Speaking in Tech #3 – Speaking in Tech: Is Instagram really worth $1 BILLION? Bubble 2.0 ready to burst, plus: Cloud wars, sucky mobe apps.
Show notes and episode details after the jump…
- Eddie on the west coast
- Sarah dispells pregnancy rumors
- Greg beefs about Best Buy and why it’s sinking
- It’s not because of Amazon, it’s because their stores suck
- Best Buy CEO resigns
Let’s get to some real news…
“In its biggest acquisition, Facebook is paying $1 billion for the hugely popular Instagram mobile photo-sharing app maker in a move that broadens its business and absorbs a potential rival.
The tiny San Francisco startup has just 13 employees and no significant revenue. But its acquisition helps ensure that Facebook — on the verge of staging the most hotly anticipated initial public stock offering in years — will be on the forefront of how people share photos with friends on their smartphones. And it keeps Instagram out of a competitor’s clutches.”
“Instagram closed a $50 million Series B round from Sequoia, Josh Kushner’s Thrive Capital, Greylock and Benchmark at a $500 million valuation.”
“The reason is simple: playing chicken with a potential acquirer can drive a much higher valuation. And more importantly, the acquistion is more likely to close quickly and successfully if the target company has a war chest of cash and a strong, fresh investor group.”
“If you have been wondering how Citrix Systems was going to juggle two different cloud fabrics in its product line – its own open-source CloudStack and a commercialized variant of the similarly open-source OpenStack project started by NASA and Rackspace Hosting – you can stop wondering.
Because Citrix isn’t going to juggle at all. In fact, Citrix is putting its full weight behind CloudStack and submitting it to the Apache Software Foundation as an official incubator project – and therefore an alternative to OpenStack.”
“There are myriad other benefits that come from this move. Two of the biggest are:
Code contributions should accelerate. CloudStack was covered under the GPL 3.0 license and lived in a community that was 100% backed by Citrix. These two factors held back a large swath of developers from contributing code to the project. Apache is where these developers live and the Apache GPL 2.0 license is greatly preferred by both enterprise and vendor contributors.
No API debates. Like Eucalyptus, Citrix CloudStack provides API compatibility with Amazon Web Services’ Elastic Compute Cloud (EC2). The OpenStack community is debating the degree of compatibility its software should have with this de facto, and clearly proprietary API set. Citrix no longer has to debate this issue or be beholden to the OpenStack group decision here which looks to be leaning away from EC2 compatibility.”
- 10 Big Questions for Eddie