Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

OpenSocial is now neutral: What's the business hook here?

By | March 26, 2008, 2:26am PDT

OpenSocial is no longer just a Google standard. Microsoft catches social networking religion. And most folks are wondering where Facebook will land in this mess. The larger question: Is there a business hook here somewhere?

Yup, I hear the crickets too.

customlogogif.pngSocial networking remains a consumer thing. And to the blogosphere it’s an opportunity to work in a Mark Zuckerberg quip, toss in Google as a reference and navel gaze a bit about the “conversation.”

But there has to be a corporate use in here somewhere.

Tuesday’s news that Yahoo is supporting OpenSocial and Google is stepping away to assure “neutrality” and interconnect social apps is a big deal. OpenSocial can now forge ahead as a real standard. Meanwhile, Microsoft has also entered the social network standard game (boy this all sounds familiar after awhile) and launched its own initiative. The gory details are fortunately rounded up by Techmeme.

I can’t help but think that this neutral OpenSocial foundation is a good thing for the enterprise. Perhaps enterprise apps will hook into OpenSocial. Perhaps vendors–beyond Oracle and Salesforce.com–will flick to the effort. Perhaps corporations will become more social.

Until then, however, there isn’t much of a huge plan when it comes to businesses.

Last week, I spoke to Joe Kraus, Director of Product Management at Google, about the enterprise implications of OpenSocial. Even though OpenSocial will be “forever free and open” there’s a lot of work to do before this becomes even slightly interesting to the enterprise.

Among the highlights of my conversation with Kraus:

  • Social networking is the new black. Most killer apps are social by nature–email, IM and photo sharing for instance. Companies have been slow to adopt these uses–beyond email of course.
  • Social networking isn’t a destination site. It will branch out through the entire Web. How will corporations handle this branching out process?
  • Enterprises will adopt social standards like OpenSocial to embed third party applications. The rub: “These applications will need policies around them,” says Kraus. Simply put, a lot of social applications are frivolous–throwing sheep, awarding virtual beers (what’s the point folks?) and poking people. Surely, there’s a business function here somewhere.
  • How do you tighten up social applications? “Social applications are loose in consumer land,” says Kraus. “We expect them to become much tighter in enterprise land.”
  • What’s the model? Consumer social applications are built around advertising. In the corporate world that model won’t fly. What exactly will corporations license?
  • Whatever develops in the socialprise will begin with CRM. “Salesforce and Oracle both see the opportunity, but CRM is a social application to begin with,” says Kraus.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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Business hook is obvious...
opinionated.jerk 26th Mar 2008
Here is the value... companies love to have information on consumers... existing and prospective... consumers love to consume stuff... free stuff and stuff they pay for... services and goods... give them a little free service and collect a lot of information about the consumer that is valuable in selling them other goods and services... not a bad deal and not at all sinister in a capitalist sales situation... plus then you can target them directly with goods, services, and ads tailored to their wants... a little unfamiliar and maybe scary at first, but I look forward to only ads that apply to me at times I find convenient... and I am in IT not marketing... but make sure you limit info you put out about yourself to stuff you want marketed to you... OpenSocial just sort of acknowledges that there is benefit from competing for the same consumers if it means faster and better access to them... should be very interesting to watch play out.

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