Scale and Competition on the Internet

Tom Foremski has a must read article on the Google YouTube acquisition. He's one of the few who get the big picture.

Lets say you want to hit a home run in a start-up. If you shoot too small, you end up with a Facebook - a "nice small business" (Jordan Rohan, an analyst for RBC Capital Markets). Too big, and then everybody else is hoping you'll trip and drill a big financial hole in the ground, scaring off your investors. Gone are the days of a server in the kitchen auctioning Pez dispensers, that you can grow into Ebay, holding the first million off to the side, untouched. You have to think big AND small at the same time. How? Read more.