The X Internet: Leveling The Playing Field For Businesses in Developing Nations

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The X Internet: Leveling the playing field for businesses in developing nations

Waves of Internet innovation


?????
Web
Internet users

Telnet Email FTP

Gopher WAIS

1970

1975

1980

1985

1990

1995

2000

2005

2010

Theme

The X Internet will let businesses in developing nations do more with what they have

Agenda
Whats behind the X Internet? What is the X Internet? Early adopters of the X Internet in developing nations When will these changes take hold?

Whats behind the X Internet?

Bandwidth lags other technology improvements


1981 Computing Storage Bandwidth 4 MHz 8088 0.1 MB floppies 0.3 Kbps modem 1991 25 MHz 80486 30 MB hard drive 2001 2,000 MHz Pentium 4 100,000 MB hard drive CAGR 50% 62%

9.6 Kbps 300 Kbps modem share of T1 line* 27%

* Though most PCs and servers ship with 100 Mbps networking interfaces, actual Internet throughput remains limited by corporate Internet connections

Bandwidth continues to lag processing and storage technologies


1000000 100000 10000 1000 100 10 1 1975
10 9.6 2.4 1 120 160000 60000 30000 10000 4000 3200 1000 600 500 100 56 40 33 28 20 19.2 2 300

Moores Law

Performance (MIPS) Storage (Mbytes) Bandwidth (Kbps)

1980

1985

1990

1995

2000

2005

X Internet moves beyond bandwidths limits


1000000 100000 10000 1000 100 10 1 1975
10 9.6 2.4 1 120

X Internet
160000 60000 30000 10000 4000 3200 1000 600 500 100 56 40 33 28 20 19.2 2 300

Client/server

Moores Law

Performance (MIPS) Storage (Mbytes) Bandwidth (Kbps)

1980

1985

1990

1995

2000

2005

Mainframes and Green screens

The Web

What is the X Internet?

The X Internet refers to two Xs

An executable Internet that supplants todays Web An extended Internet that connects to the real world

Executable Internet builds conversations

Endpoints

Server

The Web only provides answers

How much is in my account?

Account summary

The Web

The executable Net creates a conversation

What should I do with my account? Financial services tools (executables)


BUY IT N OW

The executable Internet

Two-way conversation about my account

Extended Internet -- an Internet of things


Extended endpoints Endpoints Server

The X Internet connects digital to physical


Internet computers

Digital

Internet users

Vehicles

Telephones

Physical

Buildings

WhereNet devices simplify supply logistics


Temp: 52 F Fuel: 1/2 tank Door: Closed

Tag is integrated with door, fuel, and temperature sensors Sensor data is transmitted every few minutes

WhereNet devices simplify supply logistics


Yard inventory is conveyed to users through maps and reports

Colors indicate trailer status and alert conditions

Early adopters of X Internet in developing nations

X Internet pioneers in developing nations


Hanssem Kitchen Ware (China) EAN International (www.autoidcenter.org) CK Tang Department Store (Malaysia) UNCTAD/Savi Technology partnership

When will these changes take hold?

The three waves of X Internet adoption


High 5

Finance Logistics Media First wave of adoption (2001-2003) Second wave of adoption (2004-2006)

Healthcare

Product fit

Utilities Telecom

Bits-to-atoms ratio in end products 3 Intangibility of supply chain assets

Aerospace Food and agriculture

Construction

High-tech Petrochemicals Automotive Paper Industrial equipment

Third wave of adoption (2007+ )

Heavy industries Consumer goods

Low 1

1 Low

Industry readiness

5 High

Value chain simplicity Propensity to adopt cross-firm apps

X Internet devices and spending


Devices (billions)
15 $3

Spend (US$ trillions)

10

$2

5
Spend

$1

Devices

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Summary
The executable Net will supplant the Web The extended Net will connect digital to physical The X Internet will let businesses in developing nations do more with what they have

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