The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of mobile users. Smartphone shipments surpassed feature phones in Western Europe and the US. While smartphone adoption has ramped quickly, usage still has significant room for growth globally. Mobile traffic as a percentage of total traffic on sites like Pandora, Twitter and Facebook has also increased dramatically in recent years.
Mary Meeker's Web 2.0 Presentation October 18 2011F. Steven Ogunro
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with China, India, and Nigeria adding the most new internet users in the past 3 years. Social network users now exceed total internet users in 2006. Mobile internet usage, especially via smartphones, is growing rapidly and overtook feature phone shipments in Western Europe and the US. Traffic from mobile devices now accounts for over half of usage on Pandora, Twitter, and Facebook.
The document discusses global trends in internet and technology. It notes that:
1) Major internet companies like Apple, Google, Amazon and Facebook are now truly global, with over 80% of their users coming from outside the US.
2) China has added more internet users over the past 3 years than exist in the entire US, showing enormous growth potential abroad.
3) The number of social media users now exceeds the total number of global internet users in 2006, and over 70% of them (800 million people) are outside the US.
The document discusses global trends on the internet and technology. It notes that the internet has become truly global, with 81% of top internet properties' users coming from outside the US. It also points out that in just three years, China added more internet users than exist in the US, and that social networkers now exceed the number of global internet users in 2006. The document covers the continued dominance of US companies like Apple, Google, and Facebook, as well as the rise of Chinese and other international companies in the global internet and technology markets.
Global internet usage is becoming increasingly mobile-centric. Smartphone adoption and usage continues to grow rapidly worldwide, outpacing other earlier communication technologies. Mobile internet traffic now accounts for over half of usage on many major websites and apps. While smartphones are still in the early stages of adoption, mobile internet and apps have already begun transforming how people access and share information globally.
The document discusses global trends in internet usage and technology. It notes that the majority of users of the top global internet properties are now located outside the United States. It also points out that in just three years, China added more internet users than currently exist in the United States. Additionally, the number of social network users now exceeds the total number of global internet users in 2006, with 70% of social networkers located outside the US.
Mary Meeker's Web 2.0 Presentation October 18 2011F. Steven Ogunro
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with China, India, and Nigeria adding the most new internet users in the past 3 years. Social network users now exceed total internet users in 2006. Mobile internet usage, especially via smartphones, is growing rapidly and overtook feature phone shipments in Western Europe and the US. Traffic from mobile devices now accounts for over half of usage on Pandora, Twitter, and Facebook.
The document discusses global trends in internet and technology. It notes that:
1) Major internet companies like Apple, Google, Amazon and Facebook are now truly global, with over 80% of their users coming from outside the US.
2) China has added more internet users over the past 3 years than exist in the entire US, showing enormous growth potential abroad.
3) The number of social media users now exceeds the total number of global internet users in 2006, and over 70% of them (800 million people) are outside the US.
The document discusses global trends on the internet and technology. It notes that the internet has become truly global, with 81% of top internet properties' users coming from outside the US. It also points out that in just three years, China added more internet users than exist in the US, and that social networkers now exceed the number of global internet users in 2006. The document covers the continued dominance of US companies like Apple, Google, and Facebook, as well as the rise of Chinese and other international companies in the global internet and technology markets.
Global internet usage is becoming increasingly mobile-centric. Smartphone adoption and usage continues to grow rapidly worldwide, outpacing other earlier communication technologies. Mobile internet traffic now accounts for over half of usage on many major websites and apps. While smartphones are still in the early stages of adoption, mobile internet and apps have already begun transforming how people access and share information globally.
The document discusses global trends in internet usage and technology. It notes that the majority of users of the top global internet properties are now located outside the United States. It also points out that in just three years, China added more internet users than currently exist in the United States. Additionally, the number of social network users now exceeds the total number of global internet users in 2006, with 70% of social networkers located outside the US.
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of mobile users. Smartphone shipments surpassed feature phones in Western Europe and the US. While smartphone adoption has ramped quickly, usage still has significant room for growth globally. Mobile traffic also represents a growing percentage of total traffic on sites like Pandora, Twitter and Facebook.
The latest edition of the annual Internet Trends report finds continued robust online growth. There are now 2.4 billion Internet users around the world, and the total continues to grow apace. Mobile usage is expanding rapidly, while the mobile advertising opportunity remains largely untapped. The report reviews the shifting online landscape, which has become more social and content rich, with expanded use of photos, video and audio. Looking ahead, the report finds early signs of growth for wearable computing devices, like glasses, connected wrist bands and watches - and the emergence of connected cars, drones and other new platforms.
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of the total mobile market. Smartphone shipments surpassed feature phones in Western Europe and North America in 2010-2011 and are expected to do the same in the rest of the world soon. Mobile usage of services like Pandora, Twitter and Facebook has grown significantly between 2008-2011, demonstrating increasing mobile engagement.
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of mobile users. Smartphone shipments surpassed feature phones in Western Europe and the US. While smartphone adoption has ramped quickly, usage still has significant room for growth globally. Mobile traffic as a percentage of total traffic on sites like Pandora, Twitter and Facebook has also increased dramatically in recent years.
Every year, May Meeker of Kleiner Perkins (formerly web analysis at Morgan Stanley) present the ‘state of the nation’ at Web2.0 and this year was no different.
The document discusses the launch of Jimdo's mobile app for iOS. It provides details on the planned launch dates in August and September. It notes that the app allows users to create and edit existing websites on mobile. In the first week, it had over 70,000 downloads and was featured in 46 countries from day one. The document also references a goal number one meeting to align strategy and collaboration across teams to make the company's power visible to all members.
The document discusses global trends in internet usage and technology. It notes that the majority of users of the top global internet properties are now located outside the United States. It also points out that in just three years, China added more internet users than currently exist in the United States. Additionally, the number of social network users now exceeds the total number of global internet users in 2006, with 70% of social networkers located outside the US.
Spotify is a music streaming service founded in 2006 that allows users to listen to music for free with advertisements or through a premium subscription. It aimed to compete with piracy by offering legal streaming with better features than illegal downloads like instant access, music discovery tools, and control over one's library. By 2010, Spotify had grown to over 7 million users across 6 markets in Europe through its combination of free and premium services and partnerships with artists. The document discusses Spotify's growth and lessons learned around competing with piracy by creating a better user experience than illegal downloading.
The document discusses global trends in internet usage and technology. It notes that the majority of users of the top global internet properties are now located outside the United States. It also points out that in just three years, China added more internet users than currently exist in the United States. Additionally, the number of social network users now exceeds the total number of global internet users in 2006, with 70% of social networkers located outside the US.
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of mobile users. Smartphone shipments surpassed feature phones in Western Europe and the US. While smartphone adoption has ramped quickly, usage still has significant room for growth globally. Mobile traffic also represents a growing percentage of total traffic on sites like Pandora, Twitter and Facebook.
The latest edition of the annual Internet Trends report finds continued robust online growth. There are now 2.4 billion Internet users around the world, and the total continues to grow apace. Mobile usage is expanding rapidly, while the mobile advertising opportunity remains largely untapped. The report reviews the shifting online landscape, which has become more social and content rich, with expanded use of photos, video and audio. Looking ahead, the report finds early signs of growth for wearable computing devices, like glasses, connected wrist bands and watches - and the emergence of connected cars, drones and other new platforms.
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of the total mobile market. Smartphone shipments surpassed feature phones in Western Europe and North America in 2010-2011 and are expected to do the same in the rest of the world soon. Mobile usage of services like Pandora, Twitter and Facebook has grown significantly between 2008-2011, demonstrating increasing mobile engagement.
The document discusses trends in internet and mobile usage. It notes that global mobile 3G subscriber growth was 35% in 2011, with 936 million subscribers representing 17% of mobile users. Smartphone shipments surpassed feature phones in Western Europe and the US. While smartphone adoption has ramped quickly, usage still has significant room for growth globally. Mobile traffic as a percentage of total traffic on sites like Pandora, Twitter and Facebook has also increased dramatically in recent years.
Every year, May Meeker of Kleiner Perkins (formerly web analysis at Morgan Stanley) present the ‘state of the nation’ at Web2.0 and this year was no different.
The document discusses the launch of Jimdo's mobile app for iOS. It provides details on the planned launch dates in August and September. It notes that the app allows users to create and edit existing websites on mobile. In the first week, it had over 70,000 downloads and was featured in 46 countries from day one. The document also references a goal number one meeting to align strategy and collaboration across teams to make the company's power visible to all members.
The document discusses global trends in internet usage and technology. It notes that the majority of users of the top global internet properties are now located outside the United States. It also points out that in just three years, China added more internet users than currently exist in the United States. Additionally, the number of social network users now exceeds the total number of global internet users in 2006, with 70% of social networkers located outside the US.
Spotify is a music streaming service founded in 2006 that allows users to listen to music for free with advertisements or through a premium subscription. It aimed to compete with piracy by offering legal streaming with better features than illegal downloads like instant access, music discovery tools, and control over one's library. By 2010, Spotify had grown to over 7 million users across 6 markets in Europe through its combination of free and premium services and partnerships with artists. The document discusses Spotify's growth and lessons learned around competing with piracy by creating a better user experience than illegal downloading.
The document discusses global trends in internet usage and technology. It notes that the majority of users of the top global internet properties are now located outside the United States. It also points out that in just three years, China added more internet users than currently exist in the United States. Additionally, the number of social network users now exceeds the total number of global internet users in 2006, with 70% of social networkers located outside the US.
Ocean lotus Threat actors project by John Sitima 2024 (1).pptxSitimaJohn
Ocean Lotus cyber threat actors represent a sophisticated, persistent, and politically motivated group that poses a significant risk to organizations and individuals in the Southeast Asian region. Their continuous evolution and adaptability underscore the need for robust cybersecurity measures and international cooperation to identify and mitigate the threats posed by such advanced persistent threat groups.
Generating privacy-protected synthetic data using Secludy and MilvusZilliz
During this demo, the founders of Secludy will demonstrate how their system utilizes Milvus to store and manipulate embeddings for generating privacy-protected synthetic data. Their approach not only maintains the confidentiality of the original data but also enhances the utility and scalability of LLMs under privacy constraints. Attendees, including machine learning engineers, data scientists, and data managers, will witness first-hand how Secludy's integration with Milvus empowers organizations to harness the power of LLMs securely and efficiently.
HCL Notes and Domino License Cost Reduction in the World of DLAUpanagenda
Webinar Recording: https://www.panagenda.com/webinars/hcl-notes-and-domino-license-cost-reduction-in-the-world-of-dlau/
The introduction of DLAU and the CCB & CCX licensing model caused quite a stir in the HCL community. As a Notes and Domino customer, you may have faced challenges with unexpected user counts and license costs. You probably have questions on how this new licensing approach works and how to benefit from it. Most importantly, you likely have budget constraints and want to save money where possible. Don’t worry, we can help with all of this!
We’ll show you how to fix common misconfigurations that cause higher-than-expected user counts, and how to identify accounts which you can deactivate to save money. There are also frequent patterns that can cause unnecessary cost, like using a person document instead of a mail-in for shared mailboxes. We’ll provide examples and solutions for those as well. And naturally we’ll explain the new licensing model.
Join HCL Ambassador Marc Thomas in this webinar with a special guest appearance from Franz Walder. It will give you the tools and know-how to stay on top of what is going on with Domino licensing. You will be able lower your cost through an optimized configuration and keep it low going forward.
These topics will be covered
- Reducing license cost by finding and fixing misconfigurations and superfluous accounts
- How do CCB and CCX licenses really work?
- Understanding the DLAU tool and how to best utilize it
- Tips for common problem areas, like team mailboxes, functional/test users, etc
- Practical examples and best practices to implement right away
Salesforce Integration for Bonterra Impact Management (fka Social Solutions A...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on integration of Salesforce with Bonterra Impact Management.
Interested in deploying an integration with Salesforce for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Fueling AI with Great Data with Airbyte WebinarZilliz
This talk will focus on how to collect data from a variety of sources, leveraging this data for RAG and other GenAI use cases, and finally charting your course to productionalization.
5th LF Energy Power Grid Model Meet-up SlidesDanBrown980551
5th Power Grid Model Meet-up
It is with great pleasure that we extend to you an invitation to the 5th Power Grid Model Meet-up, scheduled for 6th June 2024. This event will adopt a hybrid format, allowing participants to join us either through an online Mircosoft Teams session or in person at TU/e located at Den Dolech 2, Eindhoven, Netherlands. The meet-up will be hosted by Eindhoven University of Technology (TU/e), a research university specializing in engineering science & technology.
Power Grid Model
The global energy transition is placing new and unprecedented demands on Distribution System Operators (DSOs). Alongside upgrades to grid capacity, processes such as digitization, capacity optimization, and congestion management are becoming vital for delivering reliable services.
Power Grid Model is an open source project from Linux Foundation Energy and provides a calculation engine that is increasingly essential for DSOs. It offers a standards-based foundation enabling real-time power systems analysis, simulations of electrical power grids, and sophisticated what-if analysis. In addition, it enables in-depth studies and analysis of the electrical power grid’s behavior and performance. This comprehensive model incorporates essential factors such as power generation capacity, electrical losses, voltage levels, power flows, and system stability.
Power Grid Model is currently being applied in a wide variety of use cases, including grid planning, expansion, reliability, and congestion studies. It can also help in analyzing the impact of renewable energy integration, assessing the effects of disturbances or faults, and developing strategies for grid control and optimization.
What to expect
For the upcoming meetup we are organizing, we have an exciting lineup of activities planned:
-Insightful presentations covering two practical applications of the Power Grid Model.
-An update on the latest advancements in Power Grid -Model technology during the first and second quarters of 2024.
-An interactive brainstorming session to discuss and propose new feature requests.
-An opportunity to connect with fellow Power Grid Model enthusiasts and users.
Webinar: Designing a schema for a Data WarehouseFederico Razzoli
Are you new to data warehouses (DWH)? Do you need to check whether your data warehouse follows the best practices for a good design? In both cases, this webinar is for you.
A data warehouse is a central relational database that contains all measurements about a business or an organisation. This data comes from a variety of heterogeneous data sources, which includes databases of any type that back the applications used by the company, data files exported by some applications, or APIs provided by internal or external services.
But designing a data warehouse correctly is a hard task, which requires gathering information about the business processes that need to be analysed in the first place. These processes must be translated into so-called star schemas, which means, denormalised databases where each table represents a dimension or facts.
We will discuss these topics:
- How to gather information about a business;
- Understanding dictionaries and how to identify business entities;
- Dimensions and facts;
- Setting a table granularity;
- Types of facts;
- Types of dimensions;
- Snowflakes and how to avoid them;
- Expanding existing dimensions and facts.
Ivanti’s Patch Tuesday breakdown goes beyond patching your applications and brings you the intelligence and guidance needed to prioritize where to focus your attention first. Catch early analysis on our Ivanti blog, then join industry expert Chris Goettl for the Patch Tuesday Webinar Event. There we’ll do a deep dive into each of the bulletins and give guidance on the risks associated with the newly-identified vulnerabilities.
AI 101: An Introduction to the Basics and Impact of Artificial IntelligenceIndexBug
Imagine a world where machines not only perform tasks but also learn, adapt, and make decisions. This is the promise of Artificial Intelligence (AI), a technology that's not just enhancing our lives but revolutionizing entire industries.
Let's Integrate MuleSoft RPA, COMPOSER, APM with AWS IDP along with Slackshyamraj55
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Driving Business Innovation: Latest Generative AI Advancements & Success StorySafe Software
Are you ready to revolutionize how you handle data? Join us for a webinar where we’ll bring you up to speed with the latest advancements in Generative AI technology and discover how leveraging FME with tools from giants like Google Gemini, Amazon, and Microsoft OpenAI can supercharge your workflow efficiency.
During the hour, we’ll take you through:
Guest Speaker Segment with Hannah Barrington: Dive into the world of dynamic real estate marketing with Hannah, the Marketing Manager at Workspace Group. Hear firsthand how their team generates engaging descriptions for thousands of office units by integrating diverse data sources—from PDF floorplans to web pages—using FME transformers, like OpenAIVisionConnector and AnthropicVisionConnector. This use case will show you how GenAI can streamline content creation for marketing across the board.
Ollama Use Case: Learn how Scenario Specialist Dmitri Bagh has utilized Ollama within FME to input data, create custom models, and enhance security protocols. This segment will include demos to illustrate the full capabilities of FME in AI-driven processes.
Custom AI Models: Discover how to leverage FME to build personalized AI models using your data. Whether it’s populating a model with local data for added security or integrating public AI tools, find out how FME facilitates a versatile and secure approach to AI.
We’ll wrap up with a live Q&A session where you can engage with our experts on your specific use cases, and learn more about optimizing your data workflows with AI.
This webinar is ideal for professionals seeking to harness the power of AI within their data management systems while ensuring high levels of customization and security. Whether you're a novice or an expert, gain actionable insights and strategies to elevate your data processes. Join us to see how FME and AI can revolutionize how you work with data!
Project Management Semester Long Project - Acuityjpupo2018
Acuity is an innovative learning app designed to transform the way you engage with knowledge. Powered by AI technology, Acuity takes complex topics and distills them into concise, interactive summaries that are easy to read & understand. Whether you're exploring the depths of quantum mechanics or seeking insight into historical events, Acuity provides the key information you need without the burden of lengthy texts.
How to Get CNIC Information System with Paksim Ga.pptxdanishmna97
Pakdata Cf is a groundbreaking system designed to streamline and facilitate access to CNIC information. This innovative platform leverages advanced technology to provide users with efficient and secure access to their CNIC details.
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfMalak Abu Hammad
Discover how MongoDB Atlas and vector search technology can revolutionize your application's search capabilities. This comprehensive presentation covers:
* What is Vector Search?
* Importance and benefits of vector search
* Practical use cases across various industries
* Step-by-step implementation guide
* Live demos with code snippets
* Enhancing LLM capabilities with vector search
* Best practices and optimization strategies
Perfect for developers, AI enthusiasts, and tech leaders. Learn how to leverage MongoDB Atlas to deliver highly relevant, context-aware search results, transforming your data retrieval process. Stay ahead in tech innovation and maximize the potential of your applications.
#MongoDB #VectorSearch #AI #SemanticSearch #TechInnovation #DataScience #LLM #MachineLearning #SearchTechnology
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdf
Kpcb internet-trends-2011
1. INTERNET TRENDS –
Web 2.0 Summit
San Francisco, CA
Mary Meeker (marym@kpcb.com) – October 18, 2011
Copyright 2011. All rights reserved.
Copyright 2011. All rights reserved. www.kpcb.com/internettrends2011
1
2. KPCB (Digital Venture + Digital Growth) 2011 Investments
Copyright 2011. All rights reserved.
2
3. Internet Trends
1. Globality – We Aren’t In Kansas Anymore…
2. Mobile – Early Innings Growth, Still…
3. User Interface – Text Graphical Touch / Sound / Move
4. Commerce – Fast / Easy / Fun / Savings = More Important Than Ever…
5. Advertising – Lookin’ Good…
6. Content Creation – Changed Forever
7. Technology / Mobile Leadership – Americans Should Be Proud
8. Mega-Trend of 21st Century = Empowerment of People via Connected
Mobile Devices
9. Authentic Identity – The Good / Bad / Ugly. But Mostly Good?
10. Economy – Lots of Uncertainty
11. USA Inc. – Pay Attention!
12. Closing Thoughts
Copyright 2011. All rights reserved.
3
4. GLOBALITY –
WE AREN’T IN KANSAS
ANYMORE…
Copyright 2011. All rights reserved.
5. Apple, Google, Amazon.com & Facebook Remain Mega-Leaders;
Chinese (& Russian) Companies Continue to Step Up
Rank Y/Y Trend Company Region 2011 Market Value ($B) 2010 Revenue ($MM)
1 Apple USA $373 $76,283
2 Google USA 177 29,321
3 Amazon.com USA 108 34,204
4 ↑ Facebook USA 77* --
5 ↑ Baidu China 46 1,216
6 eBay USA 42 9,156
7 Tencent China 41 2,967
8 Priceline.com USA 24 3,085
9 Yahoo! USA 20 6,325
10 Yahoo! Japan Japan 20 2,995
11 Salesforce.com USA 17 1,657
12 Rakuten Japan 15 4,286
13 NHN Korea 10 1,062
14 Liberty Interactive USA 9 8,932
15 ↑ Yandex Russia 8 447
16 Expedia USA 8 3,348
17 LinkedIn USA 8 243
18 Netflix USA 6 2,162
19 ↑ Mail.ru Russia 6 324
20 Netease China 6 836
21 Alibaba.com China 5 854
22 Verisign USA 5 681
23 Ctrip China 5 424
24 Sina.com China 5 403
25 Rackspace USA 5 781
Total $969 $191,992
Note: 2011 data as of 10/12/2011; *Facebook market value per most recent trades (week of Sep 26) on SharesPost. Source: Google Finance.
Copyright 2011. All rights reserved.
5
6. 81% of Users of Top Global Internet Properties =
Outside USA
Top 10 Internet Properties by Global Monthly Unique Visitors, 8/11
Google
Microsoft
Facebook
Yahoo!
Wikipedia
Amazon.com
USA Users
Apple
International Users
Tencent
VEVO
Baidu
0 200 400 600 800 1,000 1,200
Monthly Unique Visitors (MM)
Source: comScore Global, 8/11.
Copyright 2011. All rights reserved.
6
7. In 3 Years, China Added More Internet Users than Exist in USA…
China / India / Nigeria / Russia / Iran = Biggest Adders
07-10 Internet
User Additions 2010 Internet Population
Rank Country (MMs) Users (MMs) Y/Y Growth Penetration
1 China 246 459 20% 34%
2 India 42 88 43 8
3 Nigeria 35 45 2 28
4 Russia 25 60 0 42
5 Iran 24 37 31 49
6 USA 22 244 2 79
7 Brazil 21 79 4 41
8 Philippines 18 23 292 25
9 Mexico 13 35 24 31
10 Pakistan 12 29 43 17
Top 10 457 1,099 16% 29%
World 693 2,054 13% 30%
Note: *Russia data as of 6/10; all other data as of 12/10. Source: United Nations / International Telecommunications Union.
Copyright 2011. All rights reserved.
7
8. Social Networkers (October, 2011) Exceed Internet Users
(December, 2006) & 70% of Them (800MM) Use Facebook
Hours Spent on Social Networking Sites per User per Month
(8/11)
Israel 11.1
Argentina 10.8
Turkey 10.3
Chile 10.2
Russia 9.7
Philippines 9.0
Venezuela 8.9
Colombia 8.5
Canada 7.4
Mexico 7.4
Peru 7.2
USA 6.8
0 2 4 6 8 10 12
Source: Social Networking users & time spent data per comScore, Internet users data per ITU, Facebook data per Facebook.
Copyright 2011. All rights reserved.
8
9. If it Plays in Peoria…Take it to Broadway!
Especially in Mobile / Social World…
‘Test Market’ /
Company Origin* Social Service Users
Sound Recognition /
UK 100MM+
Music Discovery
Music Discovery &
Sweden 15MM+
Streaming
Israel Driving Navigation 7MM+
Germany / UK Sound Discovery &
7MM+
/ Sweden Sharing
Note: *Shazam first gained traction in UK, Spotify first gained traction in Sweden, Soundcloud first gained traction in Germany / UK / Sweden, Waze first
achieved critical mass in Israel. All of these services have successfully expanded to other regions / countries, including USA.
Copyright 2011. All rights reserved.
9
10. MOBILE –
EARLY INNINGS GROWTH, STILL
Copyright 2011. All rights reserved.
11. Breakthrough Communications Technologies / Services
Can Breakout Even During Breakdown Times
Technology Adoption (Measured by Population Penetration) in USA
Radio vs. TV vs. Internet vs. Mobile Internet, 1920 – 2011E
100%
80%
Population Penetration (%)
AM Radio
60%
TV
Internet
40%
Mobile Internet (Smartphone)
Recessions
20%
0%
1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Source: Radio penetration data per Broadcasting & Cable Yearbook 1996, Internet penetration data per World Bank / ITU, Mobile Internet (smartphone) data per
Morgan Stanley Research; 3G data per Informa.
Copyright 2011. All rights reserved.
11
12. 35% Y/Y Global Mobile 3G Subscriber Growth
to 936MM (17% of all Mobile Subscribers), Q2:11
Q2:11 3G 3G 3G Sub Q2:11 3G 3G 3G Sub
Subs Penetra- Y/Y Subs Penetra- Y/Y
Rank Country (MM) tion Growth Rank Country (MM) tion Growth
1 USA 179 56% 26% 16 Canada 15 58% 47%
2 Japan 117 97 10 17 Taiwan 14 48 28
3 Korea 43 82 10 18 Portugal 12 73 21
4 China 40 4 172 19 Turkey 11 17 104
5 Italy 40 47 22 20 Malaysia 10 28 22
6 UK 39 51 35 21 South Africa 9 16 34
7 Germany 33 32 24 22 Sweden 9 69 35
8 Spain 30 53 23 23 Mexico 9 9 85
9 Brazil 28 13 79 24 Philippines 9 10 87
10 Indonesia 27 12 40 25 Saudi Arabia 9 18 18
11 Poland 26 54 24 26 Netherlands 8 40 41
12 France 25 39 29 27 Austria 7 54 29
13 India 23 3 1,050 28 Vietnam 6 6 103
14 Australia 20 71 22 29 Israel 6 58 16
15 Russia 15 7 59 30 Argentina 5 10 102
Global 3G Stats: Subscribers = 936MM Penetration = 17% Growth = 35%
Note: *3G includes CDMA 1x EV-DO and Rev. A/B, WCDMA, HSPA; One user may have multiple mobile subscriptions and may be counted as multiple
subscriber. Source: Informa WCIS+.
Copyright 2011. All rights reserved.
12
13. Smartphones Surpassed Feature Phone Shipments in
W. Europe (Q2:10) / USA (Q1:11); ROW to Follow
Smartphone Shipments as % of Total Mobile Phone Shipments by Region, Q1:08 – Q2:11
100%
North America
Smartphone > Feature
% of Quarterly Mobile Phone Shipments
80%
Western Europe Phone Shipments
Rest of World (ex. Japan)
60%
50%
40%
20%
0%
Q1:08 Q3:08 Q1:09 Q3:09 Q1:10 Q3:10 Q1:11
Source: Data per Ehud Gelblum, Morgan Stanley Research. Note: In Japan, smartphone exceeded feature phone in Q4:08.
Copyright 2011. All rights reserved.
13
14. Despite Tremendous Ramp So Far,
Smartphone Usage Still Has Huge Upside
Global Smartphone vs. Mobile Phone Subscribers, 2011E
6,000 5.6B Mobile
Phone Subscribers
5,000
4,000
Global Users (MM)
3,000
2,000
835MM
Smartphone
1,000
Subscribers
0
Smartphone Users Mobile Phone Users
Source: Smartphone subscriber estimates per Morgan Stanley Research; Mobile phone subscribers per Informa (as of Q2:11).
Note: While there are 936MM global 3G subscribers as of Q2:11, not all of them were smartphone users. One user may have multiple mobile subscriptions,
therefore actual user #s may be lower than subscriber #s.
Copyright 2011. All rights reserved.
14
15. iPods Changed Media Industry…iPhones Ramped Even
Faster…iPad Growth Leaves “Siblings” in Dust
First 6 Quarters Cumulative Unit Shipments, iPod vs. iPhone vs. iPad
15,000
700
45,000
iPad
iPad iPhone
iPhone
iPhone iPod
iPod
iPod
40,000
13,000
600
35,000
Global Unit Shipments (000)
11,000
Global Unit Shipments (000)
500
30,000
9,000
400
25,000
7,000
20,000
300
5,000
15,000
200
10,000
3,000
100
5,000
1,000
0 0
-1,000 00 0 1
1 1 2
22 3
33 44 5
5
5 6
6
Quarters After Launch
Quarters After Launch
After Launch
Source: Apple, as of Q2:11 (6 quarters post iPad launch).
Copyright 2011. All rights reserved.
15
16. Android ‘Phone’ Adoption Has Ramped Even
Faster than iPhone
First 11 Quarters Cumulative Global Android & iPhone Unit Shipments
180
Android Global Units Shipped
Android iPhone
iPhone
160
Global Cumulative Unit Shipments (MM)
140
120
100
80
60
40
20
0
0 1 2 3 4 5 6 7 8 9 10 11
Quarters After Launch
Source: Gartner, Morgan Stanley Research, as of Q2:11.
Copyright 2011. All rights reserved.
16
17. Two Horse Races in Smartphones & Tablets, So Far
Smartphones Tablets
Apple Google Apple Amazon
iPhone Android iPad Kindle
Cumulative Shipments
129MM 152MM 29MM 16MMa
as of Q2:10
ASP** $606 <$600 $650 <$200
Launch Date Q2:07 Q4:08 Q2:10 Q4:07
Note: a) Kindle shipment estimates per Scott Devitt, Morgan Stanley Research. ** ASP is average selling price, data are estimates for Android and Kindle.
Source: Apple, Morgan Stanley Research.
Copyright 2011. All rights reserved.
17
18. Mobile Usage –
Big & Ramping Fast
% of Traffic From Mobile Devices, Pandora, Twitter & Facebook, 2008 – 2011
75%
60%
Pandora
% of Traffic from Mobile
55%
50%
Twitter
33% Facebook
25%
5%
1%
%
2008 2009 2010 2011
Source: Pandora S1, Twitter, Facebook.
Copyright 2011. All rights reserved.
18
19. Mobile Search –
Growing Rapidly
Google US Mobile Queries (Indexed), 2007 – 2011
120
100 4x Growth
in past years
80
60
40
20
0
2007 2008 2009 2010 2011
Source: Google.
19
Copyright 2011. All rights reserved.
19
20. Mobile Advertising –
Ramping Quickly in all Geographies
InMobi – # of Fortune 1000 Companies Launching Mobile Ad Campaigns &
Quarterly Smartphone Ad Impressions, 10/09-9/11
Africa 250
25 250
South America
# of Global Fortune 1000 Advertisers
Middle East 203
Quarterly Smartphone Mobile Ad
20 200
Europe
North America
Impressions (B)
138
15 Asia 150
# of Global Fortune 1000 Advertisers
10 100
62
5 37 50
25
3 4 8
0 0
10/09 1/10 4/10 7/10 10/10 1/11 4/11 7/11 9/11
Source: InMobi.
Copyright 2011. All rights reserved.
20
21. Global Mobile App + Advertising Revenue =
$12B in 2011E Revenue, Up 17x in 3 Years
Global Mobile App + Advertising Revenue, 2008 vs. 2011E
$15
Mobile Apps
Mobile Ad + Apps Spending ($B)
$12B
Mobile Advertising
$10
$5
$0.7B
$0
2008 2009 2010 2011E
Source: Gartner. CAGR is compound annual growth rate.
Note: Apple has paid >$3B $’s to developers as of 9/11, implying gross app market revenue of $4B in 3 years; Google indicated during CQ3 earnings call that it expects
$2.5B mobile ad revenue in 2011E
Copyright 2011. All rights reserved.
21
22. ‘Hierarchy of Needs’ Revisited?
1943 – Maslow 2011 – ? ;)
Self- Internet /
Actualization Mobile
Phone
Esteem
Shelter
Belonging
Safety
Food / Water
Physiological
Note: Created for discussion purposes and a bit of humor. Not intended to discredit Maslow's hierarchy, which we believe to be accurate.
Originally presented in Morgan Stanley’s “The Age of Engagement” presentation, dated April 2005
Copyright 2011. All rights reserved.
22
23. USER INTERFACE –
TEXT GRAPHICAL
TOUCH / SOUND / MOVE
Copyright 2011. All rights reserved.
24. What Has One Insanely Great Designer / Entertainer /
Leader / Businessman Wrought?
Before Steve Jobs…
computers were utilitarian tools for
computation.
After Steve…
computers became beautiful objects we could
use in thousands of ways to aim to make life
better.
Steve’s design aesthetic was second to none.
Copyright 2011. All rights reserved.
24
25. Natural User Interface Revolution –
Now in Touch / Sound / Move Era
1980s 1990s 2000s
Text Graphical Touch / Sound / Move
Copyright 2011. All rights reserved.
25
26. The Next Big Thing(s)?
Those Two Big Things on the Sides of Your Head…
High Quality / Compact Connected
Wireless Speakers Car Audio
Noise Cancellation /
Better Audio Quality Sound Recognition +
Headsets Understanding
4B+ Bluetooth Sound Creation +
Enabled Devices Sharing
ONLINE
AUDIO
Source: Bluetooth enabled devices shipment per iSuppli and Instat, assumes a 2.5 year replacement cycle.
Copyright 2011. All rights reserved.
26
27. Perhaps its Time to Hear About the Ear
Sound is going to be bigger than video…
‘Record’ is the new QWERTY.
- Alexander Ljung, Founder & CEO, SoundCloud
Copyright 2011. All rights reserved.
27
28. COMMERCE –
FAST / EASY / FUN / SAVINGS =
MORE IMPORTANT THAN EVER…
Copyright 2011. All rights reserved.
29. eCommerce =
Four Quarters of Accelerating Growth
USA Retail Sales & eCommerce Y/Y Growth Rates, Q1:03 –Q2:11
30%
USA Retail Sales & eCommerce Y/Y Growth Rates
20%
10%
0%
Q1:03 Q1:04 Q1:05 Q1:06 Q1:07 Q1:08 Q1:09 Q1:10 Q1:11
U.S. Retail E-Commerce Sales
-10% U.S. Total Retail Sales
Note: eCommerce sales excludes travel, auto and auctions. Source: U.S. Census Bureau, comScore.
Copyright 2011. All rights reserved.
29
30. eCommerce Continues to Gain Share from Offline…
at 8% Share of USA Commerce with Lots of Headroom
USA eCommerce % Share(1) of Total Retail Sales, Q1:04 – Q4:13E
12%
eCommerce
Penetration
eCommerce as % of Total Retail Sales
10% 8% in Q2:11
8%
6%
4%
2%
0%
Q1:04 Q1:05 Q1:06 Q1:07 Q1:08 Q1:09 Q1:10 Q1:11 Q1:12
eCommerce Penetration Linear Trendline (y=0.1443x + 4.0428, R^2=0.8512)
Note: (1) : e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service &
Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores
Source: US Dept. of Commerce, comScore.
Copyright 2011. All rights reserved.
30
31. Mobile Commerce =
We Have Lift Off!
Mobile Sales or Payment Volume –
eBay / PayPal / Amazon.com / Target / Square, 2009-2011E
$5
Gross Mobile Sales or Payment
$4
eBay
Volume ($B)
PayPal
$3
Target
$2
Amazon.com
$1 Square
$0
2009 2010 2011
Note: Amazon.com disclosed 2010 mobile gross sale, 2009 / 2011 data are KPCB estimates.
Source: eBay, Amazon.com, Target, Square.
Copyright 2011. All rights reserved.
31
32. Old Magazine Paradigm Finally Comes Alive =
It’s a Bird, It’s a Plane? It’s Click & Buy (on Mobile Device)…
Copyright 2011. All rights reserved.
32
33. In a Mobile-ized / Transparent World =
Pricing Matters A LOT!
Reasons for In-Store Purchase Abandonment Among USA Smartphone Users, 7/11
Found it online for a better price 52%
Found it at another store for a better price 51%
Saw a negative review about the item 34%
I bought a similar item instead 21%
It was not available in-store 17%
No longer needed the item 7%
None of the above 1%
% of Respondents
Source: comScore US smartphone user survey, 7/11.
Note: the same survey also indicated that 50% of USA smartphone users have used their smartphones to find a nearby store. So while mobile Internet is helping
drive foot traffic to local stores, it is also helping make pricing info more transparent for the consumers.
Copyright 2011. All rights reserved.
33
34. Local Commerce =
Rejuvenated by Mobile
Coupons + Demand Payments + Inventory Reviews + Business Check Ins + Driving
Generation Management Information / Leads Foot Traffic
20MM+ Users* 2MM+ Users* 40MM+ Users* 15MM+ Users*
LOCAL
Note: *Users are comScore USA’s aggregate
monthly unique visitor data for companies listed
COMMERCE
under each category.
Total USA local advertising for 2011E is $68B, per
Morgan Stanley Research.
Copyright 2011. All rights reserved.
34
35. ADVERTISING –
LOOKIN’ GOOD…
Copyright 2011. All rights reserved.
36. Media Time Spent vs. Ad Spend Still Out of Whack
Internet / Mobile (upside…) vs. Print (downside…)
% of Time Spent in Media vs. % of Advertising Spending, USA 2010
Time Spent Ad Spend
50%
% of Total Media Consumption Time
or Advertising Spending
40% 43% 43%
30%
27%
25% ~$20B
20% Opportunity
in USA
19%
16%
10%
11%
8% 8%
0.5%
0%
Print Radio TV Internet Mobile
Note: Print includes newspaper and magazine. $20B opportunity calculated assuming Internet and Mobile ad spend
share equal their respective time spent share. Source: eMarketer, 3/11.
Copyright 2011. All rights reserved.
36
37. Advertising $s Follow Eyeballs –
Ad Revenue per User = $49 in 2011E vs. $0 in 1994E
1995E 2011E
Global Internet Ad Revenue $55MM $73B
Ad Revenue per User $9 $49
Global Internet Users 6MM 1.5B
Source: Global online ad revenue per Jupiter Communications (1995), ZenithOptimedia (2011). Internet users per Morgan Stanley estimate (1995)
and comScore (2011). We note that comScore reports a lower global Internet user # than International Telecommunications Union.
Copyright 2011. All rights reserved.
37
39. Time Spent on Social Networking Sites Surpassed Portals,
June 2011, USA
USA Monthly Time Spent, Portals vs. Social Networking Sites, 6/08 – 7/11
120
Portals
Social Networking
100
Monthly Time Spent (Bs of Minutes)
June 2011 Time Spent
Social Networking > Portals
80
60
40
20
0
6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11
Source: comScore Media Metrix USA panel-only data.
Copyright 2011. All rights reserved.
39
40. Social Networking CPMs =
Have Begun to Punch Closer to Their Weight
Share of Total USA Online Display Ad Units (as of 8/11) + CPM (as of Q3:11),
by Top Publisher Categories
Business / Finance 2% $9.90
Directories 2%
Online Gaming 3% $2.70
Sports 5% $6.00
Email 10% $0.89
News / Information 11% $5.30
Entertainment 14% $4.25
Portals 21% $2.45
Social Networking 30% $3.80
0% 10% 20% 30% 40% $0 $5 $10 $15
Share of Total US Online Display Ad CPM ($)
Units
Source: comScore, Display ad unit share as of 8/11, CPM data per Vivaki, as of Q3:11.
Copyright 2011. All rights reserved.
40
41. CONTENT CREATION –
CHANGED FOREVER…
Copyright 2011. All rights reserved.
42. Content Commoditization –
Value Shift from Creators to Aggregators
• Newspapers, once the bastions of USA Total Newspaper Print + Online Revenue
content creation / curation, are vs. Google USA Revenue, Q1:06 – Q2:11
experiencing 5th straight year of $16
declining revenue.
Quarterly Revenue ($B)
• With undifferentiated products, $12
price is competed down to
marginal cost. And the marginal
$8
cost for digital content is $0.
• How does one create
$4
differentiated content in an
economically viable manner, when
few want to pay for it? – For
$0
insights, check out Joanne Q1:06 Q4:06 Q3:07 Q2:08 Q1:09 Q4:09 Q3:10 Q2:11
Bradford’s Web 2.0 presentation.
USA Total Newspaper Print + Online Revenue
Source: Demand Media.
Google USA Revenue
Note that Search = ~50% of USA Online Ad Revenue ($15B based on Q2 run rate) in 2011 vs. <5% in 2001;
Display = 23% of Online Ad Revenue ($7B) in 2011 vs. 62% in 2001
Copyright 2011. All rights reserved.
42
43. TECHNOLOGY / MOBILE
LEADERSHIP –
AMERICANS SHOULD BE PROUD
Copyright 2011. All rights reserved.
44. We are Living Through a Once Every 10-20 Years
Technology Evolution – The Mobile Computing Cycle…
• Smartphones + tablets outshipped PCs
(notebooks + desktops) in Q4:10.
• Windows operating system fell to
installation on <50% of Internet-enabled
devices in Q2:10.
Source: Morgan Stanley Research, Gartner.
Copyright 2011. All rights reserved.
44
45. ‘Made in USA’ Smartphone Operating Systems =
64% Share from 5% Five Years Ago
Smartphone Operating System Market Share, 2005 vs. 2011E
100%
Market Share of Smartphone OS
80%
Other OS
60% iOS
Android
Windows Mobile
40% BlackBerry OS
Linux
Nokia Symbian
20%
0%
2005 2011E
Source: Morgan Stanley Research, Gartner.
Copyright 2011. All rights reserved.
45
46. Still Early-Innings Era of Smart-Phones to Smarter-Phones
• Pace of innovation in Silicon Valley may be
unprecedented.
• Intensity / focus / leadership of USA-based
companies (Apple / Google / Amazon.com /
Facebook) may be unprecedented.
• Combination of technology improvements and
elegant design may be unprecedented.
Copyright 2011. All rights reserved.
46
47. MEGA-TREND OF 21ST
CENTURY =
EMPOWERMENT OF PEOPLE VIA
CONNECTED MOBILE DEVICES
Copyright 2011. All rights reserved.
48. Global Information Flow -
Real-Time + Fast + Broad
16 Minutes Before / After Japan Earthquake on 3/11/11
Snapshots of @replies From & To Twitter Users in Japan
2:30pm Japan Time 2:46pm Japan Time
Before Earthquake / Tsunami After Earthquake / Tsunami
In 140-character bites, the story unfolded: the shock and terror; the sense of human
frailty mixed with lifesaving information; the messages of those seeking comfort and
those seeing some kind of divine retribution, all mixing at hyper-speed.
– LATimes, 3/11/11
Note: Yellow lines indicate tweets coming out of Japan; Pink lines indicate tweets coming into Japan. Source: Twitter.
Copyright 2011. All rights reserved.
48
49. Global Information Flow –
Remote Locations Getting Connected
• 85% of world’s population covered by
commercial wireless signals, providing
greater reach vs. electrical grid (80%).*
• 200MM+ farmers in India receiving
government payments / subsidies via mobile
devices.**
Source: *GSM Association, United Nations. **There are 90MM Kisan credit card users and 118MM job card users, both of which do not require bank
accounts but utilize mobile phones as identity verification / payment confirmation, per Ministry of Rural Development, Government of India.
Copyright 2011. All rights reserved.
49
50. Global Economies / People =
Increasingly Connected / Co-Dependent
World Trade as % of World GDP, 1960 - 2010
30%
25%
World Trade as % of GDP
20%
2010 World Trade =
15%
24% of World GDP
10%
5%
0%
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Note: World trade calculated as the sum of all countries’ imports (or exports). The biggest trading partners of USA includes EU nations, Canada, China,
Mexico, Japan and South Korea. Source: Trade data per World Trade Organization (WTO), GDP data per United Nations (UN).
Copyright 2011. All rights reserved.
50
51. AUTHENTIC IDENTITY –
THE GOOD / BAD / UGLY.
BUT MOSTLY GOOD?
Copyright 2011. All rights reserved.
52. Authentic Identity – The Good / Bad / Ugly.
But Mostly Good?
With 800MM global active Facebook users…50% that log on in any given
day…with an average of 130 friends…and an average of 80 community
pages / groups / events…and more than 250MM photos uploaded per day
and 350MM active mobile users…*
And 835MM smartphone users (likely ramping to 1.4B within two years)…
It’s hard to hide. The ‘truth’ is often just a photo/click–send away.
‘Clean, well-lighted place to do business?’ ‘People are basically good?’
In a world with tremendous uncertainty – owing to the rapid ramp in
always-on, connected citizens of the world, perhaps, the world is on the
cusp of being safer than ever?
There are lots of sacrifices. This is new terrain.
Only time will tell how all this plays out…
Source: Facebook, 10/11.
Copyright 2011. All rights reserved.
52
53. ECONOMY –
LOTS OF UNCERTAINTY
Copyright 2011. All rights reserved.
54. Stock Market Volatility =
2x Historical Average, Illustrating Uncertainty
100%
Chicago Board Options Exchange (CBOE) Volatility Index (VIX), 1990 – 2011 YTD
80%
VIX Index Value (%)
60%
Current (10/11)
Level = 40%
40%
1990-2011
Average = 20%
20%
0%
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Note: Data as of 10/11. VIX is a measure of implied volatility of S&P 500 index options.
Source: CBOE, Morgan Stanley Research.
Copyright 2011. All rights reserved.
54
55. Consumer Confidence =
Well Below Historical Average, Illustrating Uncertainty
The Conference Board Consumer Confidence Index, 1978 – 2011 YTD
160
140
30 Year Average 10/11
Consumer Confidence Index (1985=100)
120 CCI = 92.7 CCI = 45.4
100
80
60
40
2/09 Trough
CCI = 25.3
20
0
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Note: Index started in 1967 / benchmarked to 1985=100. The Index is calculated each month on the basis of a household survey of consumers'
opinions on current conditions and future expectations of the economy. Source: The Conference Board, 10/11.
Copyright 2011. All rights reserved.
55
56. USA Corporate Capital Spending Budgets =
Being Revised Down, Illustrating Uncertainty
Survey Results of Corporate Capital Spending Budget Revisions, 1/08 – 7/11
Think about your company’s overall capital budget for the current quarter, have
there been any adjustments made over the past 90 days?
50%
Revised Lower
Revised Higher 23% of Respondents
40%
Have Revised
Capital Budgets
% of Respondents
Lower in CQ3:11
30%
20%
10%
0%
1/08 4/08 7/08 10/08 1/09 4/09 7/09 10/09 1/10 4/10 7/10 10/10 1/11 4/11 7/11
Source: ChangeWave Research.
Copyright 2011. All rights reserved.
56
57. GDP Growth Forecasts =
Being Revised Down, Illustrating Uncertainty
Difference from 6/11
IMF Forecasts, 9/11 IMF Forecasts
Country / Region 2009 2010 2011E 2012E 2011E 2012E
USA -3.5% 3.0% 1.5% 1.8% -1.0% -0.9%
Euro Zone -4.3 1.8 1.6 1.1 -0.4 -0.6
UK -4.9 1.4 1.1 1.6 -0.4 -0.7
Japan -6.3 4.0 -0.5 2.3 0.2 -0.6
China 9.2 10.3 9.5 9.0 -0.1 -0.5
India 6.8 10.1 7.8 7.5 -0.4 -0.3
Russia -7.8 4.0 4.3 4.1 -0.5 -0.4
Brazil -0.6 7.5 3.8 3.6 -0.3 0.0
Developed Markets -3.7 3.1 1.6 1.9 -0.6 -0.7
Emerging Markets 2.8 7.3 6.4 6.1 -0.2 -0.3
World -0.7 5.1 4.0 4.0 -0.3 -0.5
Note: Data is annual GDP percent change. Source: IMF World Economic Outlook, 9/11.
Copyright 2011. All rights reserved.
57
58. Stock Markets = Often Leading Indicators of Economic Activity
Russia -33% from 52-Week High; Oil (-24%) / China (-23%) / Europe (-23%) / S&P500
(-12%) / Nasdaq (-9%)
180% Stock / Commodity Markets Performance (% Change From 1/10), 1/10 – 10/11
160%
140%
Index Value (1/1/2010 = 100%)
120%
100%
80%
New 2-Week Trendline?
60%
1/10 3/10 5/10 7/10 9/10 11/10 1/11 3/11 5/11 7/11 9/11
S&P500 NASDAQ China Shanghai Composite MSCI Europe Russia RTS Oil Gold
Note: All values are indexed to 1 (100%) on Jan 1, 2010. Data as of 10/17/11.
Source: Morgan Stanley Research, Yahoo! Finance.
Copyright 2011. All rights reserved.
58
59. USA INC. –
PAY ATTENTION!
Copyright 2011. All rights reserved.
60. America’s Revenue & Expenses as % of GDP Over 110 Years;
Current State = Revenue Problem? Spending Problem?
USA Inc. Revenue & Expenses as % of GDP, 1901 – 2011E
50% $16
Revenue as % of GDP
(Left Axis) $14
Biggest Peace Time Gap
Real GDP (in Trillions of 2005 Dollars)
40% Expenses as % of GDP Between Revenue &
Revenue & Expenses as % of GDP
(Left Axis) Expenses in USA History $12
Real GDP (Right Axis)
$10
30%
$8
20%
$6
$4
10%
$2
0% $0
1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011E
Source: 1910 – 1930 per Census Bureau, 1940-2010 per White House OMB. Real GDP adjusted for inflation, in 2005 dollars.
Copyright 2011. All rights reserved.
60
61. America’s Income Statement –
-60% Net Margin in F2010
USA Inc. Profit & Loss Statement, F1995 / F2000 / F2005 / F2010
F1995 … F2000 … F2005 … F2010 Comments
Revenue ($B) $1,352 $2,026 $2,154 $2,163 On average, revenue grew 3% Y/Y
Y/Y Growth -- 11% 15% 3% over past 15 years
Individual Income Taxes* $590 $1,005 $927 $899 Largest driver of revenue
% of Revenue 44% 50% 43% 42%
Social Insurance Taxes $484 $653 $794 $865 Payroll tax on Social Security +
% of Revenue 36% 32% 37% 40% Medicare
Corporate Income Taxes* $157 $207 $278 $191 Fluctuates significantly with
% of Revenue 12% 10% 13% 9% economic conditions
Other $120 $161 $154 $208 Includes estate & gift taxes / duties &
% of Revenue 9% 8% 7% 10% fees; relatively stable
Expense ($B) $1,516 $1,789 $2,472 $3,456 On average, expense grew 6% Y/Y
Y/Y Growth -- 5% 8% -2% over past 15 years
Entitlement / Mandatory $788 $937 $1,295 $1,984
Significant increase owing to aging
% of Expense 52% 52% 52% 57% population + rising healthcare cost
Non-Defense Discretionary $223 $335 $497 $431
Includes education / law enforcement
% of Expense 15% 19% 20% 12%
/ transportation…
"One-Time" Items -- -- -- $152
Includes discretionary spending on
% of Expense -- -- -- 4%
TARP, GSEs, and economic stimulus
Defense $272 $294 $495 $694
% of Expense 18% 16% 20% 20%
Significant increase owing to on-
going War on Terror
Net Interest on Public Debt $232 $223 $184 $196
Decreased owing to historic low
% of Expense 15% 12% 7% 6% interest rates
Surplus / Deficit ($B) -$164 $237 -$318 -$1,293 USA Inc. median net margin between
Net Margin (%) -12% 12% -15% -60% 1995 & 2010 = -8%
Note: USA federal fiscal year ends in September; *individual & corporate income taxes include capital gains taxes. Non-defense discretionary includes federal
spending on education, infrastructure, law enforcement, judiciary functions… Source: White House Office of Management and Budget.
Copyright 2011. All rights reserved.
61
62. America’s Debt Level Relative to Other Countries –
You Do the Math…
2010 Gross 2010 Gross
Government Debt Government Debt
Rank Country ($MM) % of GDP Rank Country ($MM) % of GDP
1 Japan $12,009 220% 16 Hungary $105 80%
2 Jamaica 19 143 17 Israel 168 77
3 Greece 436 143 18 UK 1,699 76
4 Lebanon 53 134 19 Egypt 161 74
5 Iraq 97 120 20 Austria 272 72
6 Italy 2,445 119 21 Sudan 47 72
7 Belgium 452 97 22 Brazil 1,397 67
8 Singapore 214 96 23 Jordan 18 67
9 Ireland 196 95 24 Côte d'Ivoire 15 67
10 USA 13,707 94 25 India 1,046 64
11 Portugal 213 93 26 Netherlands 497 64
12 Iceland 12 92 27 Cyprus 14 61
13 Germany 2,759 84 28 Spain 848 60
14 Canada 1,324 84 29 Uruguay 23 57
15 France 2,110 82 30 Pakistan 100 57
Note: Ranking excludes countries with gross government debt less than $10MM in 2010. Gross government debt includes
intragovernment obligations (such as Treasuries held by the Social Security Trust Fund in US’ case).
Source: The International Monetary Fund (IMF).
Copyright 2011. All rights reserved.
62
63. USA Inc. @ kpcb.com / youtube.com / amazon.com
90K+ Total Views
14K+ YouTube Views
7K+ Facebook Likes
2K+ Retweets
Copyright 2011. All rights reserved.
63
65. Economy – Often darkest before dawn. At least
we know what the problems are. Now we need
the resolve to fix them. Across-the-board
sacrifice needed.
Tech Industry – Wow! Unprecedented times! If
you can keep your head when all about you
are losing theirs…*
*Rudyard Kipling - ‘If’
Copyright 2011. All rights reserved.
65
66. Disclosure
The information offered in this presentation speaks to industry trends in general,
and should not be construed as providing any particular recommendations or
analysis for any specific company that is mentioned in this presentation. KPCB is
a venture capital firm that owns significant equity positions in certain of the
companies referenced in this presentation.
Copyright 2011. All rights reserved.
66