BV: Thanks for both links. I've really just begun to DD Groove, so I found the Globe article to be especially interesting. My sense, at this point, is that Groove ultimately intends to be more than an "application" or a family of applications; rather, I think it aspires to be a technology platform that defines standards and protocols for developers to build both consumer and business applications (loosely, sort of an operating system for peer-to-peer collaboration). The Globe article shows some of the exciting possibilities on the consumer side of the equation. (In fact, going one step further: if the Groove platform is sufficiently robust, then it wouldn't surprise me to see AOL re-build Instant Messenger on the Groove platform some day.) There would seem to be equally exciting opportunities on the business side as well.
In my view, the potential threat to CTRA is actually twofold: first, Groove Networks itself might develop competing applications; second, the Groove platform may establish a standard for online collaboration that CTRA would need to build for in order to remain competitive. Actually, there's also a third factor that's potentially threatening: the emergence of the Groove platform could attract enough attention to online collaboration that it brings new competitors into this space.
All of this said, please don't get me wrong regarding CTRA: I've certainly been impressed with CTRA's business execution to date. They're delivering top-notch products to market, and they're delivering excellent financial results to the investment community. And we're really just in the first inning of the online-collaboration game. (I could relate to the Globe writer's remark about being early to the game; I have also loved this space forever, it seems, but have been waiting for the elements to fall into place for this market to explode.) I continue to believe that CTRA could ultimately be a big winner, because I think online collaboration will eventually become part of the base communications infrastructure for businesses everywhere -- like the telephone, the fax machine, and the water cooler. But the competition in this field is intense, and it's important to be cautiously realistic in the face of emerging trends, such as Groove. |
