Wednesday, November 24, 2010

Facebook Le tighten belts

Women to men said, you are responsible for efforts to make money, I am responsible for beautiful voluptuous beauty.

This, in theory.

Faced with the reality of the Bell, who had to use the material soft Club, beat out sound, just fun.

Although Facebook is a social networking site when Moting, but it's like most companies, you need the money, need to speak to the banks and investment companies do well, because the hard times is not easy to make money.

About 10% of this amount, perhaps it is a life-saving straw, solutions for the pressing need.

In the last few weeks, Facebook has been carried out with 1 billion, cash flow to buy more computers to manage their own power flow site.

Google's YouTube and other Silicon Valley companies are also faced with the problem. Goin'through, Facebook with meter, many banks have the cooperation, but also from the Government had received 250 billion of support, fill the Bill. But this is still far from enough, Facebook still needs a lot of money to manage their own business.

Facebook spokesman claimed that this is common for foreign financial relations.

During financial crises, Facebook is trying to reduce costs. One is called TriplePointCapital (three capital? name a bit mean), a year ago it to lend $ 100 Facebook, but a few months ago, Facebook already spends 6 million. TriplePointCEO JimLabe admits of Facebook to continue to cooperate with. Noble CFO — GideonYu said the company has 5 million bonds and real estate. The question is whether there is a Facebook enough funds to implement its corporate strategy, the burden of user growth of expenditure.

Cash flow is increasingly restricted the development of the company.

A month ago, Facebook Board Member PeterThiel said, now the company does not need to make too much money, as long as there are advanced flow can maintain the current growth rate. Facebook to make money or to rely on online advertising, but the burden for new users of technical operating expenditures or significant. Flow increases, the pressure on the server, these costs are to be considered. ComScore data show that as of the end of February, the number of Facebook users worldwide reached 2.75 billion, more than 1 billion a year ago the atmosphere intensifies.

For the past several months, Facebook has this website duoguoyuyanban on the line, the company has also entered a period of rapid growth.

The last three months, Facebook added 7.5 million users, more than a meter of native 5.7 million users of Facebook, explains its successful expansion overseas.

Users of increased operating costs rise, servers, storage, power, bandwidth, requires money.

So, Facebook with partner TripleCapital also started a new round of negotiations. And that, in considering the technical costs, a large number of rental companies such as Google's technology architecture, is what my brain to spend, but want to pay for expensive copyright fees, if you can set up the server and storage systems, writing a program yourself, you will save a lot of expenses.

Forrester Research's marketing Vice President, technology analyst FrankGillette believes that Facebook funding met technical dish-washing, which is like a bottomless pit of money to burn.

Because 2.75 billion users need 1 million in funding, which means that Facebook is essential to enhance the technical framework for the expansion of the scale are bound to consume additional resources.

Currently, the most burning money Facebook is storage technology, relying on photo-sharing, so photos on Facebook.

Last October, when the user is 1 billion, the site to upload photos to more than 100 million. Also, Facebook on each photo will have four backup, so this spending was astronomical. To solve this problem, Facebook each year requires substantial buy storage system. EnterpriseStrategy Group technical analyst MarkBowker finds that six degrees space model Facebook has to pay for photo storage, this is it superior premise, is it a bunch of foreshadowing.

Facebook is privatized, and certainly no need to announce financial results, but couldn't make it in real life gets tough.

Many companies to cut costs, reduced advertising spending, just add in the online advertising a lot Google text ads. EMarketer's assessment report show that Facebook's revenue this year will reach $ 2.3 billion, a growth of 10% 2.1 million, but the company did not predict its overseas business income, in fact, this section covers to Facebook's total 1/4. Online advertising Analyst believes that social networking turbulent period, some not mature small-scale advertising market is difficult to show the contribution to revenue growth.

Although Facebook is facing financial challenges, but this does not mean that it will stay indifferent.

In 2007, it was Microsoft's valuation 2.4 billion, Li Ka-shing and valuation elevated 1.2 billion, that is the best time.

Now, the scenery infinite new forces to stay in the face of the financial crisis strikes, but also to tighten your belt tightening, good budget carefully to live on.

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