The Industrial Revolution, started in the middle of the 18th century, transformed the world. It marks the start of a major turning point in history that would influence almost every aspect of daily life. The Industrial Revolution meant the shift from handmade to machine-made products and increased productivity and capacity. Technological change also enabled the growth of capitalism. Factory owners and others who controlled the means of production rapidly became very rich and working conditions in the factories were often less than satisfactory. It wasn't until the 20th century, 150 years after its beginning, that the Industrial Revolution ended creating a much higher standard of living than had ever been known in the pre-industrial world. Consumers benefited from falling prices for clothing and household goods. The impact on natural resources, public health, energy, medicine, housing and sanitation meant that chronic hunger, famines and malnutrition started to disappear and the life expectancy started to increase dramatically.
An undesired side-effect of the Industrial Revolution is that instead of utilizing artisans to produce hand-made items, machines started to take the place of the artisans. Before the industrial revolution, custom-made goods and services were the norm. The one-on-one relationships that guilds had with their customers sadly got lost in an era of mass-production. But what is exciting me about the world today is that we're on the verge of being able to bring back one-on-one relationships with our customers, while maintaining increased productivity and capacity.
As the Big Reverse of the Web plays out and information and services are starting to come to us, we'll see the rise of a new trend I call "B2One". We're starting to hear a lot of buzz around personalization, as evidenced by companies like The New York Times making delivery of personalized content a core part of their business strategy. Another recent example is Facebook testing shopping concepts, letting users browse a personal feed of clothing and other items based on their "likes". I'd imagine these types of feeds could get smarter and smarter, refining themselves over time as a user browses or buys. Or just yesterday, Facebook launched Notify, an iOS app that pushes you personalized notifications from up to 70 sites.
These recent examples are early signs of how we're evolving from B2C to B2One (or from B2B2C to B2B2One), a world where all companies have a one-on-one relationship with their customers and personalized experiences will become the norm. Advances in technology allow us to get back what we lost hundreds of years ago in the Industrial Revolution, which in turn enables the world to innovate on business models. The B2One paradigm will be a very dramatic shift that disrupts existing business models (advertising, search engines, online and offline retailers) and every single industry.
For example, an athletic apparel company such as Nike could work sensor technology into its shoes, telling you once you've run a certain number of miles and worn them out. Nike would have enough of a one-on-one relationship with you to push an alert to your smartphone or smartwatch with a "buy" button for new shoes, before you even knew you needed them. This interaction is a win-win for both you and Nike; you don't need to re-enter your sizing and information into a website, and Nike gets a sale directly from you disrupting both the traditional and online retail supply chain (basically, this is bad news for intermediaries like Amazon, Zappos, clothing malls, Google, etc).
I believe strongly in the need for data-driven personalization to create smarter, pro-active digital experiences that bring back one-on-one relationships between producers and consumers. We have to dramatically improve delivering these personal one-on-one interactions. It means we have to get better at understanding the user's journey, the user's context, matching the right information/service to the user and making technology disappear in the background.
Today, we're excited to announce that Acquia has closed a $55 million financing round, bringing total investment in the company to $188.6 million. Led by new investor Centerview Capital Technology, the round includes existing investors New Enterprise Associates (NEA) and Split Rock Partners.
We are in the middle of a big technological and economic shift, driven by the web, in how large organizations and industries operate. At Acquia, we have set out to build the best platform for helping organizations run their businesses online, help them invent new ways of doing business, and maximize their digital impact on the world. What Acquia does is not at all easy -- or cheap -- but we've made good strides towards that vision. We have become the backbone for many of the world's most influential digital experiences and continue to grow fast. In the process, we are charting new territory with a very unique business model rooted Drupal and Open Source.
A fundraise like this helps us scale our global operations, sales and marketing as well as the development of our solutions for building, delivering and optimizing digital experiences. It also gives us flexibility. I'm proud of what we have accomplished so far, and I'm excited about the big opportunity ahead of us.
It's not easy to build an Open Source software company.
Canonical recently has made a change to its intellectual property policy. The new policy prevents developers from distributing altered binary versions of Ubuntu. Users are still allowed to distribute unaltered Ubuntu freely, but if they make changes to Ubuntu, Canonical wants developers to either go through a review process or remove all references to Canonical trademarks, Canonical logos, and proprietary software and recompile the Ubuntu archive without any of those.
This change has caused friction with the Open Source community; many are not happy with these restrictions as it goes against the culture of Open Source sharing and collaboration. After all, Ubuntu itself is built on top of the work of hundreds of thousands of Open Source developers, and now Ubuntu is making it difficult for others to do the same.
Canonical's stated intention is to protect its trademarks and reputation; they don't want anyone to call something "Ubuntu" when it's not actually "Ubuntu". I understand that. That aside, many understand that the unstated goal is to make money from licensing deals. The changes affect organizations that base their custom distributions on Ubuntu; it's easier to buy a license from Canonical than to figure how to remove all the trademarks, proprietary software, logos, etc.
Jono Bacon, Canonical's former community manager, wrote a balanced post about the situation.
My thoughts? I understand Canonical has to find ways to make money. Most companies are downright greedy, but not Canonical or Mark Shuttleworth. I find the Open Source community "penny wise and pound foolish" about the situation.
I can relate because Canonical, like Acquia, is among a small group of Open Source companies that try to do good and do well at scale. We invest millions of dollars each year contributing to Open Source: from engineering, to marketing, to sponsoring community events and initiatives. It is not easy to build a software company on Open Source, and we all struggle to find the right balance between giving back and making money. This is further complicated when competitors choose to give back less or don't give back at all. Companies like Canonical and Acquia are good for Open Source, and helping them find that balance is key. Don't forget to support those that give back.
At yesterday's Worldwide Developer Conference keynote, Apple announced its annual updates to iOS, OS X, and the new watchOS. As usual, the Apple rumor blogs correctly predicted most of the important announcements weeks ago, but one important piece of news only leaked a few hours before the keynote: the launch of a new application called "News". Apple's News app press release noted: "News provides beautiful content from the world's greatest sources, personalized for you".
Apple basically cloned Flipboard to create News. Flipboard was once Apple's "App of the Year" in 2010, and it remains one of the most popular reading applications on iOS. This isn't the first time Apple has chosen to compete with its ecosystem of app developers. There is even a term for it, called "Sherlocking".
But forget about Apple's impact on Flipboard for a minute. The release of the News app signifies a more important shift in the evolution of the web, the web content management industry, and the publishing industry.
Impact on content management platforms
Why is Apple's News app a big deal for content management platforms? When you can read all the news you are interested in in News, you no longer have to visit websites for it. It's a big deal because there are half a billion active iOS devices and Apple will ship its News app to every single one of them. It will accelerate the fact that websites are becoming less relevant as an end-point destination.
Some of the other new iOS 9 features will add fuel to the fire. For example, Apple's search service Spotlight will also get an upgrade, allowing third-party services to work directly with Apple's search feature. Spotlight can now "deep link" to content inside of a website or application, further eliminating website or applications as end-points. You could search for a restaurant in Yelp directly from your home screen, and go straight to Yelp's result page without having to open the Yelp website or application. Add to that the Apple Watch which doesn't even ship with a web browser, and it's clear that Apple is about to accelerate the post-browser era of the web.
The secret to the News app is the new Apple News Format; rumored to be a RSS-like data feed with support for additional design elements like images, videos, custom fonts, and more. Apple uses these feeds to aggregate content from different news sources, uses machine learning to match the best content to a given user, and provides a clean, consistent look and feel for articles coming from the various news sources. That is the long way of saying that Apple decides what the best content is for you, and what the best format is to deliver it in. It is a profound change, but for most people this will actually be a superior user experience.
The release of Apple News is further proof that data-driven experiences will be the norm and of what I have been calling The Big Reverse of the Web. The fact that for the web to reach its full potential, it will go through a massive re-architecture from a pull-based architecture to a push-based architecture. After the Big Reverse of the Web is complete, content will find you, rather than you having to find content. Apple's News and Flipboard are examples of what such push-based experiences look like; they "push" relevant and interesting content to you rather than you having to "pull" the news from multiple sources yourself.
When content is "pushed" to you by smart aggregators, using a regular web browser doesn't make much sense. You benefit from a different kind of browser for the web. For content management platforms, it redefines the browser and websites as end-points; de-emphasizing the role of presentation while increasing the importance of structured content and metadata. Given Apple's massive install base, the launch of its News app will further accelerate the post-browser era of the web.
I don't know about your content management platform, but Drupal is ready for it. It was designed for a content-first mentality while many competitive content management systems continue to rely on a dated page-centric content model. It was also designed to be a content repository capable of outputting content in multiple formats to multiple end-points.
Impact on publishing industry
Forget the impact on Flipboard or on content management platforms, the impact on the publishing world will even be more significant. The risk for publishers is that they are being disintermediated as the distribution channel and that their brands become less useful. It marks a powerful transformation that could de-materialize and de-monetize much of the current web and publishing industry.
Because of Apple's massive installed base, Apple will now own a large part of the distribution channel and it will have an outsized influence on what hundreds of millions of users will read. If we've learned one thing in the short history of the Internet, it is that jumping over middlemen is a well-known recipe for success.
This doesn't mean that online news media have lost. Maybe it can actually save them? Apple could provide publishers large and small with an immense distribution channel by giving them the ability to reach every iOS user. Apple isn't alone with this vision, as Facebook recently rolled out an experiment with select publishers like Buzzfeed and the New York Times called Instant Articles.
In a "push economy" where a publisher's brand is devalued and news is selected by smart aggregators, the best content could win; not just the content that is associated with the most well-known publishing brands with the biggest marketing budgets. Publishers will be incentivized to create more high-quality content -- content that is highly customized to different target audiences, rather than generic content that appeals to large groups of people. Success will likely rely on Apple's ability to use data to match the right content to each user.
This isn't necessarily bad. In my opinion, the web isn't dead, it's just getting started. We're well into the post-PC era, and now Apple is helping to move consumers beyond the browser. It's hard to not be cautiously optimistic about the long-term implications of these developments.
Here is a very simple thesis on how to disrupt billion dollar industries:
Content platform + user platform = BOOM!
That is a bit cryptic, so let me explain.
Traditional retailers like RadioShack and Barnes & Noble were great "content platforms"; they have millions of products on shelves across thousands of physical stores. Amazon disrupted them by moving online, and Amazon was able to build an even better content platform with many more products. In addition, the internet enabled the creation of "user platforms". Amazon is a great user platform as it knows the interests of the 250 million customers it has on file; it uses that customer information to recommend products to buy. Amazon built a great content and user platform.
Businesses with a content platform that aren't investing in a user platform will most likely get disrupted. To understand why user platforms matter, take a look at a traditional media company like The New York Times -- one of the world's best content platforms, both online and offline. But it's also one of the world's poorest user platforms; they don't have a 1-on-1 relationship with all their readers. By aggregating the best content from many different sources, Flipboard is as good of a content platform as The New York Times, if not better. However, Flipboard is a much better user platform because all of its readers explicitly tell Flipboard what they are interested in and Flipboard matches content to users based on their interest. For The New York Times to survive, their strategy should be to invest in a better user platform: they should spend more time getting to know every single reader and serving curated content that matches the user's interest. The New York Times seems well aware of this problem, with its decision last week to host its articles directly on Facebook to get access to Facebook's user platform with 1.4 billion users.
Similarly, Netflix is disrupting both traditional broadcasters and cable companies because they built a great user platform capable of matching movies and shows to users. To many Netflix users' frustrations, traditional TV broadcasters still have the better content platform, but that hasn't stopped the growth of Netflix. Furthermore, Netflix is investing heavily in becoming a better content platform by producing their own shows, including original series such as House of Cards and Orange Is the New Black. Unless traditional broadcasters invest in becoming great user platforms and matching content to users, they risk losing against Netflix.
The challenge for newspaper organizations or cable providers is usually not with the technical evolution, but with changing their business model. Take the cable providers, for example. Legacy constraints like distribution models, FCC regulations and broadcast spectrum requirements prevent them from moving as fast in this direction as a Netflix might. Fortunately for most cable providers, they are also the internet providers, which allows them to become user platforms if they too can master the personalization and contextualization equation.
Facebook, Twitter, Apple and Google are some of the world's best user platforms; they know about their users' likes and dislikes, their location, their relationships and much more. For them, the opportunity is to become better content platforms and to match users with relevant products and articles. By organizing the world's information, Google is building a massive content platform, and by launching services like Gmail, Google+, Google Ads, Google Fiber and Google Wallet, they are building a massive user platform. Given that they have the world's largest content platform and the richest user platform, I have no doubt that Google could dominate the web the next couple of decades.
The examples above are focused on print media, television and radio, but the thinking can easily be extended to commerce, manufacturing, education, and much more. The thesis of content platforms adding user platforms (or vice versa) is very basic but also very powerful. Adding user platforms to existing content platforms enables a transformative change in the customer's user experience: content can find you, rather than you having to find content. Furthermore, brands are able to establish a 1-on-1 relationships with their customers allowing them to interact with them in a way they were never able to in the past. By establishing 1-on-1 relationships with their customers, brands will be able to "jump over" the traditional distribution channels. If we've learned one thing in the short history of the internet, it is that jumping over middlemen is a well-known recipe for success.
Anyone building a digital business should at least consider investing in building both a better content platform and a better user platform. It's no longer just about publishing content; it's about understanding what uniquely delights each user and using that information to manage the entire experience of a site visitor or customer over time. The idea of using interests, location, user feedback, past behavior and contextual information to deliver the best user experience is no longer a nice-to-have; it is becoming a make-or-break point. It is the next big challenge and opportunity for everyone building digital experiences. This is why I'm passionate about content management systems needing to evolve to digital experience management systems and why Acquia has spent the last two years building software that helps organizations build user platforms. As I talked and wrote about years ago, I believe personalization and contextualization will be a critical building block of the future of the web, and I'm excited to help make that a reality.