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January 30, 2005

Cheap computing as a trend

Rich Karkgaard quotes Roger McNamee on how the selling model has changed from targetting early adopters (Moore's prescription) to this new model where companies aim for the long Tail ( Death of 80/20 rule ?). It goes to strengthen the point that some niche markets are very big market on the Internet infrastructure.

Venture capitalist Roger McNamee in his book The New Normal (Portfolio) points out another huge trend underway. He tells us to observe how technology products now enter the market. It used to be that the coolest products (i.e., the most expensive) were those sold to businesses or to rich people who could afford them. Copiers, personal computers and cell phones entered the market that way. It would then take a few years for unit volume to kick up and prices to fall. Eventually the masses could afford to buy these products.

But now the coolest products are being aimed at the masses from the get-go--iPods, DVDs and gigabyte memory sticks, not to mention terabytes of Google-accessible free content. Even software is following this trend. A generation ago the Sabre airline-seat yield management system, written for a few dozen carriers, was the neatest trick in the travel industry. Now it's Orbitz, aimed at billions of consumers

Other trends Rich points to include Video-blogging and cheap technology (looking at India, China and other outsourcing upstart countries, this trend towards cheap computing will only escalate. What will drive this is not just the labor arbitrage but also the results of Innovation blowback ).

January 30, 2005 in Emerging Technologies | Permalink


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