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Summary:

After the debacle of yesterday’s on-stage interview with Facebook CEO Mark Zuckerberg at South By Southwest, I decided to take myself out of the process as much as possible by offering up a Q&A. And I’ll tell you right now: When I asked about money, my questions were quickly shot down.

After the debacle of yesterday’s on-stage interview with Mark Zuckerberg at South By Southwest, I decided to take myself out of the process as much as possible by offering up a Q&A. The results below are heavily edited excerpts from my conversation with the Facebook CEO. Instead of grilling him too much about monetization and the company’s $15 billion valuation, we spent most of the time talking about infrastructure, scaling Facebook’s architecture and what the ad platform is going to look like. And I’ll tell you right now: When I asked about money, my questions were quickly shot down.

ME: What does the Facebook infrastructure look like right now as it supports more than 67 million users?

ZUCKERBERG: I can’t talk about the number of servers specifically, but I can say it’s not on the order of hundreds of thousands yet; it’s in the order of tens of thousands. Would you like to talk about how the architecture has evolved over time?

It’s pretty fascinating to see that the evolution of the network architecture pretty much reflects the evolution of the site. When we were in a few colleges one of the theories there was that most of the people would want to talk to people at their own schools, so we set up a network architecture based on the school. We had a Harvard database and web server and routed traffic to them through sub-domains. As time went on, and we reached a reasonable scale, we had to break out into tiered services.

In mid-2005 or so we also started relying heavily on memcached, and today it’s become such an important part of our infrastructure that we’ve actually become the head developers on one of the branches of the code.

At this point in Facebook we’re now running our networks and have multiple data centers across the country, one on the West Coast and one on the East Coast. So we’re working on problems of reducing latency in transferring data from one to the other.

ME: So as you expand internationally will Facebook need an international data center? When?

ZUCKERBERG: That will be something at some point.

ME: Do the applications running on Facebook affect the network? How much of that does Facebook need to support?

ZUCKERBERG: We have an API tier that serves the data requests, but the same servers serve the requests generated inside of Facebook and those form outside of Facebook. We’re trying to blur the boundaries of content created inside Facebook and applications created outside Facebook, and that’s reflected in the architecture.

ME: What challenges will you guys need to address as you scale?

ZUCKERBERG: We put a ton of focus into making sure going forward that our development speed will be very fast. But you know the phrase, “Premature optimization is the root of all evil”? If we spend our time trying to optimize our architecture it could end up being one that’s difficult to develop on and going forward, a big focus for us is making sure that’s not the case.

One of the recent places is internationalization. The infrastructure to do that is pretty fascinating but it has the potential to slow down future development as people ask if they need to develop an application in another language first, so we’ve basically built a wrapper for every string of text and the developer puts a wrapper around that text and we send it to users to translate. So that doesn’t slow down the development speed.

ME: How do you handle quality control?

ZUCKERBERG: In the three cases we’ve done so far (Spanish, German and French), the quality of the translations that we got was actually better. If you wanted to get professional translators it wouldn’t be scalable.

ME: Let’s talk about monetization. You said yesterday that you envision the social advertising landscape evolving over the next 10…15…20 years. How will those ads evolve and when will we start seeing aspects of them on Facebook? And where does Beacon, which you said wasn’t an ad effort, fall into this?

ZUCKERBERG: Beacon was a part of the platform. It was part of this while effort to blur the boundaries between what’s inside Facebook and what’s outside Facebook. Beacon was our first cut at a protocol to do that.

When it comes to social ads we really want to line up what people are trying to do on Facebook and the utility it offers with monetization. If you look at what people are trying to do on the site, it’s communicating and connecting with each other and sharing information, so the business model should be around people sharing information and staying connected.

In banner advertising, people who have developed a trust with the audience run a banner ad and the trust bleeds over to the ad so people pay attention to it.

ME:(making a skeptical face.)

ZUCKERBERG: What? You look like something’s wrong? People go to a content site to see a specific kind of content and will trust those ads relate somehow to it. On Facebook, people aren’t coming to see content from Facebook; they’re coming to see what other people are sharing, so the most natural analog would be having the ads be information shared among the people. Because so much of our society has some commercial component it seems like there will be a way to both share information and line that up with what advertisers want.

Some amount is happening as advertisers pay to accelerate that distribution of information. The amount they’d be willing to pay is proportional to how much it is accelerated.

ME: And before we leave I wanted to ask about revenue and the fact that you mentioned yesterday that you are operating at breakeven.

ZUCKERBERG: I said we’re operating around breakeven. In the past we’ve run at sometimes more and sometimes less, but as a private company we don’t disclose those numbers. A lot of people ask us what we’re going to do with that Microsoft money, but we have no specific purpose for it. We didn’t take that money to buy something.

  1. Regardless of what Facebook does with the wads of cash they’re making, or with Beacon, Zuckerberg needs to stay focused on what differentiates them from MySpace: cleaner, more efficient, and more secure social interaction. Flooding Facebook with ads (targeted though they may be) will make it just as annoying as MySpace and gum up the works in their still relatively fast infrastructure.

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  2. That was a good interview, I guess…

    Either you copy/pasted the last paragraph twice, or Mark really memorized that answer! ;)

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  3. [...] Internview with Mark Zuckerberg about Facebook’s infrastructure News Corp is no longer interest in Yahoo Using del.icio.us as a Personal [...]

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  4. Nice interview. My experience with guys like this is that unless you are an insider, you can’t really get much out of them that they don’t want to disclose or talk about. Yes he’s young but I suspect he’s also been through weeks of PR training to keep his answers tame.

    To draw a comparison, I was at the Texas ACG Capital Connection conference last Thursday with Ed Whitacre as the keynote during lunch. It was nice to hear him speak but even after his retirement, he still has too much at stake to say something that is remotely outside of company line.

    Jealous of your face time with Mark. I need to book big name interviews as well. Maybe if you wrote a book too we could interview you?

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  5. This is a pretty good commentary on zuck & fb too:

    http://abclocal.go.com/wpvi/story?section=news/business&id=6005406

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  6. I could understand if Facebook was a dozen employees…… BUT, why not talk about your revenues? Why not talk about the success you’ve had, why not talk about your failures? W

    Is Zuck afraid that someone is going to go raise $300M over the weekend and launch another Facebook by next Weds.

    Open up guy!!!

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  7. Interesting articles that only deepen my disappointment with the common misconception that FB is secure social interaction. How can anyone trust FaceBook when the truth is not so hard to see:

    http://albumoftheday.com/facebook

    Do a search for The Matrix Project IAO on Google, see what you find. FB is just a front [...] I wander who put Mark up to all this? Does Bush really run the US? Seriously? Does Mark really run FB? Seriously? Transparency is what the world lacks, but all that PR training helped neither the Almighty Bushwacker, nor The ZuckerBerk.

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  8. [...] Monday, Stacey Higginbotham from GigaOM interviewed Facebook founder and CEO, Mark Zuckerberg. Is it just us or did Zuckerberg [...]

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  9. Thats a pretty interesting interview!!!!

    But Looks like he is bit afraid of what? I dono :)

    Srini
    http://codingweb.blogspot.com

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  10. [...] between avoiding any real specifics in an interview with GiggaOm’s Stacey Higginbotham Zuckerberg eludes to Facebook running on “tens of [...]

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