Lessonsfromthedownturn,andtheroadahead.NASSCOM.pptVIP

Lessons from the downturn, and the road ahead.NASSCOM 2002 Nandan M. Nilekani Managing Director, President and Chief Operating Officer Infosys Technologies Limited Bangalore, India The story of IT is of the semiconductor revolution: price and performance improvements… Moore’s Law Number of transistors and performance of processor (measured in MIPS) doubles every 18 month Today’s computers have 66,000 times computing power, at the same cost, as the computers of 1975 Improvements in communications and death-of-distance Gilder’s law Doubling of communications power every six months due to advances in fiber-optic network technologies The cost of transmitting a trillion bits of information from Boston to Los Angeles has fallen from $150,000 in 1970 to 12 cents in 2000 Metcalfe’s Law: The network effect The usefulness, or utility of a network equals the square of the number of users The more people use a particular software, a network or a book the more valuable it becomes ,and the more new users it attracts , increasing both its utility and the speed of adaptation by still more users. Law of disruption: The network effect Law of disruption Until a critical mass of users is reached, a change in technology only affects the technology. Once critical mass is attained, social, political, and economic systems change …Led to more information at a lower cost The dot-com boom and bust Internet revolution fuelled corporate tech spending… …And increased funding for startups The highpoint in funding ...Leading to the boom in the year 2000 …And also opportunities for new categories of companies The genesis of the boom? The 1996 Telecommunications Act Required Bell companies to open their local networks to competitors Stipulated that Bells could enter the long distance market upon proving the existence of sustainable local competition Verizon Communications (formerly Bell Atlantic) was the first Bell to be granted entry into the long distance market in New York State in