1. Keeping on Top of Technological Trends and Uses of Existing Technology Daniel L. Appelman Heller Ehrman LLP

2. Trends and Uses of Technology Focus on the Internet Existing and evolving WWW New services Evolving models of doing business

3. Trends and Uses of Technology Search Social networking Multimedia audio video Mobile Internationalization Stages of the WWW

4. Search Engines Trend: evolution to better organized data and more focused searches raw keyword search advent of contextual advertising recommendation engines based on past searches, purchases

5. Search—Implications for Advertising More focused searches result in more targeted advertising Internet advertising looks increasingly attractive Advertising dollars shift to Internet (Google, Yahoo, etc.)

6. Search—Implications for Advertising pay per impression pay per click pay per conversion Increasing demand for pay per conversion

7. Social Networking User-generated content MySpace, Facebook, Wikipedia, Yahoo! Flickr Technological developments make organizing and finding information faster and more intuitive search tagging

8. Social Networking Fastest growing segment of WWW Opportunities for monetization subscription to premium services specialized search capabilities contextual advertising

9. Multimedia on the Internet Video has largest share Audio decreased with advent of video sharing and lawsuits Bandwidth issues Copyright Issues

10. Multimedia on the Internet User-generated content and infringing content led the way Trend: Increasing use of Internet to distribute audio and video Trend: Increasing use by big content providers iTunes Time Warner Disney/ABC/Apple

11. Audio P2P enabled sharing of user-generated and pirated content Technology way ahead of ip protection and accepted business models Trend: ip protection and accepted business models are catching up Trend: increasing recognition that business models must adapt

12. Audio Grokster decision gave increased confidence to content providers iTunes success prompted others Trend: everyone is jumping in Online music segment experiencing fantastic growth “Brick & Mortar” stores failing fast

13. Video Online video trailed audio because of bandwidth demands Technology has removed that obstacle YouTube, Grouper demonstrated technical feasibility and user demand iTunes begins selling videos Trend: similar growth pattern as audio

14. Video Video sharing may represent 60% of internet traffic Mostly unmonitized currently Trend to monitize Tagging combined with corporate partnerships Copyright issues impeding monetization

15. Video Technology innovation helps improved search tagging P2P file sharing applications Video portals help organize and publicize  Yahoo’s The 9

16. Mobile Tremendous growth in cell phones and other mobile devices Tremendous growth in demand for Internet services through mobile IM Web-surfing Collaborative gaming More in some countries than in US

17. Mobile Tremendous growth opportunity In US, 17% residential broadband penetration vs. 8% mobile Tremendous untapped potential

18. Internationalization US share of internet users falling down to 20% next year That’s because other regions are increasing faster China, Russia, India increasing fast Trend: globalization of Internet services and online advertising

19. Web Infrastructure—Web OS “Plug & Play” blocks of infrastructure that can serve multiple web applications Storage services Search services Computation services Messaging services Information services

20. Web Infrastructure—Web OS Amazon Long Range Business Plan—WebOS S3 Offering web infrastructure services to other businesses  search, storage, lookup and data management Charges on “pay per fetch” or “pay for space” basis Google, Microsoft, others will offer infrastructure- for-rent for web applications

21. Trends in the Internet Growth of multimedia content on the web audio video Growth of mobile access Growth of social networking Internationalization of internet services Improvements in Search

22. Trends in the Internet Data and content increasingly organized Data and content increasingly monetized Consolidation of search and content providers very few companies account for most of the value Google, Yahoo, eBay, Amazon

23. Trends in Advertising on the Internet Internet gets increasing share of advertising dollars 8% in 2006 projected 13% by 2011 Technology improvements result in more effective targeting and conversions Recommendation engines result in more effective marketing

24. Web 1.0 Static web pages Search engines Assemblage of online data

25. Web 2.0 Network as platform; network as application Data on remote servers; not on local drive Users own and control the data Architecture of participation and collaboration

26. Web 2.0 Making sense of data--folksonomies Social networking

27. Web 2.0 writely iTunes Social Networking and Collaboration Flickr—shared photo community- generated tag database del.icio.us— eBay, craigslist, Wikipedia

28. Web 3.0 Semantic layer Machines learn from data Building on data organized by tagging and preference engines

29. Web 3.0 Building a retirement plan Assembling vacation package options

30. Trends in Technology Technology will give increasing ability to organize and find data personalize online services focus online advertising maximize value of advertising dollar

31. Trends in Online Services Increasingly free to the user and subsidized by advertising Television and Radio model Is this a good thing? How far should it go?