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A new REST endpoint will be coming to SharePoint Online soon. This end point will allow you to fire a “setup script” that will execute all kinds of actions upon a new or existing site. You can get a feel for how it works from this slide: As you can see, it is targeted at site creation and templating, but it can happen at any time. The site script itself will be json based and allow you to define “actions”. These actions have a “verb” and then all the properties that support that verb: Actions that will be supported when its released include the following (notice the “more to come” comment: One of the more exciting features of the site script is the ability to call “Flows” or even send messages to queues which could then fire Azure Functions! This really starts to make things interesting in that your imagination is now the limit as to what you can do.
3rd party vendors reactions will be on both sides of the fence with this (“ah crap, now they can do it”, or, “ohh, what can we do with that?”). I think is it one of the biggest game changers to come along in SharePoint Online and SharePoint land in a long time. Kudos to Sean Squires ) Chris. After two months of reviewing, finally, here is my Microsoft Ignite Review! This is all the stuff I gleaned from the various slides (over 800) from Microsoft Ignite.
Over the past week, I have spent my extra time reading over every article in the GDPR and how it maps to technology (or the lack thereof). Today, Microsoft has released the tool for individuals and organizations to use to “assess” their readiness for the upcoming GDPR articles that are supposed to go into effect on May 25th, 2018. The interesting thing, or not, about this tool is.
It is simply a check list of the articles from the GDPR. In the future it will cover, NIST 800-53, ISO 27001, and ISO 27018. It doesn’t not actually do any checks against your tenant like the tool does to tell you if you are in violation of anythingand nor should it.
This means You still have to do the compliance work! In the absence of any other compliance management focused tools, this is a great start to helping you track most of the things you need to do.
Not only that, but being able to know when a particular article was last checked via the reports is a great way to ensure that a Data Protection Officer (DPO) is not forgetting their responsibilities to “data subjects”. It should be noted that the Compliance Manager tool will not suffice for the “Certification” in article 42 of GDPR.
So you should still be prepared to pay an outside auditing firm to review your code of conduct, data flows, etc. And if you want the full disclosure with T&Cs, you can review what Tina Ying (Office Marketing) wrote. You can even watch a quick video on. Some things I’d like to see added to the Compliance Manager:. Custom policy creation and tracking (for state legislation, etc). Events that filter into the Office Graph or the Office 365 management api for when a compliance goal is met or the task has not been review in x period of time As I’m sure you are painfully aware, there is a.huge.
sales and marketing push by Microsoft and other tech vendors to take advantage of GDPR. Funny thing is most of the people that bring it up haven’t even read the thing and really don’t know anything about it! Which brings me to my next item to point out: Office 365 is (will be) GDPR Compliant The first thing you need to know about the phrase “Office 365 is GDPR compliant”, is that it means “Microsoft” will be covered, not you! Office 365 cannot fix or make you compliant through a simple check list. Microsoft is attempting to make all of their cloud services and products GDPR ready, and at some point they will be sharing everything they learned about their internal journey with us (hmm, I wonder what their Compliance Manager report looks like).
Don’t hold your breath here, by the time they share it with us, it will be too late for you! If you are already familiar with Compliance Manager, you are probably saying “but they provide all these helpful actions for each article”.
Ok, some of these are valid and some are not. The reality is that they only apply to Microsoft 365 cloud services and will not help you with all your systems outside of Microsoft 365. So back to GDPR. Have you read it? I havetop to bottom and vice versa, 3 times, both versions.
What most people don’t realize is that each Member state can override certain articles to make them more strict (like national security, public interest, etc). The date above is for all the changes that a Member State would like to be made to be integrated into their countries legal system. What does that mean? There could be 28 different versions of GDPR after May 25th, 2018! The compliance manager will help you with the high level articles, but the details for each country will be a toss up and I’m pretty sure you won’t see 28 versions of GDPR in the compliance manager. So that all being said W hat do you need to do to be GDPR compliant? A check list tool can help, taking the time to read the articles is better, or, if you prefer not to put your legal hat on, having a consultant like me teach you what’s in it and how to mitigate potential violation(s) is best!
After you have an understanding of it, you will realize: Its a lot. Development re-work, notification systems, records managementa lot. And yes, I said Records Management. When you look at the GDPR, it really is enforcing you to: Implement a “case-based” system for “data subjects” across.all.
your platforms. Just as a side note, “Case-based” records management is a feature long absent from SharePoint or Office 365 “content services”. And no, “Labels” will not help you whatsoever with GDPR. So, net net, if you haven’t started yet, then you won’t make the deadline of May 25th, 2018 (which I’m guessing some countries won’t have the full set of articles legally integrated on that date so you may have more time depending where you or your data subject lives).
I will be posting a presentation soon (about 80% done) that reviews every article and what you should do (if anything) and how a Microsoft product or service “may” help you. The more in-depth version of the presentation will go into development patterns and show you some simple things you can do to implement what I am coining as the “ Data subject action pattern” I will be speaking at DevIntersections about GDPR and how all these articles map to the various Azure technologies and how you must redesign your apps and your thinking to be able to support my new “ Data subject action pattern“. So you decided to install Microsoft Teams eh?
Did you know it is an Electron app? Do you know what you just did? Probably not. Electron is a platform to run node.js and any other supported JavaScript frameworks across multiple platforms. This means any application that utilizes electron will be made up of many different “inherited” technologies and core components.
Each application is required to provide a license file that defines all the “used” 3rd party components. So have you checked to see what you have installed when you installed Microsoft Teams? Its a pretty massive set of frameworks, most open source and available from github. The list is long and “somewhat” distinguished.
If you weren’t aware of what you just did when you installed Microsoft Teams, this blog post puts it into perspective for you. This blog post is also used as a reference for a Teams Desktop App deep dive post later this year. I’ll be updating the usage of each of these components over the next few months and updating as the list changes, so here ya go:. electron.
What is it?. Where did it come from?.
1.7.1. Chromium.
What is it?. Where did it come from?. ffmpeg. What is it?. Where did it come from?. 56.0.2924.87. debug.
What is it?. Where did it come from? Working on some security stuff over the next few weeks and decided to write up a blog post on all the Microsoft Security features. Aka, what they are and what uses them and how you actually find them! You will also realize that the same name is used a couple of times (“Advanced Threat Protection”) and some things aren’t really products but a marketing term for a “set of products”. In some cases, the names have changed so Google/Bing search results are crazy! Someone needs to manage product names with SEO in mind at Microsoft!.
What is it and what does it do?. Allows you store keys used for encryption activities across various systems and platforms. What uses it?. Virtual Machines, Resource Manage template deployments, and Azure Disk Encryption. Used to store your Office 365 bring your own encryption key.
How do you get to it?. What is it and what does it do?.
A proprietary network parsing engine that captures authentication and authorization data. ATA will discover a well known set of attack types such as Pass-the-ticket, Pass-the-hash, Overpass-the-hash, and many more!. What uses it?. It uses other systems (like a span port on a switch). How do you get to it?. ATA is an on-premises software solution ( – amazingly not in the MSDN download center).
You must install it and configure it to monitor the traffic on your network. ATA has to be configured to received data from your SIEM, Windows Event Forwarding and Windows Event Collectors. What is it and what does it do?. Protects your email from various different attack vectors including “possible” zero-day protection. Provides the following:. Safe LInks, Safe attachments, spoof intelligence, quarantine, anit-phishing.
What uses it?. Exchange Online and if enabled, your Hybrid setup of your on-premises Exchange. How do you get to it?. You have to add a subscription that contains this feature, once enabled you will have reports in your Exchange Online portal to view all security events. What is it and what does it do?.
An agent-less built in feature of Windows 10 OS that utilizes “sensors” to analyze user and app behavior to detect anomalies. What uses it?. Windows 10 (v1703+). How do you get to it?. Do a search for “Windows Defender Security Center” on your windows 10 device.
Compliance Manager. What is it and what does it do?. A new tool that will be release later this year that will score your environment on its compliance abilities to common laws and regulations.
What uses it?. Office 365 services. How do you get to it?. TBD.
A. What is it and what does it do?. Allows you to prevent a user or app to login based on policies and threat analytics. What uses it?. Azure Active Directory. How do you get to it?. Open your Azure Portal.
Find the Azure Active Directory you want to configure, select it. Click “Conditional Access”. Office 365 Conditional Access. What is it and what does it do?. Allows you to drill down into the sites in SharePoint Online that you’d like to lock down based on limited policy (Modern Auth, IP). What uses it?.
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SharePoint Online. How do you get to it?. Open your Office 365 Portal. Click “SharePoint”. Click “Access Control”. What is it and what does it do?.
Allows you to use Biometric based factors for authentication. What uses it?. Windows 10+. How do you get to it?. It is a part of the Windows 10 Operating System.
You can enable it with these steps:. Open “Settings”. Click “Accounts”.
Click “Sign in options”. What is it and what does it do?. Only using a password has become bad practice. Enabling both a password and a token are common place (even though many people have not protected their Azure Admin account with MFA!).
What uses it?. Anything and everything that utilize authentication via Azure AD or even Hotmail Passport. How do you get to it?. You can get there by selecting a user in your Office 365 admin page, then click “Manage multi-factor authentication or browse to Azure AD. Tokens are available via the Microsoft Authenticator app (, ). What is it and what does it do?.
This tool will monitor your employee application usage (including cloud based apps) and give you an idea of what rouge IT solutions may be lingering on your network. A Cloud App catalog can be constructed that would allow you to trust or untrust applications. Example, If you have chosen OneDrive as your personal file solution, then all instances of Box and DropBox should be disallowed (after migration of course). What uses it?.
It runs behind the scenes gathering data and information on the apps that are running on your users computers. The data that is gathered is anonymous so that you abide by various new laws (such as our friends in the EU have enacted). How do you get to it?.
What is it and what does it do?. Allows you to control the type of data that is being sent from your Office 365 environments. What uses it?. Exchange, SharePoint, Skype.
How do you get to it?. Login to the center. Click “Data Loss Prevention”. What is it and what does it do?. It prevents Microsoft engineers from accessing your content in Office 365. What uses it?. Office 365 systems.
How do you get to it?. Open your O365 admin portal.
Expand the “SERVICE SETTINGS” node. Click “Customer Lockbox”. Toggle the switch to “On”. NOTE: When a Microsoft Engineer needs to access your environment to fix an issue, be aware that the Customer Lockbox requests have a default lifetime of 12 hours, after which they expire.
What is it and what does it do?. An extension to the Information Rights Management (IRM) conversation. WIP is designed to be seemless. The idea is that data that starts on your network should stay on your network.
If it needs to go somewhere else, then policy should define the rules. WIP does this. What uses it?. Windows 10 (v1607+) with all Microsoft Office products and Microsoft Edge.
Universal Windows Apps support WIP but have to be enabled to do so (Microsoft is working with 3rd parties). Azure Rights Management (cloud based IRM) will kick in if your have to share data outside your network (such as with Business Partners). How do you get to it?. You can enable WIP by configuring a policy in your Intune portal or utilize System Center Configuration Manager (SCCM) – steps. What is it and what does it do?.
Encrypts all the blobs in your storage account using an encryption key. What uses it?. Azure Storage Accounts. How do you get to it?.
Go to your and select “Storage Accounts”. Select a Storage Account. In the properties window, select “Encryption”, click “Enabled”. NOTE: If you are missing the “Encryption” node, then is could be:. The storage account is “classic”.
The storage account is not “Blob Storage”. NOTE: You cannot utilize your own key with this services (aka, no BYOK).
NOTE: If you enable after you have created an account, only new blobs are encrypted!. NOTE: It is also possible that the Azure Security Center may “recommend” you enable encryption for your older storage accounts.
What is it and what does it do?. A group of features. Combined they lock down a system such that only trusted applications are allowed to execute, thereby preventing malware from ever running on your computer.
What uses it?. Windows 10 and Windows Server 2016 operating systems. How do you get to it?. You have to have UEFI running in Native Mode on Windows 64bit, Second Layer Address Translation (SLAT) and Virtualziation Extensions (Intel VT or AMD v) and preferably with a Trusted Platform Module (TPM). Install the “Hyper-V Hypervisor” feature. You have to create a Code Integrity Policy and then deploy it to the targeted systems.
This file is called SIPolicy.p7b and lives in the C: Windows System32 CodeIntegrity or Microsoft Boot for UEFI computers. NOTE: These policies can get very complex very fast, check out all the stuff you can do. What is it and what does it do?. Prevents credential theft attacks such as Pass-the-Hash or Pass-the-Ticket. Sets up a virtualization like approach to allow only access to the system software that should be able to get to them.
Uses the new Virtual Secure Mode (VSM) to secure data in memory, also called Virtualization Based Security (VBS). What uses it?. Any software that has to do NTLM or Kerberos authentication.
How do you get to it?. This is a part of the operating system in Windows 10 and Server 2016. What is it and what does it do?. Ensures that all software loaded at boot time is trusted.
No “Bootkits” can be loaded. What uses it?. Pretty much all of the latest hardware (laptops, servers) have a UEFI bios now, so you get this by default. You can turn it off, but you would only do so if your operating system was not a part of the trusted set of software. How do you get to it?. When you computer loads, jump into the UEFI bio settings, from there you can turn it on or off. Unless you have a really special Linux distro (or your own) you should probably leave it on!.
NOTE: Secure Boot does not require a TPM. What is it and what does it do?.
It is the steps after the Secure Boot process ends. It makes sure that all the Windows OS level items are secure and trusted. No “Rootkits” can be loaded. These include:. OS Loader, Kernel, System drivers, System Files, ELAM Driver.
What uses it?. Windows 8.1+ and Server OSes. How do you get to it?. Nothing to “see” here. What is it and what does it do?.
It is a subscription in Office 365. It is not “technically” a product, but a set of services that will light up in your tenant if you purchase it. What uses it?. Office 365 and Azure (in terms of “lighting up” available services). How do you get to it?.
Open your Office 365 portal. Click “Billing”. Click “Subscriptions”. Click “Add subscription”.
Search for “Enterprise Mobility + Security”. Select it, Buy It!. What is it and what does it do?. It allows you to do some really basic mobile device policy enforcement such as password requirements, data encryption, no jail broken phones.
You can also enforce things like blocking cloud backup, screen capture, app store, and bluetooth. What uses it?. Policies are enforced by the applications you download such as Outlook for iPhone, etc. How do you get to it?.
Open the. Expand “Data loss prevention”. Click “Device security policies”.
What is it and what does it do?. Microsoft’s hard core MDM solution. It goes waaay past the basic MDM you get with Office 365.
Intune adds many more features and functionality around device management such as windows updates and software push aka Mobile App Management (MAM). What uses it?. Any registered or unregistered devices that want to access your cloud services. How do you get to it?. Open your Office 365 portal, in the “Admin Centers”, select “Intune” or just go to the. Intelligent Security Graph. What is it and what does it do?.
Marketing term mainlynot really a product. It is a network of security related systems and events that are continually analyzed to determine what attackers are trying to do against the Microsoft Cloud Infrastructure. What uses it?.
Nothing you are directly exposed too. This is a behind the scenes system of systems that uses various algorithms to find attack patterns. How do you get to it?. Its abstracted away from you, nothing to see hereliterally. What is it and what does it do?. It is the log aggregator for all Azure services.
Any future products will also send their data here. What uses it?. All Azure services are monitored by Azure Monitor.
How do you get to it?. It has many entry points to gain access to the monitoring data. Azure Portal, PowerShell, CLI, REST and a.NET SDK. What is it and what does it do?. Evaluates your Azure subscriptions for several categories of security. High Availability, Security, Performance, and Cost. What uses it?.
Nothing technically uses this feature, but it does provide you will recommendations on how to best use Azure and its many features in an optimal manner. How do you get to it?. What is it and what does it do?. Protects your Azure Databases from potential internet based threats. This can be super helpful for when you want to ensure that your developers have actually followed best practices when designing the applications that make calls into your database. What uses it?. Azure SQL Databases, possibly other db platforms in the future.
How do you get to it?. Open your Azure Portal.
Navigate to the “” category. Select your SQL Database. Click the “Auditing and Threat Detection” node.
Toggle the buttons to enable “Auditing” and “Threat Detection”. NOTE: It costs $15/server/month. (aka Network Watcher, aka Network Performance Monitor). What is it and what does it do?. Similar to the Solarwinds Traffic Analyzer and Network Performance Monitor, Azure Network Monitor allows you to setup monitors between services and servers in your Azure instance.
You can also monitor your ExpressRoute traffic if you have that setup. What uses it?.
Nothing really uses it other than you. How do you get to it?. What is it and what does it do?. This tool will evaluate your Office 365 tenant and compare your settings and service configurations to over 364 different reference points. What uses it?. Nothing uses it, its another recommendation tool like Azure Advisor.
How do you get to it?. What is it and what does it do?. Its your SCOM server in the cloud, only, much cooler! You can utilize events to fire off configuration tasks similar to how SolarWinds uses its NCM product to push configurations to Cisco devices.
OMS is not really a single product, but a set of services, these include:. Log Analytics. Automation.
Backup. Site Recovery. What uses it?. OMS uses everything else. It can make changes to your infrastructure based on the data it is receiving. How do you get to it?.
Open your Azure Portal. The OMS services are under the “MONITORING + MANAGEMENT” category.
You may run into an issue with your Nintex Services not starting on your non-central administration servers as in this image: You can attempt to browse the web and Nintex support pages, but they will be of little help:. It turns out that the services did not get installed as part of the solution deployment. In otherwards, the Nintex Services are missing on your SharePoint server.
In this case, you have to install the services manually in order to start them and have your server be compliant. You always wondered why, but then you were never in the healthcare industry or work at an exec level to know how the tech systems work at a typical hospital Here’s a quick education into the healthcare disaster! When you go into the hospital, a chart is written up based on your comments and the doctors evaluation and actions (draw blood, tap your knee, whatever). This chart is then translated into a series of medical codes so they know how to charge them to you or your insurance. The charts are evaluated by a series of medical “coders”, no, they don’t know C# or Java or JavaScript, they just match the words to “codes” (ICD9/ICD10). Each chart is “coded” to a specific set of codes. The codes are then sent off to the billing system.
The billing system will match the codes to the patients insurance (or lack thereof) such that the base charge rate is multiplied times a discount (or again, a lack thereof) or “forced” charge amount for that particular insurance contract (Blue Cross, Medicaid, Medicare, etc). Most insurance companies want a “discount” on your particular services codes. They can negotiate or force (depending how big they are) just about anything for a set of codes. The crazy part about this is that the base rate that the hospital charges (the “charge master” database system) is pretty much a let’s run a sql query against the database and increase everything by 7% EVERY YEAR (or some rate adjustment, possibly matching inflation or exec board discretion).
You should be saying”wait what”? Yup, every year, a non-qualified individual will increase the pricing of stuff because the execs tell them too. Remember the movie “Independence Day” when the jewish guy says something about the price of the hammeryeah$400 for a hammer.
Aka, $20 for a bandaid! Because the charge master simply gets incremented by a percentage every year in a blanket fashion!
Okso the charge master is broken. That’s where the government comes in. Obama actually kicked some serious ass with this.
He forced certain codes to be charged at a base rate that is run by the government (and you have to follow them for any ACA insurance policies). If you send in a bill with a code that has a price over the base, REJECTED! It forced everyone to reevaluate their charge masters (at least for government stuff).
I applaud him for that. Buthere’s the kicker. The “coders” that “code” your chart. Those people are instructed to interpret the words in such a way that they can set the chart to match the most expensive codes! Even though those codes may not even really match!
It’s up to the patient and the insurance company to do a review of the worded chart to see if the codes have been applied appropriately! This review happens very rarely. Now that I know how this works, believe meevery time I go into the doctor’s office I ask for my chart and the codes that were sent for it.
I actually got $250 back for this last visit! What else happens? Oh, execs and doctors are “spiffed” for overdoses of various items.
Example, you get bit by a snake and need the anti-venom, guess what, you only need one dosebut how many do you actually get? Anywhere from 1-5 doses! Each dose (back in the day) can be up to $20K each.
Where does the money go? The doc, the hospital and the execs get a kickback!
Yupthere is shadiness that occurs for all kinds of things. And that is your 10 min run down of how corrupt the medical system in America is and why we don’t have universal health care, everyone has a different charge master that no one can agree to the price of anything! Chris Posts navigation.
Diagram showing the network effect in a few simple phone networks. The lines represent potential calls between phones. A network effect (also called network externality or demand-side economies of scale) is the positive effect described in and that an additional user of a or has on the of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it. The classic example is the, where a greater number of users increases the value to each. A positive is created when a telephone is purchased without its owner intending to create value for other users, but does so regardless. Work similarly, with sites like and increasing in value to each member as more users join.
The expression 'network effect' is applied to positive network externalities as in the case of the telephone. Negative network externalities can also occur, where more users make a product less valuable, but they are more commonly referred to as 'congestion' (as in or ). The network effect can create a as the network becomes more valuable and more people join, resulting in a loop. Contents.
Origins Network effects were a central theme in the arguments of, the first post patent president of, in gaining a monopoly on US telephone services. In 1908, when he presented the concept in Bell's annual report, there were over 4,000 local and regional telephone exchanges, most of which were eventually merged into the Bell System. The economic theory of the network effect was advanced significantly between 1985 and 1995 by researchers Michael L. Katz, Carl Shapiro, Joseph Farrell and Garth Saloner. Network effects were popularized by, stated as.
Metcalfe was one of the co-inventors of and a co-founder of the company. In selling the product, Metcalfe argued that customers needed Ethernet cards to grow above a certain if they were to reap the benefits of their network.
According to Metcalfe, the rationale behind the sale of networking cards was that (1) the cost of the network was directly proportional to the number of cards installed, but (2) the value of the network was proportional to the square of the number of users. This was expressed algebraically as having a cost of N, and a value of N². While the actual numbers behind this definition were never firm, the concept allowed customers to share access to expensive resources like disk drives and printers, send e-mail, and access the Internet.
Author, high-tech entrepreneur presented a mathematical model for describing networks that are in a state of positive network effect at BlackHat and Defcon in 2009 and also presented the 'inverse network effect' with an economic model for defining it as well. Benefits Network effects become significant after a certain subscription percentage has been achieved, called critical mass. At the critical mass point, the value obtained from the good or service is greater than or equal to the price paid for the good or service. As the value of the good is determined by the user base, this implies that after a certain number of people have subscribed to the service or purchased the good, additional people will subscribe to the service or purchase the good due to the value exceeding the price. A key business concern must then be how to attract users prior to reaching critical mass.
One way is to rely on extrinsic motivation, such as a payment, a fee waiver, or a request for friends to sign up. A more natural strategy is to build a system that has enough value without network effects, at least to. Then, as the number of users increases, the system becomes even more valuable and is able to attract a wider user base. Beyond critical mass, the increasing number of subscribers generally cannot continue indefinitely.
After a certain point, most networks become either congested or saturated, stopping future uptake. Congestion occurs due to overuse. The applicable analogy is that of a telephone network. While the number of users is below the congestion point, each additional user adds additional value to every other customer. However, at some point the addition of an extra user exceeds the capacity of the existing system.
After this point, each additional user decreases the value obtained by every other user. In practical terms, each additional user increases the total system, leading to, the inability to get a, and poor. The next critical point is where the value obtained again equals the price paid. The network will cease to grow at this point, and the system must be enlarged.
The congestion point may be larger than the market size. New technological models may always defy congestion. Peer-to-peer systems, or 'P2P,' are networks designed to distribute load among their user pool.
This theoretically allows true P2P networks to scale indefinitely. The P2P based telephony service benefits greatly from this effect (though will still occur).
Network effects are commonly mistaken for, which result from business size rather than. To help clarify the distinction, people speak of vs. Economies of scale.
Classical economies of scale are on the side, while network effects arise on the demand side. Network effects are also mistaken for. The network effect has a lot of similarities with the description of phenomena in reinforcing positive feedback loops described in. System dynamics could be used as a modelling method to describe phenomena such as and of marketing.
Network effect is a benefit to society as a whole because it positively relates to and affects the Intellectual Commons, Property Rights, and Cultural Commons of the world. One form of network externality is social media, which is a peer-to-peer network ran by a privately held for profit business. Although the creation of a large network creates a barrier to entry according to and may prevent a few from creating a new form of P2P networking, it largely benefits society as whole and provides a new form of a common-pool resource so largely scalable that the entire world has the ability to use it. Although the barrier to entry may be high, there is no true form of monopoly in the P2P social sharing market. For example, Facebook holds a large stake in the P2P social sharing market, but it is not mutually exclusive, meaning users can have an account on Facebook and also have an account on Twitter. Furthermore, there becomes no true critical mass in this space due to the ability for technology and innovation to constantly adapt to different environments, market for underdeveloped countries to integrate with social sharing is unlimited. Network effect relates to the intellectual commons in a positive way.
Through P2P networks users are able to share their intellectual property in a way that can benefit society as a whole.The sharing of ultimately relates to economic growth due to the ability for creators to share information and still possibly benefit financially from it. Through P2P networks people are able to share types of education like scholarly articles, becoming a new form of public commons.
Network externality like Ted.com is an example of how intellectual commons with the use of network externality benefits society as a whole. Those who present intellectual property at Ted conferences are sharing their education on a public forum that benefits whoever will listen. Therefore, the larger Ted.com network becomes positively correlates to those who benefit from its common-pool resources. P2P networks positively affect property rights. In reference to, it enables those who create the intellectual property: The right to use the good, The right to earn income from the good, The right to transfer the good to others, The right to enforcement of property rights.
Through P2P networks those who provide intellectual property not only have these rights, but they also possess the right to claim their information on a public forum. Due to these rights sharing benefits the intellectual property holders and promotes P2P sharing in a positive way. Those who consume the intellectual property also benefit positively from the sharing of it because they are able to use the information freely with respect to the person who created it. An example of this system in effect is a company called. Music Vault operates on the P2P network Facebook, enabling users who create music to openly and freely collaborate with other artists content.
This is a form of remixing that benefits both parties. This is an example of how a P2P network positively affects the sharing of property rights. Stiglitz essay Prizes, Not Patents, he suggests that the creation of intellectual property should be rewarded with by social gratification and rewards instead of patents preventing others from duplicating the creation and sharing it as a common-pool resource. This can be related to P2P networking because it creates a greater incentive for those who create intellectual property to share it is a common-pool resource. As a P2P sharing network becomes larger the gratification of being rewarded on a global public forum would compete with a patent. It is through large P2P networks and network externality that humans can create a reward system large enough to deter seekers of patents to be rewarded in different ways. Network Externality positively affects the cultural commons in many ways.
The reward for being part of a group, society, and even the world through a P2P network is one of the greatest benefits that a modern common-pool resource can provide.The ability to connect and create with people from different cultures, ethnicities, and beliefs is something thought to be impossible 100 years ago. Without network externality this form of communication would have been impossible. Through P2P sharing the world as a culture are able to learn and teach each other through public forums. In Sugata Mitra’s Ted talk, “The child-driven education” he placed a computer in a third world town and left it there to see what would happen. To his amazement children were able to quickly figure out how to use the computer and educate themselves on its inner workings. This example is a benefit to society for several reasons.
The first is the relationship between Sugata Mitra and the P2P network which led him to place the computer in a third world town, along with the ability to present his findings on a public forum. Secondly, it is those who consumed his ted talk and benefited from the knowledge that those in third world countries just need a chance to learn and they will take it. This experiment as a whole brings the culture of the world together and connects us with those we thought impossible due to the P2P network and network externality that led individuals to the Ted talk. Technology lifecycle.
See also: If some existing technology or company whose benefits are largely based on network effects starts to lose market share against a challenger such as a or based competition, the benefits of network effects will reduce for the incumbent, and increase for the challenger. In this model, a tipping point is eventually reached at which the network effects of the challenger dominate those of the former incumbent, and the incumbent is forced into an accelerating decline, whilst the challenger takes over the incumbent's former position. Lock-in Not surprisingly became a hot topic after the diffusion of the across. Most people know only of as part of network effects.
Network effects are notorious for causing with the most-cited examples being products and the keyboard. Vendor lock-in can be mitigated by opening the standards upon which users depend, allowing competition between implementations. This does not, however, mitigate industry-wide lock-in to the standard itself. Indeed, as there are now multiple vendors driving down the price and increasing the quality, more users are likely to adopt the standard thereby creating greater industry-wide lock-in to the standard.
Types of network effects Broadly, there are two kinds of networks effects:. Direct network effects: An increase in usage leads to a direct increase in value for other users. For example, telephone systems, fax machines, and social networks all imply direct contact among users. A direct network effect is called a same-side network effect. An example is online gamers who benefit from participation of other gamers. Indirect network effects: Increases in usage of one product or network spawn increases in the value of a complementary product or network, which can in turn increase the value of the original. Examples of complementary goods include (such as an Office suite for operating systems) and DVDs (for DVD players).
This is why Windows and Linux might compete not just for users, but for. This is also called a cross-side network effect.
Most two-sided markets (or platform-mediated markets) are characterized by indirect network effects. Additionally, there are two sources of that are relevant when analyzing products that display network effects:. Inherent value: I derive value from my use of the product.
Network value: I derive value from other people's use of the product Negative network externalities. See also: Negative network externalities, in the mathematical sense, are those that have a negative effect compared to normal (positive) network effects. Just as positive network externalities (network effects) cause loops and, negative network externalities create and. In nature, negative network externalities are the forces that pull towards equilibrium, are responsible for stability, and are the physical limitations preventing states from reaching infinity. Congestion occurs when the efficiency of a network decreases as more people use it, and this reduces the value to people already using it. That overloads the freeway and over limited bandwidth both display negative network externalities. occurs when the following counterintuitive phenomenon: removing edges from a selfish routing network can decrease the latency incurred by all of the traffic at equilibrium.
Interoperability has the effect of making the network bigger and thus increases the external value of the network to consumers. Interoperability achieves this primarily by increasing potential connections and secondarily by attracting new participants to the network. Other benefits of interoperability include reduced uncertainty, reduced lock-in, and competition based on price.: 229 Interoperability can be achieved through or other cooperation. Companies involved in fostering interoperability face a tension between cooperating with their competitors to grow the potential market for products and competing for market share.: 227 Open versus closed standards In communication and information technologies, open standards and interfaces are often developed through the participation of multiple companies and are usually perceived to provide mutual benefit. But, in cases in which the relevant communication protocols or interfaces are closed standards the network effect can give the company controlling those standards monopoly power.
The corporation is widely seen by computer professionals as maintaining its monopoly through these means. One observed method Microsoft uses to put the network effect to its advantage is called. Is an start-up which pioneered (IM) and was bought. By giving away their product and preventing interoperability between their client and other products, they were able to temporarily dominate the market for instant messaging. Because of the network effect, new IM users gained much more value by choosing to use the Mirabilis system (and join its large network of users) than they would using a competing system. As was typical for that era, the company never made any attempt to generate profits from their dominant position before selling the company.
Examples. This article is missing information about credit cards. Please expand the article to include this information. Further details may exist on the. (February 2011) Financial exchanges and feature a network effect.
Is a major determinant of in the sale or purchase of a security, as a exists between the price at which a purchase can be done versus the price at which the sale of the same security can be done. As the number of buyers and sellers on an exchange increases, liquidity increases, and transaction costs decrease. This then attracts a larger number of buyers and sellers to the exchange. The network advantage of financial exchanges is apparent in the difficulty that startup exchanges have in dislodging a dominant exchange. For example, the has retained overwhelming dominance of trading in futures despite the startup of US trading of identical futures contracts. Similarly, the has maintained a dominance in trading of Eurobond interest rate futures despite a challenge from. Software There are very strong network effects operating in the market for widely used computer software.
For many people choosing an, prime considerations include how much value having learned that office suite will prove to potential, and how well the software interoperates with other users. That is, since learning to use an office suite takes many hours, users want to invest that time learning the office suite that will make them most attractive to potential employers and clients, and they also want to be able to share documents. Similarly, finding already-trained is a big concern for employers when deciding which office suite to purchase or standardize on. In 2007 released the followed by the app store. Most iPhone apps rely heavily on the existence of strong network effects.
This enables the software to grow in popularity very quickly and spread to a large userbase with very limited marketing needed. The Free-mium business model has evolved to take advantage of these network effects by releasing a free version that will not limit the adoption or any users and then charge for 'premium' features as the primary source of revenue. Web sites Many benefit from a network effect. One example is web marketplaces and exchanges. For example, would not be a particularly useful site if were not competitive. However, as the number of users grows on eBay, auctions grow more competitive, pushing up the prices of bids on items. This makes it more worthwhile to sell on eBay and brings more sellers onto eBay, which drives prices down again as this increases supply, while bringing more people onto eBay because there are more things being sold that people want.
Essentially, as the number of users of eBay grows, prices fall and supply increases, and more and more people find the site to be useful. Network effects were used as justification for some of the in the late 1990s. These firms operated under the belief that when a new comes into being which contains strong network effects, firms should care more about growing their than about becoming.
This was believed because market share will determine which firm can set technical and marketing standards and thus determine the basis of future. Websites are good examples. The more people register onto a social networking website, the more useful the website is to its registrants. Uses a technology that tracks users' surfing patterns; thus Alexa's Related Sites results improve as more users use the technology. Alexa's network relies heavily on a small number of browser software relationships, which makes the network more vulnerable to competition.
Google has also attempted to create a network effect in its advertising business with its Google AdSense service. Places ads on many small sites, such as, using Google technology to determine which ads are relevant to which blogs. Thus, the service appears to aim to serve as an exchange (or ad network) for matching many advertisers with many small sites (such as blogs). In general, the more blogs Google AdSense can reach, the more advertisers it will attract, making it the most attractive option for more blogs, and so on, making the network more valuable for all participants. By contrast, the value of a news site is primarily proportional to the quality of the articles, not to the number of other people using the site.
Similarly, the first generation of search sites experienced little network effect, as the value of the site was based on the value of the search results. This allowed to win users away from without much trouble, once users believed that Google's search results were superior. Some commentators mistook the value of the Yahoo! Brand (which does increase as more people know of it) for a network effect protecting its advertising business. Rail gauge.