A new free photo sharing application –Instagram was being acquired by Facebook last week. As of its awfully friendly-user interface and features in which you can shutter a picture and transform it to what you want to be looks like and feel, and that can share these to any social networking sites particularly facebook, twitter as well as tumblr, Instagram make an astounding $1 billion and drop a lot of jaws everywhere, largely among high tech experts.
A number of correspondents wave each of their flags depending on the flag-waver’s analysis of the arrangement. Bill Snyder wrote in InfoWorld which also featured in Micron Associates, these deals are not just a symbol of a high tech bubble warning; rather, it is a sign that the big players in the industry are losing their ground-breaking boundary. “The economy of technology gives an idea about stepping out from the conception that the real value is created by the advancement,” Snyder adds, reported in Micron Associates. There is also a sign that the huge technology companies are much more concerned in playing financial and legal games than staying productive as the said Instagram deal is more likely to Google’s $12.5 billion takeover of Motorola Mobility for its copyright.
In the casual analysis of some of the largest high tech deals in the last ten years conducted by Andy Baio reviewed by Micron Associates, it concludes that the $28 a user Facebook was paying for Instagram 35 million adherents was among the lowest in that data set. He concedes, however, that the cost per employee of the deal–$77 million — is “off the charts.” The median cost per employee of the deals analyzed by Baio was $3 million. Quite than that number being a sign or somewhat a warning of a bubble, but, he disagreed that it’s more a sign of the scalability of modern app architectures.
The numbers of Instagram are exactly what you’d want to see in a social network–high user counts with the lowest number of employees,” he added. In addition, Facebook and Instagram may be a warning sign of high tech simmer but not the source of it. Micron Associates says that some of the analyst commends that the Instagram deal may be a badge that will hole what they see as an existing high tech simmer. A tech guru OM Malik wrote, “ Facebook was terrified and knew for the first time in its life it perhaps had a competitor that could not only ensnare his present, but also blares its future prospects, due to the fact that Facebook is more likely about photos, and Instagram had found and attacked Facebook’s tower– a mobile photo sharing.
In addition, according to Gartner analyst Ray Valdes, the creation of billion dollar deals is unlikely. “The decline and the last dot-com simmer will have a restraining effect. There are still some deep scars that have left lasting memories.” He added.
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