What is the major reason why Facebook has quickly increased its computing power? Multiple choice question.
A To increase network congestion
B To eliminate at or near zero pricing
C To combat negative network effects
D To create product differentiation
The correct answer and explanation is:
The correct answer is C: To combat negative network effects.
Explanation:
Facebook, as a platform that relies heavily on user interaction, faces what is called negative network effects. In simple terms, this means that as more people join Facebook, the platform may experience slower performance, more traffic congestion, and a decrease in the quality of user experience. This is because the sheer number of users can lead to data overload, network bottlenecks, and slower response times.
To address these issues, Facebook has rapidly scaled its computing power. By investing in data centers, cloud computing, and advanced algorithms, the platform can handle a larger volume of data while ensuring that users experience a smooth, fast, and uninterrupted service. This not only prevents the decline in user satisfaction but also enhances engagement by offering faster loading times, better recommendations, and a seamless experience across devices.
Moreover, the scale of computing power helps Facebook address issues of data privacy and security more efficiently, which has become increasingly important as the platform grows and stores more user data. With powerful computing infrastructure, Facebook can process vast amounts of information in real-time, provide targeted advertisements, and deliver personalized content, all while maintaining the quality of user experience.
Thus, the major reason for increasing computing power is to combat negative network effects, ensuring that Facebook remains scalable, responsive, and able to accommodate growing user demand without sacrificing quality.