, even if @Home or AOL can only isolate a small percentage of the network, that little bit is still worth an obscene amount of money to them. Hence, they are willing to burn 90% of a stack of thousand dollar bills because the remaining 10% is still a large pile of money.

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This entry was written by Bill Humphries and posted on July 29, 1999 at 12:00 am and filed under Uncategorized. Bookmark the permalink. Follow any comments here with the Atom feed for this post. Both comments and trackbacks are currently closed.