SlideShare a Scribd company logo
Silicon Valley
Christine Johnson
October, 2013
What’s so special about the San Francisco Bay Area?

Known for its:
Natural beauty
§  Progressive
thinking
§  Liberal politics
§  Entrepreneurship
§  Diversity
§ 

Home to approximately

7.15 million
the largest driver of
population growth in CA

San Mateo and Santa Clara are 2 of the top 25
wealthiest counties in the US

The largest city in the area

San Jose
10th most populous city in the US,
oldest city in CA and its first capital

9 counties
+ San Francisco,
Oakland & San
Jose metros

Image from : http://www.siliconvalleyindex.org/index.php/component/content/article?id=101

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

2
Great schools fuel great minds

Stanford University graduates have
created an estimated 5.4 million jobs
and generate annual revenues of $2.7
trillion*
The revenues of companies that were
founded by Stanford University
students equal the gross national
product of the world’s 10th largest
economy.
71 Nobel Laureates from UC Berkeley.

§  20 private colleges including University of San
Francisco, Stanford and Santa Clara University

52 Nobel Laureates from Stanford.

§  6 public universities including UC Berkeley, UC
San Francisco, SJSU, SFSU
§  30 community colleges in the greater Northern
California area

* Based on responses to the 2011 Alumni Innovation Survey, sponsored by the venture capital firm Sequoia Capital.
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

3
Silicon Valley

Silicon Valley was originally named
“The Valley of Heart’s Delight.”
Orchards of apricots, prunes, cherries
and other agricultural products
dominated the early landscape.
The first technology innovators formed
the beginnings of what we now know as
Silicon Valley in the 1950’s.
The area was first nicknamed
“Silicon Valley” in a 1971
Electronic News article by
journalist Don Hoefler.*
• Computer

History Museum, http://www.computerhistory.org/revolution/digital-logic/12/328/1401

• http://www.morganhilltimes.com/articles_from_gilroy/andy-s-orchard-featured-in-sunset-magazine-spread/article_28d12001-1e11-53cc-a5f0-7e616228d558.html?mode=image
• http://www.marianinut.com

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

4
Silicon Valley today: A scientific/commercial renaissance

Gene splicing and gene cloning
discoveries at Bay Area universities have
spurred advances in biotechnology.
Other advances mark Silicon Valley as a
unique place whose creative energies have
changed the world.
§ 
§ 
§ 
§ 
§ 

Lasers
Nuclear magnetic resonance
Random access computer storage
Disk drives
Integrated circuits

§  Personal computers
§  Open-heart surgery
§  Inkjet printers

Source: http://en.wikipedia.org
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

5
What are the top strengths of doing business in SV?

71% access to
skilled labor
entrepreneurial
mindset

60%

proximity to

customers
44% competitors
and

Source: Poll by SVLG (Silicon Valley Leadership Group) of 177 innovation economy CEOs and Senior Officers
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

6
The Venture Capital Capital

There are more VCs in Menlo Park
than any other city in world.
Sand Hill Road has been known as
“the street of dreams” for seekers of
venture funded capital.
An entrepreneurial spirit and
forgiveness of failure culture are the
norm here.
Hewlett Packard started with $500
Atari started with $250 by Nolan
Bushnell’s own money. People
thought playing games on a TV set
was one of the stupidest ideas ever.
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

7
Some of the companies founded here

Hewlett Packard

Intuitive Surgical

Intel

Maxim Integrated
Conner Peripherals
Apple Palm Inc. Genentech Tesla Motors

Yelp

ETrade

KLA Tencor

NetFlix
Atari

Xilinx

Intuit

Google

Atmel Corp
MIPS Technologies

Acuson Corp

Cypress Semiconductor

Facebook

Lam Research

Rambus

SRI International Twitter
Electronic Arts Trimble Navigation
Adobe Ebay PayPal
Advanced Micro Devices Oracle Quantum Corporation
SLAC National Accelerator Laboratory Yahoo! Silicon Graphics
Bloom Energy

Cisco

NVIDIA

Rolm Communications Applied Materials

Symantec Food Machinery Corporation

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

Sun Microsystems

8
Highway 101 – The tech industry’s Madison Avenue

“Even after the collapse of the
dot-com bubble, about 4,000
IT-related companies located
along Highway 101 from San
Francisco to San Jose
generate approximately $200
billion in IT-related revenue
annually.”
Gregory R. Gromov, The Roads
and Crossroads of Internet History.

San Francisco

US
101

Oracle
Google
Violin Memory
Computer History Museum
Hacker Dojo
Microsoft Labs
NASA Ames
Yahoo!
Bloom Energy NetApp EMC
Intel
Cisco/WebEx McAfee
eBay/PayPal

San Jose

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

9
The early years

1953: William Shockley left Bell Labs in a disagreement over the
handling of the invention of the transistor.
1956: Shockley creates Shockley Semiconductor Laboratory in
Mountain View, California, dedicated to research around using silicon,
instead of germanium, for transistors and diodes.
1957: Shockley wins the Nobel prize in Physics and the "
traitorous eight" engineers leave the company to form
Fairchild Semiconductor.
1971: Two of the original employees of Fairchild Semiconductor,
Robert Noyce and Gordon Moore, go on to found Intel and create the
first microprocessor, the Intel 4004.
1975: Steve Wozniak, builds a home computer from a cheap
microprocessor, and shows it to the Homebrew Computer Club in
Menlo Park.
1976: Woz and his friend and fellow club member, Steve Jobs, form
Apple Computer in Steve's garage in Cupertino and Apple's first
personal computer, the Apple I, is sold for $666.66.
Sources: Wikipedia, www.computerhistory.org/revolution
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

Moore’s Law

Image sources: Wiki Commons?
10
The early years

1977: The Apple II, Commodore PET and the RadioShack TRS-80
launched the first wave of personal computers.
1979: Xerox’s Palo Alto Research Center (PARC) was a hotbed of
innovation in the ’70’s. In 1979, Xerox gave Apple access to some new
ideas in graphical user interface, which were reflected in the first Mac.
1981: Adam Osborne founds Osborne Computer Company and debuts
an early “luggable” computer that cost $1,795 and weighed 23.5
pounds.
1982: Three Stanford grads and 1 UC Berkeley grad started Sun
Microsystems, originally manufacturing powerful graphic workstation
computers, later developers of software including Java. Sun was sold to
Oracle in 2009 and their flagship campus is now home to Facebook.
1994: Jim Clark and Marc Andreessen were the founders of Netscape.
Netscape’s Navigator and Microsoft’s Internet Explorer browsers went
head to head to capture the burgeoning internet market.
1995: Netscape’s successful IPO in 1995 kicked off the Internet Boom
that continued into the early 2000’s.
Source: www.computerhistory.org/revolution
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

11
The heady ’90s of high flying stocks & bonuses

In the ’90s, many tech companies paid
their employees in stock options.
As stock rose, the late ’90s became a
time of irrational exuberance.
Offices sported Foosball tables and video
games.
Secretaries had options worth millions.
Companies had signing bonus mania,
giving away free house cleaning, or even
BMWs, to new employees.

Source: http://www.thebubblebubble.com/dot-com-bubble/
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

12
The dot-com bubble

The historic speculative bubble of
1997–2000 was known as the dot-com
bubble, or the dot-com boom & bust,
or the Internet bubble, take your pick!
The collapse of the bubble took place
during 2000-2001.

Microstrategy’s
stock slid from
$3,500 to $4
per share

Cisco’s
stock
declined
86%

Some companies failed completely.
Some lost a significant portion of
their market caps.
Some recovered and surpassed their
bubble peaks.

Amazon’s
stock went
from $107 to
$7 per share…

…but a
decade
later it
exceed
$200

Source: http://en.wikipedia.org/wiki/Disk_drive, http://en.wikipedia.org/wiki/Amazon.com, http://en.wikipedia.org/wiki/Cisco
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

13
Some memorable dot bombs

Boo.com
Lycos

Boo.com – spent $188m
in just 6 months in an
attempt to create a global
online fashion store

GeoCities
Pets.com

GeoCities – purchased
by Yahoo for $3.6 billion
then closed by Yahoo 10
years later.

Excite@Home
InfoSpace
Webvan
WorldCom

Pets.com – ran a $1.2
million Super Bowl
commercial in 2000
featuring their famous
sock puppet mascot,

Inktomi

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

and closed
ten months
later.

14
Cash or stock, you make the call

Even vendors were offered stock in lieu of cash.
This created more than one “collateral” millionaires,
for example, David Choe.
Choe is Korean-American muralist and graffiti artist
who grew up rough in Los Angeles. A bad-boy street
artist known for doing cover art for
a Linkin Park album. In 2005 Choe was commissioned
to paint murals at the first Facebook headquarters.

CASH

He was offered the choice of cash or Facebook stock.
He said the very idea of Facebook seemed “ridiculous
and pointless” at the time, but he chose the stock.
Now estimated worth $500m.
STOCK

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

15
Cash or stock, you make the call

Alas, the story of Pejman Nozad.
In 2005, Facebook founding President
Sean Parker approached him about renting
165 University Ave. in Palo Alto, a property
owned by Mr. Nozad's partners.
The deal came with a chance to buy
$50,000 of stock in the fledgling social
network – but with strings attached to the
lease.
Mr. Nozad's partners said no. "We put on
our real-estate hat, rather than our
investment hat," he remembers. By his
math, those shares in Facebook would be
valued at about $50 million today.

Source: http://online.wsj.com/article/SB10001424052702303360504577412031389480536.html
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

16
A win/win way to recruit in Silicon Valley

The race for talent in Silicon Valley is
highly competitive.
Big and small companies alike have to
compete pre-IPO start-ups and companies
like Facebook and Google who offer
incredible compensation packages
including stock and top shelf benefits.

“It’s very difficult to compete on comp, especially right
now when a huge element of compensation is stock.
When you’re competing with the promise of pre-IPO
companies it’s just driving your compensation up. We’re
going to have to introduce a disparity in our internal
equity. We should pay what it takes for amazing critical
talent.”
Nellie Peshkov, VP of global talent acquisition at Electronic Arts

5
est 1 re
rg
he la ct squa
X=T erfe
igit p me.
d
lindro
pa

RocketFuel’s clever Hwy 101
billboard recruits engineers with
a challenge, solve the puzzle to
get the address of their company.

Source: http://www.ere.net/2012/07/20/recruiters-ponder-pay-metrics-and-relocation-in-californias-silicon-valley/
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

17
2011: Largest venture capital deals
Greater Bay Area

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

18
2011: Largest IPOs in the Greater Bay Area
$1 billion

$353m
$235m

$198m
$120m

Zynga

LinkedIn

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

Pandora Media

Solazyme

Jive Software

19
2012: Largest venture backed companies
Greater Bay Area

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

20
2012: Largest IPOs in the Greater Bay Area

$16 billion

$732m

$264m

$260m
$120m

Facebook

Workday

Splunk

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

Palo Alto
Networks

Infoblox

$115m

Guidewire
Software

$94m

Vocera
Communications

21
Silicon Celebrities

Silicon Valley pioneers are honored at
The Computer History Museum Fellows Awards and
The SV Forum Visionary Awards.
Some reach celebrity status beyond the valley…
Ÿ  Robert Noyce
Ÿ  Gordon Moore
Ÿ  Andy Grove
Ÿ 
Ÿ 
Ÿ 
Ÿ 
Ÿ 

Bill Hewlett
Dave Packard
Steve Jobs
Steve Wozniak
Guy Kawasaki

Even Hollywood wants in on the act…

Ÿ  Scott McNealy
Ÿ  Larry Ellison
Ÿ  John Doerr
Ÿ 
Ÿ 
Ÿ 
Ÿ 
Ÿ 

Don Valentine
Charles Schwab
Linus Torvalds
Marc Andreessen
Jerry Yang

Ÿ  Sergey Brin
Ÿ  Larry Page
Ÿ  Marissa Mayer
Ÿ 
Ÿ 
Ÿ 
Ÿ 
Ÿ 

Carly Fiorina
Meg Whitman
Mark Zuckerberg
Sheryl Sandberg
Elon Musk

“Timberlake To Gaga: Celebrities Go
Silicon Valley With High-Tech Investments”
Huffington Post 07/26/11

Source: http://www.computerhistory.org/fellowawards/hall/, https://svforum.org/Visionary-Awards , http://www.huffingtonpost.com/2011/07/26/celebrities-silicon-valley-lady-gaga_n_909494.html
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

22
SAP Silicon Valley
SAP – Celebrating 20 years in Silicon Valley

SAP established the
first development
group outside of
Walldorf, Germany
in Foster City, CA

SAP Labs, LLC was
incorporated

Changed the name
of SAP Technology
to SAP Labs and
moved the facility
to Palo Alto

1993

1996

1997

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

24
SAP Silicon Valley today

Over 3,500 employees in four Bay Area locations
One of the most diverse locations with 40+
nationalities and languages spoken
74 of the 313 managers are women*
Palo Alto EBC hosted 1,404 meetings in 2012 and
1,047 meetings In 1H 2013
SAP Silicon Valley Products and Technologies
include Business Applications, Database &
Technology, Mobility, Cloud, and Analytics
Home of SAP HANA, Startup Focus, Western Sales,
SAP Ventures, Ecosystems & Channel, User
Experience, and Mobility Design Center

* SAP Palo Alto, August 2013
©  2013 SAP AG or an SAP affiliate company. All rights reserved.

25
SAP Palo Alto: Sustainability Front-Runner

§ 

650 solar panels

§ 

3 telepresence rooms

§ 

100% renewable energy

§ 

18 charging stations

§ 

Rectifier, air-side
economizer and 380v DC
data center

§ 

LEED Gold Building

§ 

LEDs & intelligent lighting
systems

§ 

Bioswale & garden

§ 

Sustainable food services

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

26
SAP Ventures: Investment Front-Runner
Help innovative and disruptive companies with SAP’s expertise, relationships and
geographic reach in addition to capital (partial list)

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

27
Thank you
Contact Information:
Christine Johnson
Sr. Director, SAP Community Relations
@SAPBayArea
My Blog: http://scn.sap.com/people/christine.johnson/blog
LinkedIn: www.linkedin.com/pub/christine-johnson/2/155/101

©  2013 SAP AG or an SAP affiliate company. All rights reserved.

More Related Content

What's hot

Apple
AppleApple
Evolution-of-Information-Technology
Evolution-of-Information-TechnologyEvolution-of-Information-Technology
Evolution-of-Information-Technology
MisoBiliranCampus
 
Silicon valley
Silicon valleySilicon valley
Silicon valleysimron2002
 
0858683 Silicon Valley Presentation
0858683 Silicon Valley Presentation0858683 Silicon Valley Presentation
0858683 Silicon Valley Presentation
bakera5
 
History of Computer
History of ComputerHistory of Computer
History of Computer
jordonestrada25
 
Silicon Valley
Silicon ValleySilicon Valley
Silicon Valley
Robert Reiz
 
History of computing
History of computingHistory of computing
History of computing
Hossain Md Shakhawat
 
Computer History
Computer HistoryComputer History
Computer History
Crystal Cunningham
 
History of computer electromechanical age
History of computer electromechanical ageHistory of computer electromechanical age
History of computer electromechanical age
Jesus Obenita Jr.
 
1 history of information technology
1 history of information technology1 history of information technology
1 history of information technologyMuhammed Shafi Mk
 
History of computers
History of computersHistory of computers
History of computers
Mercedes Foligna
 
Session 6: Deal Sourcing
Session 6: Deal SourcingSession 6: Deal Sourcing
Session 6: Deal Sourcing
Manish Singhal
 
Introduction to Silicon Valley
Introduction to Silicon ValleyIntroduction to Silicon Valley
Introduction to Silicon ValleyStartup Experience
 
History of internet
History of internetHistory of internet
History of internet
Usman Sajid
 
Rebirth of IBM
Rebirth of IBMRebirth of IBM
Rebirth of IBM
ritulakhotia
 
Apple
AppleApple
Apple
navdeep arora
 
Microsoft
MicrosoftMicrosoft
Microsoft
Devansh Upadhyaya
 
Evolution of computer
Evolution of computerEvolution of computer
Evolution of computerAnkit Yadav
 
Evolution of computer
Evolution of computer   Evolution of computer
Evolution of computer
PratikshaKhedkar1
 
A case based presentation on Microsoft Company
A case based presentation on Microsoft CompanyA case based presentation on Microsoft Company
A case based presentation on Microsoft Company
EaseMyTrip.com
 

What's hot (20)

Apple
AppleApple
Apple
 
Evolution-of-Information-Technology
Evolution-of-Information-TechnologyEvolution-of-Information-Technology
Evolution-of-Information-Technology
 
Silicon valley
Silicon valleySilicon valley
Silicon valley
 
0858683 Silicon Valley Presentation
0858683 Silicon Valley Presentation0858683 Silicon Valley Presentation
0858683 Silicon Valley Presentation
 
History of Computer
History of ComputerHistory of Computer
History of Computer
 
Silicon Valley
Silicon ValleySilicon Valley
Silicon Valley
 
History of computing
History of computingHistory of computing
History of computing
 
Computer History
Computer HistoryComputer History
Computer History
 
History of computer electromechanical age
History of computer electromechanical ageHistory of computer electromechanical age
History of computer electromechanical age
 
1 history of information technology
1 history of information technology1 history of information technology
1 history of information technology
 
History of computers
History of computersHistory of computers
History of computers
 
Session 6: Deal Sourcing
Session 6: Deal SourcingSession 6: Deal Sourcing
Session 6: Deal Sourcing
 
Introduction to Silicon Valley
Introduction to Silicon ValleyIntroduction to Silicon Valley
Introduction to Silicon Valley
 
History of internet
History of internetHistory of internet
History of internet
 
Rebirth of IBM
Rebirth of IBMRebirth of IBM
Rebirth of IBM
 
Apple
AppleApple
Apple
 
Microsoft
MicrosoftMicrosoft
Microsoft
 
Evolution of computer
Evolution of computerEvolution of computer
Evolution of computer
 
Evolution of computer
Evolution of computer   Evolution of computer
Evolution of computer
 
A case based presentation on Microsoft Company
A case based presentation on Microsoft CompanyA case based presentation on Microsoft Company
A case based presentation on Microsoft Company
 

Viewers also liked

PrĂŠsentation Silicon Valley
PrĂŠsentation Silicon ValleyPrĂŠsentation Silicon Valley
PrĂŠsentation Silicon Valley
Olivier MARTINEAU
 
Commodity Management and ERP
Commodity Management and ERPCommodity Management and ERP
Commodity Management and ERP
CTRM Center
 
Apply Design Thinking (Design Thinking Action Lab - Stanford University)
Apply Design Thinking (Design Thinking Action Lab - Stanford University)Apply Design Thinking (Design Thinking Action Lab - Stanford University)
Apply Design Thinking (Design Thinking Action Lab - Stanford University)
Esfandiar Khaleghi
 
Trends aus dem Silicon Valley 2016
Trends aus dem Silicon Valley 2016Trends aus dem Silicon Valley 2016
Trends aus dem Silicon Valley 2016
netlive IT AG
 
Silicon Valley: VCs, startups and venture spirit
Silicon Valley: VCs, startups and venture spiritSilicon Valley: VCs, startups and venture spirit
Silicon Valley: VCs, startups and venture spirit
Allan Martinson
 
Parisian Flea Presentation
Parisian Flea PresentationParisian Flea Presentation
Parisian Flea Presentation
Dana Lynn
 
E mobil - e-mobility initiatives
E mobil - e-mobility initiativesE mobil - e-mobility initiatives
E mobil - e-mobility initiatives
accessio
 
Perguntar nĂŁo ofende
Perguntar nĂŁo ofendePerguntar nĂŁo ofende
Perguntar nĂŁo ofende
Pedro DamiĂŁo
 
History of Stanford University
History of Stanford UniversityHistory of Stanford University
History of Stanford University
Launch Angels
 
A History of Silicon Valley
A History of Silicon ValleyA History of Silicon Valley
A History of Silicon Valley
piero scaruffi
 
Stanford university e-mobility
Stanford university   e-mobilityStanford university   e-mobility
Stanford university e-mobility
accessio
 
Digital Change
Digital ChangeDigital Change
Digital Change
Sven Ruoss
 
Silicon valley past, present, future always on july28 2010
Silicon valley past, present, future always on july28 2010Silicon valley past, present, future always on july28 2010
Silicon valley past, present, future always on july28 2010Stanford University
 
Four Superskills!
Four Superskills!Four Superskills!
Four Superskills!
Simon Jones
 
Projeçþes cartogråficas 1º Ano EM
Projeçþes cartogråficas 1º Ano EMProjeçþes cartogråficas 1º Ano EM
Projeçþes cartogråficas 1º Ano EM
Antonio Pinto Pereira
 
Secret History of Silicon Valley Rev 4 Dec 09
Secret History of Silicon Valley Rev 4 Dec 09Secret History of Silicon Valley Rev 4 Dec 09
Secret History of Silicon Valley Rev 4 Dec 09
Stanford University
 
The 30 Goals Challenge for Teachers
The 30 Goals Challenge for TeachersThe 30 Goals Challenge for Teachers
The 30 Goals Challenge for Teachers
Shelly Sanchez Terrell
 
Projecoes cartograficas
Projecoes cartograficasProjecoes cartograficas
Projecoes cartograficas
Marcia Silva
 
2013 Global Hunger Index Launch
2013 Global Hunger Index Launch2013 Global Hunger Index Launch
2013 Global Hunger Index Launch
International Food Policy Research Institute (IFPRI)
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
Mark Suster
 

Viewers also liked (20)

PrĂŠsentation Silicon Valley
PrĂŠsentation Silicon ValleyPrĂŠsentation Silicon Valley
PrĂŠsentation Silicon Valley
 
Commodity Management and ERP
Commodity Management and ERPCommodity Management and ERP
Commodity Management and ERP
 
Apply Design Thinking (Design Thinking Action Lab - Stanford University)
Apply Design Thinking (Design Thinking Action Lab - Stanford University)Apply Design Thinking (Design Thinking Action Lab - Stanford University)
Apply Design Thinking (Design Thinking Action Lab - Stanford University)
 
Trends aus dem Silicon Valley 2016
Trends aus dem Silicon Valley 2016Trends aus dem Silicon Valley 2016
Trends aus dem Silicon Valley 2016
 
Silicon Valley: VCs, startups and venture spirit
Silicon Valley: VCs, startups and venture spiritSilicon Valley: VCs, startups and venture spirit
Silicon Valley: VCs, startups and venture spirit
 
Parisian Flea Presentation
Parisian Flea PresentationParisian Flea Presentation
Parisian Flea Presentation
 
E mobil - e-mobility initiatives
E mobil - e-mobility initiativesE mobil - e-mobility initiatives
E mobil - e-mobility initiatives
 
Perguntar nĂŁo ofende
Perguntar nĂŁo ofendePerguntar nĂŁo ofende
Perguntar nĂŁo ofende
 
History of Stanford University
History of Stanford UniversityHistory of Stanford University
History of Stanford University
 
A History of Silicon Valley
A History of Silicon ValleyA History of Silicon Valley
A History of Silicon Valley
 
Stanford university e-mobility
Stanford university   e-mobilityStanford university   e-mobility
Stanford university e-mobility
 
Digital Change
Digital ChangeDigital Change
Digital Change
 
Silicon valley past, present, future always on july28 2010
Silicon valley past, present, future always on july28 2010Silicon valley past, present, future always on july28 2010
Silicon valley past, present, future always on july28 2010
 
Four Superskills!
Four Superskills!Four Superskills!
Four Superskills!
 
Projeçþes cartogråficas 1º Ano EM
Projeçþes cartogråficas 1º Ano EMProjeçþes cartogråficas 1º Ano EM
Projeçþes cartogråficas 1º Ano EM
 
Secret History of Silicon Valley Rev 4 Dec 09
Secret History of Silicon Valley Rev 4 Dec 09Secret History of Silicon Valley Rev 4 Dec 09
Secret History of Silicon Valley Rev 4 Dec 09
 
The 30 Goals Challenge for Teachers
The 30 Goals Challenge for TeachersThe 30 Goals Challenge for Teachers
The 30 Goals Challenge for Teachers
 
Projecoes cartograficas
Projecoes cartograficasProjecoes cartograficas
Projecoes cartograficas
 
2013 Global Hunger Index Launch
2013 Global Hunger Index Launch2013 Global Hunger Index Launch
2013 Global Hunger Index Launch
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
 

Similar to The History of Silicon Valley (by Christine Johnson, SAP)

S!LICON VALLEY
S!LICON VALLEYS!LICON VALLEY
S!LICON VALLEY
fRaGr
 
Exploring social innovation in the bay area, tim clark, march 18 2011
Exploring social innovation in the bay area, tim clark, march 18 2011Exploring social innovation in the bay area, tim clark, march 18 2011
Exploring social innovation in the bay area, tim clark, march 18 2011spicyben
 
Von Silicon Valley lernen (oder nicht)
Von Silicon Valley lernen (oder nicht)Von Silicon Valley lernen (oder nicht)
Von Silicon Valley lernen (oder nicht)
Tim Leberecht
 
Russell Hancock about Silicon Valley 10-10-2011 at AIM event
Russell Hancock about Silicon Valley 10-10-2011 at AIM eventRussell Hancock about Silicon Valley 10-10-2011 at AIM event
Russell Hancock about Silicon Valley 10-10-2011 at AIM eventKennisKring Amsterdam
 
Silicon Valley Medical Technologies
Silicon Valley Medical TechnologiesSilicon Valley Medical Technologies
Silicon Valley Medical Technologies
College Papers Help Melrose Park
 
Inspiration is fine, but above all, innovation is really a managem.docx
Inspiration is fine, but above all, innovation is really a managem.docxInspiration is fine, but above all, innovation is really a managem.docx
Inspiration is fine, but above all, innovation is really a managem.docx
jaggernaoma
 
K1 - Dan Crow (CTO SongKick)
K1 - Dan Crow (CTO SongKick)K1 - Dan Crow (CTO SongKick)
K1 - Dan Crow (CTO SongKick)
pranavtulsian
 
Apple Inc. Business Policy
Apple Inc. Business PolicyApple Inc. Business Policy
Apple Inc. Business Policy
Patricia Viljoen
 
Infra coders-slideshare-jan-2013
Infra coders-slideshare-jan-2013Infra coders-slideshare-jan-2013
Infra coders-slideshare-jan-2013
Darragh Kennedy
 
Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010Stanford University
 
The Strength Of Apple. “Apple Had Always Been ‘Different’
The Strength Of Apple. “Apple Had Always Been ‘Different’The Strength Of Apple. “Apple Had Always Been ‘Different’
The Strength Of Apple. “Apple Had Always Been ‘Different’
Tanya Williams
 
Ankit (27-01-2016)
Ankit (27-01-2016)Ankit (27-01-2016)
Ankit (27-01-2016)
Delhi-42 The DTU Quiz Club
 
So what if it's a bubble?
So what if it's a bubble?So what if it's a bubble?
So what if it's a bubble?Alexandre Linhares
 
Product Design Canterbury 2019
Product Design Canterbury 2019Product Design Canterbury 2019
Product Design Canterbury 2019
R. Sosa
 
Expara Business Canvas Workshop
Expara Business Canvas WorkshopExpara Business Canvas Workshop
Expara Business Canvas Workshop
Expara
 
113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100
113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100
113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100
Lia s. Associates | Branding & Design
 
Innovation and punditry_web_2.0_final
Innovation and punditry_web_2.0_finalInnovation and punditry_web_2.0_final
Innovation and punditry_web_2.0_final
Glenn Klith Andersen
 
Jeffbezos and billgates presentation
Jeffbezos and billgates presentationJeffbezos and billgates presentation
Jeffbezos and billgates presentation
luejaysanopao
 

Similar to The History of Silicon Valley (by Christine Johnson, SAP) (20)

S!LICON VALLEY
S!LICON VALLEYS!LICON VALLEY
S!LICON VALLEY
 
Exploring social innovation in the bay area, tim clark, march 18 2011
Exploring social innovation in the bay area, tim clark, march 18 2011Exploring social innovation in the bay area, tim clark, march 18 2011
Exploring social innovation in the bay area, tim clark, march 18 2011
 
Von Silicon Valley lernen (oder nicht)
Von Silicon Valley lernen (oder nicht)Von Silicon Valley lernen (oder nicht)
Von Silicon Valley lernen (oder nicht)
 
IC Family Tree
IC Family TreeIC Family Tree
IC Family Tree
 
Russell Hancock about Silicon Valley 10-10-2011 at AIM event
Russell Hancock about Silicon Valley 10-10-2011 at AIM eventRussell Hancock about Silicon Valley 10-10-2011 at AIM event
Russell Hancock about Silicon Valley 10-10-2011 at AIM event
 
Silicon Valley Medical Technologies
Silicon Valley Medical TechnologiesSilicon Valley Medical Technologies
Silicon Valley Medical Technologies
 
Inspiration is fine, but above all, innovation is really a managem.docx
Inspiration is fine, but above all, innovation is really a managem.docxInspiration is fine, but above all, innovation is really a managem.docx
Inspiration is fine, but above all, innovation is really a managem.docx
 
K1 - Dan Crow (CTO SongKick)
K1 - Dan Crow (CTO SongKick)K1 - Dan Crow (CTO SongKick)
K1 - Dan Crow (CTO SongKick)
 
Apple Inc. Business Policy
Apple Inc. Business PolicyApple Inc. Business Policy
Apple Inc. Business Policy
 
Infra coders-slideshare-jan-2013
Infra coders-slideshare-jan-2013Infra coders-slideshare-jan-2013
Infra coders-slideshare-jan-2013
 
Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010Chile 1208 generating innovation hubs 2010
Chile 1208 generating innovation hubs 2010
 
The Strength Of Apple. “Apple Had Always Been ‘Different’
The Strength Of Apple. “Apple Had Always Been ‘Different’The Strength Of Apple. “Apple Had Always Been ‘Different’
The Strength Of Apple. “Apple Had Always Been ‘Different’
 
Apple Inc.
Apple Inc.Apple Inc.
Apple Inc.
 
Ankit (27-01-2016)
Ankit (27-01-2016)Ankit (27-01-2016)
Ankit (27-01-2016)
 
So what if it's a bubble?
So what if it's a bubble?So what if it's a bubble?
So what if it's a bubble?
 
Product Design Canterbury 2019
Product Design Canterbury 2019Product Design Canterbury 2019
Product Design Canterbury 2019
 
Expara Business Canvas Workshop
Expara Business Canvas WorkshopExpara Business Canvas Workshop
Expara Business Canvas Workshop
 
113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100
113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100
113 190608 Bookclub 100 Ideas That Changed The Web by Jim Boulton - Idea 71-100
 
Innovation and punditry_web_2.0_final
Innovation and punditry_web_2.0_finalInnovation and punditry_web_2.0_final
Innovation and punditry_web_2.0_final
 
Jeffbezos and billgates presentation
Jeffbezos and billgates presentationJeffbezos and billgates presentation
Jeffbezos and billgates presentation
 

Recently uploaded

Business Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBusiness Valuation Principles for Entrepreneurs
Business Valuation Principles for Entrepreneurs
Ben Wann
 
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdfSearch Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Arihant Webtech Pvt. Ltd
 
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Avirahi City Dholera
 
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdfModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
fisherameliaisabella
 
Improving profitability for small business
Improving profitability for small businessImproving profitability for small business
Improving profitability for small business
Ben Wann
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
Cracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptxCracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptx
Workforce Group
 
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).pptENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
zechu97
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
dylandmeas
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Attending a job Interview for B1 and B2 Englsih learners
Attending a job Interview for B1 and B2 Englsih learnersAttending a job Interview for B1 and B2 Englsih learners
Attending a job Interview for B1 and B2 Englsih learners
Erika906060
 
Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)
Lviv Startup Club
 
Affordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n PrintAffordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n Print
Navpack & Print
 
Exploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social DreamingExploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social Dreaming
Nicola Wreford-Howard
 
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdfikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
agatadrynko
 
3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx
tanyjahb
 
Unveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdfUnveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdf
Sam H
 
The-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic managementThe-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic management
Bojamma2
 
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptxCADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
fakeloginn69
 
Skye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto AirportSkye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto Airport
marketingjdass
 

Recently uploaded (20)

Business Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBusiness Valuation Principles for Entrepreneurs
Business Valuation Principles for Entrepreneurs
 
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdfSearch Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
 
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
 
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdfModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
 
Improving profitability for small business
Improving profitability for small businessImproving profitability for small business
Improving profitability for small business
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
Cracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptxCracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptx
 
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).pptENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Attending a job Interview for B1 and B2 Englsih learners
Attending a job Interview for B1 and B2 Englsih learnersAttending a job Interview for B1 and B2 Englsih learners
Attending a job Interview for B1 and B2 Englsih learners
 
Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)
 
Affordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n PrintAffordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n Print
 
Exploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social DreamingExploring Patterns of Connection with Social Dreaming
Exploring Patterns of Connection with Social Dreaming
 
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdfikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
 
3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx
 
Unveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdfUnveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdf
 
The-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic managementThe-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic management
 
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptxCADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
 
Skye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto AirportSkye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto Airport
 

The History of Silicon Valley (by Christine Johnson, SAP)

  • 2. What’s so special about the San Francisco Bay Area? Known for its: Natural beauty §  Progressive thinking §  Liberal politics §  Entrepreneurship §  Diversity §  Home to approximately 7.15 million the largest driver of population growth in CA San Mateo and Santa Clara are 2 of the top 25 wealthiest counties in the US The largest city in the area San Jose 10th most populous city in the US, oldest city in CA and its first capital 9 counties + San Francisco, Oakland & San Jose metros Image from : http://www.siliconvalleyindex.org/index.php/component/content/article?id=101 ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 2
  • 3. Great schools fuel great minds Stanford University graduates have created an estimated 5.4 million jobs and generate annual revenues of $2.7 trillion* The revenues of companies that were founded by Stanford University students equal the gross national product of the world’s 10th largest economy. 71 Nobel Laureates from UC Berkeley. §  20 private colleges including University of San Francisco, Stanford and Santa Clara University 52 Nobel Laureates from Stanford. §  6 public universities including UC Berkeley, UC San Francisco, SJSU, SFSU §  30 community colleges in the greater Northern California area * Based on responses to the 2011 Alumni Innovation Survey, sponsored by the venture capital firm Sequoia Capital. ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 3
  • 4. Silicon Valley Silicon Valley was originally named “The Valley of Heart’s Delight.” Orchards of apricots, prunes, cherries and other agricultural products dominated the early landscape. The first technology innovators formed the beginnings of what we now know as Silicon Valley in the 1950’s. The area was first nicknamed “Silicon Valley” in a 1971 Electronic News article by journalist Don Hoefler.* • Computer History Museum, http://www.computerhistory.org/revolution/digital-logic/12/328/1401 • http://www.morganhilltimes.com/articles_from_gilroy/andy-s-orchard-featured-in-sunset-magazine-spread/article_28d12001-1e11-53cc-a5f0-7e616228d558.html?mode=image • http://www.marianinut.com ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 4
  • 5. Silicon Valley today: A scientific/commercial renaissance Gene splicing and gene cloning discoveries at Bay Area universities have spurred advances in biotechnology. Other advances mark Silicon Valley as a unique place whose creative energies have changed the world. §  §  §  §  §  Lasers Nuclear magnetic resonance Random access computer storage Disk drives Integrated circuits §  Personal computers §  Open-heart surgery §  Inkjet printers Source: http://en.wikipedia.org ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 5
  • 6. What are the top strengths of doing business in SV? 71% access to skilled labor entrepreneurial mindset 60% proximity to customers 44% competitors and Source: Poll by SVLG (Silicon Valley Leadership Group) of 177 innovation economy CEOs and Senior Officers ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 6
  • 7. The Venture Capital Capital There are more VCs in Menlo Park than any other city in world. Sand Hill Road has been known as “the street of dreams” for seekers of venture funded capital. An entrepreneurial spirit and forgiveness of failure culture are the norm here. Hewlett Packard started with $500 Atari started with $250 by Nolan Bushnell’s own money. People thought playing games on a TV set was one of the stupidest ideas ever. ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 7
  • 8. Some of the companies founded here Hewlett Packard Intuitive Surgical Intel Maxim Integrated Conner Peripherals Apple Palm Inc. Genentech Tesla Motors Yelp ETrade KLA Tencor NetFlix Atari Xilinx Intuit Google Atmel Corp MIPS Technologies Acuson Corp Cypress Semiconductor Facebook Lam Research Rambus SRI International Twitter Electronic Arts Trimble Navigation Adobe Ebay PayPal Advanced Micro Devices Oracle Quantum Corporation SLAC National Accelerator Laboratory Yahoo! Silicon Graphics Bloom Energy Cisco NVIDIA Rolm Communications Applied Materials Symantec Food Machinery Corporation ©  2013 SAP AG or an SAP affiliate company. All rights reserved. Sun Microsystems 8
  • 9. Highway 101 – The tech industry’s Madison Avenue “Even after the collapse of the dot-com bubble, about 4,000 IT-related companies located along Highway 101 from San Francisco to San Jose generate approximately $200 billion in IT-related revenue annually.” Gregory R. Gromov, The Roads and Crossroads of Internet History. San Francisco US 101 Oracle Google Violin Memory Computer History Museum Hacker Dojo Microsoft Labs NASA Ames Yahoo! Bloom Energy NetApp EMC Intel Cisco/WebEx McAfee eBay/PayPal San Jose ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 9
  • 10. The early years 1953: William Shockley left Bell Labs in a disagreement over the handling of the invention of the transistor. 1956: Shockley creates Shockley Semiconductor Laboratory in Mountain View, California, dedicated to research around using silicon, instead of germanium, for transistors and diodes. 1957: Shockley wins the Nobel prize in Physics and the " traitorous eight" engineers leave the company to form Fairchild Semiconductor. 1971: Two of the original employees of Fairchild Semiconductor, Robert Noyce and Gordon Moore, go on to found Intel and create the first microprocessor, the Intel 4004. 1975: Steve Wozniak, builds a home computer from a cheap microprocessor, and shows it to the Homebrew Computer Club in Menlo Park. 1976: Woz and his friend and fellow club member, Steve Jobs, form Apple Computer in Steve's garage in Cupertino and Apple's first personal computer, the Apple I, is sold for $666.66. Sources: Wikipedia, www.computerhistory.org/revolution ©  2013 SAP AG or an SAP affiliate company. All rights reserved. Moore’s Law Image sources: Wiki Commons? 10
  • 11. The early years 1977: The Apple II, Commodore PET and the RadioShack TRS-80 launched the first wave of personal computers. 1979: Xerox’s Palo Alto Research Center (PARC) was a hotbed of innovation in the ’70’s. In 1979, Xerox gave Apple access to some new ideas in graphical user interface, which were reflected in the first Mac. 1981: Adam Osborne founds Osborne Computer Company and debuts an early “luggable” computer that cost $1,795 and weighed 23.5 pounds. 1982: Three Stanford grads and 1 UC Berkeley grad started Sun Microsystems, originally manufacturing powerful graphic workstation computers, later developers of software including Java. Sun was sold to Oracle in 2009 and their flagship campus is now home to Facebook. 1994: Jim Clark and Marc Andreessen were the founders of Netscape. Netscape’s Navigator and Microsoft’s Internet Explorer browsers went head to head to capture the burgeoning internet market. 1995: Netscape’s successful IPO in 1995 kicked off the Internet Boom that continued into the early 2000’s. Source: www.computerhistory.org/revolution ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 11
  • 12. The heady ’90s of high flying stocks & bonuses In the ’90s, many tech companies paid their employees in stock options. As stock rose, the late ’90s became a time of irrational exuberance. Offices sported Foosball tables and video games. Secretaries had options worth millions. Companies had signing bonus mania, giving away free house cleaning, or even BMWs, to new employees. Source: http://www.thebubblebubble.com/dot-com-bubble/ ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 12
  • 13. The dot-com bubble The historic speculative bubble of 1997–2000 was known as the dot-com bubble, or the dot-com boom & bust, or the Internet bubble, take your pick! The collapse of the bubble took place during 2000-2001. Microstrategy’s stock slid from $3,500 to $4 per share Cisco’s stock declined 86% Some companies failed completely. Some lost a significant portion of their market caps. Some recovered and surpassed their bubble peaks. Amazon’s stock went from $107 to $7 per share… …but a decade later it exceed $200 Source: http://en.wikipedia.org/wiki/Disk_drive, http://en.wikipedia.org/wiki/Amazon.com, http://en.wikipedia.org/wiki/Cisco ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 13
  • 14. Some memorable dot bombs Boo.com Lycos Boo.com – spent $188m in just 6 months in an attempt to create a global online fashion store GeoCities Pets.com GeoCities – purchased by Yahoo for $3.6 billion then closed by Yahoo 10 years later. Excite@Home InfoSpace Webvan WorldCom Pets.com – ran a $1.2 million Super Bowl commercial in 2000 featuring their famous sock puppet mascot, Inktomi ©  2013 SAP AG or an SAP affiliate company. All rights reserved. and closed ten months later. 14
  • 15. Cash or stock, you make the call Even vendors were offered stock in lieu of cash. This created more than one “collateral” millionaires, for example, David Choe. Choe is Korean-American muralist and graffiti artist who grew up rough in Los Angeles. A bad-boy street artist known for doing cover art for a Linkin Park album. In 2005 Choe was commissioned to paint murals at the first Facebook headquarters. CASH He was offered the choice of cash or Facebook stock. He said the very idea of Facebook seemed “ridiculous and pointless” at the time, but he chose the stock. Now estimated worth $500m. STOCK ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 15
  • 16. Cash or stock, you make the call Alas, the story of Pejman Nozad. In 2005, Facebook founding President Sean Parker approached him about renting 165 University Ave. in Palo Alto, a property owned by Mr. Nozad's partners. The deal came with a chance to buy $50,000 of stock in the fledgling social network – but with strings attached to the lease. Mr. Nozad's partners said no. "We put on our real-estate hat, rather than our investment hat," he remembers. By his math, those shares in Facebook would be valued at about $50 million today. Source: http://online.wsj.com/article/SB10001424052702303360504577412031389480536.html ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 16
  • 17. A win/win way to recruit in Silicon Valley The race for talent in Silicon Valley is highly competitive. Big and small companies alike have to compete pre-IPO start-ups and companies like Facebook and Google who offer incredible compensation packages including stock and top shelf benefits. “It’s very difficult to compete on comp, especially right now when a huge element of compensation is stock. When you’re competing with the promise of pre-IPO companies it’s just driving your compensation up. We’re going to have to introduce a disparity in our internal equity. We should pay what it takes for amazing critical talent.” Nellie Peshkov, VP of global talent acquisition at Electronic Arts 5 est 1 re rg he la ct squa X=T erfe igit p me. d lindro pa RocketFuel’s clever Hwy 101 billboard recruits engineers with a challenge, solve the puzzle to get the address of their company. Source: http://www.ere.net/2012/07/20/recruiters-ponder-pay-metrics-and-relocation-in-californias-silicon-valley/ ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 17
  • 18. 2011: Largest venture capital deals Greater Bay Area ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 18
  • 19. 2011: Largest IPOs in the Greater Bay Area $1 billion $353m $235m $198m $120m Zynga LinkedIn ©  2013 SAP AG or an SAP affiliate company. All rights reserved. Pandora Media Solazyme Jive Software 19
  • 20. 2012: Largest venture backed companies Greater Bay Area ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 20
  • 21. 2012: Largest IPOs in the Greater Bay Area $16 billion $732m $264m $260m $120m Facebook Workday Splunk ©  2013 SAP AG or an SAP affiliate company. All rights reserved. Palo Alto Networks Infoblox $115m Guidewire Software $94m Vocera Communications 21
  • 22. Silicon Celebrities Silicon Valley pioneers are honored at The Computer History Museum Fellows Awards and The SV Forum Visionary Awards. Some reach celebrity status beyond the valley… Ÿ  Robert Noyce Ÿ  Gordon Moore Ÿ  Andy Grove Ÿ  Ÿ  Ÿ  Ÿ  Ÿ  Bill Hewlett Dave Packard Steve Jobs Steve Wozniak Guy Kawasaki Even Hollywood wants in on the act… Ÿ  Scott McNealy Ÿ  Larry Ellison Ÿ  John Doerr Ÿ  Ÿ  Ÿ  Ÿ  Ÿ  Don Valentine Charles Schwab Linus Torvalds Marc Andreessen Jerry Yang Ÿ  Sergey Brin Ÿ  Larry Page Ÿ  Marissa Mayer Ÿ  Ÿ  Ÿ  Ÿ  Ÿ  Carly Fiorina Meg Whitman Mark Zuckerberg Sheryl Sandberg Elon Musk “Timberlake To Gaga: Celebrities Go Silicon Valley With High-Tech Investments” Huffington Post 07/26/11 Source: http://www.computerhistory.org/fellowawards/hall/, https://svforum.org/Visionary-Awards , http://www.huffingtonpost.com/2011/07/26/celebrities-silicon-valley-lady-gaga_n_909494.html ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 22
  • 24. SAP – Celebrating 20 years in Silicon Valley SAP established the first development group outside of Walldorf, Germany in Foster City, CA SAP Labs, LLC was incorporated Changed the name of SAP Technology to SAP Labs and moved the facility to Palo Alto 1993 1996 1997 ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 24
  • 25. SAP Silicon Valley today Over 3,500 employees in four Bay Area locations One of the most diverse locations with 40+ nationalities and languages spoken 74 of the 313 managers are women* Palo Alto EBC hosted 1,404 meetings in 2012 and 1,047 meetings In 1H 2013 SAP Silicon Valley Products and Technologies include Business Applications, Database & Technology, Mobility, Cloud, and Analytics Home of SAP HANA, Startup Focus, Western Sales, SAP Ventures, Ecosystems & Channel, User Experience, and Mobility Design Center * SAP Palo Alto, August 2013 ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 25
  • 26. SAP Palo Alto: Sustainability Front-Runner §  650 solar panels §  3 telepresence rooms §  100% renewable energy §  18 charging stations §  Rectifier, air-side economizer and 380v DC data center §  LEED Gold Building §  LEDs & intelligent lighting systems §  Bioswale & garden §  Sustainable food services ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 26
  • 27. SAP Ventures: Investment Front-Runner Help innovative and disruptive companies with SAP’s expertise, relationships and geographic reach in addition to capital (partial list) ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 27
  • 28. Thank you Contact Information: Christine Johnson Sr. Director, SAP Community Relations @SAPBayArea My Blog: http://scn.sap.com/people/christine.johnson/blog LinkedIn: www.linkedin.com/pub/christine-johnson/2/155/101 ©  2013 SAP AG or an SAP affiliate company. All rights reserved.