1. WEB 3.0: THE
GLOBALIZATION OF THE
INTERNET
Jalak Jobanputra /@jalak
September 29, 2010

2. THE EVOLUTION
• The Analog World: Tech Creation Clusters, Exporters: Silicon
Valley, Israel, Eastern Europe
• Services outsourcing hubs: India, Ireland, Costa Rica, Eastern
Europe
• Web/Consumers: EVERYWHERE!
• Broadband + Mobile + Econ Development = Ubiquity
A GLOBAL WEB OF CREATION AND
CONSUMPTION

3. WORLD POPULATION

4. GLOBAL INTERNET USE

5. THE WORLD WIDE WEB 2010+
• US accounts for only 13% of Internet users
• 500M Internet users in India & China -- will add 700M
MORE by 2015, generating revs of $80B in commerce,
access fees, etc
• Many countries leading usage models: Japan (gaming),
Malaysia (digital media consumption, multitasking), India &
Poland (mobile)

6. BUSINESS MODELS
• Multinationals have learned to localize
• Consideration: create
economies of scale but adapt to each
market (Walmart example)
• Copycats = can get acquired or scale, disruptive to local
markets (Baidu, local eBays and Groupons)
• Demand for New Services = local to global (LG in India)
• New business models = disruptive to global markets (Twitter)
• Non US investors investing: Ooyala raised $$ from CID
(Shanghai) and ITOCHU (Tokyo); Digital Sky Technologies

7. THE CONSIDERATIONS
• Size of Market
• Administrative: Legal Fees, Tax, Logistics, Corruption
• Human Capital -- availability, policies
• Bandwidth, hardware costs, infrastructure
• IP protection -- pirated options lead to price competition
• Adaptation/Uniqueness of Market -- content creation costs, payment options
• Consumer preferences and behavior -- role of influencers, pricing, design
• “Smart” Capital
• Government Policies/ Stability

8. FACEBOOK
• Translated into 100
languages
• Over 70% non US
• Triple YOY growth in
Mexico
• Recently overtook Orkut
in India
• Establishing local offices
worldwide to follow user
growth and learn usage
patterns

9. TWITTER
• 60% non US registered users
• Fastest
growth in South America, following Spanish language
version in November 2009
• Asia, Italy, Russia, Spain also posting strong growth (World
Cup effect?)
• US down as % month to month (was 62% beginning 2010)

10. USAGE MODELS OF THE
FUTURE: WEB 3.0 +
• The Social Consumer AND Social Enterprise
• Mobile as Default Platform
• Continued growth in BRICs
• Frontier markets in Africa, Turkey, SE Asia
• Sectors: FinServe,Healthcare, Education, Agriculture, Gov’t
• Content Creation/Consumption