1/ In 1968, former ARPA director J. C. R. Licklider published "The Computer As A Communication Device"

Given it was written right before the launch of the ARPANET, this is basically the founding document of the internet

And its predictions hold up remarkably well!
2/ For context: Mitchell Waldrop has called JCR Licklider "computing's Johnny Appleseed." As an ARPA director in the 60s, he basically funded half of the projects that became the internet

This paper was the brainchild of him & protege Bob Taylor, who later led Xerox PARC
3/ Licklider opens straight to the point:

"In a few years, men will be able to communicate more effectively through a machine than face to face."

"The programmed digital computer can change communication more profoundly than did the printing press and the picture tube"
4/ Networked computing existed before 1969. But the ARPANET was the first universal network, connecting different proprietary hardware / OSes. This was possible due to packet switching, with each node connected by new 'message processors' (basically the first routers)
5/ Licklider's paper is oftentimes cited as a precursor to cloud computing as much as the internet. Really, the two are intertwined

This 1968 description of a hypothetical ARPANET user basically sounds like developer opening up the AWS web console!
6/ Who's going to pay for the ARPANET? Moore's law will
7/ The promise of the ARPANET: inventing email, and… Zoom

"You will not send a letter or a telegram; you will simply identify the people whose files should be linked to yours"

"You will seldom make a phone call; you will ask the network to link your consoles together"
8/ One prediction that... hasn't quite panned out yet:

"You will seldom make a purely business trip, because linking consoles will be so much more efficient… you will spend much more time in computer-facilitated teleconferences"
9/ What else will be available via the ARPANET? Licklider proposed:

- Investment guidance
- Tax counseling
- News
- Sports results
- Dictionaries & encyclopedias
- 'Teaching & testing programs'
- 'Communication programs'
10/ So what's the takeaway here?

I've said it before, but I'll say it again: predicting the future is easy. Oftentimes the tech pioneers of the day will literally spell it out for you!
11/ The hard part is the gap between ideation and implementation. Despite the ARPANET launching in 1968, Licklider's ideas didn't *really* come to fruition until the invention of Netscape 26 years later

Are you prepared to wait that long?

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More from @corry_wang

27 Mar
1/ A fun piece of tech history that I came across today: an online copy of Microsoft's 1986 IPO prospectus. At just 52 pages, a light piece of weekend reading!

Some takeaways from my skim -

lannigan.org/pdf/Microsoft_…
2/ No surprise, valuations were still in a whole other world back then

Microsoft IPOed with $140M in 1985 revenues (growing 40% per annum), and 30% operating margins

Yet the IPO market cap was $520M... aka ~3x forward sales, or ~15x forward *earnings*
3/ Microsoft's 1985 revenues: 54% systems, 38% applications, and 8% hardware & books

Here's a 1-paragraph mention of Windows, a recent GUI "extension of MS-DOS"

"It is too early in the life of Windows to determine what level of acceptance it will attain in the marketplace"
Read 5 tweets
4 Mar
1/ Underrated post from @afterwt - a genuinely fresh take on an famous case study, Buffett's original 1987 investment in Coke
2/ Most investors know 1980s-era Coke was an example of untapped pricing power - but *why* was this the case?

Turns out Coke was subject to a 100-year-old bottling agreement that had fixed its syrup pricing at $1 per gallon... in perpetuity! (+ later adjustments for inflation) Image
3/ The turning point was 1986: that's when Doug Ivester invented the "49% solution," a scheme to acquire Coke's old US bottlers and install discretionary pricing for the first time ever

Not coincidentally, Buffett starts buying stock a year later Image
Read 4 tweets
10 Jan
1/ Thoughts on the Myth of the "First Mover"

This thread by @danrose stirred something I've been thinking about for a while - the myth of first mover advantage

To this day, most people assume Amazon Web Services was the first cloud computing service. This isn't quite true
2/ At its March 2006 launch, AWS was probably the 4th or 5th cloud service run by a Fortune 500 firm

HP launched its Flexible Computing Service in Nov 2005
Sun Grid went into beta in 2004
IBM launched "Linux Virtual Services" in 2002!

But AWS is the only one anybody remembers
3/ I'll focus on IBM here -

From the WSJ in *2002*: "Linux Virtual Services allows customers to run their own software on mainframes in IBM data centers and pay rates based largely on the amount of computing power they use"

wsj.com/articles/SB102…

Sounds like the cloud to me!
Read 9 tweets
2 Jan
1/ Lessons From The Tech Bubble:

Last year, I spent my winter holiday reading hundreds of pages of equity research from the 1999/2000 era, to try to understand what it was like investing during the bubble

A few people recently asked me for my takeaways. Here they are - Image
2/ Every document hereon comes from my former employer Bernstein Research's internal research archive, which extend back to 1994

Unfortunately, they're not available to the public (even Bernstein's client website cuts off at 2003), but happy to give more details if necessary
3/ LESSON #1: Everybody knew it was a bubble

Unfortunately, the quip "it's not a bubble if everyone says it is" just isn't true

Investors were comparing the internet sector to tulip mania as early as mid-98. Bernstein held an entire conference on it in June 99! ImageImage
Read 9 tweets
21 Dec 20
1/ In September 1993, then-Microsoft exec Nathan Myhrvold wrote his landmark memo "Road Kill on the Information Highway", laying out a dozen-ish predictions on the rise of the internet

27 years later, I think it's a super interesting case study. Let's evaluate the predictions -
2/ PREDICTION #1: The rise of a surveillance society - police bodycams, CCTV, 24/7 personal recording, and deepfakes

GRADE: A-

Pretty close!
3/ PREDICTION #2: Telecommuting, an end to the "tyranny of geography" and gerrymandering

GRADE: B-

Alas, the electoral college still matters today. The WFH prediction hits closer, but turns out it took two and a half decades + a pandemic to get things going
Read 12 tweets
28 Nov 20
1/ One of the biggest macrohistorical tech trends that I feel like nobody talks about is the triumph of closed systems over open systems in the last 20 years
2/ Openness used to be the default. PCs beat mainframes, Windows beat Mac OS, the WWW beat AOL, etc.

As a result, industry literature from the 90s emphasized cooperation - Hal Varian's seminal 1999 book on internet economics devotes 70 pages to the art of standard setting alone Image
3/ Meanwhile in 2020, major platforms are closed by default

Today, you can't port your data between social networks - or for that matter, between clouds. iOS is obviously closed. And I don't even know what an open version of Uber would look like.
Read 4 tweets

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