Summit Notebook

from Sakthi Prasad:

New Contracts are like honeymoon

As the old adage goes, it is easy to build a new house as compared to remodeling an old one. If one would like to extend this adage to the new-age IT industry, then we could use what L. Ravichandran, president, IT Services of Tech Mahindra, told the Journalists at Reuters India Investment Summit in Bangalore: it is easy to negotiate new contracts with the clients rather than renegotiating old ones. He likened the new contracts to that of a honeymoon -- both the customer and the service provider are happy. But, of course, he did not extend his metaphor to old contracts by likening it to a marriage gone vinegary.

Ravichandran also pondered over the fate of fixed lines telephones. According to him, the fixed line phone will not be done away with altogether. Instead, it will be increasingly used to deliver other digital services like broadband internet, IPTV etc.  So in a perverse way, landlines may continue to be used, but not much to make phone calls though.

from Sakthi Prasad:

Old business in New bottle

When the term “real estate” is mentioned, people immediately get images of bricks, cement, sand, gravel, dusty construction sites and so on. And the business is rightfully termed as “brick-and-mortar” or categorized as “old economy.”

 Many youngsters nowadays would prefer to work in swanky offices of a software company or an investment bank instead of sweating it out in dust and heat at construction locations.

But for J.C. Sharma, managing director of Bangalore-based real estate firm Sobha Developers, it makes business sense to combine the selling power of “new economy” Internet and “old economy” real estate. 

While speaking to Journalists at Reuters India Investment Summit in Bangalore, Sharma said the Non-Resident Indian (NRI) demand has gone up to 17 percent this year compared to less than 10 percent of demand last year -- thanks to the power of Internet.

 Maybe, Internet would after all help a homesick Indian toiling in faraway foreign lands to find a home in India. And as J.C. Sharma would have it, one could always find a Sobha home on the cyber highway.

Intel, HP: TVs should get smarter

Intel, Sony and Google are expected to unveil on Thursday a “smart TV”: an Internet-ready, super content machine that — if the hype is to be believed — will let viewers watch Celebrity Apprentice, tweet, and respond to emails at the same time. On Wednesday, Intel’s sales and marketing chief — while keeping his cards close to the vest — couldn’t resist a little plug for the general concept of Internet TVs.

“The smart TV category is going to take off.  It just makes all the sense in the world,” Thomas Kilroy told the Reuters Global Technology Summit. “Why would you want to compromise when you’ve got a nice big screen, you’re watching TV and you want to access information and keep that program on instead of bringing in another device. ”

“It’s our belief that there’s going to be a fundmental shift that happens every 30 to 40 years or more…and it’s about to happen with televisions,” he added. “I actually remember the black and white days. I remember in my house when we went from black and white to color and my gosh, what an experience.”

It remains to be seen if Google TV — tech blogs have already dubbed the product Smart TV — will transform the media consumption landscape. But the idea is sure getting traction.

HP’s imaging and printing division chief later jumped in – unprompted — to outline the very same vision of having multiple screens on one Internet-connected TV, much like the holographic displays dreamed up in Tom Cruise’s “Minority Report”.

“We’re dumbing down the TV — it should be a content device,” HP’s Vyomesh Joshi argued.

from MediaFile:

Twitter’s Costolo: not quite footloose and fancy free

You'd think fast-racing Twitter would keep one eye firmly fixed on the rearview and side mirrors.

With the Internet landscape littered with also-rans -- from pets.com to AskJeeves.com to a Facebook-steamrolled MySpace -- you'd imagine the one thing overnight Internet microblogging phenomenon Twitter would fear the most would be to get displaced by an up-and-comer with the same alarming speed.

Not so. Chief Operating Officer Dick Costolo insists no one at the company he has worked at for less than a year worries about two theoretical guys in a garage dreaming up the next social networking sensation.

"That's a fun question. The way I think about that is the only thing to prevent us from being successful is us," said the co-founder and CEO of FeedBurner, a digital content syndication platform that was acquired by Google in the summer of 2007. "This stuff that's out of my control -- I've got no hair and I'm too stressed out as is," said the bespectacled, balding executive who joined Twitter in September.

"We all kind of make it our job to understand what the landscape looks like but we make it a point to reinforce to each other that we're the people that are going to make Twitter successful, not the success or failure of the competition."

That's not to say Costolo and his company are luxuriating in a carefree existence. With more than $100 million raised from the likes of T. Rowe Price, Benchmark Capital and other investment names -- granting the four-year old firm an eye-popping $1 billion valuation -- tons of hype and the attendant hopes, Costolo is well aware of the need to meet some of those lofty expectations.

"We've got things to prove before we get there," admitted Costolo, an amateur stage performer. "I constantly, constantly, constantly worry about what we need to do to be a self-sustaining business."

Recession’s perfect storm speeds up change in ad industry

Why is it that the United States’ advertising as a proportion of marketing services is at its lowest point since 1977, maybe even lower than since the Second World War?

You may have guessed it it’s the recession.

But it will get better, Martin Sorrell, CEO of advertising giant WPP, said.

“The recession is less worse,” Sorrell said, repeating a favourite phrase of late, and while it’s the biggest recession since 1929 it is also “a perfect storm” that has brought forward change. 

“The recession has accelerated structural changes that were already happening,” Sorrell said at the Reuters Global Media Summit.

Will advertising ever go back to where it was? Yes, if you are looking at new media advertising on Kindles and mobile.

Will the United States rebound? Western Europe? Yes, to both.

200MB? It’s only human nature to want more

Broadband subscribers want as much speed as they can get their hands on, even if it’s way beyond what’s needed by the most avid downloader of music, keen watcher of video or biggest Facebook addict, reckons cable operator Liberty Global’s CEO.

Maybe he would say that, but Mike Fries says today’s subscribers are signing up for speeds of 100-200 MB to be safe in the knowledge they won’t be left behind whatever the next stage of the Internet — a bit like owning a car with a top speed way beyond the limit.

“Intuitively, you would say: ‘What the heck does somebody need this for?’,” Fries told the Reuters Global Media Summit.

“But in the end we find that increasingly when you say to somebody for the price of a Volkwagen you can have a Porsche, generally they take the Porsche. It’s just human nature.

“Is it fully utilised today? No. Will it be? Absolutely.”

(Posted by Paul Sandle)

Watch out school kids, big brother will soon be watching you

By Paul Sandle

Sit back a minute and think back to your school days — doing homework on the bus, skipping double physics on a Friday afternoon…nice, huh? Well, no more if Pearson prevails.

The reluctant student skulking at the back of the class, copying homework at the last minute or taking a day off, like Ferris Bueller, could find school a lot tougher if his college starts using the publisher’s latest education products.  

Pearson, number one among educational publishers, which already complements its textbooks with online learning and testing tools, has developed applications to monitor attendance, punctuality and every other aspect of a student’s school record.

“There’s quite scary technology that we’ve got: scary for the student but great for the parent,”  Chief Financial Officer Robin Freestone said at Reuters Media Summit in London. 

“We’ll send you by the hour how late Johnny was for his first lesson this morning and how he’s done in his test in French. It’s scary to be a student these days.”

 No carefree days for students but an early introduction to the rat race.

IBM skips around China Internet censorship

Foreign companies in China, which has the world’s biggest online community, have faced allegations of bowing to censorship rules in their hunt for market access. To be careful, they usually avoid questions on the subject altogether or deflect them with humour.

“I don’t think I am the expert to comment on this,” Shirley Yu-Tsui, a vice president of strategy for IBM greater China, said at the Reuters China Investment Summit.

“All I know is my children complain they can not get on Facebook,” she said.

The subject is very serious, as companies such as Google and Yahoo have had their executives called to face angry congressional questioning in the United States to explain their business practices in China.

“I don’t think they would come to IBM for that,” said Yu-Tsui when asked what IBM would do if asked to help monitor traffic on China’s Internet.

China backed down only last month from a plan to pre-install the controversial “Green Dam” Internet filtering software on all personal computers sold in the country.

Photo Caption: Shirley Yu-Tsui, a vice president of strategy for IBM greater China. REUTERS/Christina Hu

Draper’s Valley Girl

She’s interviewed tech luminaries from Eric Schmidt to Scott McNealy. She dresses in shocking pink. Her dad was one of the VCs behind Skype and Hotmail. Who is she? She’s, like, the Valley Girl.

Jesse Draper, formerly of the short-lived Nickelodeon series “Naked Brothers Band”, and Sharon Lee are the brains, and the feather boas, behind “Valley Girl”: a 60 minutes-meets-MTV online chat show that in just one season has hosted some of the biggest names in Silicon Valley on its pink satin sofa. Or, as Jesse herself puts it: “Where Silicon Valley’s Best meet Hollywood”. Totally.

So what does Jesse’s dad think about the show?

“It’s ‘I Love Lucy’ interviewing the president of Bank of America,” gushed Tim Draper — who’s known more for plugging high-tech start-ups than his daughter’s online guerrilla show — at the Reuters Global Technology Summit in New York.

Google CEO Eric Schmidt was among the highlights of the first season. Picked up in a white golf-cart festooned with lacy pink curtains, the Internet chieftain gamely played at charades, answered questions ranging from “Who was your childhood crush” (“I didn’t really have a crush”) to “Have you ever Googled Google?” (It throws up a ton of hits).

“I’m delighted to be in the most pink set I’ve ever been in,” Schmidt dead-panned.

(Photo from valleygirlonline.com)

Yahoo cedes search game to Google, for now

(Updated with more quotes)

If you’re losing the game, time to change the playing field. Yahoo is counting on exactly that.

Ari Balogh, Yahoo’s chief technology officer and product development czar, would be among the first to admit that Google reigns supreme in the search space.

“Search the way we know it, with 10 blue links, Google has clearly won that game. Saying anything other than that is just not stating the fact,” he told the Reuters Global Technology Summit.

But Balogh says that doesn’t mean Yahoo is giving up. Inviting comparisons to the automobile industry, now infamous for bankruptcy, ballooning debt and clunky design, Balogh says innovation in search is only just beginning, and it’s too early to declare a winner yet. Ford and its Model T was once the pre-eminent mass-consumer vehicle, but today the once mighty Detroit giant — the only one of the surviving Big Three that doesn’t appear to be flirting with corporate failure — has to fend off the likes of Toyota and Hyundai.

What’s important to understand though is this really is like the auto industry in 1910….At that time, in 1915 or 1920, it sure looked like it was going to be Ford.

Because of the rapid innovation that’s going on, because if you look at that search page, it is an anachronism. When has advertising ever been so ugly in the last 10, 15 years? When has the onus of sorting through a pile of stuff, that much of a pile of stuff, ever fallen on people to do themselves?