Skip to main content

Internet II: Video and Voice

I am not sure if I am qualified to write what title suggests but let me wtite few lines anyway. Reading the annoucements coming out of CES at Las Vegas and reactions various internet companies were getting from Stock Market, it was almost feeling like 2000. Google going up by 20 bucks, EBAY and Yahoo making their own movements. So what are the main significant annoceuments and how it may change the landscape:

1) Skype going everywhere: This is one of the most significant development happening. I did not think it would happen so quickly. Now you can get a skype-enabled phone which you can use in wi-fi hotspots to make free calls. So technically when cities like SFO becomes wi-fi cities, you don't need regula phones at all ! This is far fetched but still reality is very close. In my opinion, all telcos need to watch out this fast changing development very carefully and move aggresively to play a role in that. EBAY made a very smart move by getting Skype even though it was completely different business model than its own.

2) Video-on-demand is finally coming (after 10 years). Folks used to talk about VOD in 1995 and then people became frustated with quality and choices available. But with Apple iPOD video, $ 1.99 per episode on itunes and now Google announcement of video download is making Video-on-demand reality. Many of these are still tied to laptop, ipod or cell-phones. But by next year, it is possible to download this on TiVOs and play on TV. Good for Cisco due to increased BW.
Regarding Google getting into this market:

Financially just Video-download revenue will not be big revenue and profit maker for Google. However for any search, folks go to Google. It wants to keep that lead for videos also. So if I want to buy an episode of Seinfed, they want me to go to Google Video instead of itues and create indirect traffic to their search site. It is a smart move for Google and I think market is recognizing it

3) Third major but subtle development is flash everywhere. Every device like cell-phone, ipod, digital cameras would have a flash - not to count USB storage cards. No wonder SanDisk (SNDK) is riding high since there are still not too many players and at least for 12-18 months, even with additional supply coming from Intel/Micron joint venture, there would not be glut. I would not be surprised if SNDK hits $ 100 by 2006 year-end !

4) CES is becoming more exciting than COMDEX ! That means there is more action in consumer devices than computers/laptops.

Good night and have a good weekend!

/Shyam

Comments

Popular posts from this blog

2024: The year of.....

Wishing you a joyful New Year filled with laughter, love, and unforgettable moments, surrounded by cherished family and friends. May the 2024 bring similar gains as in 2023! I had great 2 weeks break with travels to Turkey with family and then solo trip to Palm Springs. Both places are amazing and definitely worth a visit if you get chance. Talking about gains in 2023 - Here is recap of 2023.. Inflation fallen below 4% and heading towards 3% Unemployment firmly below 4% Real wages growing above 4% GDP growth around 3% Markets: S&P notching one of the best year with 24% gains while Nasdaq doing even better with 40% gains thanks to Magnificent-7 (or TAMMANNA) many of which had triple digit gains My personal recommendations did exceptionally well - many of which were up by high double digits (e.g. INTC) and some of them had triple digit gains (e.g. META) All in all - 2023 was great year.  As calendar changed to 2024, what's in store for new year? This is election year in many coun

Roaring 20s....Again!

About 2 years back coming out of COVID pandemic, I wrote blog titled " New Roarin' 20s.."  It covered what happened in 1920s and what are the factors now which would trigger new roaring 20s. Do check out the blog...almost all factors are valid even now. 2022 went sideways due to inflation pressures which triggered historical steep rate hikes by central banks which led to tech companies taking more measured approach and laying off 200,000 employees....all of that changed in Nov'22 when ChatGPT was launched...even though I had mentioned AI/ML as one of the factor in my previous blog, ChatGPT really captured the imagination of the world and changed the outlook of AI instantly similar to what Netscape did with the Internet and iPhone did with the mobile. The singular concept of "Language is the Interface" made AI accessible instantly to billions of normal people....And now without mentioning AI, no talk starts or ends in tech world..and despite onsite of most-aw

It was not meant to be...

I imagined today' day (Nov 19, 2023) little differently than what it turned out to be..had a watch gathering at my place with few friends for India vs Aus ICC Cricket World Cup Final. Both teams deserved to be in the final - India winning all games in this tournament and Aus winning last 8 games after initially losing 2 games at start of tournament. The match was being played at the biggest stadium in the world (over 132,000 capacity) and over billion people tuning in...maybe most watched single sports event ever. After Australia won the toss, they choose to field (that's what most likely India wanted). India started well but then wickets kept dropping and India ended with total of 240 all out. That's when all of us knew that the dream of winning third world cup is over...despite one of the best bowling squad India ever had....The score was just not enough even for the best bowling to defend against one of the most professional and mentally strong team....No wonder Australi