Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is Facebook Giving Away Its Competitive Advantage?

Facebook (NASDAQ: FB  ) is sharing its data center secrets again. Where some might question whether the company is giving away its competitive advantage, Fool contributor Tim Beyers sees a smart business strategy.

The latest giveaway? A new version of Flashcache, software for managing huge volumes of information across databases. Facebook first talked about the project in 2010. Now, in a blog post, engineers are revealing more about how the newest software works and what results to expect. Facebook is effectively teaching partners, competitors, and start-ups how to more efficiently run a data center.

Releasing such a key, technical piece of its competitive advantage should be troubling. And it would be, Tim says, if the open source movement didn't work. Because it does -- participants share in pursuit of technical achievement on a global scale -- Facebook can expect to reap as much as it shares, and perhaps more. The result? A smarter, leaner, more effective data management operation capable of producing more profits.

Now it's your turn to weigh in. Do you believe Facebook's insistence on giving away its internally developed tricks for improving data management amounts to forfeiting a competitive advantage? Please watch the video to get Tim's full take, and then leave a comment to let us know where you stand.

Even more disruptive opportunities for your portfolio
Facebook finally passed $50 recently and is up more than 80% so far this year. Are you willing to take on a little added risk for the chance at similar gains? Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2679645, ~/Articles/ArticleHandler.aspx, 9/27/2016 8:37:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
FB $127.31 Down -0.65 -0.51%
Facebook CAPS Rating: ***