Introducing ANYWHERE, the book

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Thank you Shirley. Hello and greetings to everyone. Very pleased to have such a large turnout for the official launch of our book. The release of the actual book in stores has already happened, and I’ve been getting nice notes from early readers about it.

What I’d like to do today is give you an overview of the book – what it’s about and even a taste of how it goes about its job. I’ll talk briefly about four pieces of the book. As you listen, think about your own comments and questions – we’ll save plenty of time to get your thoughts. You can send us those while we’re talking or wait for the lines to open up in about 40 minutes.

What I think will make this really interesting for everyone are my guests today. Someone asked me recently the most fun part of writing a book, and it has to have been the research. I spoke with over 50 thought leaders who shared their own ideas about the advance of global connectivity. I’m delighted today to welcome five of those thinkers to our webinar today. They’ll join me for four brief discussions linked to the four topics from the book. Hello to Paul Sagan, Glenn Lurie, Nigel Waller, Sriram V, and Walter McCormick.

Let’s begin at the beginning. The book is called Anywhere. That’s the name I have for a global phenomenon that is underway now: it describes the emergence of global connectivity, when all of us, and the things we care about, are connected. I call it that because it changes the meaning of location. In a thrilling contradiction, in one sense it makes location irrelevant – in the other, it can bring location into everything we do.

How is this happening? Rich brew in the last few years of technology advances: IP – common language, broadband – move more things around on the network – got us all thinking – wireless – game-changing economics in some markets and true portability in all markets This transformation is unstoppable; our appetites are too big for what it offers. But the most important thing you need to know about Anywhere, the emergence of global connectivity, is that it’s BIG.

How big? Let’s compare it to the last major technology shift we all have experience with, the commercialization of the Internet. In a ten-year period from about 1995 to 2005, it connected us in three principal locatons in our lives, for the most part through the thin pipe of a dial-up telephone connection. Nonetheless in that period it reached over a billion people. And even after the dot-com bubble burst, the economic value added – through the creation of new services, new companies that could never have existed before, was in the billions of dollars. By comparison, though, Anywhere will be massive. As the network further transforms in this next wave through the explosion of wireless technology, our network will go from three principal locations in the developed world to virtually every corner of the earth. Municipal plazes, transportation system, remote parts of the world. As it does that, it will not only bring billions more people to the digital world, over 5B by 2015, but also trillions of things – the items in our lives that matter to us, including tools in our home and workplace, infrastructure around us, and many new things we haven’t thought of yet. The result just in economic terms will be almost incalculable but easily reaching trillions of dollars. Internet – locations – developed world Anywhere locations – all regions of the world – emerging markets as well as developed

We know that’s the case because we can measure the contribution to the global economy that the network alone makes. The people of Yankee Group are the experts in global connectivity, and among the changes we examine are the revenues associated with delivering the Anywhere Network. Here you see our most recent forecast for the revenues from building and providing access to a global broadband infrastructure. But in all history the creation of new infrastructure in our societies adds tremendous value because of the new activities it unlocks. As with the first decade of the Internet, the transformation and expansion of the Anywhere Network to all the world’s people and our things will create new companies, new products, new services. It will truly be the largest technology revolution in our lifetimes. And this is why it’s worth a book, and why when McGraw-Hill approached us about taking our ideas to a larger market, we were delighted to accept the challenge.

There are lots of consequences to change of this magnitude, worth several books in fact, but what McGraw-Hill invited us to do was to turn our expertise in how the network will evolve – supply and demand sides – to the question of the opportunities it presents for business managers worldwide. Which is why the subtitle of this book is, how global connectivity will revolutionize the way we do business. We will talk about the global part in a minute. First, let’s address an important word here so we’re all on the same page -- Why revolution? Chaotic, pitched battles New landscape afterwards New power structure Winners and losers Ten years on, no one would disagree that the internet changed how we do business. Anywhere is upsetting things once again – challenging who we connect to, how we connect to them (what devices), what we do for them, who else tries to beat us to the punch, and internally, how we get our work done inside companies. In fact there is no facet of business operations that will be free from impact of the expansion of connectivity – whether it’s a factory floor where pallets know where they are and what their status is, .,… So anywhere is expansion of global connectivity. It’s inexorable – can’t be stopped as so many of the thought leaders I spoke with for the book agreed. Let’s talk with our guest speakers about an important aspect of the Anywhere Network – its capacity.

I’ve been around communications technology for a long time. Twenty years ago – even ten years ago – a popular discussion topic was related to how much network capacity – broadband – do we need. One of the changes that has finally arrived among us as the network advances is that that discussion seems to be over. Instead, there’s a new question. Paul Sagan is the CEO of Akamai – one of the firms that could not have existed prior to the Internet. Akamai® provides market-leading managed services for powering video, dynamic transactions, and enterprise applications online. Having pioneered the content delivery market one decade ago, Akamai's services h ave been adopted by the world's most recognized brands across diverse industries. Walter McCormick is the CEO of the US Telecom Association, USTelecom is America’s broadband association. It is the nation’s premier trade association representing broadband service providers, manufacturers and suppliers providing advanced applications and entertainment. HI, Walter. You’re heavily involved in the US broadband stimulus work as well as the evolution of US regulation. Can we get enough broadband? Can the rest of the world?

If you agree Anywhere is coming, and that its emergence is tantamount to a revolution with massive impact, then the rightful next question is, When and where? The things that affect the emergence of the network around the world are complex but to keep it simple, we can measure its appearance by comparing in any region the number of broadband access lines – wired or wireless – to the number of people there. Regions with similar penetrations of broadband share similar traits. As the proportion of broadband lines rises relative to the population, change comes – we move from depending on traditional means of communications, like newspapers, to digital ones, and from traditional methods of commerce, like brick and mortar banks, to digital ones. Our theory at Yankee Group is that when the abundance of broadband access lines in a region passes the total population – for instance, when we all have mobile phones with broadband access and other things and places in our lives begin to have their own connections too – real change happens, we call that the Anywhere Tipping Point and those regions, Anywhere countries. Let’s look at how it translates to the pace of network change:

Here’s where we are today – just a very few Anywhere countries where broadband lines outnumber the population. But with the pace of networks being upgraded in capacity, and new networks being built, by 2015 it will be a different story.

The US and Canada, as well as most of Western Europe, will join the leaders in Asia in enjoying a richer connectivity environment. We’ll see the flowering of new products and services that are entirely dependent on a pervasive, network with capacity in “squanderable abundance”, as Bob Metcalfe says. But some of the most interesting change happens in emerging markets – where the network is just beginning to appear. In those markets the traditional systems – newspapers, banking – have not been reaching the total population. So the network begins to provide a service that isn’t replacing something, it’s a brand-new day.

Let’s talk about how that’s happening. Networks haven’t reached emerging markets before chiefly due to the costs involved. Wireless is the thing that’s changing that. But other innovations are afoot as well, with interesting impacts. Nigel is the founder and CEO of Movirtu, an award-winning startup based in the UK enabling people who don’t own their own cellphone to enjoy the benefits of phone ownership. Nigel, talk about some of the other innovations you’re seeing in the advance of the network in markets like sub-saharan Africa. Sriram, we mentioned cost as a factor. You lead a lot of innovation at Intel in wireless broadband and have led the company’s investments in other mobile enterprises. What do you see happening that’s contributing to the advance of the network in emerging markets?

So there’s a revolution, it’s unavoidable, it’s huge in size, and it’s working its way around the world. How does it change us, no matter where we are? In the book we compile our insight into the pace of network evolution around the world into some composite personas to help the reader visualize what’s ahead. I’d like to introduce a few of those people today. Here’s Fatuma, a coffee bean farmer in Kenya. Today she fights chronic diseases that we know how to cure but limited medical workers don’t know where she lives, can’t get reliable deliveries of medication and can’t let her know it’s arrived or monitor how she takes it. In India – also an emerging market but one with many very dense urban areas, Habib is a street cart owner with some education. But as Rajeev Suri, the CEO of NSN says, ‘it’s expensive to be poor’ – he can’t find the best prices for his groceries. He runs a cash business at his cart which limits tourists who haven’t changed money and exposes him to theft from street thieves. And even where the network is already present – a transforming region like North America or Western Europe – knowledge workers have been chained to burgeoning information system that are ….

Using just what we know about the advance of connectivity technology and deployments over the next 1o years, we can safely predict some important changes for each of our characters Fatuma : Eastern Africa is just beginning to see the introduction of mobile phones and some broadband access to the rest of the world through undersea cabling. Gets a phone and her CHW gets electronic records. Hamish Fraser Dir of Telemedicine for PIH says connectivity saves lives. Can find patients can provide continuity in their care. Children live to maturity and parents invest in their education. Habib: grocer can subsidize the cost of a netbook and help him track inventory, reward him for orders, move to mobile phone based transactions with electronic funds. Lovely side effect of the rise of computing and connectivity technology in markets like India -- Negroponte: OLPC – changes family literacy Allen – transformed as well – principally by the next step in information display – systems that integrate real-time information. Bob Metcalfe: facilitation of collective intelligence. Also unleashed – network-resident information, follows him, can work in any location. Anywhere Workers change the nature of work itself and what it will mean to be an enterprise.

As the network expands its reach, the rise of Anywhere isn’t just interconnecting all of us, it’s the interconnection of things that matter to us. Here are a few – a pill bottle that tells the network when it’s been opened or closed – helping healthcare providers and family members assist a patient in keeping to a medical regimen. This small Wi-Fi tag with a long lifetime battery has an intelligent motion sensor and software trigger that sends the location data only when tag is moving or has moved to a new position. This saves battery life and minimizes network bandwidth. Tag functions in any standard 802.11 device and can be used in two-way communication. Tag reports its battery level to the application server for a timely battery replacement. ORB – eInk display, bluetooth earpiece. Many of these will be novelties, some not ready for prime time. But the recent advances of network technology are starting to enable new classes of real-world devices that the market wants. These will further transform us into Anywhre Consumers, taking our world with us wherever we go. Glenn Lurie heads up a division of AT&T connecting these to the network. Glenn, what do you think are some very real near-term opportunities our readers need to realize are in the wings, about to contribute to the revolution in connectivity? Sriram, Intel’s chip technology is contributing to making these possible. Your thoughts on what’s ahead in the very near future?

Remember my goal is to convince you today, and more thoroughly in the book, that connectivity will revolutionize how we do business. So we’ve talked about the scale and inevitability of the advance of connectivity – time to spend a few minutes on the impact on a business. This is a drive by – huge topic, hard enough to fit into a book, and we will do som efollowon webinars to dive into the commercial impact and the approach to these in more detail. How better to look at the breadth of impact on a busines sthan to start with the P&L. Here’s one, very simple. Diffusion of connectivity – as we saw, more customers – emerging markets. Also, more ways to reach customers you already know. Chumby- internet is my alarm clock. Brings the internet into my bedroom and a new set of uses. What other devices have yet to have connectivity added to them, to build your client base, and to give you a permanent umbilical cord to them, to have a direct feedback loop but to deliver increased value over time

Internet self-service capabilities revolutionized business service costs once; Anywhere doing it again. One example is workforce in the cloud – talent in the cloud. Don’t have fixed shifts of call center ops on standy for calls; train up freelancers and use as needed – dynamic, saves RE, and does a good – great solution. LiveOps has over 200 customers for workforce in the cloud. 25 cents per minute – but only when on the call.

More cost savings from putting connectivity into devices and processes that bring information faster without manual intervention. Hospitals equipping with RFID solutions so expensive equipment can be located and reused faster. Miners with tags tell expensive ventilation units when to kick in and when to spin down

Rise of a dependable abundant network around us lessens our need to invest in our own tech infrastructure and use the network to do that instead. Much the same as businesses able to phase out their own power generation plants when the grid was reliable and affordable – proprietary IT infra going away. Operating cost savings, increased flexibility, and reduced use of capital. Law of comparative advantage – outsource everything that market can do more cheaply, further specialization. Many of these changes are familiar to us in isolation… but it’s only when you step back to consider the impact of the network’s ubiquity in a larger sense can you begin to realize just how immense the implications are. And that’s what you have to do in business to realize that if you don’t do the changes thaT make the most sense for your firm, your competitors will. Each one of these examples speaks to hundreds of related opportunities for all kinds o business – just scratching the surface of the immense transformations ahead. SOME GAIN REGARDLESS OF WHERE YOU CHOOSE TO FOCUS

I’d like all our panelists to offer a few thoughts of their own. We’re emerging from a recession. Aiming at revenue growth but still focused on cost containment. What should we look at?

The goal of the book is to provide the big picture of the advance of global connectivity, and to show the reader how to think about its impact across business operations. Just a caution – this isn’t something you can opt into and out of. “Do I really need a web site?” We’re at the point now that from the boardroom to the mailroom, organizations have to consider, how do we best leverage the expansion of the network around the world and through our enterprise? Mobility and broadband make the price of inaction very high. If you don’t take full advantage of these developments your competitors will.

Let’s get your comments and questions, for me or our guests. Then I’ll offer some final thoughts before we wrap up. You can ask a question on the line and while we wait for the operator to open the line, we have a few that have come in from you already that we’ll tackle.