Can giants shrink?

The mere act of listing the web properties of Yahoo!, Google, Amazon, and AOL would not be a trivial process. Those companies collectively have hundreds of fingers in hundreds of pies. Their audiences if anything expect these web giants to get only bigger, to continue creating and purchasing innovative new products. Sometimes, however, even an Atlas shrugs. What should a giant do if they find themselves providing a service which has not been as successful as they would like? Should they be cavalier in pulling the plug or prop up redundant and struggling sites indefinitely?

There are three reasons why I think giants should not allow themselves to shrink if they can possibly avoid it. First of all, the closure of any service pisses off happy users of that service, and even the "unsuccessful" services of a powerhouse like Yahoo! or Google often have thousands of users. Yahoo! may have thought Yahoo! Photos was no longer needed because of its acquisition of Flickr, but plenty of disgruntled users still think Yahoo! Photos was better. Secondly, closing sites creates distrust. For instance, there has been a steady stream of questions on Yahoo! Answers asking about whether Yahoo!'s new social networking offering, Mash, will replace Yahoo! 360, such as this one. This is not such a good thing -- the arrival of a new service shouldn't make existing users panic and ask, "Does that mean this old service that I use is going to go away?" Personally, I was really reluctant to start using Google Page Creator because of Google's killing of Google Answers...but Google, in my opinion, has done the right thing in keeping Google Video running alongside YouTube. Google Video is becoming more of a search engine for video than a video host, and it's still really useful. Thirdly, a shrinking giant creates opportunities for other competitors. For instance, many ex-Google Answers Researchers can now be found at Uclue, a paid answers service created after Google Answers was shut down.

I wouldn't argue that maintaining a costly service that shows no signs of generating profit is good business practice or makes good sense, but the costs of closing a service extend beyond the costs associated with maintaining the service. In general, I think the closing of any service should be approached very cautiously, and those services that users really, really care about (email or blog hosting, for instance) should probably NEVER be closed unless the provider is planning to quit the Internet. Closing Google Answers makes some sense to me; as a commercial service, it required both maintenance and promotion in order to be successful, but the majority of Web surfers seemed to prefer Yahoo! Answers' noncommercial and open version of an answers-type site. The closing of Yahoo! Photos doesn't make as much sense to me -- a little redundancy never hurts, especially in this case where people's personal pictures were the assets being played with by the web giant.