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Wednesday, September 8, 2004
BUS. Std: The Net Will Change
My latest column in Business Standard: The Internet as we know it is about 10 years old. It has had its share of ups and downs during this period. As we look ahead, the Internet that we currently use is going to be fundamentally transformed by an assortment of new technologies and business models. These will have far-reaching implications for us in India – in both our personal and professional lives. The Internet's impact has been rather limited in India in its first decade. Yes, we have about 8-10 million Internet connections and 20+ million users. But there are more who use cellphones. Applications and services on the Internet have also been surprisingly slow to develop, hobbled by lack of imagination, venture capital and business models. The connectivity situation (low speed, high cost, and intermittently reliable) has not helped. As we look ahead, a number of developments offer promise of an Internet platform which could be as good as the best in the world. We have yet another opportunity to leapfrog. (Considering that we don't normally do things when they should be done, attempting to leapfrog is always a good option!) A positive feedback cycle can be created by low-cost access devices, affordable broadband connections, relevant applications and value-enhancing services. There is a need for co-ordinated action across multiple industries to realise this future. So, what does the New and Next Internet portend? What are its characteristics? Always-on: We are moving in India from a pay-per-use pricing model to a flat rate subscription model (in some cases, with download limits). But the instant availability of the Internet connection will fundamentally change the way we use the Internet – everything now becomes a few clicks and a few seconds away. Ubiquitous: As data networks envelop us, the Internet will become pervasive. Already, the presence of cellular networks provides computer users the ability to connect from anywhere. In the coming years, technologies like WiMax and mesh wireless will blanket much of urban and semi-urban India. High-speed: The narrowband speeds that we are used to will give away to higher speeds as real broadband makes its way to the mainstream. The world wide ‘wait’ will be a thing of the past. What this will do is encourage the use of more media-rich content. On-demand: As connectivity improves, there will be little difference between online and offline. If it is out there, it is instantly available. This will lead to the rise of centralised services – especially for business applications. We will have control over when we want entertainment delivered. Two-way: The growth of weblogs is a harbinger of the publish-subscribe Internet. Readers and surfers will have the ability to participate in the content creation process. Cellphones with cameras can turn device owners into content producers. Personalised: The Internet will also become more individualised as websites (especially search engines and portals) build up increasingly sophisticated profiles based on what we do. This will enable highly targeted advertising. Not Free: This new Internet will not be built around the free access model that we have been used to. The eyeballs-centric business model is a thing of the past. As we find content and services of value, we are more likely to start to pay for them. This New Internet will make possible path-breaking applications and services. From voice-over-IP which will allow phone calls anywhere in the country for a flat fee to video-on-demand which can provide education and entertainment to users when they want it, from software-as-a-service for businesses to automate all their processes to multi-player gaming platforms which will transform leisure time, the New Internet will create new opportunities – as well as threaten conventional business models. It will force players in computing, entertainment, consumer electronics and entertainment to tread into each other's territories. We are already seeing early services which are building around these new attributes in the US and some other countries: Apple’s iTunes music store sells music and could as easily be extended to other DRM (digital rights management) content, Google has fundamentally changed the online advertising business, Starbucks complements its coffee blends with Wi-Fi hotspots, China’s online games have transcended piracy, Salesforce.com has signalled the rebirth of the application service provider (ASP) business, TiVo timeshifts television and will soon offer movie downloads, Vonage offers flat-rate unlimited calling plans over IP networks, cable companies offer a bundled triple play service combining cable, telephony and Internet access. India, too, will experience many of these disruptive innovations – sooner than we can currently imagine. The New – and Next – Internet is the harbinger of change and turmoil. It creates opportunities and threats. It is time that we start thinking – and building – for tomorrow. Because someone somewhere might be doing just that.
Mobility in Enterprise Apps
[via Anand of Aeroprise] Network World writes:
Microsoft's $7B Question
Om Malik started off a discussion on what Microsoft does with its $7 billion R&D budget by writing: "Where are those brilliant ideas? Those brilliant products? Despite spending billions of dollars, I often find the company always reacting to market trends...Listen, I have no beef with imitation and other such 'money making tricks.' Imitation of hot-selling products is not such a bad idea, after all the only real scarce commodity on our planet is originality. The question is if you as a company are spending $7 billion on R&D, you must come-up with some original genre defining product." Make sure you also read the comments on the post on Om's blog.
I-Neighbors for Local Communities
Slashdot links to an article in Globeandmail:
Imagine a site that integrates elements of PIN-News, Craigslist and i-Neighbors to provide news and events about the neighbourhood.
Software
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We too should have something like this here...it is really a help or call it boon to anyone or everyone. Posted by SheetalA concept such as I-Neighbors can probably be mooted in societies much different from that of ours. I would say that in our country, with the existence of a very unique and efficient way of inter and intra community interactions, such services or applications would be of little avail. Posted by Anand
Better Computer Interfaces
ACM Ubiquity has an article by Benjamin Bederson, which "reviews the literature, and interprets the characteristics of flow within the context of interface design with the goal of understanding what kinds of interfaces are most conducive to supporting users being in the flow."
TECH TALK: Creating Options: Personal Examples (Part 2)
In Netcore too, over the past few years, I have tried to create options for the future. Even as we have searched for the right set of ideas and framework to build out the vision of affordable computing, there are many small experiments (think of them as R&D activities) that we have done. While none of them may have been commercially successful yet, each of those has given us learnings which have been useful in putting together the plan to reinvent computing to make it more affordable, desirable, accessible and manageable for the world’s emerging markets. At times, just going down a certain path can help in opening up new horizons. It may not be immediately apparent how that could be useful, but one has to have an implicit faith that there will be some good which can be made to come out of these forays. At a more micro level, even the way I write the Tech Talks has changed over the past few years. In the beginning, I would write it out every morning Mondays-to-Fridays – on the day it was to be published. I realised then that the pressure of waking up every morning and having to come up with the ideas was becoming too much. I then shifted to writing it out on the Sunday prior to the week that it was to be published. Now, I do better. Not only do I write out Tech Talks a little more in advance, I also keep a list of 30-40 possible ideas on which I could write. This ensures that I do not have a shortage of options, and in this scenario of greater freedom, I am able to (hopefully!) do significantly better. Some days ago, I posted this entry on my blog, entitled “Life’s Little Clues.”
I now realise that Life’s Little Clues need to be combined with actions that we take to create options, else we will not be in a position to leverage the clues that come our way. Be it in our personal lives or in our entrepreneurial venture, intelligently creating options can make a big difference between success and failure. Tomorrow: Blind Spots and Lock-ins Related Entries: [All]TECH TALK: Creating Options: How? [September 10, 2004] TECH TALK: Creating Options: Blind Spots and Lock-ins [September 9, 2004] TECH TALK: Creating Options: Personal Examples [September 7, 2004] TECH TALK: Creating Options: A Flight Not Taken [September 6, 2004]
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Suffering at the hands of the so called broadband providers, dishnetDSL and touchtel, I am waiting for Reliance broadband's launch. It was to be launched on 15th aug. but has been postponed.
Posted by Manik JunejaOnly if reliance can do to broadband what it did to mobile phone in India, can we have a always on, affordable true broadband soon enough.
Rajesh,
Your columns are always insightful. Some comments:
Always-on: This is the key to widespread consumer use of the internet. Who knows: some of those business plans from the late 90-ies may start to make sense again. But it is already the case for businesses, and the corporate world is adopting fast.
Incidentally, I think the alway-on society will take longer than many perhaps expect because I agree with you that the key is *mobile* connectivity, and we are still some way from that being reliable and flat rate.
Two-way: Yes, that is important, and is a driver for *symmetric* high-speed access. ADSL is at best an interim stage.
Personalised: Im am not so sure. This point is fundamentally different from the other points that you make in that it is less about access infrastructure and more about applications. I think it at least requires more arguments.
Not Free: I think people will pay for services but not for content. If your content is not addresssable and not searchable, then it will become increasingly irrelevant. But if you can help me navigate content then I would probably be willing to pay you.
Great article: thanks.
Allan.
Posted by AllanI remember working on a presentation for an executive at Digital Equipment in 1996 about the emergence of the internet - he made the same points back then. His main point: that the internet will "disappear" because it becomes so engrained in different devices. Man, I wish I could remember his name!
Posted by Damian