A History of Silicon Valley
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

A History of Silicon Valley

on

  • 5,118 views

An abridged version of http://www.scaruffi.com/politics/sv.html

An abridged version of http://www.scaruffi.com/politics/sv.html

Statistics

Views

Total Views
5,118
Views on SlideShare
5,118
Embed Views
0

Actions

Likes
1
Downloads
92
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

A History of Silicon Valley Presentation Transcript

  • 1. A History of Silicon Valley 1900-2010 The Greatest Creation of Wealth in History (a moral tale) being a presentation by piero scaruffi www.scaruffi.com adapted from a book by Arun Rao and piero scaruffi
  • 2. Piero Scaruffi
    • Cultural Historian
    • Cognitive Scientist
    • Blogger
    • Poet
    • www.scaruffi.com
  • 3. Where are the pictures?
    • This slide presentation omits the pictures to make it smaller and easier to download
    • Pictures of machines and buildings are here:
      • A visual history of computing: http://www.scaruffi.com/monument/silicon/cm.html
      • A historical tour of Silicon Valley: http://www.scaruffi.com/politics/svtour.html
    • If you have time and skills, use these pictures to create a more appealing version of this presentation and send it to me for approval
  • 4. What the book is about…
    • The book is a history of the high-tech industry in the San Francisco Bay Area (of which Silicon Valley is currently the most famous component)
  • 5. How it all Started
    • The navy and amateurs turned the Bay Area into a hotbed of radio engineering
    • The defense industry
    • Electrical power companies turn the Bay Area into a hotbed of electrical engineering
    • Nuclear engineering at UC Berkeley and birth of the “Big Science” concept
    • Frederick Terman at Stanford encourages students to start businesses instead of moving back to the East Coast
  • 6. Society
    • The Bay Area has a tradition of
      • Environmental issues
      • Social issues
      • Utopian communities
      • Unconventional arts
      • A society that rewards the independent and the eccentric
      • Nightlife and organized crime in San Francisco
      • Orchards in the south bay
      • Military bases all over
  • 7. Meanwhile elsewhere…
    • The automated office:
      • typewriters (a field dominated by Remington Rand),
      • adding machines (a field dominated by Burroughs),
      • tabulating machines (a field dominated by IBM)
      • cash registers (a field dominated by NCR)
    • Midwest and East Coast industries dominate office automation
  • 8. World War II and Cold War
    • Terman in charge of electronic warfare
    • Fred Terman's students: HP, Varian,…
    • Stanford Industrial Park (1951)
    • IBM’s West-Coast laboratory in San Jose (1952)
    • Main industry: Defense
  • 9. Society
    • The San Francisco Renaissance
    • The “beats”
    • Avantgarde music
    • Eastern philosophy
  • 10. Meanwhile (computers)
    • Main centers for research on electronic computing: Boston (Harvard and MIT), Philadelphia (Moore School of Electrical Engineering, BRL), New Jersey (Bell Labs, Princeton, RCA Labs), New York (Columbia and IBM)
    • The computer is invented by scientists interested in solving complex mathematical problems such as nonlinear differential equations
    • First practical application: warfare
    • First commercial computers: large office automation players (Remington Rand, IBM, NCR, Burroughs)
  • 11. Meanwhile (semiconductors)
    • AT&T’s transistor (1949)
    • The portable radio marks the birth of consumer electronics, a trend towards miniaturization and lower prices
  • 12. Semiconductors in the Bay Area
    • Shockley Semiconductor Laboratory (1956)
    • Fairchild Semiconductors (1957), the first venture-funded "start-up" company of the Bay Area: Robert Noyce, Gordon Moore, Jean Hoerni, Eugene Kleiner, etc
    • The semiconductor industry does not require huge capital investment
  • 13. Integrated Circuits
    • Exponential growth in chip density
      • Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption, low heat and high density (i.e. semiconductors into digital watches and pocket calculators)
      • Lee Boysel at Fairchild (1966): four-phase clocking technique to create very dense MOS circuits
      • Federico Faggin at Fairchild (1968): silicon-gated MOS transistors (faster, smaller and low energy)
    • Gordon Moore’s law (1965): the processing power of computers will double every 12 (18) months
  • 14. Integrated Circuits
    • Fairchild spinoffs: Amelco (Jean Hoerni), Molectro (James Nall), General Microelectronics (Don Farina), Intersil (Jean Hoerni); AMD (Jerry Sanders ), etc
    • Texas Instruments, Motorola and RCA do not spawn a similar genealogical tree of spinoffs
    • A self-sustaining manufacturing community that mixes Darwinian competition/selection with symbiotic cooperation
    • The system exhibits a form of collective learning
  • 15. Integrated Circuits
    • Role of the government
      • The military serves as both a munificent venture capitalist that did not expect a return (and not even co-ownership) and as an inexpensive testbed
      • NASA's Apollo mission to send a man to the Moon builds the Apollo Guidance Computer (1961-64), the first computer to use integrated circuits
  • 16. Society
    • Free Speech Movement (1964)
    • First hippie festival (1965)
    • The "Summer of Love" (1966)
    • Black Panther Party (1966)
    • Monterey’s rock festival (1967)
    • Stewart Brand’s "Whole Earth Catalog“ (1968)
    • The hippie phenomenon further increases immigration from other states
    • All these movements are hostile to technological progress
  • 17. Dynamic Memory
    • Advanced Memory Systems (1968), Intel (1968) and Four Phase (1969): semiconductor computer memories instead of magnetic core memories
    • Before the DRAM: the semiconductor firms make money by building custom-designed integrated circuits (small market but lucrative)
    • The DRAM: a commodity sold in large numbers at a low price
    • Constant downward pressure on prices
  • 18. High-tech Creativity
    • SRI
      • Doug Engelbart’s NLS (1968): a graphical user interface and a hypertext system running on the first computer equipped with a mouse and connected to a remote computer
      • "Shakey the Robot“ (1969)
  • 19. High-tech Creativity
    • Xerox PARC (1970) :
      • Alan Kay’s Dynabook and Smalltalk
      • Not faster computation but better interaction
      • Casual, informal and egalitarian workplace
      • The equivalent for a workplace of the alternative lifestyle preached by the hippies
  • 20. High-tech Creativity
    • Computer games
      • Nolan Bushnell’s "Computer Space“ (1971): a free-standing terminal powered by a computer
      • Atari’s “Pong“ (1972)
  • 21. Life Sciences
    • Stanford hires Carl Djerassi (1959), inventor of the birth-control pill
    • Alejandro Zaffaroni’s Alza (1968): biomedical industry
    • Cetus (1971), the first biotech company of the Bay Area
    • Paul Berg's team at Stanford synthesizes the first recombinant DNA molecule (1972)
    • Stanley Cohen (Stanford) and Herbert Boyer (UCSF) transfer DNA from one organism to another, creating the first recombinant DNA organism (1973)
  • 22. Labor Fluidity
    • California is blessed with an economy which mostly outperforms the rest of the USA
    • California is an employee's market and not an employer's market
    • California’s law code forbids any labor contract that limits what an employee can do after quitting
    • Silicon Valley engineers exhibit a preference for horizontal instead of vertical mobility, for hopping from job to job instead of following a career of promotion after promotion
    • Staying with the same company for more than a few years does not look "good" on a resume
  • 23. Labor Fluidity
    • Job turnover and no protection for trade secrets foster an endless flow of knowledge throughout the communityspread
    • Pervasive job mobility spreads knowledge quickly and efficiently
    • Rapid dissemination of knowledge within an industry across companies, as well as in cross-fertilization of ideas across research groups.
    • Status symbol of being an engineer like in no other region in the world (second to the status symbol of being an entrepreneur)
  • 24. Meanwhile elsewhere…
    • Arpanet (1969)
    • Unix (1971)
    • Remote Computing (1969)
    • The Unbundling (1969)
  • 25. The Microprocessor
    • Four Phase Systems’ AL1 (1970)
    • Intel’s 4404 (1971), as powerful as the ENIAC, but millions of times smaller and ten thousand times cheaper
    • Intel's motivation to make microprocessors: microprocessors helped sell more memory chips
    • Bill Pentz at California State University in Sacramento proves that a microprocessor can be used to build a computer (1972)
  • 26. The Home Computer
    • "Radio Electronics", "QST" and "Popular Electronics" publicize the microprocessor among hobbyists
    • Kits by mail-order for hobbyists to build machines at home: Scelbi (1974), …, Altair 8800 (1974)
    • The microprocessor reaches a wider audience than its inventors intended to reach thanks to the magazines
    • The most creative and visionary users are not working in corporations but at home
    • The Homebrew Computer Club (1975)
  • 27. The Home Computer
    • IBM, the "BUNCH“ and DEC had the know-how, the brains and the factories to produce desktop computers for the home market. They did not do it.
    • The market for home computers is largely created by a grassroots movement of hobbyists who work outside the big bureaucracies of corporations, academia and government.
    • They create their own community (via magazines, stores and clubs)
    • Another Bay Area community of counterculture
    • Journalists and store owners are the real visionaries
  • 28. The Home Computer
    • Obstacle to widespread diffusion: the home computer is expensive (because the Intel microprocessor is expensive) and pretty useless (because it has no software)
  • 29. Venture Capitalists
    • The center of mass for venture capital shifts from San Francisco towards Menlo Park
    • Kleiner-Perkins (1972), Sequoia Capital (1972), Mayfield Fund (1974), etc
  • 30. The Microprocessor Wars
    • Microprocessors drive sales of memories, and sales of memories fund improvements in microprocessors
    • AMD introduces the AMD8080, a reverse-engineered clone of the Intel 8080 (1975)
    • Zilog (1976)
  • 31. Databases
    • Leadership in database technology: IBM’s IMS
    • IBM's Almaden Research Center starts the “relational” database management system System R (1973)
    • Berkeley’s Ingres (1973)
  • 32. The GUI
    • Leadership in user interface: IBM’s form-driven 3270 terminal to connect to mainframes
    • Xerox PARC unveils the Alto, the first workstation with a mouse and a Graphical User Interface (1973)
  • 33. The Apple Vision
    • Apple I vision (1976):
      • A computer without a programming language is an oxymoron
      • A real programming language requires DRAM
      • Enabling technology: the 4K DRAM, just introduced in 1974, much cheaper than the static RAM of the Altair
      • Roberts had basically just dressed up a microprocessor to create his Altair. Wozniak dresses up a memory chip to create the Apple I
      • Wozniak also writes the BASIC interpreter
      • Target user: the hobbyist
  • 34. The Apple Vision
    • Apple II vision (1977):
      • Fully assembled, with a monitor and a keyboard, requiring almost no technical expertise
      • The look and feel of a home appliance
      • The first affordable floppy-disk drive for personal computers, which replaces the cassette as the main data storage
      • Still no operating system
  • 35. A New Office Tool
    • VisiCalc (1979), the first spreadsheet program for personal computers for the Apple II
    • Apple’s IPO (1980) raises a record $1.3 billion
    • Visicalc ported to the Tandy TRS-80, Commodore PET and the Atari 800, the first major application that is not tied to a computer
    • Lesson learned: the value of software
  • 36. The Microprocessor Wars/ II
    • Intel assigns the task of designing the 8086 (1978) to a software engineer
    • 14 million microprocessors are sold in 1978 but only 200,000 personal computers are manufactured
  • 37. Databases/ II
    • Oracle (1977): an SQL relational database management system
    • Ingres (1979), an open-source variant of IBM's System R for DEC minicomputers running the Unix operating system
    • The relational database startups do not target the huge market of mainframe computers but the smaller market of minicomputers
    • Oracle rewrites its DBMS in C for Unix (1983)
  • 38. Communications
    • 3Com (1979): Ethernet for personal computers
    • Ungermann-Bass (1979): Ethernet-based local-area networks
  • 39. The GUI/II
    • Exodus of brains from Xerox PARC towards Silicon Valley companies (1977)
    • Xerox 8010 Star Information System (1981) that integrates a mouse, a GUI, a laser printer, an Ethernet card, an object-oriented environment (Smalltalk) and word-processing and publishing software
  • 40. BSD
    • Unix ethics and philosophy a good match for the Bay Area’s utopian ideology
    • Berkeley Software Distribution (1977) spreads in universities
    • The world's most portable operating system
    • Onyx (1980), Apollo (1980), SUN (1981), Silicon Graphics (1982): a microcomputer running UNIX, a cheaper alternative to the PDP-11
    • Santa Cruz Operation (1979), the first Unix consulting company
    • DARPA chooses Unix for the Arpanet (1980)
  • 41. BSD
    • A technology ignored by the big computer manufacturers and left in the hands of a community of eccentric independents
    • Counterculture dynamics that mirrors the dynamics of the computer hobbyists who have invented the personal computer
    • Universities serve as community aggregators more than magazines, clubs or stores
  • 42. The Moral Tale
    • Government funding (from the 1910s till the 1960s) accelerated innovation whereas large computer corporations in the 1970s de facto connived to stifle innovation
  • 43. The Moral Tale
    • The Visible Hand of Capital
      • The amount of money available to venture capitalists greatly increases after the Apple IPO
      • For several years Kleiner-Perkins is able to pay a 40% return to the customers of its high-tech fund
  • 44. The Moral Tale
    • The Invisible Hand of Government
      • The US government reduces the capital gains tax rate ("Revenue Act“, 1978)
      • The US government eases the rules on pension funds (1979)
      • Silicon Valley’s high-tech industry benefits from computer-based military projects: the B-2 stealth bomber, the Jstars surveillance system, the Global Positioning System (GPS), the Trident submarine and the Tomahawk cruise missile.
  • 45. Biotech
    • Genentech (1976) to genetically engineer new pharmaceutical drugs
    • Applied Biosystems (1979) to build biotech instrumentation (protein sequencer, DNA synthesizer)
    • The US Supreme Court rules that biological materials (as in "life forms") can be patented (1980)
    • Calgene (1980), Chiron (1981), …
    • Cetus’ IPO (1981) raises a record $108 million
  • 46. Meanwhile elsewhere…
    • The IBM PC (1981), a personal computer from off-the-shelf, widely available components based on the Intel 8088 microprocessor and running an operating system by Microsoft (derived from Unix)
    • The “open” model of the PC creates an industry of "clones" (Compaq, Olivetti) and an industry of independent software companies
    • Commodore 64 (1982) is sold in retail stores instead of electronics stores
    • Osborne 1 (1981), a portable computer designed by hardware engineer Lee Felsenstein of the Homebrew Computer Club
  • 47. The Apple Vision/ II
    • Apple (1982) is the first personal-computer company to pass the $1 billion mark in revenues
    • Apple’s model: a proprietary Apple operating system
    • Apple Lisa (1983), the first personal computer with the GUI pioneered by the Xerox Alto
    • Apple’s added value: it looks cool
  • 48. Software
    • S ales of personal computers skyrocket because they have become useful: Apple thanks to office programs (Visicalc, Context MBA) and the PC thanks to the DOS-compatible applications (Lotus 1-2-3, dBase ($700)
    • Activision (1979), Electronic Arts (1982): computer games
    • Autodesk (1981): CAD
    • Adobe (1982): desktop publishing
    • Symantec (1982), Borland (1983): tools for software developers
  • 49. Software
    • 1950s-1970s: the hardware represents most of the cost of a computer
    • 1980s: the falling prices of hardware components enables ever more sophisticated software applications and triggers a growing demand for them; and the need to run more sophisticated applications motivates the hardware industry to produce more powerful chips
  • 50. Workstations
    • Single-user graphic networked computer for engineering applications
    • Mostly based on the Motorola 68000 (not on Intel) and running Unix (not DOS)
    • Apollo (Boston): custom hardware and proprietary operating system
    • SUN (Stanford): Berkeley’s Unix running on standard off-the-shelf hardware components (the business model of the IBM PC)
    • The SUN culture is to the Microsoft culture what the counterculture is to the mainstream
  • 51. Workstations
    • Corporate networks of local networks
      • Cisco’s commercial version of Stanford’s router (1986)
  • 52. Diversifying
    • Fairchild, Intel, Zilog created a genealogical tree: each one improved over the invention of the predecessors
    • The inventions of Apple, Cisco, SUN and Oracle have little in common
    • Neither of them gives rise to a (significant) genealogical tree
    • No major company of the size of Intel emerges from any of these
    • Each of them creates a chain of suppliers
  • 53. The Internet
    • Just like the personal computer and the Unix, the Internet too was largely shaped by a community of eccentric independents
    • Decentralized model that involves the very users of the Internet to submit proposals for future directions
    • A government-mandated grass-roots movement
    • The consumer is the producer
    • E-mail itself is a user invention, never planned by the Arpanet's bureaucracy
  • 54. The Internet
    • The Arpanet as a project in progress, a concept that is more likely to be accepted in military projects than in commercial product development
    • The Arpanet changes mission over time, transforming from a military project to survive a nuclear attack into a system for interpersonal communication and knowledge sharing
    • The ethics of the Arpanet, just like the ethics of the Unix world and the ethics of the early personal-computer hobbyists, is not the brutal, heartless ethics of the corporate world nor the brutal, heartless ethics of Wall Street: it is the utopian ethics of the hippie communes transposed into a high-tech environment
  • 55. Society
    • Spiritual revival of the New Age
      • Arguing for a return to a more natural way of life
      • Hostility towards science and rationalism
      • Luddites vs tecnophiles
    • The gay community
  • 56. Society
    • Chinese and Indian executives run 13% of Silicon Valley's high-tech companies founded between 1980 and 1984
    • Silicon Valley is both a place of great ethnic diversity and a place of high technological saturation
  • 57. Society
    • Chaotic creation and destruction of companies
    • High labor mobility
    • Anti-union spirit
    • The decentralized and anarchic personal-computer world is a good fit for the spirit of the Bay Area
  • 58. Apple’s Vision/III
    • Apple’s Macintosh (1984)
    • The hardware is a means to appealing software
    • Microsoft cannot match Apple’s GUI because it cannot tweak the hardware of the PC
    • However, Microsoft can invest more in marketing its office automation suite (Word, Excel, Powerpoint)
    • The futuristic Mac helps cement the community of Apple fans
    • But Apple’s closed architecture loses to the "open architecture" created by the IBM-Microsoft axis
  • 59. The Semiconductor Wars
    • Japanese firms introduce low-cost 256K DRAM chips (1984) and gain 70% of the market (1985)
    • Japan's share of the world's semiconductor market: 51% (1986)
    • First large-scale layoffs in Silicon Valley
    • What saved Intel is the microprocessor. The "computer on a chip" is too complex and required too big a manufacturing investment to be handled like a commodity
    • New corporate culture: a brutal philosophy of Darwinian competition ("Only the paranoid survive") and iron discipline
  • 60. Outsourcing the Fab
    • 1985: The government of Taiwan hires Morris Chang who promotes the outsourcing of semiconductor manufacturing by US companies to Taiwan
    • “ Fab-less" semiconductor companies of Silicon Valley: Chips and Technologies, Xilinx, Cirrus Logic, Adaptec…
    • Whenever a Silicon Valley manufacturer outsources a project to a Taiwanese fab, it directly improves the Taiwanese plant both by injecting capital and by the project's new requirements and therefore does a favor to its own competitors who can use the same factory
  • 61. SUN’s Vision
    • SUN erodes DEC's supremacy in the academia and then in the engineering market
    • The DEC generation believed that a company needed to personally make the key components
    • The SUN generation believes that key components ought to be delegated to specialty shops
    • In-house development is unlikely to match "best of breed" quality across the board by specialized shops
    • The pace of innovation rewards SUN over DEC
    • This model creates a secondary economy in Silicon Valley of large hyperspecialized companies that don’t become household
  • 62. The Peacetime Dividend
    • End of the Cold War: Silicon Valley does not depend anymore on the military industry
    • Building chips is a high-risk business: huge capital investment, very short lifespan of the product, price wars
    • The reward: the survivors dominate the most important industry of the era
    • The semiconductor industry creates a culture of risk that spreads to the software industry
  • 63. The Peacetime Dividend
    • The culture of risk is a whole infrastructure designed to promote, assist and reward risk-takers in new technologies (laboratories, plants, offices, corporate lawyers, marketing agencies, venture capitalists, universities, immigrants)
    • The main change: need to generate a profit as quickly as possible (the great investor of the 1950s and 1960s, the military, thought long-term, with no interest in return on investment)
    • The venture-capital firms create a ghost industry (focused on making money) that evolves in parallel to the technological one
  • 64. The Peacetime Dividend
    • The short-term approach helps communicate effectively with the market.
    • The Silicon Valley start-up is both "visionary" AND grounded in the reality of technological feasibility and of market readiness
    • The Darwinian system of small start-ups as a whole is more likely to find a solution to a problem than a large bureaucratic company
    • Progress is incremental, but rapid
  • 65. The Peacetime Dividend
    • Europe and East Coast: the goal is a lifetime career in a large, safe company
    • Silicon Valley: a company's life expectancy is low
    • The goal is to change jobs hoping to hit the jackpot
    • Silicon Valley's dream is a linear progression from engineer in a start-up to founder of a start-up to investor in a start-up
    • This dream encourages people to take chances working for a start-up, to take chances creating start-ups, and to take chances investing in start-ups
  • 66. The Peacetime Dividend
    • The leaders of Apple, Oracle, Intel and SUN acquire semi-god status
    • They fight epic battles (e.g. against Microsoft)
    • Their charisma replaces the charisma of the engineers who had truly invented their technologies (Faggin, Wozniak, Bechtolsheim…)
    • The trend shifts from inventing a product to starting a company
  • 67. Geopolitical Implications
    • Historical shift in political and economic power from the old industrial and financial capitals of the Northeast and Midwest towards a new pole of industry and finance based on the West Coast
    • The biggest competitor of California is Japan, not Western Europe
    • The old "Atlantic" economy is being replaced by a new "Pacific" economy
  • 68. Meanwhile elsewhere…
    • 1991: The US government enacts the “High-Performance Computing and Communication Act”
    • 1993: Mosaic (funded by the “High-Performance Computing and Communication Act”), later renamed Netscape in Silicon Valley
    • 1994: WebCrawler (search engine)
    • 1995: The US government blesses the commercial use of the Internet
  • 69. The Dot Coms
    • The importance of Netscape’s browser:
      • Free for ordinary users
      • Illiterate computer uses can browse the Web the same way that a pro does
      • The non-intuitive cluster of digital information that has accrued on the Internet becomes intelligible to ordinary people
      • More and more people are motivated to add content to the Web
  • 70. The Dot Coms
    • The importance of Netscape’s browser:
      • The personal computer boom of the 1980s has placed a computer in millions of households and the browser turns them into the audience of the Web
      • The computer monopolies are forced to adopt open standards for the Web
  • 71. The Dot Coms
    • Netscape IPO (1995)
    • Yahoo (1995)
    • Excite. AltaVista (1995), Hotbot (1996), Google (1998)
    • Java (1995)
    • WebLogic (1995), Apache (1996)
    • Craigslist (1995)
    • HotMail (1996)
    • GeoCities (1995)
    • eBay (1995)
    • Netflix (1997)
  • 72. Hotmail’s Lesson
    • Founded by hardware engineers: a user’s idea, not a technological idea; a sturdy no-nonsense "product“
    • Advertising as a source of revenues
    • Internet startups offer free services because their real product is the user base
    • The boom of the Web is not a consequence of the Internet but of the boom in advertising: cable television revenues stage an 82% growth rate in 1994-95 just when the Web is maturing
  • 73. Connecting the World
    • Beneficiaries of the age of networking: Cisco, 3Com and Bay Networks
    • Fiber-optic boom
    • Overcapacity dramatically lowers the cost of broadcasting information, thereby increasing the motivation to broadcast information
    • The fiber-optic rush creates on the Internet the equivalent of the freeway system created by the US government in the 1950s
    • The vast fiber-optic infrastructure connects the USA to India too, thus accelerating the process of outsourcing IT jobs to India
  • 74. Meanwhile elsewhere…
    • Finland: the smart phone
    • East Coast: Human Genome Project (1992)
  • 75. The Nasdaq Crash
    • Between 1998 and 1999 venture-capital investments in Silicon Valley firms increases more than 90%
    • The Internet and Y2K booms generate a bubble that bursts in 2000
  • 76. The Nasdaq Crash
    • Silicon Valley before the bust:
      • Personal computers: HP and Apple dwarfed by IBM, Compaq, Dell and Japanese
      • Videogame consoles: Japan rules
      • Semiconductors: The Far East rules
      • Mobile phones: Europe rules
      • Chips for mobile devices: ARM rules
      • Software: Microsoft and SAP dwarf Oracle
      • Dotcoms: No profits
  • 77. Beyond the Crash
    • HP acquires Compaq (1999): DEC downgraded to just up a small division within a Silicon Valley company (HP)
    • Paypal (2000)
    • Apple iPod (2001)
    • Yahoo and Google de-facto turn the Web into an advertising tool which incidentally also contains information
  • 78. You Are a Gadget
    • Wikipedia (2003)
    • Intel Centrino makes Wi-Fi a household name (2003)
    • Facebook (2004)
    • YouTube (2005)
    • Twitter (2006)
    • Kindle (2007)
    • Zynga (2007)
    • Apple iPhone (2007) and Google Android (2007)
  • 79. The Age of Uploading
    • Wikipedia
    • Blogs
    • P2P tools
    • social networking sites
    • YouTube
    • Flickr
    • Digital cameras and camcorders
    • Smartphones
  • 80. The Demise of the Computer
    • The smartphone (a computer that also does voice)
    • Cloud computing (an invisible, omnipotent, virtual computer)
    • Applications are written for social networks (Facebook apps) and smartphones (iPhone apps), not for an operating system
  • 81. The Gift Economy
    • The audience “gifts” content to the companies that make money out of it
    • The companies are small but handle a huge amount of content
    • The companies make money as advertising platforms
    • The audience receives a free service but also provides a free service
  • 82. The Great Internet Wars
    • Google vs Microsoft: Microsoft owns the operating system but Google owns the search engine (Internet traffic)
    • Google vs Facebook: vying to become the premier advertising platform
    • Apple vs Google: proprietary or open smartphones
  • 83. The Empire
    • The Bay Area is the largest high-tech center in the world (2006)
    • HP passes Dell in worldwide PC shipments (2006)
    • Google's revenues pass IBM's software revenues (2009)
    • Oracle passes SAP (2009)
    • Facebook grows by about one million users a day (2009)
    • Apple's market capitalization passes Microsoft's (2010) and becomes #1 in the world (2011)
    • The Bay Area has won more Nobel prizes than any country except USA, Britain and Germany
  • 84. Biotech
    • The world's first Synthetic Biology department at the Lawrence Berkeley Lab (2006)
    • UCSF Institute for Human Genetics (2005)
    • The Bay Area boasts about 700 biomedical companies (2007)
    • Bubble of Personal Genomics startups
  • 85. Greentech
    • Solyndra (2005)
    • The Tesla roadster (2006)
  • 86. Conclusions
    • In the book: