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-  THE FRIDAY LETTER  -

(emailed weekly, from Gilder Publishing,
for friends and subscribers)

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 | http://www.gilder.com/ | Issue 329.0/February 22, 2008

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HEADLINES:

-  The Week / Unleashing the ‘Exaflood’
-  Friday Feature / Tredennick: Computing in Transition
-  Friday Blogger Bonus / Litigious Exploitation of the Patent System
-  Readings /


─ ANNOUNCING ─

THE 12TH ANNUAL GILDER/FORBES TELECOSM CONFERENCE

Hosted by George Gilder and Steve Forbes | May 28 – May 29
The Sagamore Resort | Lake George, New York


TELECOSM 2008: THE EXAFLOOD

Register online today: www.TelecosmConference.com

 

The Week / Unleashing the ‘Exaflood’


George Gilder and Bret Swanson, Wall Street Journal (2/22/08):
Two decades ago, Sun Microsystems prophesied: "The network is the computer." Today, BitTorrent video and 3D graphics flood the Internet, Apple iPhones tap the Net's computing power, and PC-king Microsoft pursues Net-centric Yahoo. Sun's mantra has become reality.

 

But as the Internet booms and moves to the center of the global economic sphere, it draws proportional attention from politicians and regulators. In Congress and at the FCC, legislators and lawyers think they can manage overflowing Net traffic and commerce better than the network companies themselves. Next week, the FCC is meeting en banc at Harvard Law School to consider two petitions that seek to ban network "traffic management." The meeting's host, Rep. Ed Markey, has renewed his pursuit of a far-reaching Internet regulatory regime known as "net neutrality."

 

These regulatory efforts overlook a fundamental shift: An upsurge of technological change and a rising tide of new forms of data are deeply transforming the Internet's capabilities and uses.

The first phase of the Net was the original Arpanet research project that connected a few, and then a few thousand, scientists. The second phase brought the Internet to the masses, with the advent of the World Wide Web, the graphical browser and email in the mid-1990s. Internet traffic boomed 100-fold between 1994 and 1996. In the third phase of Net evolution, network architecture and commercial business plans reflect the dominance of rich video and interactive media traffic.

 

The third wave is now swelling into an exaflood, or torrent, of Internet and Internet Protocol (IP) traffic. There's YouTube, IPTV, high-definition images and "cloud computing" -- in which individuals and businesses use the centralized computing resources of Google and IBM data centers, instead of the local computing resources of their own PCs or office systems. Not to mention the ubiquitous mobile camera….


Read the complete article:
http://online.wsj.com/article/SB120363940010084479.html?mod=todays_us_opinion

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Friday Feature / Computing in Transition
 
Gilder Publishing’s Dr.
Nick Tredennick, speaking at Stanford University (2/20/08):
Since shortly after its introduction, the microprocessor has dominated the design of electronic systems. The success of the microprocessor, sustained by the march of Moore’s law, stalled innovation in logic design for more than thirty years because programming became a substitute for hardware design. This was possible because the design goal of the personal computer and other microprocessor-based systems, representing the majority of the semiconductor market, was cost-performance. The advent of the value PC and the burgeoning of mobile devices have conspired to change the design goal to cost-performance per watt. Traditional microprocessor-based design cannot meet the challenge of the new design goal, so computing is in transition. A host of multiprocessor configurations and a host of reconfigurable systems vie for control of the next generation of computing applications. Computing is in transition, but the outcome is currently unpredictable….

Review Nick’s presentation slides and notes (PDF):
http://tredennick.com/ftp/pub/documents/Presentations/Computing%20in%20Transition.pdf

Additional Stanford EE Computer Systems Colloquium talks available on
http://www.stanford.edu/class/ee380/


SPECIAL OFFER

The Gilder Telecosm Forum

The next logical step in the evolution of the Gilder Technology Report (published by Gilder Publishing, LLC in association with Forbes Inc., 1996-2007), the Gilder Telecosm Forum is the web’s premier technology investment discussion forum.

 

To learn how to join this powerful network of talented, tech-savvy investors and thinkers online daily to debate, discuss, and decode new and emerging technologies and share valuable and actionable investment advice, visit www.Gildertech.com today.

 

Friday Blogger Bonus / Litigious Exploitation of the Patent System

Commenting on “Qualcomm and the real story behind Mobile World Congress”
Link:
http://www.theregister.co.uk/2008/02/20/intellectual_piracy_qualcomm/

George Gilder, Gilder Telecosm Form (2/20/08): The problem is not the patent system but the litigious exploitation of it by trolls shopping their synthetic IP baubles and beads before gullible rotten borough Texas judges high on handouts and Lone Star booze. On target is the quote about sudsy ideas ginned up in the bathtub, defying non-obviousness and reduction to practice (which are crucial to a practical patent). The Broadcom and NBT cases were typical, racing to find a round-heeled court to award extortionate terms minutes before the news reached the boondock bench that the patents were getting thrown out with the trash.

Qualcomm actually has inventions, which were so non-obvious that they were widely depicted as violating physical law and were reduced to practice every which way by Qualcomm in vertically integrated businesses from infrastructure to handsets. But Broadcom's claims are typical of the process of debauching the entire patent system into a circus of grifters with gotchas. There is no reason the Chinese should respect this debauchery and their current maneuvers seem like typical disruptive business to me. We have got to get rid of our rotten borough patent farms.

Qualcomm is meeting the challenge with patented low-cost devices, but it may not be enough in some of these markets. In any case, Qualcomm has always ultimately won through its chip prowess.

 

It is the chip design prowess and vertical shows of capability that distinguish the Q from other winners of royalty streams. I am not saying that the royalties are unimportant, just that they are dependent on engineering demonstrations and chip designs. If  Qualcomm had merely relied on its patents, CDMA would never have happened.

To read more of George Gilder’s posts and those of the Gilder Telecosm Forum members, visit http://www.gildertech.com/ and become a Forum member today.

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Readings /

Solder made obsolete by growing copper pillars
http://online.wsj.com/article/SB120363940010084479.html?mod=todays_us_opinion

 
Intel Bets on Diamond in Rough
http://online.wsj.com/article/SB120360723783683021.html?mod=technology_main_whats_news

Time to plow multiple paths to parallel computing
http://www.eetimes.com/news/latest/showArticle.jhtml;jsessionid=XYPUQRDDRACD4QSNDLSCKHA?articleID=206801376

IBM unveils atomic memory advance

http://www.eetimes.com/news/latest/showArticle.jhtml;jsessionid=XYPUQRDDRACD4QSNDLSCKHA?articleID=206801335

Footage of Spy Satellite Blast
http://blogs.spectrum.ieee.org/tech_talk/2008/02/footage_of_spy_satellite_blast.html

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Friday Letter Editor: Mary Collins George / mcollins@gilder.com
 

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