then catching the register receipt has a deduction
deduction [Music]
[Music]
Kerching is right in 1995 there were
27,000 commercial website in 1998 three
quarters of a million 30 times as many
mail-order is becoming email order and
you don't have to dress up to go
shopping in fact you don't have to dress
at all
in terms of infrastructure cost buying
underwear in your underwear is hard to
beat and if you buy the same underwear
you know exactly what the product is you
don't look at em you buy Munsingwear 34s
or whatever you know kangaroo pouch you
know you know twelve pair please mail it
to my house there's this very American
temptation to use the Internet to sell
things but what to sell well everyone on
the net can already read and write so
the first big commercial success is
using digital technology to push that
most analogue of products the printed
word but this is not Guttenberg being
replaced by the World Wide Web
it's Gutenberg enhanced using modern
technology to sell books lots and lots
of books [Music]
[Music]
in the spring of 1984 I came across the
statistic that web usage to ascribe 2300
percent a year and outside of a petri
dish I hadn't seen anything grow that
fast I made a list of 20 different
products that you might be able to sell
online and picked books as the first
best product primarily because there are
so many books there's no way to have a
two and a half million title physical
bookstore the largest physical
bookstores in the world only have about
one hundred and seventy five thousand
titles and there's no way to have a
print catalog if you were to print the
amazon.com catalog to be the size of
more than 40 New York City phone books [Applause]
the basic tree knifes fairly simple
promise ubiquity of that technology and
this looked like because of that growth
rate the first time ever that the basic
technology needed to do electronic
commerce in an acceptable way would be
ubiquitous so it actually turns out that
the ubiquity of the Internet is more
important than the technology of the Internet
[Music] [Applause]
[Applause] [Music]
the Internet is creating the biggest
Californian job boom since the gold rush
and America is running out of homegrown
engineers but the language of the
internet is English so wherever you come
from if you're a decent programmer and
speak English apply here [Music]
[Music]
the sound of leather on willow it's a
cricket game we're not in England we're
in Santa Clara County the most heavily
wired and network community in the world
the valley employs thousands of Indian
born engineers who bring with them not
only their programming skills in their
engineering degrees but also their
cricket balls and bats sunshine and a
field to play is all we ask
since there's this big boom in American
in Silicon Valley here which for a whole
bunch of engineers to come all the way
from India you know we make the big you
know trip up to America to work and then
come here and find out that this cricket
being played India the second largest
country with the number of engineers
after the United States in the whole
world so I think that is a factor in the
second thing is because it's an
english-based system it's a lot easier
for people to come from India and
integrate and do business in the United
States with the arrival of the Internet
companies here can now fill their job
vacancies with skilled Indian engineers
who don't have to leave India could be
I work in the industry with a zero
unemployment you can't get skilled labor
at any place so we're scouring the world
with world market to get programmers to
call either people is astonishing the
loyalty of the people and the work ethic
the quality of their English and
everything just blew us away we just had
a fabulous have a fabulous experience in
Bangalore and we're expanding or off
person that they were very very rapidly [Music]
[Music] [Applause]
[Applause] [Music]
[Music]
for all the outward differences India
Silicon Valley has a lot in common with
my Silicon Valley starting with traffic
jams and construction everywhere the
street signs and billboards are all in
English Bangalore is busy and booming
because of the huge numbers of
programmers Western companies are
putting to work the Internet has become
a worldwide digital communication
network that rivals in size the
telephone system so here we are 12,000
miles 12 time zones away from where I
live in Silicon Valley in California in
Bangalore the Silicon Valley of India
programmers here solve the problems of
users around the world companies founded
here serve customers in Europe and the
United States and it all happens because
so what we have done is to set up the
company here the kind of investment with
you which is here which you are made
with a clear approach to do work in
India leverage those skills develop
those technology skills in India so that
we level it therefore Nowell Nowell
the net wear company from Utah is
constructing a new Indian headquarters
building here 21st century technology
built by pre-industrial labor we work
with GE General Electric almost all the
units of GA a light signals sequent
Xerox partner minister services in Boston
Boston
sundar San Caron is a typical young
programmer in Bangalore sundar offered
to take me to work with him on the back
of his motor scooter apparently every
one of his fellow programmers had
they say that in Bangalore every second
person writes code and everybody honks
at the traffic lights how can you remain
a pastime out here so you didn't tend to
get bored easily hum for some time it
makes you feel nice in India we have a
computer as part of the curriculum now
it's just some +3 grade 3 as you'd call
it so I've been doing some kind of
programming others since +8 when I was
there it was class 8 so once I finished
my bachelor's I got into a non formal
Institute for computer learning and I
started programming programmers in
Bangalore are awake when America is
asleep the Internet has perfected the 24
hour workday you're working when your
customer is sleeping ok to that extent
if it gives you a problem during his
working hours you solve it and send it
back to him by the time he starts
working so I mean it's a great advantage
especially if you're doing things
offshore began a call in the evening
through email saying there's a problem
next year morning when people come to
the u.s. problem is solved while the
customer gets surprised saying well I
just told your father bug in evening how
come in the morning you guys solved it
now the problem is solving other part of
the wall by really using this 24-hour
turbine cycle it's not only cricket the
British Empire gave India it also made
English the language of government and
higher education which gives Indian
engineers another great advantage
people here know English unlike Japan or
China and places like that people know
English you know so that is a lingua
franca of Reynosa software you have to
know English [Music]
[Music]
my kids study in our English medium
school they cannot read or write my own
own mother tongue which I'm able to do
it but the next generation is not able
to do that same way you'll find that
Indians don't have a problem checking of
languages they can speak French they can
speak you know Belgian probably you know
most of the languages people going from
here they pick up very easily for an
American especially an American from
Silicon Valley it's almost impossible to
imagine India as a high-technology
Development Center I mean just look
around this is amazing the average
person in Indian school or at least
three languages English Hindi and their
local louder's some of them know five or
six compare that to American students
think about it in terms of computer
languages what are they they have syntax
they have characters they have objects
they have verbs what's it in between C++
and Hindi not all that much whether they
have a 5,000 year tradition of
mathematics which we don't after the
world wide web and the browser is a
third break out invention that driving
the expansion of the web lifestyle it's
called the Java a network programming
language named after the Valley's
favorite fuel like the others it's
helped make the Internet easier to use
for anyone anywhere and with any kind of
computer because the internet grew in
such a haphazard way the computers on it
used many different programming
languages this wasn't a problem when the
networks were separate but when the
World Wide Web made it possible for them
to communicate there had to be a way to
make it easy a guy named James Gosling
came up with the answer he invented a
language that would run the same on any
computer one size fit at all which was
good for business
and like everything else on the internet
it had a strange name Java maybe he
drank too much coffee while working on
his invention better than naming it Budweiser
Budweiser
one of the most brilliant programmers on
the planet bill joy calls him the
greatest program
world came to my office one day because
I heard he was upset and I said James
Gosling what's the matter why aren't you
happy this was like in the early
nineties and he says I'm tired of
dealing with all this old legacy
computer environment just for a great
programmer it's kind of like trying to
fly by flapping your wings and he said I
want to go out and create a new
environment it was conceived way back in
1990 91 timeframe by a few engineers at
Sun Microsystems who wanted to create a
better better world in terms of software
delivery software deployment and they
were imagining consumers being plugged
into this networked world but they
didn't realize at the time was it was
the internet it was going to be the Internet
Internet
what's Java I mean Java is a building
material I mean it's it's like it's like
concrete it's something that you can use
to build software at out but it's a
material that's got some some pretty
different properties the one that has
sort of gotten the most airtime the most
people hear about is write once run
anywhere or being architecture neutral
where you can for the writer program
once and it will actually run on
different machines and it can Rove
across the network and I said I don't
care what you want to do wherever you
want to do it whatever how long ever
along with whoever for as much money
I'll set you up in a room I'll give you
all of Rami and Jolt Cola and potato
chips you want anything you need for as
long as you want just go do something
great he said really I said yeah I get
out of here so he went off we set him up
in downtown Palo Alto and they started
hiring a bunch of really great people
and they you know it's kind of like
Groundhog Day they'd come out every now
and then they'd look around and I'd look
and see what they had I don't get it
they go ok so they go back in certainly
early on I don't think Scott had a good
idea what it was about or what it was
for you know it was sort of this group
of you know rabble rousers off in the
corner doing something really odd that
he didn't know how it related to their
main business and you know the truth is
that at you know in the early times it
didn't relate to
in business everyone knows that if you
go to the computer store you have to buy
software that runs on Windows or a
different piece of software that runs on
the Mac with Java you can take a single
program and it will run on both and it
will run on both well that opportunity
was created because of the the internet
because the Internet is a mixed network
and it doesn't make sense to have 20
versions of your software on a single
server so the promise of the Internet
coincided just at the right time with
the great inventions by people like
James Gosling in the language it's taken
the world by storm it it's very clearly
now gonna be in some 300 million
computers just three years from now I
think there's 200 books on the market
right now on Java 4 million programmers
programming in it and it's only 700 days
old so that's phenomenal I've done many
things that have gotten very popular but
among the very sort of nerdy community
because the kind of stuff I do is stuff
that I have no idea how to explain it to
my mom and and or even explaining you
know even though the high level why it's
interesting to my mom and so it tends to
stay in a fairly close community and
have something that has touched people's
everyday lives surprised that surprised me
[Music]
the 1990s Internet has spun off to
significant challenges for bill gates
both netscape browser and sons
programming language java were not
invented at Microsoft bill was slow to
see the challenge at first then he took
action here on the shore of Lake
Washington near Seattle stands a
monument to Bill Gates brilliance or at
least to his money the last time anyone
tried to estimate bill's new house is
going to cost fifty million dollars but
over the last two years his wealth has
increased at a rate of 31 million
dollars per day so no matter what it
cost it doesn't matter
Bill Gates didn't get to be the richest
man in the world just because he's smart
or just because he's lucky it's because
he's smart and lucky and knows it and
pushes his every advantage to the limit
bill had largely ignored the internet
how could a non-commercial network offer
a business opportunity but by 1994 there
was blowing buzz about the web and
Netscape especially among new Microsoft
recruits fresh from college at the
urging of the troops bill went surfing
it was an all-nighter that changed
Microsoft and the internet industry
no went down to his places Hood Canal
and with instructions on how to get on
and what to go look for and he got on
and started looking around and then
started just going from site to site and
I think eventually spent greater part of
all night came back and had a meeting
and described the experience and said
that he was kind of blown away with just
how much was really yeah well we always
assume that Microsoft would be our
biggest enemy because they would have to
turn their attention to this
we got lucky for a while in that they
just they weren't paying attention there
when people inside Microsoft who knew
what Microsoft should do to respond to
us but the management team of Microsoft
was sort of almost willfully ignoring
what was happening in cases a smart guy
unlike the management of IBM in the
middle 80s Bill Gates is awake and
functionally and he noticed that the
internet was not going to be ignored he
tried to ignore it briefly and then he
saw it wasn't quickly he saw in time he
saw that it wasn't gonna be ignoring
what Bill Gates did was turn an industry
supertanker on a dime at first he didn't
really get the Internet but once he did
he wrote a memo called the coming
Internet tidal wave and quickly
refocused the entire company on
responding to the new environment
it's like Henry Ford going into aircraft
production or Boeing into pizza delivery
but it worked
Microsoft was ever building just in a
new direction dole likes to have a
general feeling of paranoia throughout
the entire company as to who's gonna
come along with something that's gonna
destroy one or all of our businesses and
some people are very receptive to an
understanding of a sudden direction
change when bill finally says that boy
we better do something about this
instantly people get it I wrote a memo
at one point called the internet tidal
wave that very explicitly said you know
I've told you many times in the past I
think the Internet is is a priority I'm
now telling you it is the priority and the
the
timing was very good there because who
are getting along in terms of Windows 95
we thought we had that all well
understood and we could really get a lot
of energy focused on the Internet
Microsoft announced to the world their
change of direction on a date with
historic significance for Americans
Pearl Harbor Day it was actually Admiral
Yamamoto who observed that he feared
we did a big event on December 7 in 1995
where we for the first time showed the
world how this had all built up and they
saw hey this is pretty dramatic this
company is going to deliver great
Internet software so the saying that was
an epiphany is a little too much but
saying that that that it became the
centerpiece of our strategy that's
absolutely right
you will hear from us that you know
we're not forming an Internet division
to us that's you know it's like having
an electricity division or a software
division the Internet is pervasive in
everything that that we're doing the big
break happened at the famous Pearl
Harbor they talked but you know
Microsoft was doing a bunch of stuff
leading up to that and in fact they have
this they have this this thing they do
now which is every three months they
come out and say you know Andrey
anounced how hardcore they are about the
internet and and so they have like done
that like five or six times now when the
slumbering giant awoke this was the
result Microsoft's own browser the
Internet Explorer a product designed
specifically to compete with Netscape
Navigator funny don't they look alike
but in 1996 there was a big difference
between them Netscape Navigator cost
business users $49 Internet Explorer was
free they're working hard as you can see
here implementing all the standards we
need and what what do you think we'll
charge for that like all the others
nothing okay but that's quite a deal
ours was always not free it was freely
downloadable but if you were a business
using it you had to talk to Netscape
about a licensing agreement that was the
way we felt we would be able to make
money in the early days and that was the
way we made money we made 75 million the
first year in revenues and 375 million
in the second year the third year ended
up ended up being somewhere north of 500
million in revenue Stan and I we did
that by selling giving giving licenses
for companies to make company-wide use
of the browser Microsoft's free Internet
Explorer started taking market share
from Netscape the people who care about
the market benefits of competition
that's a controversial thing to do
giving it away is an anti-competitive
technique they're trying to kill
Netscape by drawing up its revenue
sources and it's it should be illegal
they should not be permitted to do that
in any antitrust has any use its to go
in now and say you caught you spend
millions and millions of dollars to
develop the thing and you give it away
hmm why are you doing that clearly
you're doing that to damage Netscape
you're not allowed to do that Microsoft
came along in an attempt to put us out
of business
gave away the browser totally free even
to companies who wanted to use it for
business and it definitely had an impact
on us as a consequence we had to give
away give away our browser the results
were just as the first exponent of give
away software would have predicted John
McAfee if you have two competing
products and they are on a par in terms
of functionality and usability the free
one is the one that will propagate
maybe that's why Microsoft is just a
little sensitive about whether they are
or are not giving their browser away
Microsoft's never been accused of not
knowing how to make money it's it's
pretty straightforward if you can sell
volume software you can do quite well
now in order to keep Windows very strong
we felt having a free browser that
promoted our extensions and
well as providing all the power of all
the other standards that that was
critical to our strategy and so the
browser investment is totally paid for
by the fact that it helps Windows and
Windows is a very good quite profitable
business do we give away software I
don't think so
nobody ever told us we were giving away
the print manager the thing that lets
you configure printers in Windows it's
just a built-in piece of Windows the
browser similar is really a built-in
piece of Windows now we sometimes update
it when it's not time to update the rest
of Windows and so we basically sort of
think let's make sure people get all
those updates
but in point of fact to run our browser
you got on Windows so in a sense while
the browser itself may be free we're
getting paid on May 18th 1998 the
Microsoft Netscape dispute took on a new
dimension the US government stepped into
the fight the Department of Justice
filed an antitrust lawsuit against
Microsoft alleging anti-competitive
practices in the browser market the
Justice Department has charged Microsoft
with engaging in anti-competitive and
exclusionary practices designed to
maintain its monopoly in personal
computer operating systems and
attempting to extend that monopoly to
internet browser software the
intervention of Uncle Sam into an
industry which until now hasn't had much
regulation is a seismic event in the
history of the internet it may take
years to resolve but you know I bet
Microsoft even has plans to deal with
regulatory earthquake that scape is the
is the leader and Microsoft is the big
Microsoft's playing the role of IBM if I
might go back to the mid eighties so
Microsoft is the big bumbling company
who got taken by surprise with the
internet and might and Netscape is the
Microsoft has switched roles as
goodnight so Microsoft is now the
dominant monopoly which relies on much
too often I think on its size rather
than its excellence to succeed
well that escapes done a very good job
and you always expect new people to come along
along
I didn't know you know what their names
would be or who they would be but
they'll always be every year companies
that latch on to what the latest thing
is and and get a lot of visibility and
deliver products that relate to that for
their ruthless and vicious and if they
decide they want the business you're in
ask anybody who's gone up against them
directly in fact of course they weren't
in our market when we started so we were
hardly going after a market that they
were aware of but they then realized it
could be a big market and it's their
god-given right to own any big market
and software when you're up against Bill
Gates and his money and he is following
this strategy the best bet is to get
into another business you know just say
okay forget it
I'll do something else in life because
you cannot compete with that so who will
win this battle of the browsers
well Microsoft's blitzkrieg has already
taken a big bite out of navigators
market share
forcing Netscape to match Microsoft's
tactics and give their browser away is
history repeating itself will Bill Gates
on the Internet the way he already owns
the PC universe I don't think so no one
owns the Internet and it's a big place
growing so fast there's always room for
someone with a dream a taste for Cola
and a willingness to go without sleep
someone like Joe Kraus of excite the 26
year old tycoon gives me a tour of the
new headquarters for his billion-dollar
company this is where I figured we
filmed the death of Spock scene okay you
put me in here you put me in here yeah
and turn the Halon on [Music]
[Music]
the last mine melt tell my wife I love
her it's a new show it's a show every 90
minutes I'm like Shamu hey you brought
with you the alien baby you know this is
leaking security level ten actually
called the garage right so we figure
sort of hark back to our roots here in
the garage for executive calendar
meetings he dons the bulb the first time
we were with you guys was I don't know
ninety-four three years ago 94 in
another garage and I had a sense at that
time just a just a little sense that you
basically had no idea what you were in
you know up against that hasn't changed
just looking around me and saying wow
you know we have all these fantastically
dynamic people that we're working with
and you know this company exists here
because of us because of something that
we started and that's insanely
gratifying I'm sort of listening to
myself talk about this and think wow are
we really successful at this point have
we really gotten that big so that now
I'm telling small startup companies how
that you know how to do the same thing
because I think that the remembering
back to the garage helps keep-- helps
keep you paranoid because you realize
how quickly things can go from garage to
something like this and I think we all
feel extremely proud and happy and
what's been accomplished but I think
that it sort of reminds you that just as
easily as you can make it here you can
this is the Silicon Valley fairytale and
there are thousands more little gangs of
dreamers eating burritos and working all
night to make their fortunes in the
wired world so they could celebrate one
day with a trip to Hawaii we had all
said at some point you know the six
founders were all going to take a trip
to Hawaii and it always was sort of well
when we accomplish the next thing and
when we accomplish the next thing to do
it so when we get our funding we'll do
it we got the funding we didn't do it
when we get our strategic round of
financing we didn't do that when we get
so the Excite guys got to Hawaii at last
Aloha gram four years ago he had a
one-sixth share in a bag of rice today
he's worth a hundred million dollars
dreams large and small can come true in
the age of the Internet as any computer
billionaire will tell you
I went on a camping trip two weeks ago
with my family how did I find the
campground an old age their each other
nice little bunnies and the cabins and
the tent sites boom I reserved right there on the spot let's go camping the
there on the spot let's go camping the Internet has come a long way from the
Internet has come a long way from the halls of the Pentagon I'm sharing and
halls of the Pentagon I'm sharing and the first faltering attempts that gets
the first faltering attempts that gets with you to my way of thinking the
with you to my way of thinking the ARPANET is the best investments this
ARPANET is the best investments this country has ever made other than
country has ever made other than probably the Louisiana Purchase no one
probably the Louisiana Purchase no one owns the internet no one controls the
owns the internet no one controls the Internet the internet is the common
Internet the internet is the common heritage of all humankind the killer
heritage of all humankind the killer after the Internet is telepresence it's
after the Internet is telepresence it's using the net to be places that you
using the net to be places that you don't have to go to we want to have a
don't have to go to we want to have a conference where everyone to tens but
conference where everyone to tens but nobody goes so that's how you get your
nobody goes so that's how you get your name on a ball park maybe one day this
name on a ball park maybe one day this will be exciting our or prims Lee Park
will be exciting our or prims Lee Park or a virtual park which everyone attends
or a virtual park which everyone attends on the web
on the web [Music]
[Music] but for peanuts and cracker jack and
but for peanuts and cracker jack and that authentic sunburn up in the
that authentic sunburn up in the bleachers against it just have to be boy
[Applause] buy me some peanuts and
[Music] - three-strikes-you're-out happy home
- three-strikes-you're-out happy home [Applause]
[Applause] [Music]
[Music] funding for this program has been
funding for this program has been provided by the annual financial support
provided by the annual financial support of viewers like you
of viewers like you and by the Alfred P sloan Foundation
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