Facebook and Google have been competing with each over more than just social networking. Facebook is growing from 300ish employees today to 700 next year. And the best place to get good engineers and others is Google, where many have already vested on their stock options and are looking for the next big hit.
Facebook has already claimed Youtube CFO Gideon Yu, eCommerce Product lead Benjamin Ling and GDrive developer Justin Rosenstein.
But Ex-Googler’s inside Facebook are saying that the problem goes further than a few high profile exits caused by vesting stock. Facebook just seems a hell of a lot “sexier” than Google (see Rosenstein’s exit email). A steady stream of Google employees are making the switch to Facebook, and competition for top college grads is fierce as well.
Senior VPs at Google have dubbed it “the Facebook problem” according to a number of sources. At least ten “top performers” have made the switch over the last two months. Ex-Googler’s expect to continue seeing at least two to four more leave for Facebook each month. That doesn’t sound like much, but Facebook is targeting the cream of the crop. The best Googler’s are being actively recruited, and many are leaving.
Our sources are also saying that Google has been aggressively countering Facebook offers with offers of stock units (GSUs). The options weren’t enough for one Google employee, who says he was getting promoted quickly and hitting huge bonuses with high priced stock. But he says “it’s not just about the money. Entrepreneurs want to work at the hottest place on earth and right now that’s Facebook.”
What drivel and who the heck cares…take these same people…put them in other employment positions ( besides Facebook and Google ) and they’d likely just be good to very good but not superior players.
Facebook makes a hell of an impression on people, and right now Google is clueless on its next big product.
Facebook problem” according to a number of sources. At least ten “top performers” have made the switch over the last two months. Ex-Googler’s expect to continue seeing at least two to four more leave for Facebook each month. That doesn’t sound like much, but Facebook is targeting the cream Of course I am not talking about Microsoft Employee
have to also remember that they bring along lots of google secrets.
I’m not sure he really meant ‘Entrepreneurs want to work at the hottest place on earth and right now that’s Facebook.’ I’m sure it’s true of the people who migrated to Facebook from Google, but I don’t know if it’s true of entrepreneurs.
The entrepreneurs I know don’t seem to want to work for large companies. Mostly they want to work for themselves.
Perhaps he meant ‘ambitious serial employees’.
The whole social networking thing has really passed me by. I just don’t get the Facebook/ myspace fad.
dubber – agree, although it was a quote so not our word choice.
I think entrepreneurs don’t work at large companies by definition.
There’s a certain scent of title inflation here, though. Quicker laterals by bouncing between companies…just like 1999!
Right, I’ve read about this a lot but how much further can FaceBook really go?
Are they trying to become the next Google?
What do they really want with all the Google staff?
I just wanna know what the plan is… if there is one.
Agree with #4. I don’t know of any entrepreneurs that would be content just working for a big company, especially an overvalued, overrated company like Facebook. “It’s not just about the money” because they’ve got boatloads of it thanks to GOOG. They can afford to jump on a bandwagon that’s about to lose it’s wheels, as long as they’ve got a business card with “sexy” company name on it.
if you ask me, they’re acting like ho’s jumping into bed with the coolest guy of the moment.
If i run a company i wouldn’t employ such people no matter how talented they may be. if i had to, it’d have to be on a temporary basis and not in senior positions.
The best part about this all is that facebook is actively advertising jobs to all the people who have google mailing addresses. Its great how you can use your own targeted ad system to steal employees away.
I’ve read an article once that claimed that the next big company that will dethrone Google will probably start from within Google.
This is all due to 1 fact, an employee in Google doesn’t get the attention he think he should get.
Imagine this employee get a day in a week to work on his idea, what’s the chance that his idea will mature and get allocated the resource to make his dream true? If you account all the other Googlers working on ideas as well, it might be something like 0.01%.
Feeling you cannot accomplish your dream/idea will make you unhappy and you’ll probably want to switch to another environment where they’ll see your true value and you wont go unnoticed because your company is a huge corporate.
Facebook by actively trying to recruit these engineers, gives them hope, notice them and tap a little bit on their ego, giving them the feeling they can accomplish something and get noticed again after being left aside in Google.
This is a great feeling and anyone will like to be part of a “small” startup, anyone sane at least.
Of course I am not talking about Microsoft Employee
@2: That’s like saying that BMW is clueless when it comes to building anything other than cars and bikes.
Google’s ‘big product’ is advertising; everything they do is about monetizing more Internet traffic. They may have had some missteps here and there, but not because they were trying to reinvent their core business. Anyone who thinks Facebook’s business model is better than Google’s is either out to lunch or can see into the future. I vote for the former.
Face-Who?
“The entrepreneurs I know don’t seem to want to work for large companies. Mostly they want to work for themselves.”
Exact.
I agree 100%. Geeks jump ship. Entrepreneurs build companies.
When a company get’s bigger and bigger, people want to work there so they have more opportunites to get even better positions…
I think lawyers of Justin Long will contact you guys soon for using his picture without his permission
Facebook is very reminiscent of some of the web 1.0 failures in the late 90s. Google is not.
I agree.
Facebook has to become a global phenomena to pose a challenge to Google. Horse trading happens everywhere but usually the bigger company does not get affected because there are always more people willing to work there.
they are just looking for the next big score when Facebook goes public
The people you work around and the networking that can be accomplished via working at Google or Facebook can not be matched!
Build your startup while working here and you will be better off when it’s time to jump ship for your own thing – saying you work at either of these companies in conversation peaks anyone and everyones attention (investors included).
DUH ….. unless you are already filthy rich or enjoy living with your parents
Sorry for oftopic but I have a question, which came up when I was reading this article.
Why don’t you have Google in your CrunchBase data?
anyone else see the irony in this? I bet there are some people at Microsoft laughing their asses off at this.
I really don’t understand what the fuss is about.
#4 Dubber: Perhaps he meant ‘ambitious serial employees’.
This is the best quote I read in a long time… entrepreneurs cringe at working “under” somebody unless it leads to bigger pies in the future or they have some sort of say in how things go (partnerships, leadership roles etc.).
Corporate antics and office politics aside, I think you are 100% right, they are not entrepreneurs, just ambitious serial employees following the biggest names to get another job down the line with more prestige to pad their resumes with.
Jon
NEVER USE THIS GRAPHIC!
You people have offended me, BEWARE!!!
My wife is addicted to facebook, it’s ruining our marriage, lol. Damn you facebook.
Funny, when Google was stealing engineers like Louis Monier from eBay we called it the Google problem. What goes around, comes around.
@Techcrunch:
Did you see Facebook’s newsfeed rating? How lame is that (and I’m a big facebook fan)?
I’ve seen a LOT of valley resumes in my time and they all read similarly (only the names change depending on which path their technology skills lie). Big Company Big Company Medium Company Start-up Big Company Medium company etc. They all jump around. It’s almost strange to see someone staying at one job for 3+ years in the valley.
“Facebook just seems a hell of a lot “sexier””
Can the word “sexy” really be used to describe anything computer/web related?
Cool, hip, whatever. But not sexy.
More to the point, can “sexy” be used to described anything that doesn’t have some kind of limited access?
If Google gets rid of a few employees who use words like “entrepreneur” without having a clue what they mean, won’t the company be stronger for it? Perhaps Facebook will be their equivalent of the B-Ark in Hitchhiker’s Guide (with “entrepreneurs” instead of telephone sanitizers).
Got to love it that Google is getting a taste of being the bitch instead of being the daddy! LMAO
Are you kidding? Next big thing ? How? Are these the same bunch of engineers who designed all failed products at Google which haven’t make any dent to AOL/Yahoo except for Search? If these are not engineers who worked on a google search than; they are hardly going to make a big difference. For all its hype google IS a search engine and advertising company only. Facebook is just a hype and nothing more.
I still don’t get the value proposition of facebook. Why should I use it? Until I can answer that, I really don’t see the point in working there.
The genius of Sean Parker, getting Facebook to move to Palo Alto where it could do all this cool poaching. That guy earned his 5% !!!!
-s
“Our sources are also saying that Google has been aggressively countering Facebook offers with offers of stock units (GSUs).”
How does this work? Why would you tell your current employer that you’re looking around? Haven’t there been studies that show that employees who threaten to leave & then take financial incentives to stay are then quickly marginalized?
Who wouldn’t want to work there… look what they get:
- Medical, dental and vision plans with no premium for employees
- 401(k) plan
- 21 vacation days per year, plus 8 company holidays
- Day care subsidy for parents
- Complimentary catered breakfast, lunch and dinner daily
- Dry cleaning and laundry service onsite
- Free downtown parking permit
- Subsidized gym membership
- $600/month housing subsidy if you live within one mile of the office
- Your option of 15″ Apple MacBook Pro or IBM ThinkPad with large screen LCD monitor
- Worldwide notoriety by having your face on sample Facebook Flyers
this is good for both companies
facebook gets top-grade talent
google gets to learn not to lean too heavily on certain individuals because invariably they leave. most companies learn this lesson in hard times. google gets to learn it while still on top. it is sad, but one key task for a large company is to machine things out so talent is interchangeable…because it is
goes to show you what googlers really think about open social….
what a freakin joke.
Facebook is really kicking butt. By the way, has anyone noticed that Facebook has overtaken MySpace, according to Alexa?
From the Facebook blog about their new social advertising initiative:
1. You now have a way to connect with products, businesses, bands, celebrities and more on Facebook.
2. Ads should be getting more relevant and more meaningful to you.
3. You now have the option to share actions you take on other sites with your friends on Facebook.
#1 above is neat for the stuff that matters to the teen/early 20’s set. Bands, hip fashion houses, skateboard culture. But for the really big money – P&G, Gap, Ford, Coke, etc. – this concept seems to be a stretch. What Gen Y-er is going associate himself to the big money advertisers?
#2 clearly makes sense. Behavioral targeting is smart and will only get better and more pervasive. Facebook does face a question of whether its users’ intent matches the goal of advertisers – clicks and sales. Facebook ads perform worse than general ads. But it does make sense for general branding. The hidden gem here will be extending the user profiles out to its own ad network.
#3 is pretty interesting. This is the idea that your friends’ interests are the best source of new ideas for you. Potential is definitely here. Discovery via the wisdom of your “own” crowds.
Yeah, there’s some interesting stuff here. I can see #2 and #3 getting potential employees jazzed. #1 seems to be limited to niche businesses.
@13
Advertising and monetizing as much web traffic as possible is the common business model of the web, but what happens if consumers start leaving Google as their provider of search results? What happens if consumers decide that they would rather see what their friends are buying to “keep up with the Jones’” versus what new product Robert Scoble is touting on his blog? Google’s success relies on continued traffic but their current success does not equal future results. I think Google did great things with creating a simple search engine which has caused its current level of success as well as ancillary products like Gmail, Gcal, and Google Earth, but the growth that they have realized cannot continue at its current pace for an extended period of time.
Google’s core competency is advertising which starts at home through adwords on their search pages. These adwords rely on Google remaining the top search engine because the more people who are using Google search, the higher the price that they can charge their customers to advertise on the site. They give away ad-supported products like Gmail because if it is successful — which it is, it will bring more people to their site. It is similar to how magazine publishers will give away cheap or free subscriptions so that they can improve their subscriber base for more advertising revenue. This has worked in Google’s short, nine (9) year history but as we have seen in the past with Alta Vista, Yahoo!, and the other search engines, traffic today != traffic tomorrow. Eventually, Google will be unseated by a company that comes up with the next innovative way search. Consumers will use the product that is most popular and unfortunately for Google, what they do doesn’t have the scarcity power that will make them stay on the top forever. Microsoft has that scarcity power with Windows and Office, and with competition from Apple and Open Source products, still have not been unseated from the position that they have held for decades. In my humble opinion, I believe that Facebook is the company that will unseat Google from their perch.
With Facebook, they are disruptive because they are redefining search by making it people centric versus keyword centric. Instead of searching for “new cars” in Google, a Facebook user will search for “Jim Smith”, a friend they know who has been an auto enthusiast for fifteen (15) years. They will go to Jim’s Facebook page, see if he has blogged about new models, see if he has a website discussing the year’s new cars, or even see if he is a fan of any particular automaker. This is an oversimplified example but the possibilities are endless as more users sign up for the service, particularly the older consumers that have been hesitant to adopt it. Outside of its search feature, Facebook has a simple mail program that allows you to view your messages in a threaded format, they have a heavily used photo application which allows you to accurately and easily tag the people you know, and they have a Video application which is rising in popularity that also allows you to accurately and easily tag the people you know. These applications in addition to the diverse catalog from independent developers, are small details that enhance the value of Facebook’s service.
With 50+ million worldwide users, that is a lot of data that Google would love to get its hands on but Facebook data (outside of your name if you so choose) doesn’t come up in Google search. That being said, Google will need to find a way to monetize on Facebook’s content and/or diversify their product offerings in order to remain a top contender in the web game.
- the bootstrap economist.
who cares?
@45 “With Facebook, they are disruptive because they are redefining search by making it people centric versus keyword centric. Instead of searching for “new cars” in Google, a Facebook user will search for “Jim Smith”, a friend they know who has been an auto enthusiast for fifteen (15) years. They will go to Jim’s Facebook page, see if he has blogged about new models, see if he has a website discussing the year’s new cars, or even see if he is a fan of any particular automaker. This is an oversimplified example but the possibilities are endless as more users sign up for the service, particularly the older consumers that have been hesitant to adopt it.”
An oversimplified example? I would really hate to see a complicated example. Normal, sane people simply don’t behave in the way you are describing, or at least not in the kind of deliberate, focused manner that users engage with Google. If I want to ask Jim which car to buy then I’ll probably just ask him.
But hey, it’s web 2.0, so why take one step to achieve something that can be done with 10.
@45 that is a lot of what ifs and frankly these are all hypothetical and remains to be proven.
The fact remains that Google is no sitting lame duck. And if you ask me, facebook better prove they can monetize in ad revenues or they’ll be in big crap.
I do believe that social networking in itself is still unevolved. Frankly, in the connected pc+internet alone. Social networks are just but a waste of otherwise productive time.
Now, if someone builds a killer social app for the wireless handset, unobtrusive and does not hog your time. THAT is something else. I think social networks built with mobility and wireless in mind will be something Google needs to worry about rather than facebook or myspace.
Handsets outnumber pcs easily. You dont need to know how to use a mouse or type on a keyboard. The handset is “very personal”, sometimes we treat is as an extension of our personality.
No, I’m sorry facebook is simply not the next big thing after Google or Wikipedia. its something else.
it seems like a neat scenario to discuss in theory, but it’s not played out enough to warrant a story. plus, these people being discussed are all drones abs wannabes, not the real entrepreneurs. duh.
“If I want to ask Jim which car to buy then I’ll probably just ask him.”
Send him a message through Facebook, Facebook Mobile, or SMS.
The example is to highlight how search philosophy will change in the future. Why use Google and sort through advertisements, targeted SEO results, and general spam when you can search the personal knowledge base of someone whose opinion you trust?
Google is mass media, Facebook is niche communities.