The Future of the Internet: You Can't Count Out Microsoft, Says David Kirkpatrick

Apple definitely knows how to cash in on “cool.” Whether it’s the iPod, iPhone, or now the iPad, Apple has a knack for creating the must-have tech gadget. They’re so successful that Apple’s $282 billion market cap has eclipsed Microsoft and Google.

Yet when it comes to social media, both Apple and Google are barely in the game. 

“Apple’s always been bad at social, Google’s also been bad in social,” observes David Kirkpatrick, author of The Facebook Effect.  “It’s interesting the two companies that really have dominated tech in recent years -- Apple and Google -- have done it by other means,” he tells Henry in this clip. 

If they want to stay atop the tech ranks, they know that must change. “All those companies know social information is the future of the Internet.”

Somewhat surprisingly, though, when it comes to social media, rival Microsoft has got a big edge on both Apple and Google, says Kirkpatrick.

How have they done it? Facebook.

“Microsoft is in an interesting position because they are concretely allied with Facebook. Not only do they own a piece of it but they do search exclusively with Facebook,” he notes. Kirkpatrick argues that, not only is that a money-maker, it could be a game changer. “Microsoft’s alliance with Facebook potentially could be its single biggest competitive tool against Google.”

Just because Google and Apple are late to the party doesn’t mean they’ve missed it. Kirkpatrick notes Google could quickly dominate if they were to simply buy Facebook.

Kirkpatrick also says that just because Facebook in many ways IS social media, that doesn't mean their future atop the technology landscape is set in stone. “You can easily see the scenario where, down the road, Facebook is worth at least as much as those companies.” But he also argues, “I also think you can write a scenario that says it doesn’t ever happen” if they can’t find the right way to monetize their ever-growing traffic.