Investing legend Roger McNamee, managing director and co-founder of Elevation Partners, was interviewed on CNBC recently and explained why he is bullish on the tech sector. He commented that Apple is winning and told us why. He continued by saying companies are trading down from Windows to tablets and saving thousands per year on support. This will free up $100 billion worth of revenue per year in this category, he said.
There is a titanic clash for Internet control. Will it be app stores or HTML5? Which wins?
My readers know I have brought this question up as well. This is an important issue.
McNamee explained the success of indexed search has resulted in pollution (spammers, etc.) and as a result users are switching to Wikipedia, Yelp and others.
He went on to say there is a global shift to HTML5 which is putting the focus on content development. He sees this as a mega-cycle, like the Internet cycle, which can last up to 15 years.
How do you play this from an investing perspective? Roger believes Microsoft is fine, as it has a monopoly on Exchange. He does believe the Microsoft ecosystem – companies like Intel and Dell – will see brutal times ahead, however. He believes Google will do OK, but that investors should short Google (News - Alert) and buy Apple if they want to play the future of tech.
His company has a huge position in Facebook and Yelp. He went on to say social is a contained group of companies – meaning its growth is not an industry-wide phenomenon.
But McNamee is not excited about the Android market because there is no central control, no anti-virus and a history of apps that have done things like steal credit card numbers. He said Android is like the Wild West. He also posited the question: What if Apple doesn't get 10 to 15 percent market share in tablets, but instead 60 to 70 percent? He explained that then Apple will be the largest hardware company out there by a mile.
I must say the points regarding Apple are very good. It is not a given that Apple will lose the share analysts predict. Moreover, I agree that HTML5 presents a major opportunity, and listening to this interview made me feel good that TMC is launching an HTML5 development event next month in New York called DevCon5. To get more information on that July 27-28 event, which will be held at New York University’s Kimmel Center, visit: http://html5.tmcnet.com/conference/newyork/
“HTML5 will certainly have a profound impact on the Internet,” says Tom Keating, TMC’s vice president and CTO.
As INTERNET TELEPHONY’s Executive Editor Paula Bernier (News - Alert) reported out of February’s Mobile World Congress in Barcelona, some of the world’s largest communications companies are excited about the promise of HTML5. That includes the Wholesale Applications Community, an alliance of the world’s largest telecommunications operators and device manufacturers, which has at least 68 member companies, eight service providers that have on-boarded WAC (News - Alert), five device markers supporting the spec in their products, and 12,000 applications in place.
Randall Stephenson, chairman, CEO and president of AT&T (News - Alert), was one of the top telecom chiefs appearing at the WAC press conference in Spain. At that event, he talked about how the WAC 2.0 specification unveiled at the show is based on HTML 5, so will allow for more rich media web-based applications. Once you open the door to HTML 5, said Stephenson, you develop applications that work on multiple platforms and operating systems.
“That’s when the 12,000 [applications] becomes a down payment,” he added.
HTML5 presents a major opportunity. TMC is launching an HTML5 development event next month in New York called DevCon5.
To get more information on that July 27-28 event, which will be held at New York University’s Kimmel Center, visit: http://html5.tmcnet.com/conference/newyork/
Rich Tehrani is CEO of TMC. In addition, he is the Chairman of the world’s best-attended communications conference, INTERNET TELEPHONY Conference & EXPO (ITEXPO (News - Alert)). He is also the author of his own communications and technology blog.
Edited by Jennifer Russell