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As much as Silicon Valley's ethos is the constant pursuit of creating value, eventually the byproduct of this process (and the stakeholders involved) will also require the creation of revenue.
In the past year, we have seen these dynamics play out in the social networking sector across a variety of companies at different stages of growth, maturity, and monetization.
While the early phases of social media success tend to focus on metrics around user growth and engagement, every social media company must eventually figure out some sort of revenue stream (unless they prefer to go the acquisition route).
Most social networking companies eventually monetize through advertising, and more specifically through "native advertising" or non-standard ad units that are specific to the platform and are organically integrated into the content experience.
Facebook and Twitter, both mature, publicly traded companies with well-established revenue streams, have been the pace-setters in social by effectively monetizing their respective native ad units, Sponsored Stories for Facebook and Promoted Tweets for Twitter.
Linkedin also introduced their Sponsored Content ads, and while its advertising business has not yet monetized to the same degree as Facebook and Twitter, it also has a strong value proposition to advertisers given the quality of its business-oriented audience.
Other established players like Tumblr and Pinterest are in the earlier days of monetizing through advertising, but they too have native ad units that integrate into their content experience.
But all of these networks are children of the desktop web. True, they are all in various phases of transition towards mobile as the dominant medium for consumption, but their networks were all built around a fixed Internet experience.
Fast forward to today, and we've seen another evolution in the social networking space that centers around mobile-first networks. Social brands such as Instagram, SnapChat, and Vine are all recent examples of mobile-first success stories, which represent an evolution in social media by focusing on the single core utility of capturing and disseminating interesting content captured through mobile phone cameras.
As a company that draws more than 2 billion eyeballs per month, Facebook was a fitting harbinger of trends to come at an optical networking conference.
The social networking goliath is lighting up its own optical fiber, deploying 100Gbps links in its data centers and looking towards emerging silicon photonics technology, Facebook Director of Technical Operations Najam Ahmad said on Monday at an Optical Society of America meeting held alongside the annual OFC (Optical Fiber Communications) Conference in San Francisco.
Facebooks challenges mirror those of other enterprises and data center operators, with fast-growing data traffic and rapidly evolving network needs, but with 1.2 billion active monthly users, its facing those issues sooner than some. Though his company is unique in some ways, Ahmads comments in an on-stage interview may shed some light on the future of connectivity.
The biggest traffic at Facebook isnt in and out of its data centers but among the servers within them, Ahmad said. Thats because every time a user logs in to the site, hundreds or thousands of servers are called into action to compute different parts of that customers News Feed on the fly. This so-called east-west traffic is also growing faster as apps on Facebook grow more complex and user interactions become richer, he said.
So while many enterprises are deploying 10-Gigabit ethernet today, thats already the minimum at Facebook.
We havent deployed anything less than a 10-Gig for about two years now, Ahmad said. Those are the links to servers themselves, and upstream from that, Facebook is using 40-Gigabit ethernet and a few 100-Gigabit links. Its mostly on 40-Gigabit now because 100-Gigabit is still too expensive, he said. But within a year or two, Ahmad expects the companys fast pipes to become predominantly 100-Gigabit.
Facebooks computing needs are growing so quickly that the company no longer builds just one data center at a time, Ahmad said.
Now what we do is we buy land, we build one building, and then a second, a third, and a fourth, he said. All of a sudden, what weve done is build a campus. So our optical needs change slightly.
To link, say, four data centers spread across a campus of 10 to 20 acres, Ahmad would like to have a fiber technology that can span one or two kilometers and carry 100Mbps to start, then 200Mbps and 400Mbps as traffic grows over time. For that, he envisions connections using single-mode fiber rather than the multimode fiber most commonly used in data centers today, which has a shorter range.
Such a system is likely to use silicon photonics, an emerging technology that applies the worlds most common semiconductor material to optical connectivity, Ahmad said. Facebook is also exploring silicon photonics because it wants to use so-called rack-level computing, in which computing, storage and memory are concentrated in separate racks and connected at high speed to form the equivalent of many servers. PCIe is another option for this, he added.
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Facebook walks on optical networking's wild side