The document discusses how the internet is becoming globalized with users everywhere in the world. It notes that non-US users now account for the majority of internet users globally. Many countries are leading in different internet usage models and businesses must localize to various markets. The considerations for businesses expanding globally include issues like market size, legal/tax issues, infrastructure, and adapting to local user preferences. Examples discussed are how companies like Facebook and Twitter are seeing most of their growth outside the US now.

1. WEB 3.0: THE
GLOBALIZATION OF THE
INTERNET
Jalak Jobanputra /@jalak
September 29, 2010

2. THE EVOLUTION
• The Analog World: Tech Creation Clusters, Exporters: Silicon
Valley, Israel, Eastern Europe
• Services outsourcing hubs: India, Ireland, Costa Rica, Eastern
Europe
• Web/Consumers: EVERYWHERE!
• Broadband + Mobile + Econ Development = Ubiquity
A GLOBAL WEB OF CREATION AND
CONSUMPTION

3. WORLD POPULATION

4. GLOBAL INTERNET USE

5. THE WORLD WIDE WEB 2010+
• US accounts for only 13% of Internet users
• 500M Internet users in India & China -- will add 700M
MORE by 2015, generating revs of $80B in commerce,
access fees, etc
• Many countries leading usage models: Japan (gaming),
Malaysia (digital media consumption, multitasking), India &
Poland (mobile)

6. BUSINESS MODELS
• Multinationals have learned to localize
• Consideration: create
economies of scale but adapt to each
market (Walmart example)
• Copycats = can get acquired or scale, disruptive to local
markets (Baidu, local eBays and Groupons)
• Demand for New Services = local to global (LG in India)
• New business models = disruptive to global markets (Twitter)
• Non US investors investing: Ooyala raised $$ from CID
(Shanghai) and ITOCHU (Tokyo); Digital Sky Technologies

7. THE CONSIDERATIONS
• Size of Market
• Administrative: Legal Fees, Tax, Logistics, Corruption
• Human Capital -- availability, policies
• Bandwidth, hardware costs, infrastructure
• IP protection -- pirated options lead to price competition
• Adaptation/Uniqueness of Market -- content creation costs, payment options
• Consumer preferences and behavior -- role of influencers, pricing, design
• “Smart” Capital
• Government Policies/ Stability

8. FACEBOOK
• Translated into 100
languages
• Over 70% non US
• Triple YOY growth in
Mexico
• Recently overtook Orkut
in India
• Establishing local offices
worldwide to follow user
growth and learn usage
patterns

9. TWITTER
• 60% non US registered users
• Fastest
growth in South America, following Spanish language
version in November 2009
• Asia, Italy, Russia, Spain also posting strong growth (World
Cup effect?)
• US down as % month to month (was 62% beginning 2010)

10. USAGE MODELS OF THE
FUTURE: WEB 3.0 +
• The Social Consumer AND Social Enterprise
• Mobile as Default Platform
• Continued growth in BRICs
• Frontier markets in Africa, Turkey, SE Asia
• Sectors: FinServe,Healthcare, Education, Agriculture, Gov’t
• Content Creation/Consumption