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[IP] Lee Gomes: When Pundits Predict Tech's Future, It Is True They Can Draw a Crowd





Begin forwarded message:

From: "John F. McMullen" <observer@xxxxxxxxxxx>
Date: November 15, 2004 10:57:27 AM EST
To: johnmac's living room <johnmacsgroup@xxxxxxxxxxxxxxx>
Cc: Dave Farber <farber@xxxxxxxxxxxxx>
Subject: Lee Gomes: When Pundits Predict Tech's Future, It Is True They Can Draw a Crowd

From the Wall Street Journal -- http://online.wsj.com/article/0,,SB110047671839073708,00.html? mod=technology_main_promo_left

Portals
When Pundits Predict Tech's Future, It Is True They Can Draw a Crowd
by Lee Gomes

A lot of people will tell you that whenever a Silicon Valley luminary starts to describe a hot new technology trend, you should hide your wallet, because what you are about to get is a sales pitch disguised as prognostication.

Whoever those people might be, none of them were in attendance last Tuesday night in a crowded San Jose, Calif., ballroom, when the Churchill Club, a local group that sponsors talks on tech topics, held a panel discussion about the top trends for the coming year.

It's a popular fall event: Four well-known Silicon Valley figures make predictions and then proceed to agree or disagree with each other. They conduct themselves as though appearing on a cable-TV sports talk show, with lots of "regular guy" banter and barbs. It's amusing and harmless, like the astrology column in the paper -- great fun if you don't take it too seriously, and probably about as accurate.

Judging by the preponderance of coats and ties in the audience, most of the people listening weren't actually entrepreneurs, but rather various hangers-on from the service sector: marketers, consultants, accountants, PR people and, worst of all, journalists. The sort of people, in other words, who don't have the wherewithal to actually invent the future themselves, but who will dutifully show up to get their meal tickets punched when someone else does.

The first panelist up was John Doerr, a venture capitalist who is perhaps most famous for saying at the height of the great Nasdaq stock bubble that the Internet was "the largest legal creation of wealth" in human history. Perhaps Mr. Doerr meant to add "for those of us lucky enough to get out in time," but he never got around to actually saying that, and as a result, made it into the Reckless Optimist's Hall of Fame during his first year of eligibility.

Last week, Mr. Doerr disclosed that he is, once again, a Web bull. The Internet, he said, may actually have been "underhyped." There is now under way, he argued, "incredible innovation and systemic rethinking/reinvention in important Web services."

Actually, the question of whether something has or has not lived up to its potential is a favorite among the technical punditry, because no matter which side you take, you can't lose. You simply emphasize whichever part of the half-full, half-empty glass makes your point.

For example, there aren't many industries that have embraced the Internet more enthusiastically than airlines. But there are few industries in worse shape. Who does that vindicate: the tech triumphalists, who say the Web will conquer everything, or the digital skeptics, who say the Web's capacity for economic transformation has been exaggerated? Flip a coin.

The trends cited by the next two panelists -- Roger McNamee and Esther Dyson, both technology investors -- were somewhat at odds. Mr. McNamee predicted that there won't be another big, late-'90s-style wave of tech spending by businesses for at least five years. Ms. Dyson, though, predicted a big new business in bringing technology to the health industry, mostly for record keeping.

My money is on Mr. McNamee, and not merely because this newspaper had a front-page article1 the very day of the panel arguing much the same point.

One of the not-so-secret Dirty Little Secrets of the tech world is that no one knows how to make this stuff work. When Hewlett-Packard, which is in the business of telling other companies how to computerize their operations, turned in a disappointing quarter in August, it placed much of the blame on a badly flubbed in-house effort to computerize its own operations. While I personally would have given Carly Fiorina style points for audacious comic irony, Wall Street thought otherwise.

Because of episodes like that, most businesses have long since stopped believing the tech world's promises of better living through data processing. So why would the health sector act otherwise? And isn't the never-ending stream of high technology dreamed up by medical entrepreneurs one of the reasons the U.S. spends so much on health care in the first place?

For his trend, Joe Schoendorf, another venture capitalist, did a riff on the theme of "China: Threat or Menace?" Mr. Schoendorf said the odds are good that the Next Big Thing, whatever it is, will come from China. While that country is currently best known for its low-cost manufacturing, Mr. Schoendorf said that any civilization that could invent the compass, gunpowder and paper probably still has a few other tricks up its sleeve. Especially since it now graduates more Ph.D.s than the U.S. does.

While Mr. Schoendorf was talking, you could feel the energy go out of the room. Who, after all, wants to be told they face a future of usurpation and irrelevance? Not this crowd!

There were other trends that evening: blogs, stem cells, consumer electronics and more. You can see the list yourself in the "Past Events" section at churchillclub.org2.

And there's no reason you folks at home shouldn't come up with your own trends. To paraphrase what Homer Simpson said about young people: "The future belongs to Silicon Valley's leaders -- unless, of course, we stop them first."

Send your comments to lee.gomes@xxxxxxx


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