Coming in 2020: The Web 3.0 Experience
With the advent of Web 1.0, an increasing proportion of physical life became digital. Then, as we progressed to Web 2.0, the Internet became the information hub where people spend a majority of their time learning, shopping and communicating with others globally. Now, to embrace the promise of Web 3.0, we must look to network effects and cloud-based, personalized analytics.
Our Internet dependence is well documented and rising all the time. Consider that Google now maintains roughly 1 trillion URLs in its indexing database. On any given day, Google serves 2 billion search queries. In March 2011, the total number of videos on YouTube was 200 million. By December 2011, the total number of videos hosted by YouTube is probably over 400 million. By 2015, we may be talking about almost 256GB of storage in smart, handheld devices and potentially, every smart mobile user could be a content provider.
How we are producing and using content is changing, too. These days the cost of a professional studio has gone from $250,000 to around $10,000. Education is changing faster than we can imagine. Websites like Khan Academy are making thousands of educational videos available to school children. Children are learning at home virtually via educational cloud space and reviewing the information in school, completely the opposite of what we have done in the past, when we listened to the lectures in the classroom, then did homework at home. Enterprises and small businesses can no longer operate without software tools, mobile devices and/or Internet access.
During the Web 1.0 and Web 2.0 eras, companies were mainly involved in building the server racks, software solutions and infrastructure for delivering Web services and solutions to the enterprise customers. However value-added services, such as search, target advertising, e-commerce, M2M, sensors, content sharing and mobile wallet services will need to be provided in the cloud with strong analytics that, while complex, are hidden from the users. Personal dashboards about every aspect of life may be exposed via analytics tools in simple forms and user interfaces.
By 2015, the intersection of processing engines and network effects with embedded analytics will provide a powerful environment for business intelligence. Cloud computing with consideration for analytics and mobility provides the effective environment to address the mobile workforce for many years to come. To satisfy the enterprise customers, consumers' needs must be at their fingertips to a point that enterprise services can be tailored to their demands. (See Smart Is in for 2012.)
Delivering the greatest degree of flexibility to the enterprise mobile workforce depends on providing appropriate knowledge management via cloud-based data and applications from anywhere at any time.
Today, users are looking for recommendations about local businesses and services while they travel among various public and private locations during the course of a workday. Here we can introduce a set of guidelines to establish a seamless multidimensional opportunities to serve enterprise customers globally.
Processing engines -- parts of the network that help determine how traffic is routed and delivered -- and network effects, with the freedom and functionality of analytic engines in every aspect of business intelligence, will give rise to a wide range of service opportunities, including a Web 3.0 business model based on the integration of mobility and cloud computing services. (See Policy 2011: Hot, But Getting Crowded.)
All of this is to say that a Web 3.0 business model will provide enterprise customers with intelligent data mining engines that are running in the cloud on behalf the users. The objective is to enable enterprise customers with smart, personalized analytics empowered by their business principles.
The intersection of network effects with cloud-based, personalized analytics will help enterprise customers to start realizing the technical and economic promise of Web 3.0. Smart virtual analytics specific to enterprise customers will be a good revenue model for direct, targeted and recommendation based advertising.
By year 2020, revenue from business intelligence and cloud-based analytics can reach in billions. Business intelligence infrastructure such as cloud services, mobility and “Information Durability Engines” will create a trusted environment for millions of subscribers worldwide. Virtual environment also brings results to enterprise customers looking for key CRM solutions.
I believe, as I said about five years ago, that by year 2020, our industry will be leading the Web 3.0 experience via many innovative cloud solutions with embedded analytics with full consideration for network and mobility effects. Revenue opportunities will be far greater when recommendation-based business intelligence will be at the heart of the cloud business models when over 250 billion devices will be connected to Internet by 2020.
— Dr. Hossein Eslambolchi is the former CTO of AT&T and chairman and CEO of 2020 Venture Partners