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Business lessons from Whatsapp you can learn today

Business lessons from WhatsappWhatsapp is one of the most successful internet businesses of the current times and you can learn amazing business lessons from Whatsapp. While Yahoo was sold for approximately $5 billion to Verizon, Yahoo alums Jan Koum and his partner sold their leading messaging app to Facebook for a whopping $19 billion. Recently a question was raised on Quora regarding Whatsapp paying Twilio $166 million every year. One of the answer really stands out.

“WhatsApp has the highest market-cap per employee in the world. When WhatsApp sold to
Facebook, it got a price of approximately $400 million per employee!!! That’s certifiably amazing.”

The reason Whatsapp has been able to do that is because from the beginning, Whatsapp wanted to be a lean company. As a result, it uses Twilio for its telephony services just as Netflix uses Amazon aws services. While building these infrastructure might be cheaper in-house, it would lead to hiring hundreds of new people for developing and maintaining the infrastructure. Keeping fewer employees keeps the company lean. This allows most of the employees to be part of the core team enabling the company to move faster.

Companies like Whatsapp stand as an example that if you try to align yourself with the theme of Service – Oriented Architecture (in SOA, the code is more self contained and engineers are able to understand it better) and use Service Oriented Companies (SOCs are companies like Twilio which provide API that can be plugged into your product), you are more likely to succeed than others.

Build only when truly required, use quality outside solutions always when it makes more sense to use them.



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