When the PC first emerged as more than a game machine, the powers-that-be saw it is a shrunken minicomputer, and tried to load on it the apps which drove the mainframe ea - accounting mostly. But what drove it to success were a new class of apps, productivity apps, beginning with the spreadsheet.
This insight should be taken to heart. Each new era of computing is driven by new applications, not by repurposing old apps. That comes later.
If we skip the first 20 years of computing (1945 - 65) as laying the groundwork for what followed, we have had three eras of computing:
* Computers 1.0 was the Mainframe Era from the IBM 360 in 1965 to the final DEC VAX in 1985
* Computers 2.0 was the PC Era from the first 32 bit PCs in 1986 to today, when it seems that hardware has raced too far ahead of software
* Computers 3.0 is now developing and has yet to be cleverly named.
Each era was presaged. The precursor to the PC era was the PC boom & bust cycle from 75 - 85, just as the precursor to Computers 3.0 has been the Internet Mother of All Asset Manias from 1995 to today. Both had blow-out IPOs: Apple went public in 1980 at the unheard of value of $2B, and Netscape did the same in 1995 at $5B - which turns out to be $2B in 1980 dollars. Is Google next? Overall, the amount of investment that went into the mania stage exceeded the returns. It was only after the mania that the winners emerged, and the contours of the new era took shape.
This has profound investment implications, as spotting the winners of the new era early leads to enormous wealth creation - placing PC bets in 1986 when the winners were clearer rather than 1980 at the start of the mania returned a stunning 40x to the clever few who did this.
The question du jour is what is the "spreadsheet" of the 3d computer era? Ray Ozzie is one of the entreprenuers whose track record says his opinion matters. He was the force behind Lotus Notes and is now pushing a peer-to-peer groupware system called Groove. His recent Perspective: A Mosaic of New Opportunities is worth reading in full. He does a great job of explaining why it is NOT an extrapolation of what we have seen in the past 10 years of the Internet. Snippets:
* Just as the first generation of personal computers was mostly about personal productivity, the first generation of the Internet has largely been about centralized Web sites, used for publishers, transactions and e-mail.
* Personal productivity tools will become joint productivity tools designed for online use instead of a paper-only world. A rich cadre of collaborative online writing, media management, presentation and consumption tools will move to the forefront of our daily electronic lives.
* A distinct third layer will emerge between the operating system and productivity layers. Think of it as a "virtual workspace" layer that links together all of your own computers and those operated by people with whom you work.
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