Nothing
lasts forever. None of the great nation-states or empires – Babylon; Rome; France, either Bourbon or Bonapartist; Britain in her Elizabethan then
imperial glory – have succeeded in maintaining global ascendancy for long, since in
life, politics and trade, what goes up must eventually come down. Which, if
nothing else, is a paradigm for the decline of the fastest growing empires in
history – the software giants. Microsoft, creaking, looks to be on the way down, a
tortoise in the company of greyhounds. There’s been a torrent of hysterical
reaction to Apple’s quarterly results plus feverish speculation about its
future almost every time they’ve been published. When people begin to panic
about a quarterly net profit of $8.2 billion (Q4
last year), planet Earth and its comforting grip on reality is a long way away.
We’ve been mesmerized for
years by Apple's metamorphosis from a failing computer manufacturer into a
corporate giant - there are over eighty million iPhones in the world - how much bigger can it get? On some
days, it is now the most valuable company in the world, with bigger cash
reserves than the annual GDP of some countries. There really is an
inevitability about its downward spiral – but the question remains – how far
and how long will it take?
Then
there's Facebook, used by one-seventh of the planet’s population, which is
likewise the focus of much hyperventilation. Recently, the Zuckerberg empire launched its newest weapon
of mass intoxication with the catchy name of Graph Search –
as in "social graph". Facebook's new tool is just an algorithm that
finds information from within one's network of friends and supplements the
results with hits from Bill Gates’
Bing search engine, but to read some of the commentary on it you'd imagine that
Zuckerberg and friends had invented either a perpetual
motion engine or a transit visa for hell. In essence, Graph Search is an
attempt to cluster Internet users into spaces that are more easily managed,
but, the Internet is a wild animal and there’s too much interesting stuff out
there to snare people into searching wherever Bing or Google think they ought
to go.
As I trawl through the current overheated commentary on
Apple and Facebook, I’m reminded more and more frequently that sic transit gloria mundi. I have been in this game long enough to
remember a time when Microsoft was dominant, innovative and scary, Apple was a geeky
little mouse in a corner and Facebook was a game for Harvard undergraduates to
find girls. Now the Windows are only
half open and they are being outstripped in the race to the clouds. Gates
himself prophesied his own downfall to some extent after he remarked a few
years ago that the cost of hardware would plummet – in consequence his
expensive software costs as much as the machines it runs on.
Outcomes might well be the same but causes differ. Apple
make things that people want - indeed stampede - to buy, assembled in gigantic
Chinese sweatshops with huge margins hence the volume of product generated is
awesomely huge and worldwide markets still expanding exponentially. People who
don’t own a computer in Ethiopia can get online with a phone. Facebook don’t
make anything – they just provide a service which people currently value and if
such a service becomes redundant it will most probably be because the
Zuckerberg moles have burrowed too intrusively into people’s lives since this
is the only way of generating enough advertising revenue to keep it afloat. I
think it unlikely that despite the fact that, yes, I want an iPhone 5, the technology indispensables of today will ever be
relegated to the footnotes of Internet history but a time is surely coming when
they will be seen as quaintly old-fashioned. Like Proust's novels.