Monday, January 17, 2011

Metcalf's law and the Network Effect


Photo courtesy of google
 by Mahdi Abdullah Murad

Bob Metcalfe, who is the owner of the Metcalfe’s law, offers some insights about the value of communication and social network. According to Metcalfe’s law, the growth in number of the internet and computer users is affecting the value of communication network. The law demonstrates a clear ideological framework to think about social networks. Moreover, understanding the value of the social networking is another side of the law that Metcalfe identified and considered as an important thoughtful to the communication among the users. He illustrates that both number of users and their similarities among them of the network should be considered. Furthermore, the recent visibility of the competition among the companies is another side of the Metcalfe’s law.


Furthermore, Metcalfe’s law indicates the effects of the network concerning technologies and networks such as internet, social networking and World Wide Web. Twitter, Facebook, Yahoo, and MSN, which are very famous websites, are the prime examples of Metcalfe’s Law. According to Wikipedia, “Forty five percent of Americans in 2005 said the internet had played a huge role in a major decision in their life as a result of this social networking. Some of the major decisions involved buying a home, buying a car, inquiring medical help, and discovering a career.” Thus, it can easily be noticed how much social networking is affecting the daily life of its users. According to the law, the distance relationship among the people can be kept and improved even if the users don’t use it in a correct way. Moreover, there will always opportunities to increase the number of new jobs and relationships via the social networking according to Metcalfe’s point of view.


References:
http://en.wikipedia.org/wiki/Metcalfe's_law

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