Search results for: “Silicon Valley”

  • The Code – Silicon Valley and the Remaking of America

    The Code

    The Code – Silicon Valley and the Remaking of America by Margaret O’Mara is the second book I have read recently about Silicon Valley, this review follows my review of Chip War by Chris Miller. The Code covers the history of Silicon Valley from the post-war to the present.

    Margaret O’Mara

    In terms of her background, O’Mara is a Clinton administration era policy wonk. When O’Mara left policy circles, she became an academic and is now a history professor at the University of Washington in Seattle – at the other end of the country. Her area of focus is on the history of the modern technology industry. She spent five years researching the book in the mid-2010s, just as Silicon Valley was going under a technological and social change.

    The lens shaping everything else that I have written here

    I am a sucker for books on the history of technology and like Chip War, The Code was right in my wheelhouse. It complemented, rather than overlapped some of my existing favourite technology history books like Bob Cringely’s Accidental Empires, John Markoff’s What The Dormouse Said or most of Michael Malone and Steven Levy’s output to date.

    Like Miller’s Chip War, O’Mara brought a degree of distance from her material to her writing. She has done a lot of research and surfaced lesser known characters like community computing pioneer Liza Loop in her work, she doesn’t have the inside track.

    Bob Cringely with his work on InfoWorld‘s Notes From the Field column got an inside track from the Valley’s engineers before he went on to write is magnus opus Accidental Empires. Like Cringely, Michael Malone was brought up in the Silicon Valley area and then worked the business section beat as a reporter for the local newspapers. Cringely and Malone lived and breathed the valley. If you are are fan of Cringely and Malone’s works, expect something that is interesting but stylistically very different.

    On to The Code itself

    Other reviewers have used words like ‘masterful’ and ‘majestic history’ to describe the book – which while being a reasonable guide to overall quality aren’t really all that helpful. In contrast to Chip War which took me six months, I managed to storm through The Code in a week. This is partly down my familiarity to the material covered and the airplane view that O’Mara takes when writing about her subject. I enjoyed O’Mara’s writing, but could also see someone coming to it with a good grasp of American political history and current affairs, but no knowledge of Silicon Valley history enjoying it just as much.

    Being an academic O’Mara worked hard to source everything in The Code, she also provides a recommended reading list that goes into different aspects of the story that she laid out in more depth including John Markoff’s What the Dormouse Said and Theodore Roszak’s From Satori to Silicon Valley.

    HP's first product, sitting outside of Bill and Dave's office (in HP's headquarters)
    H-P’s first product taken by Robert Scoble

    The book starts in the post-war period as Stanford and Silicon Valley peaked as an area for military contractors. O’Mara references the political lives of the H-P founders alongside the growth of cold war technologies and the space race.

    O’Mara leans hard into Stanford’s defence industry connections that started pre world war II. The book then veers to the decline of the military industrial complex in the area due to a number of factors. The Vietnam war demolished the defence budget. The space programme started to wind down after NASA met Kennedy’s challenge to put man on the moon. Johnson’s social programmes took spend away from scientific developments. Finally the social climate in the US changed.

    The next stage of computing was shaped by counter cultural values which O’Mara covered the libertarian instincts of Silicon Valley pioneers alongside the more community orientated views of the counterculture folks. Unlike other writers, O’Mara also covers the Boston area technology corridor that Silicon Valley eventually overshadows.

    O’Mara focuses more on the finance of Silicon Valley covering some of the highlights featured in Sebastian Mallaby’s The Power Law. But O’Mara also delves into the public markets and the role of lobbying in the Silicon Valley finance machine.

    O’Mara tells how immigration affected the nature of Silicon Valley through the story of Jerry Yang, co-founder of Yahoo!. As is the case with policy wonks she puts a lot of emphasis on Al Gore, the information superhighway and the Clipper chip. The Clipper chip resurrected like Godzilla the libertarian Republican party arm of Silicon Valley elites and paved the way for the likes of Peter Thiel later on.

    The Code finishes on the future hopes for autonomous driving by university research teams and Google’s Waymo business.

    You can get hold of Chip War here. More book reviews here.

  • Silicon Valley Bank + more stuff

    Silicon Valley Bank (SVB)

    Silicon Valley Bank funded this documentary about their history from their founding in 1983 to 2003. It’s now preserved by the Computer History Museum in Mountain View – one of the towns that make up Silicon Valley.

    Business

    POP MART dominates blind box toys market with co-branding | Daxue Consulting – interesting differentiation from Funko with a particular focus on young women and white collar workers. But I can’t see them appealing to the manly men that the Chinese government seeks to have reflected in youth culture

    Why M&A is not a good path for Qualcomm | Digits to Dollars 

    China

    Interesting use of AI by China’s government and academics: AI just predicted the price tag for Beijing’s South China Sea ambitions | South China Morning Post – apparently it was used to help design a high capacity dredger

    China Cultivates Thousands of ‘Little Giants’ in Aerospace, Telecom to Outdo U.S. – WSJ 

    Why did Lego choose Vietnam, not China, to build first carbon-neutral factory? | South China Morning Post – Toy behemoth’s move reflects how like-minded multinational firms are diversifying supply chains away from what has been known for decades as the world’s factory. Lost investment dollars amid the US-China trade war and pandemic have sparked concerns within China

    Economics

    ‘No other option’: Russia’s unequal economic marriage with China – Hong Kong Free Press HKFP – the Ukraine war has cemented Russia as China’s little brother rather than peer. Add to that China’s nationalists still smarting from losing Vladivostok to the Russian empire and one could see how Russia may have trouble on at least two fronts in the future

    Finance

    Longtime China investor Anatole to open ‘outpost’ in Singapore | Financial Times – it makes sense that they would follow the expansion of the global supply chain, but doesn’t reflect long term confidence in China’s dual circulation model

    Silicon Valley Bank / II

    Bloomberg have done a programme explaining about what happened with Silicon Valley Bank and how it went under so quickly. Silicon Valley Bank had problems due to raising interest rates, issues with their risk management and an abnormally high amount of customers withdrawing funds. However there was also an issue about the way Silicon Valley Bank communicated with the market, which in turn created a crisis in depositor confidence.

    Health

    Alphabet’s keynote and plans for the health industries. Usual nod to privacy (hahahaha), cloud computing, consumer devices and AI.

    Hong Kong

    HK’s first AV actress, Erena to star in debut adult film with renowned Japanese actor, Ken Shimizu, Culture, Sports and Tourism Bureau denounces false congratulations – Dimsum Daily 

    Hong Kong bans rapper who joked about hurting the feelings of the Chinese people — Radio Free AsiaThis makes it more likely that artists … will express their loyalty to Xi Jinping, if they know what’s good for them

    Korea

    Inspired by a traditional silver wedding band, Seoul is building the world’s largest spokeless Ferris wheel 

    Luxury

    Chinese tourists unwilling to pay extra for sustainable travel options even as concern about climate change on the rise, McKinsey and Trip.com report says | South China Morning PostChinese travellers are increasingly concerned about climate change and are aware of their environmental footprint, but are still not ready to pay extra for sustainable travel, according to a recent report by consulting firm McKinsey & Company and Chinese travel services provider Trip.com Group. Data from McKinsey, which surveyed a total of 5,457 respondents from 13 countries including China, the United States, India and Saudi Arabia, showed that more than 60 per cent of Chinese travellers were worried about climate change and believed that commercial aviation should become carbon neutral in the future, putting China near the top among the countries surveyed. A separate survey conducted by Trip.com last year showed that almost 85 per cent of Chinese travellers rated sustainable travel as important or very important. However, compared to travellers from other countries, Chinese tourists are reluctant to pay a premium for sustainable travel. Only 20 per cent of surveyed Chinese tourists said they would pay 2 per cent extra for carbon-neutral airline tickets, ranking near the bottom among the countries surveyed – well what would you expect when you have been repeatedly told by your government and media that the west and the United States is to blame for it all anyway? Secondly, civil society like Greenpeace or the Sierra Club can’t operate in China which will also affect awareness

    More on the serious issue of violent crime for luxury watches in London. I wrote recently about the ‘London Watch‘ where watch wearers have an empty wrist when going around central London. This is going to negatively impact everything from luxury sales to hospitality and tourism in the UK at a time when the economy can ill-afford to turn down business.

    Media

    Pornhub owner sold to Canadian private equity firm | Financial Times – I guess the financiers believe that the business has been largely de-risked by the prosecutions against MindGeek owners and clearing out of the platform

    Online

    Deepfake ‘news’ videos ramp up misinformation in Venezuela | Financial Times – it sounds like something from a thriller, but its more insidious and banal all at the same time

    Security

    You Should Really Think About Blurring Your Home on Google Maps – CNET – handy life hack from CNET

    Technology

    The Man Who Made Xilinx | Electronics Weekle – interesting profile of Xilinx co-founder Bernie Vondersmitt. I have been reading Stripe Press’ republication of the 1985 book The Big Score by Michael Malone, so this article felt particularly apropos. More on The Big Score shortly

    Telecoms

    Huawei has replaced thousands of U.S.-banned parts in its products, founder says | Reuters – Ren Zhengfei said Huawei had over the past three years replaced the 13,000 components with domestic Chinese substitutes and had redesigned 4,000 circuit boards for its products.

    Musk brought internet to Brazil’s Amazon. Criminals love it. | AP News 

  • Press – Silicon Valley + more

    Press – Silicon Valley – Nieman Reports – interesting, smart read. I thought that coverage in the press  – Silicon Valley has been sycophantic for decades. There were some noticeable exceptions like InfoWorld’s Notes from the Field in the early 1990s. More on Silicon Valley here.

    This Is How The Majority Of The World Will Get Online, Google Hopes – BuzzFeed News – “My relationship to Google is like I’m forced to be married to someone,” said Rudiantara, who noted that his government eventually spoke to Google, who created the technology behind the maps and accounts that make the insanely popular game possible and had made sure the game was being played away from sensitive military sites. “We can’t say go to hell to Google or to technology. But we also cannot allow them to do everything they want to do.”

    Microsoft helps Mac users ditch Evernote for OneNote with new tool | TechCrunch – never been a big Evernote fan, but this doesn’t look good for them

    Chicago’s predictive policing tool just failed a major test | The Verge – this also has implications for the adoption of big data

    The stuff we really need is getting more expensive. Other stuff is getting cheaper. – The Washington Post – really interesting paradox of western society

    It looks like Watch battery life is still a problem Apple can’t easily fix | BGR – battery technology hasn’t really evolved significantly since lithium ion technology

    Why Japan has more music stores than the rest of the world — Quartz – It’s not uncommon for a CD to be released in five different versions, featuring different covers, B-sides, or bonus DVDs.This speaks to a love of physical objects that’s characteristic of Japanese and also German culture, says Mulligan. These two countries have a shared preference for cash over credit cards, and also the strongest sales of physical music in the world. – It reminds me of the UK before chart regulations redefined what length a single could be way before digital formats

    China rings up US$32.4b sales of smartphones in second-quarter | SCMP – huge volumes, not so huge margins

    Nationwide looks to appeal to A-level audience with Snapchat Geofilter and Lens campaign | Social Media | The Drum – desperately trying to be down with the kids

    0.13.0 Binary Safety Warning | Bitcoin.org – this is their equivalent of a warrant canary. Shit is about to sideways in cryptocurrency and all those fintech startups looking at blockchain will also be tainted by concerns. For the US cracking bitcoin allows them to attack the deep web and tax evasion. It also allows economic warfare against China which currently dominates bitcoin. From China’s perspective cracking bitcoin could help on tigers-and-flies investigations and capital flight

  • LBOs in Silicon Valley

    With the rise of technology sector LBOs it makes sense to reflect on the Silicon Valley use of stock options and going public. In the past the Silicon Valley stock market dream was relatively simple. Hard graft with a possibility of a reward in terms of a stock market listing or a buyout by a larger technology company eager for the new, new thing.

    Now things are different, businesses like Google, Uber and Facebook held out for as long as possible to go public. Technology companies from Apple to Zynga have been punished repeatedly in the market for real and perceived mis-steps. Activist investors charge around Silicon Valley in a similar manner to the way they bullied the S&P index in the 1980s.
    160704 - private equity & the tech sector
    Now technology companies are making up almost half of private equity LBOs. An LBO is a leveraged buy out; its where a prospective owner uses a mix of loans and their own money to purchase a company. The company usually has a steady cash flow that is used to pay down the loans and associated interest. These businesses are generally discounted because they are no longer perceived as being high growth companies.

    The private equity owner looks to either flip the company to another purchaser, or flip parts of the company to pay down the loan. Either flipping or piecemeal sales are designed to raise more value than the original price paid.

    Since these businesses are servicing large amounts of debt, they are vulnerable to fluctuations in their business conditions or interest rate rises. For example, Irish telecoms network Eircom defaulted on corporate bonds in 2012, having been through a couple of LBOs in the previous decade.

    There always has been some LBOs in the Valley, Computer Associates bought up rivals and ran them as part of a conglomerate, with a focus on maximising the business cash flow rather than market share growth. General Atlantic Partners and Cerebus Capital Management had specialised for a long time in LBOs of mature ‘also ran’ business software companies with regular support customer support contracts. But the recent growth in LBOs is unprecedented for the technology sector. More on Silicon Valley here.

    *January, 1 2016 – July 1, 2016.

    More information
    Private Equity Has a Crush on Tech | WSJ – paywall
    What are the major reasons behind Yahoo’s drastic downfall?
    Barbarians in the valley

  • The changing culture of Silicon Valley

    I have have been thinking about how platform changes are marking a changing culture in Silicon Valley. This changing culture will play not only into innovation but workplace practices.

    1990s

    When I was in college I interviewed for a few placements, one was with Hewlett-Packard in Germany. They wanted a marketing student to look after their printing brochures on demand initiative for their UNIX product line. This was going to save them a mint in terms of marketing spend using an Indigo Digital Press rather than brochure runs on litho printing, reducing waste, storage needs and allow for faster document updates. (HP went on to buy Indigo in 2001).

    Commercial adoption of the web was around the corner, I was already using it in college, but its ubiquity still seemed quite far away. I decided I didn’t want to go for the job primarily because I wanted to get my degree over and done with. Also HP weren’t paying that much for the role.

    We were interviewed by a succession of people, the only one who was memorable  was a guy called Tim Nolte who wore a Grateful Dead ‘dancing bears’ tie and had a Jerry Garcia mouse mat in his cubicle.

    At that time HP, had the dressing of the company man but had more than a few hippies on the payroll who permeated its culture. Reading Robert X Cringely’s Accidental Empires made me realise that technology was as much a culture war as technological upheaval.

    Counterculture

    If one looks at the icons of the technology sector up to and including the early noughties many of the people were influenced by the counterculture movement if not part of it. The  Grateful Dead where one of the first bands to have their own website at dead.net. The Electronic Frontier Foundation was founded by John Perry Barlow, a lyricist with The Grateful Dead. Steve Jobs was influenced by Indian mystics and his experiences using LSD.

    Stewart Brand who founded WIRED magazine and The WeLL was the editor of The Whole Earth Catalog, a guide to useful things for people who wanted to get back to the land. He was influential in the early environmentalist movement and had been involved in the counterculture of 1960s San Francisco.
    Members of the Golden Circle Senior Citizens Club of Fairmont holding quilt they made. The quilt was raffled off during the Fairmont centennial, May 1973
    Ideas from open APIs and creative commons came from their libertarian values. Open Source Software again comes from academic and countercultural attitudes to information and has had to defend itself from accusations of communism, yet it now runs most of the world’s web services and gadgets from smartphones to Google’s search engine.

    Reading the Cluetrain Manifesto is like reading a screed that could have come from an alternative Haight Ashbury.

    Aeon magazine wrote an article on how yuppies have hacked the hacker ethos, but the truth is they’ve got behind the steering wheel as web2.0 declined. The move from open web API’s and the walled garden approach of Facebook and their ilk marked a changing of the guard of sorts.

    Flickr had and ability to move your photos as a matter of pride in their product. Just a few clicks kept them honest and kept them innovating. Joshua Schachter’s similar approach on del.icio.us allowed me to move to pinboard.in when Yahoo! announced that it would be sunset.

    Government always is the last to catch up, which is the reason why open data only really gained mainstream political currency in the past five years.

    Yuppies

    Were now in a changing culture that sees a Silicon Valley whose values are closer to the Reagan years and I am not too sure that it will be a positive development.

    I suspect that the change won’t be positive for a number of reasons. Greed will be good. There will be no lines that won’t be crossed in the name of shareholder value. Innovation will be viewed as a cost. Silicon Valley’s imperfect meritocracy will be undermined by a boy’s club mentality.

    More information
    Accidental Empires: How the Boys of Silicon Valley Make Their Millions, Battle Foreign Competition, and Still Can’t Get a Date by Robert X Cringely
    Don’t listen to Bill Gates. The open-source movement isn’t communism. | Slate
    How yuppies hacked the hacker ethos – Aeon