A Parallel with AOL

In the early 1990's there was an Internet company called America Online. It is still around, but far fewer people have heard of it today because it has slipped, unceremoniously, into obscurity. America Online (or AOL for short) provided a custom Internet experience for users before web technologies became commonplace. However, when web technologies became common place, they slipped quietly into the mist of the history of the Internet. There are a number of reasons why this occurred, not the least of which was an unfortunate merger with Time Warner, Inc. However, I would like to focus on two specific elements.

First, they built their business on a propriety layer of Internet technology. When open source Internet technologies became available they were hit by a double whammy. They had to advance their proprietary layer in attempts to keep up a rapidly evolving technology rather than assuming the technology and building on top of it. I think it was Fred Brooks who said that we have to learn how to stand on each other's shoulders in this field rather than stepping on each other's toes. It was good advice then. It is good advice now. And it will probably always be good advice. The other part of the propriety whammy is that developers are generally not interested in relying on a propriety infrastructure for their applications. So, not only did the infrastructure move in a different direction, it took the applications with it.

The second element in their flawed strategy was a focus on the social aspects of the technology rather than the business aspects. AOL provided email, chat rooms, groups, and all sorts of features to enhance the social experience. At the same time, they virtually ignored the business aspects such as online transaction support, group decision support, distance education or any number of other business applications. So, when the fickle social crowd drifted off to their next thrill, AOL was left holding an empty bag.

I say this because I see strong parallels between the AOL strategy and the strategy of Linden Labs for Second Life. In the early 1990's AOL was the Internet force to be reckoned with. A decade later most had forgotten its name. In 2006, Second Life was the emerging name to be reckoned with. I wonder what its status will be in 2016.