But Zuora is betting on a computing trend: that as more applications move to the cloud in coming years, the natural corollary is that developers will follow the money and necessarily move in the same direction.
Even on Facebook.
"There are 140 new applications a day on Facebook because it's so easy and so viral a platform," Zuora CEO Tien Tzuo said. "But is anyone making money on Facebook?"
Probably not many. While developers have built profitable businesses on cloud-based platforms, such as Amazon Web Services, Salesforce.com's Force.com, and Google AppEngine, the same can't be said of Facebook. That's a source of no small amount of frustration for developers hemmed in by Facebook's restrictions on placing ads on the service (not to mention the relatively low advertising rates for in-application ads on the service.)
That does not preclude the possibility that someone will find a way to unlock the potential of the so-called Facebook Economy. But so far, it's more of a scenario than a reality. Tzuo, who is about to give it a shot, argues that if each active user on the service had a $1 monthly subscription, that scenario could turn into a reality with more than $1 billion in annual subscription revenue.
So it is that on Monday, Zuora is debuting a cloud-based service at the Demo conference. The product, called Z-Commerce, consists of different modules that a developer can use to set up and manage a subscription service on Facebook. Z-Commerce also comes with pre-built widgets that can get plugged into existing Facebook apps without the need for additional code work.
For its part, Zuora assumes responsibility for the back-end arrangements, including billing and payments. The ambition is large: to attract enough Facebook developers to the idea and transform their applications into subscription services. If enough of them conclude that this is an idea whose time has come, Tzuo believes that Facebook can actually evolve into an enterprise cloud computing platform.
A tall order, to be sure. Still, I'm sure Mark Zuckerberg wouldn't have any issues if that came even halfway true.
Her post deserves to be quoted at length:
When in a twitter I bemoaned the lack of original reporting (only one reporter (cnet) and exactly zero bloggers writing this week about this silly DEMO v TechCrunch episode actually contacted me), the infamous blogger Robert Scoble suggested that if I'd blog my opinion, he'd link to it. Does that mean that a perspective only exists or matters if it's expressed in a blog post? Or that Robert's just moving too fast to do any investigation outside his narrow medium?Scoble's not the only guy living in the rarefied air of the echo-chamber. Sarah Lacy, who works for the much-respected Businessweek.com, conducted a five-minute video interview with TC50's Mike Arrington and Jason Calacanis, during which the two leveled the usual slander. Did Lacy fire one tough question at the two? Did this journalist call me or the DEMO organization to get a response to serious accusations? Um, the answer to that would be "no."
In fact, a few weeks ago, when Mike Arrington wrote an assumption-based and error-filled story that demanded an apology from the DEMO organization for a comment that was clearly not made by or on behalf of anyone at DEMO, Lacy picked up the story and wrote with righteous indignation that slander was the highest insult that could be leveled against a journalist. Did she call me or DEMO before posting her story? Again no.
Par for the course.
Not that any of what she wrote today is going to make a whit of difference to the mob baying for her head, but the bloviators choosing sides in this staged "controversy" are attacking one of the good guys (or in this, gals) in the technology business. How do I know? Full disclosure: I got to know Chris in the early 1990s when we worked together on a pre-Internet online publishing platform. Suffice it say that she's a straight shooter with loads of integrity, the sort of person my father would describe as "a mensch."
Is Demo making a buck on the backs of entrepreneurs? You bet. They also get to strut their stuff at a high-profile venue. Arrington and Calcanis are smart guys and my guess is that they're not putting on TechCrunch 50 solely out of the kindness of their hearts. If all this results in a wider venue to startups, more power to everyone concerned. I'll leave it at that.
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