Deep Dive
Why is Facebook heavily investing in AR and VR technologies?
Facebook is investing heavily in AR and VR to avoid repeating its late adoption of mobile technology, which caused an existential crisis for the company. They aim to control the next major computing platform shift, potentially replacing mobile dominance with AR and VR. Mark Zuckerberg and other leaders believe this is the future, and they are spending billions annually to develop hardware and software for these technologies.
What lessons from the mobile era are influencing Facebook's AR and VR strategy?
Facebook's late adoption of mobile technology taught them the importance of early platform control. They now aim to be pioneers in AR and VR to avoid being at the mercy of other companies, as they are with Apple and Google in the mobile space. This drives their aggressive investments and acquisitions in AR and VR hardware and software.
What acquisitions has Facebook made to advance its AR and VR ambitions?
Facebook has acquired Control Labs, a mind-reading technology startup, for nearly $1 billion, and considered buying Fitbit and Cirrus Logic, a chipmaker. These acquisitions highlight their focus on developing input mechanisms, wearables, and hardware components for AR and VR devices.
How successful has Facebook's Oculus been in the VR market?
Oculus has performed better than expected, with Facebook selling every unit it can produce. The Oculus Quest, released in 2019, is a cordless, standalone device with features like six degrees of freedom and hand tracking, making VR more accessible and functional. Despite VR's niche status, Facebook remains a leader in the space due to continued investment.
Why is AR considered the long-term priority for Facebook over VR?
AR is seen as the next major computing platform, with potential to overlay virtual objects onto the real world. Facebook has shifted its focus to AR, dedicating hundreds of engineers to developing AR glasses. Mark Zuckerberg and other leaders believe AR will eventually replace mobile as the dominant platform, and they aim to control this shift.
What challenges does Facebook face in recruiting talent for its hardware initiatives?
Facebook's reputation for privacy issues and data collection makes it challenging to recruit top talent, especially from companies like Apple. Despite being a major player, they are seen as an underdog in the AR and VR race, which complicates efforts to attract experienced hardware engineers and developers.
When are AR glasses expected to become mainstream?
AR glasses are expected to reach early adopters within five years, with Facebook and Apple targeting 2023 for their first releases. The technology is projected to become more accessible and functional by then, appealing to tech-savvy users and knowledge workers.
Why did Google consider exiting the cloud market in 2018?
In 2018, Google discussed exiting the cloud market due to its third-place position behind Amazon and Microsoft. However, the idea was dismissed, and Google Cloud remains committed to becoming a top player by 2023. The discussion highlights the challenges Google faces in competing with established cloud leaders.
What is Google's strategy to compete with Amazon and Microsoft in cloud computing?
Google aims to become a top-two cloud provider by 2023, focusing on enterprise sales and marketing. They have hired experienced professionals from companies like VMware and Oracle to build enterprise expertise. However, without a major acquisition, it is unlikely they will surpass Amazon or Microsoft in the near term.
What cultural challenges does Google face in its cloud business?
Google's cloud business struggles with a lack of enterprise DNA, as the company is traditionally consumer-focused. Shifting to enterprise sales and long-term contracts has caused internal friction, particularly among teams accustomed to building consumer products like Gmail. This cultural shift is a significant hurdle for Google Cloud.
- Facebook's $2 billion Oculus acquisition marked a shift towards hardware.
- Thousands of employees and billions of dollars are invested in AR/VR.
- Facebook aims to avoid past mobile platform adoption mistakes.
- Oculus Quest headset is considered a successful product, exceeding expectations.
Shownotes Transcript