Her belief is that there’s going to be a tipping point in Web 2.0 where the operational environment will be a key differentiator. I mentioned the idea that Web 2.0 has been summed up as “Fail Fast, Scale Fast,” and she completely agreed. When it hit its growth inflection point, MySpace was adding 1m users every 4 days — not at all an easy feat. As these massive apps become the norm, unless you can play in a game where services can be highly stable, geodistributed, etc., you won’t be in the game. And that’s where she came to the idea that being a developer “on someone’s platform” may ultimately mean running your app in their data center. Why did Fedex win in package delivery? They locked up the best locations with access to airports, warehousing, etc. so they had the best network. A similar thing will happen with packet delivery.

where ms gloats about their datacenters

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