Why MSFT Needed Facebook & GOOG Didn't

So, after weeks of speculation, nowhere to be seen. Dogster–social networks are the next evolutionary step in the growth of the internet. Now that we’ve all learned to check our email, order online, research restaurants, and read news, we’re starting to use the web to connect with each other. We’ve realized that we enjoy making connections, sharing our random thoughts, and turning our friends into virtual zombies. Social networking is the second generation internet.

Unfortunately for Microsoft, social networks have to be perceived as cool, exciting, trendy places to hang out at. None of those words apply to Microsoft–sorry guys. But, just like the rich kid in school, Microsoft has enough money to buy itself some friends–or in this case, a network of friends. For Microsoft, the only choice was to buy a piece of a popular social network. No one would ever feel excited about joining a network called “Windows Live MyBeboBook.”

Then there’s Google. How cool is Google’s brand? Uber-cool. When Google launches a new product–heck if Google really wants to build a popular social network, it can. I’m not talking about the crappy science experiment they call Orkut–you don’t expect a social network to become popular when it closed beta invites, and denials of competing with MySpace later, and the whole world’s going crazy over Google Connect (or whatever they want to call it).

So you see, Microsoft had no hope other than to buy into an existing social network that was popular enough that even the “Windows Live blah blah blah” couldn’t slow it down. Google, on the other hand, knew it didn’t have to partner with Facebook at any cost, they could bide their time and decide whether they want to build their own social network.

Besides, give it a few more years and we’ll all have Google implants anyway–that’s when Google will tell us which social network we should join. 0.15% share (even Orkut is higher) and a focus on blog content, it’s hardly something the company can rely on.