Quoting Ryan Sarver <rsar...@twitter.com>:
On Wed, Nov 17, 2010 at 12:27 PM, Shannon Clark <shannon.cl...@gmail.com> wrote:
Will companies that license the data be allowed to, in turn, sell services
on top of that data - i.e. will this spark a new generation of products such
as Scout Labs (now Lithium) or other analytics tools which are built by
companies who have negotiated for full or partial firehose access but which
are then used by clients of those companies each of whom will configure
different queries and searches to monitor?

Companies can definitely build and sell products based on the analysis
of the data. A major market for this move is the Social Media
Monitoring (SMM) market and we expect that to grow.

As I've already noted, I don't see the economic / business sense in paying a monopoly middleman for downsampled Firehose when the full Firehose is directly available via negotiation with Twitter. IMHO, if you've got the brains and infrastructure to create social media monitoring business value from 10% or 50% of the Firehose, it's easy to scale that up to 100% of the Firehose. If you don't, well, you're one of the 95 percent of businesses that fail because *you* made a wrong decision.

While I haven't paid much attention to the "social media monitoring" market recently, what I've seen for much of 2010 is consolidation - big companies like IBM buying smaller ones with *solid* business models. What I *haven't* seen in social media monitoring / analytics is "small nimble startups" becoming successful with "minimum viable products".

Social media monitoring is a difficult business to be in, *especially* at the data rates Twitter delivers and the "unnatural" aspects of Twitter linguistics. The sales cycle for social media monitoring tools is long and arduous, and, IMHO, Facebook, Flickr and YouTube data are immensely richer and easier for marketers to explore and exploit than Twitter data.

M. Edward (Ed) Borasky
http://borasky-research.net http://twitter.com/znmeb

"A mathematician is a device for turning coffee into theorems." - Paul Erdos

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