Service Outages: The Challenge For Facebook, Twitter, And Skype

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By Douglas A. McIntyre Updated Published
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Facebook, Twitter, and Skype face an unusual challenge if they are to keep the dominance in their respective markets. It may be difficult to keep each of the services online all of the time. Service interruptions may become more frequent, which would alienate some portion of their users. It is only a guess of how badly weak infrastructure would hurt them. It is likely that a portion of their users would turn their backs on what they believe are flawed services.

Skype went down for the better part of day earlier this week. Twitter is famous for its “fail whale” service problems. Facebook has the most stable platform to accommodate its subscribers 24×7, but the challenges of maintaining thousands, if not tens of thousand of servers is incredibly complex, and there are weaknesses in the world wide web itself.

There is a vocal minority of scientists who believe the Internet will become so overloaded with traffic that it will have large outages, or may even collapse in some parts of the world. This analysis is fueled by the fact that there are not only more people on the Internet each year. Video sites like YouTube and data sharing services which work on the “cloud” have begun to put an unsustainable amount of stress on the global Internet infrastructure. The creation of more “backbone” by telecom, cable, and governments has been too slow to allow the world wide web to operate seamlessly. Private sector online carriers may not be willing to invest in “pipe” as quickly as they have before. Expansion had become expensive, often ranging into the billions of dollars.

Facebook has come to dominate its market so thoroughly that is has no competition. Its user base is nearly 600 million. Its valuation is as high as $20 billion. Twitter also has no real rival. It has nearly 200 million users. Skype has some VoIP completion, but none have the global infrastructure and large number of customers to really challenge the Internet telephone company.

If Skype can essentially collapse for a day or more, then there is a chance that any of the largest Web 2.0 giants may face upcoming overload problems. Their primacy intact, each of the companies has as its only rival as the reliability of its own technology and the fragility of the Internet.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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