In the last century, electric power brought machines and factories to life. In this century, software is bringing machines and factories to life in entirely new ways. In the last century, we measured our machines by horsepower and their physical capabilities. In this century, we will measure our machines by Computing & Analytical power and their ability to help us make swift decisions. There has never been a better time to be in the Technology space. Over the next decade, new software will ripple through every facet of industrial operations - manufacturing, deploying, and operating smart machines, and the ways we service those machines. Peter Levine, a renowned Venture capitalist, aptly said, "The entire world is becoming the domain of IT." This is being driven by the Industrial IoT revolution and an increasing number of intelligent machines that are operating out at the edge. These machines are generating massive amounts of data that will need to be captured, analyzed, and acted on.
Top 5 technology companies - Combined Manpower is 250,000 people but Market cap is 3 Trillion. The Value Creation is enormous. Apple rode the PC and mobile wave to that spot. Amazon is number three today, and many people expect Amazon to ride the e-commerce and cloud computing wave to the top spot in the next few years. What happened in the consumer & internet economy is now transitioning to industrial economy. Let’s look at an example. And this example focuses on the fact that more and more value accrues to the consumer, and this is a phenomenon called "consumer surplus", which is not new - consumer surplus existed even in the prior Industrial revolutions. But today, platforms that drive scale rapidly and take costs close to zero marginal cost are attacking all kinds of sectors, and they are actually creating the surplus. Let’s look at the Skype example. In the telecom industry, obviously, we know all about that industry, and we know about Skype - the fact that we can make calls at very little if no cost at all. So in 2013, for example, USD 37 billion in the loss was experienced by this telco industry, and the question is: Where did that go? So if we look closer, we realize that that is consumer surplus that is a value that we've been able to accrue for no cost, and that's the reduction in the revenues experienced by that specific industry. And Skype, by the way, only made USD 2 billion, ad-supported revenues and other, so basically, USD 35 billion of consumer surplus was created by this phenomenon.
The 4th Industrial & IoT revolution is about moving from a computer on every desk, a computer in every home, and a computer in every pocket - to a computer in every machine. Going forward, every machine across your enterprise will become a smart, connected machine. And, our expert IT teams will be asked to manage these machines - ATMs, warehouse robots, construction fleets, etc. The good news is that what we have learned around managing compute, network, storage, Applications & automated workflows in the enterprises can now be applied here. The 4th Industrial revolution is real. IoT, Artificial Intelligence, Robotics, Blockchain & other cutting-edge technologies are going to rewrite the business models across industries and geographies. We have spent the last 70 years building and deploying software & hardware that connects and empowers humans. We will spend the next 70 years building and deploying software that connects and empowers machines.
There is a paradigm shift happening today and it’s already triggered other revolutions. If you look at the future scenario, where it is heading towards is the technology and innovation solving real-world problems such as smart cities, smart health, smart transportation, Smart energy, Money 2.0 and finally the radical life extension to achieve immortality. Our kids will live to 90 or 100 as the default. We are gaining 8 hours of longevity per day - one-third of a year per year. Genetic engineering is likely to eradicate disease, impacting longevity and global population. DNA editing is becoming a real possibility in the next 10 years, and at least 50 Silicon Valley companies and Google are focused on ending aging and eliminating death. One such company is Human Longevity Inc., which was co-founded by Peter Diamandis of Singularity University. Today there are six to seven trillion dollars a year spent on healthcare, half of which goes to people over the age of 65. In addition, people over the age of 65 hold something on the order of USD 60 trillion in wealth. And the question is what would people pay for an extra 10,20, 30, 40 years of healthy life. It’s a huge opportunity & enjoys the revolution ahead.
