From my inbox this morning:

Heh, that's nice.  Hope the few cents they'll save on infrastructure costs is worth pissing off their customers who use this for storage like my wife used to.

Been banging this drum for a while:  Do not trust Software as a Service providers with the only copy or your data.

We will see much more of this as the economy continues its tailspin.

Interesting post from Robert Scoble today.  Apparently the new Facebook layout is intended to facilitate more and better contextual advertising:

Yes, we’re having another baby. But look at what did NOT happen on Twitter: not a single diaper company contacted us yet. Not a single maternity clothing company. Not a single car company (yes, we’re going to buy a new one soon). Not a single camera company (already bought a new one for this occassion). Not a single insurance company (I need more). Not a single bank (I need to start saving for another college student). Not a single stroller company (need a new one that can hold two). Not a single vitamin company (Maryam is going through her prenatal vitamins at a good clip). Not a single shoe company (Maryam needs new shoes for pregnancy, and Milan is growing fast too).

That will NOT last.

So ultimately this change will allow Facebook to spam Robert Scoble for baby stuff when he announces he's having a baby.  I thought the best comment was this:

Robert's entire post boiled down into a single sentence.  Now that's what I call editing.  But Scoble thinks advertising is the bee's knees.  Check out his reply:

First of all, his reply makes it sound like Scoble has an ego that would make Freud blush, but secondly it reveals that Scoble is slightly weird.  Also, you can't extrapolate the Super Bowl--a truly unique TV social phenomenon--into Web advertising.

Let me put this into context.  We canceled cable, and we've moved about 90% of our TV viewing to Hulu.  Hulu shows the same shows cable does but only makes you watch one brief commercial during shows, where you would have been stuck watching 3-5 commercials on cable.

In the months that we've been watching TV this way I don't think I've ever once, no not once wished that we could sit through more commercials in the middle of our shows.  Amazing, I know.

I don't WANT advertising everywhere.

If I want a product, I will go LOOK for it.

And I suspect that the majority of people are really not interested in being forced to digest yet more 30-second snips of video designed to make them part with their money.  I don't think "best of" commercials collections are flying off the shelves.

Contextual advertising is no longer a viable business model for taking over the world.  Advertising is fed by consumerism, which is fed by rampant inflation, which is fed by debt.  That era is dead.  Kaput.  Over.  Finito.  Mathematically, it cannot even be considered again for several years.

Consumerism is dying because its blood--debt--has been cut off.  No longer do people have money to buy things on impulse.

Ultimately I think this is a good thing.  For one thing our society will be much healthier without so much of its self-worth tied up in things and conspicuous consumption ("look at me, I know how to spend money!  Wheeeee!")

But beyond that, it will force companies like FaceBook to come up with actual solid business models that ADD VALUE to society.  It forces them to create something of worth that people will actually PAY for.  Add information.  Make people more productive.  Let them do things they couldn't before.  Anything but try to find a way to stick yet more ads in front of their eyeballs.

Advertising as a business model exposes a lack of real value or a lack of imagination on the part of the executive team.  And while Robert is ready to pass out from excitement over more ads, I suspect that he is flat out wrong about the eventual success of this path for Facebook, if it's truly what they intend to do.

Over the past six or seven years, when credit was plentiful and the money supply was exploding, people were spending money like crazy, even to the point financing much of their consumption.  Giant flat screen TV's with low low monthly payments and so on.

This resulted in a flood of customers to most businesses, which steadily increased as our consumption society really started roaring.  A big problem for many businesses was that their infrastructure was not built to handle such a large volume of customers.

This created a bubble in the technology industry--products that were built to help businesses accommodate perpetual growth.  That growth has now slammed into reverse.

Great bit from Blog For Our Future:

Young Chuck, moved to Texas and bought a donkey from a farmer for $100.

The farmer agreed to deliver the donkey the next day. The next day he drove up and said, "Sorry son, but I have some bad news. The donkey died."

Chuck replied, "Well, then just give me my money back."

The farmer said, "Can't do that. I went and spent it already."

Chuck said, "Ok, then, just bring me the dead donkey."

The farmer asked, "What ya gonna do with him?"

Chuck said, "I'm going to raffle him off."

The farmer said, "You can't raffle off a dead donkey!"

Chuck said, "Sure I can. Watch me. I just won't tell anybody he's dead."

A month later, the farmer met up with Chuck and asked, "What happened with that dead donkey?"

Chuck said, "I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $898.00."

The farmer said, "Didn't anyone complain?"

Chuck said, "Just the guy who won. So I gave him his two dollars back."

Chuck now works for Morgan Stanley in their OTC Default Derivative Department.