This year might be the strangest year ever. It roared in with news of Robert Scoble having his Facebook account suspended for utilizing scripts to sync data between Plaxo and Facebook in violation of Facebook’s Terms of Service. Of course, the year ends with Facebook opening up fbConnect in a way to share that same data with anyone who so chose.
We started 2008 with CNETs Caroline McCarthy reporting that MySpace voters preferred Barack Obama on the left and Ron Paul on the right. As we know now at the end of 2008, there was one group of netroots voters that managed to be successfully heard and we now have a new President-elect. On the other side, the GOP demonstrated their complete ineptitude tapping into the grassroots by marginalizing the candidate that would have fired up their internet base. At least at the end of 2008, there are some pockets of common sense on the right, but those pockets will likely not be heard or heeded.
In the first half of 2008, ridiculous acquisitions, funding rounds and business plays flourished. An example was when job search site, Monster.com acquired San Francisco-based Affinity Labs for $61M. On contrast, companies receiving funding or valuations at the end of 2008, are doing so on devalued terms while other companies are laying off workers and cutting back contract costs in an effort to extend their runways as far as they can into the second half of 2009 or beyond.
In every way, 2008 ends in a Dickensian way, highlighting two sides of a very different coin and leaving investors and entrepreneurs with a scared and tentative look in their eyes.
We made our annual predictions early in the year, and wanted to review those predictions for those keeping track at home.
We said: Since Macworld is right around the corner I don’t think we will see any real new products but rather a grow what they have to meet their projections. This means upgraded iPod Touches, iPhone 2.0, iPhone SDK, upgraded Apple TV, patches to Leopard, improved Cinema Displays and upgraded Macs/Macbooks. The only thing I could see would be integration of their multi-touch technology on laptops (like the rumored sub-notebook).
What actually happened: Apple announced Time Capsule, an iPhone SDK for developing Apps for the iPhone (now available through the iTunes App Store for the iPod Touch and the iPhone 3G), iTunes movie rentals, Apple TV 2, and the now famous Macbook Air.
Accuracy: We accurately projected the iPhone SDK, Upgraded Apple TV, and the Macbook Air with multi-touch. Later in the year, we would see the iPhone 3G, improved cinema displays and the release of the new Macbook/Macbook Pro lines. We consider 100% accuracy here in 2008 with a 50% accuracy for Macworld 2008.
We Said: Let’s face it, Vista blows. It’s slow, doesn’t have any real innovation under the hood and takes more horsepower to run. I predict they will continue forcing it down people’s throats and in revolt people will continue to order machines with XP. On the other side of the coin, the Xbox is rocking and I predict they will announce an integrated Windows Media Center/IPTV version with HD-DVD to compete with the Playstation 3. They have a real opportunity to own the living room since Apple TV has flopped.
What actually happened: Some manufacturers, including Dell, decided that based on actual customer demand and trends (wiping pre-loaded Vista systems and installing Windows XP), computers could be shipped with XP instead. In addition, the Xbox did receive a much-needed face lift (called Xbox Experience) that we talked about here, though it did not go as far as we expected. We did not predict the emergence of Apple TV/Xbox Experience/TiVo challenger Vudu at the beginning of the year.
Accuracy: We consider our predictions to be mostly inline with actual results, but we missed or misjudged several things along the way. We claim a 60% accuracy rating here.
We Said: Ok, hype over. Game over. Most “Web 2.0″ companies will go into the dust bin of history because their marketing strategy or ideas just didn’t pan out. Also, as more companies adopt these technologies into their “œEnterprise 2.0″³ strategy there will be less of a rush to create another social network or AJAX-ified web site unless it has real value. Side note – kill the term Enterprise 2.0. The enterprise hasn’t changed, the apps have just gotten easier to develop.
What actually happened: We feel that this was an overly-generalized prediction. It could have been more specifically Enterprise 2.0, as opposed to Web 2.0. That said, there was an actual push and adoption into the Enterprise space. Most notable of all Enterprise 2.0 companies was Yammer which is build as a standalone Twitter for Enterprise. Yammer won the top award at Techcrunch50.
Accuracy: Though there certainly has been more focus in recent months on utility over “bling” (Ajaxified sites, as we put it), we don’t necessarily believe that corporate Web 2.0 has advanced far beyond “Corporate blogging”, but with Yammer like companies popping up, we’ll claim a 40% accuracy rating.
We Said: Twitter will get bought – it is a cool tool but not a lot money to made behind it. It needs to be part of a bigger whole. They also need better infrastructure because they crash whenever there is a big tech conference. CES will be a big test for them.
What actually happened: Twitter did not get bought, and in fact, took a third round of funding. It may have been their failures of June/July that prevented an acquisition, and there certainly were rumors of a Facebook acquisition of Twitter recently. The company seems to have turned a corner on reliability, and have a business model in mind, even if it hasn’t been outlined. In addition, Twitter development continues to proceed with a release of an all new Twitter API in 2009.
Accuracy: 0% – hands down, we were wrong. The company continues to confound even the experts.
We said: Pownce will die – Twitter won this battle. Game over.
What actually happened: Pownce died.
Accuracy: 100%. ‘Nuff said.
We said: Digg will get bought – After rumors of a sale for the last 18 months, they finally get bought by a media behemoth. Sale price? $300 million.
What actually happened: While Digg did not actually get bought, they are bleeding money as reported by TechCrunch this weekend. According to the TechCrunch, the Microsoft search deal which was supposed to bring in over $100M over three years is clearly not doing that at all.
Accuracy: We want to take some credit for seeing the dark side of Digg, but clearly cannot based on our actual predictions. 0%.
We Said: Yahoo will continue to struggle and have massive layoffs – Yahoo didn’t change much with their executive restructuring and they have really sucked at integrating their products. They are going to get hit with lower stock prices and will have to cut the fat out.
What actually happened: What didn’t happen, might be the more accurate question. We had the Microsoft-Yahoo deal that was on, then off, then on, then off. The forced resignation, by all accounts, of CEO Jerry Yang, the hostile board takeover (“hostile” in the loose sense, not the SEC sense) by Carl Icahn, and the devaluation of Yahoo stock to approximately half of what it opened the year.
As for the predicted Yahoo layoffs… Well, it’s such a bloodbath that sites like this exist to track the chaos.
Accuracy: Can we score a 110%?
HD-DVD vs Bluray
We said: HD-DVD and BluRay will not have a winner, still – This year is just going to continue the fight with hybrid drives getting cheaper so by 2009 the choice will be irrelevant.
What actually happened: Bluray won.
Google and Wall Street
We Said: Google’s honeymoon with Wall Street will end – With the acquisition of DoubleClick there is more of a chance for Google to fail. Along with it trying to change to many sectors, Healthcare and Energy to name a few, it will need to shore up its core competencies before people start to trash it and the stock will be worth half what it is today.
What actually happened: Everyones honeymoon with Wall Street ended with the collapse of the economy. Google has lost over 60% of it’s value, falling from a Jan 2 open of $685/share to the current trading number of $298/share.
Accuracy: We will claim 75% accuracy on this. We can’t claim 100% because the reason for the value loss is not similar. It’s just the nature of the market at this time.
We Said: They are a necessary evil right now and their beacon debacle will need to be fixed in order for them to go IPO. They will be the new IPO darling as analysts are ready to trash Google.
What actually happened: Facebook did not IPO in 2008, though they had a significant investment from Microsoft at a highly questionable valuation of $15B. Experts like Kara Swisher don’t expect an IPO until 2010. I might add that with the economy the way it is, pre-collapse predictions of 2010 might still be ambitious. I personally doubt Facebook will ever IPO.
Bringing 2008 In for a Landing
It’s always tricky to really predict a year in advance. With the economy and turbulence in the various sectors and markets, 2009 will be highly tricky to predict. Predict we will do, early in the new year, though so stick around.