Monday, 16 November 2009

Eric Schmidt - Gartner Symposium/ITxpo Orlando 2009

I was referred to the above video of Eric Schmidt interviewed at a recent Gartner Conference by friend Brian Pinnock... he also kindly summarised the 45 minute video for the GMs at IS.... here are his notes:

Main key point is that Google is going to be a major competitor for ISPs in desktop-to-cloud apps especially e-mail. They are just going to get incrementally better at this.

Enterprise Story
• CIOs are trapped in inflexible 1980s architectures.
• Inherited from previous CIOs
• Vendor support of these architectures is good but internal customers are complaining that they cant get stuff done particularly mobile devices
• This inflexibility hampers their ability to provide seamless experience especially for mobile-to-fixed apps
• Consumer solutions are more flexible and provide better user satisfaction.
• Browser based solutions are inherently insecure – but Chrome allows each tab to be in its own address space
• Address space separation improves security.
• Certificate replication & other security features will make google apps more secure outside the firewall than traditional apps.
• Consumer wants a seamless experience but very hard to secure
• Old architectures just cant be secured in the same way as new architectures
• Enterprise is a huge priority for Google.
• Unlimited hiring budget for engineering in this space.
• Its the next big business that Google is looking at along with their new display business.
• Prices are $50 per person per year not advertising driven
• This is because of tiered support and SLAs
• But enterprises don’t want advertising supported enterprise apps
• Expect more features in the calendar space.
• Google Wave move from consumer to enterprise focus
• Wave aimed at corporate collaboration space
• Chrome OS is free and delivered on Intel and ARM platforms (not just for netbooks which are only the initial target)
• Idea is to bring total cost of ownership hardware and software costs way down
• In less than a year enterprises could bring costs for (at least some) of their internal customers down by a factor of 5x by using Netbooks + ChromeOS + Cloud apps + Hosted/Virtual for core apps
• “Couple of million” companies using google apps now
• Biggest is 35,000 seats but rest is mostly small and/or universities
• Google Q3 earnings = $500 million from this space
• Core revenue in enterprise is growing faster than advertising revenue!
• Gmail’s growth is gaining share from everyone else
• Google eats their own dogfood so use their own apps and e-mail
• Enterprise sales call....
  1. price is a non issue because google is always cheaper
  2. migration is the issue (but there are migration tools now)
  3. sometimes lack of features is an issue (but they have a roadmap)
• Enterprises want sophisticated document management, storage, replication etc.
• Not all supported by google today but will be
• Both Wave and ChromeOS not “shipping” yet but will be available in a year
• Netbook = pure cloud computing model because there’s no hard drive

Cloud Story
• Cloud can make things cheaper because of scale
• Cloud can also do scale way above what Enterprises can achieve on their own
• More control of unstructured (on hard disk data)
• HTML5 = standards version of Google gears i.e. Offline/local caching
• Need this to solve the airline problem i.e. Netbooks are sometimes offline
• Trust architecture is crucial in order to solve security issues
• Google will have a generic trust architecture
• 3rd parties are likely to solve the legal architecture problems e.g. HPPA, PIC etc
• Need to build bridges between clouds (Data Translation)
• Don’t trap data in clouds - “Data Liberation Front”
• Lots of scope for 3rd parties to add value to Google cloud

Internet Story
• Internet will be more non English. Will be Chinese.
• Mobility will be dependent on uptake of mobile access.
• 5 years is a factor of 10 in Moore’s Law
• In 5 years BB networks will be well above 100Mbps in performance in western world
• Technical distinctions between TV, radio and internet will disappear
• Huge volume of high quality content on YouTube
• Twitter, Facebook etc realtime search needs to be part of Google.
• Google can do that but its hard to rank realtime info ala pagerank (Twitterrank)
• Most people information will be gotten from other people rather than traditional sources

How do you rank positioning information? Google can.
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