Only the Zuckerbergs will survive

Mark emphasized that the reason why they're changing the privacy policies is not because they can monetize the data better but rather that they must to stay relevant. He believed that whether it be Twitter or any of the new hot startups, it is obvious that social sharing is becoming a default state online. People want to share more information, they are happy to do so publicly and they're doing so en-masse. Facebook in his opinion runs the risk of losing relevancy if it does not adapt to this mode.

Facebook has over 500 million users. Which other company that is so successful is operating with similar paranoia and taking such significant risks as a result? Certainly not Microsoft and arguably Google only does so with new products and services and not its core search engine. The recent redesign of its search results page is not dramatic re-engineering in my opinion. Apple does so to a certain extent but it hasn't tried to re-engineer its core products (remember those Macintosh computers) in quite a while. Instead it has chosen to go into new markets. And that's what makes Facebook special.

The reason why Facebook has 500 million users today is because it has consistently stayed one step ahead of its users. It has its pulse on consumer behavior and adapts its platform accordingly and efficiently. Rather than rolling out services piecemeal and in a drawn out fashion, like tearing off a bandaid it launches features rather hurriedly and painfully. But it does launch and it launches quickly. The new privacy policies and the resultant modifications aren't the latest in a string of failed launches as some parts of the media may like to portray. In my opinion, they represent Zuckerberg's paranoia and his innate skill in being able to stay one step ahead of his users. 

Think about the Newsfeed launch which no one liked or the inclusion of Events and Photos. Or even the home page redesigns and the move away from applications to pages. Or the addition of community pages which is confusing many brands. Not to mention Beacon which was widely panned only to resurface as Facebook Connect. All painful and confusing launches (trust me I hear the grumblings from my clients everyday) but they all represent forward momentum that has built Facebook into what it is.

My birthday was this weekend. I got dozens and dozens of birthday wishes on my wall from friends all over the world. It helps to have parents who uprooted me every few years and moved me somewhere else. That would not have happened without Facebook. I'm glad I'm on Facebook and I'm glad I've shared my birthday with lots of people. I felt special. You can bet I'll be giving Facebook more information about myself in the future. And yes, they will mess up their next product launch and we will all get upset for a while. So what because the community will reign them in sooner or later if they go too far.

But the fact remains, rather than being a walled garden Facebook is opening up to the rest of the web, picking up on key consumer behavior patterns and the need to share. That's something worth celebrating. It is continuously trying to adapt to stay relevant as digital culture changes. Zuckerberg is paranoid and I'm glad he is. It makes for great products and great companies. Just ask Andy Grove.