Shift Age Valuation

Regular readers know that I have often written about Intellectual Property in this space.  IP is increasingly important in the valuation of all enterprises.  I provided a historical context to this trend here, and later talked about Ocean Tomo, one of the companies that is helping to create the IP marketplace.

As mentioned in one of the earlier columns, the percentage of the aggregate value of the S&P 500 companies that is IP has gone from 17% in 1975 to 80% in 2005. The transactional process of IP, until very recently, has largely been the same as it was 20 years ago. This inevitably means that a more fluent, liquid and transparent marketplace for IP must develop.  One of the initial developments over the past two years has been the IP auction.  While there are a number of these auctions, I have been privy to the Ocean Tomo auctions and using the results from these auctions alone the trend lines are very clear. 

Two weeks ago, Ocean Tomo had its’ spring auction in San Francisco.  Once again record prices for IP portfolios were reached.  One of the lots up for auction sold for $6,600,000, setting a new world record for a patent lot at a multi-lot live auction. The lot was for processing digital data in bit streams In addition there were three other lots that resulted in seven figures sales.  What is interesting about these numbers is they are solidly going upward.  Each auction sets a new world …

[Note to readers:  this column was written a number of weeks ago, but was in holding as I wrote columns about some more immediate travel related subjects.  With the turmoil in Tibet this past week, it is clearly a topic in the news.  I have updated the prior column to include the recent upheavals.] 

When countries or cities submit bids for hosting the Olympics it is usually done with a great sense of pride and boosterism.  The governments and economic vested interests all look to hosting the Olympics as a way to showcase their “world class city”.  In the case of the upcoming Olympics in Beijing, it is clearly the goal of the Chinese government to make clear to the world that the formerly communist country is now a major player on the world stage.  The world has recognized and accepted the growing economic might of the country.  The Chinese government wants to make a further impression on the world that they are culturally and architecturally a world class nation.

I have written here about what has occurred in China over the last 20 years.  Basically they have collapsed the 200 year timeline of the U.S. to move from an agricultural economy to an information economy to a period one tenth in length.  This has never been done on such a magnitude, and as a result there have been many problems, as written here.  I think that this will be the reason that the 2008 Beijing Olympics may turn out …

Futuristic Cooling

Technology has been the defining force of the Information Age.  Technology has given us an appreciation for speed, global communications, connectivity, miniaturization and of course computing power.  We embrace new generations of computers, cell phones and digital content players.  Many of these innovations, as they increase in power, generate heat. As they decrease in size there is often a proportionate increase in generated heat.

Decades ago, the large main frame computers were housed in large refrigerated rooms.  Today server farms reside in similar cooled environments.  Heat can cause computing and networking equipment to malfunction, slow down operating speed and in extreme cases to simply fry.  Any of us who have actually put our laptops on our laps when working know how fast they can heat up.  Desktop PCs have more powerful fans built in to keep them cooler and therefore operating closer to the maximum speed of the installed processor chip.  We are, however living in a world of increasing mobility where the laptop is fast replacing the desk top.  This means that often the laptops we use are not operating at peak efficiency due to generated heat.

This is not something to which I had given much thought as I had accepted this as one of the accepted limitations of mobile computing.  Laptops provide mobility but must sometimes sacrifice performance due to heat generation because of the demands for compact computing.  Last week however I was given much to think about.  As mentioned in my prior column I had traveled to …

Another Cell Phone Milestone

I have written several columns about cell phones in the past. Each one was due to milestones of growth. The speed of growth in the use of cell phones continues to be astounding. It was announced last week by the International Telecommunication Union that the number of total global cell phone subscribers will exceed the number of non-subscribers for the first time in 2008.

When you stop and think about it, this is nothing less than amazing. This means that more than half of all human beings alive today have cell phones. That includes all children, all the elderly, all the people living in poverty around the world, all the people living in underdeveloped countries and all those living in remote areas of the world where there is no cell phone use. Of course there are a number of people in the U.S. and elsewhere that have more than one cell phone, but that is a very small percentage of total users.

In 2006, when doing research on my forthcoming book and for speeches I deliver, the latest projections at that time suggested that this 50% threshold would not be crossed until 2010 at the earliest. This time compression of projected growth of electronic connectedness has become a familiar experience to me. In addition to cell phone subscriber projections there has been an almost constant upward estimation of Internet users and terabytes of content coursing through the Internet. Research conducted …