Saturday, December 27, 2008

2009 Predictions: What the Internet thinks about 2009

The internet thinks that it won't lose hope in 2009, in spite of all the abandoned plans, fickle VCs, and of course, expensive houses that were never bought.

India
In India, social networking sites have taken quite a beating and many are shutting shops. In sectors that were booming, Online travel for instance, expect consolidations. People have big hopes from the mobile internet out here. After BPO, Software as a Service is giving people hope.

What's going up in tech 2009
- Everyone will be adopting cost-saving technologies and methods.
- Virtual desktops and mobile devices will boom
- Smart aggregation of User-Generated Content
- Search Marketing Remains strong
[eMarketer]

Bandwidth Crunch
Seth Godin says, "the internet is full". The demand from smartphones, videoconferencing will challenge the will of and credit- challenged carriers, leading to (not yet full-blown) bandwidth crunch

Apple Computer in 2009
Although Apple will enter the Chinese market in a major way, finding success will be difficult. Apple's over-priced iPhone was a flop in mobile-savvy India.

Twitter
More business types adopt Twitter but they must remain wary of all those marketers hiding in every corner.

Government Crowdsourcing
In an U.S. Administration headed by an Internet-savvy President, Ross Ferguson predicts that at least one major government department will launch a large-scale crowd-sourcing site for the purposes of problem-solving.

Conferences: No more talking heads?
Ad Age says that in 2009, it will be harder to justify attending expensive industry conferences. For starters, many conferences will be downsized.

Risky Social networking
2009 will see more instances of crimes on Social Networking sites [e.g. Koobface Virus on Facebook]. Cyber hives will use all means to build their personal networks. Some have gone on to say that, many people will take to a life of cyber-crime while they pass time on the laid-off line.

“Suddenly, being Facebook friends with your mom will seem less ridiculous than following 4,000 strangers on Twitter.” - Greg Verdino

Sports Social Networking
Jason suggests entrepreneurs to Build sites like ballslife.com. No more copy cat social media sites. If only.

Desktop PCs
Demand for desktops may increase owing to plans of laid-off workers who will be starting their own businesses.

Netbooks
Some say Netbooks may outsell Laptops. Their sales could easily double in 2009.

Mobiles
According to a Reuters Poll of Mobile Analysts, global mobile shipments will dip on average 6.6% next year.
Google Android will eventually develop into a worthy player (Android Smartphones) and may give competition to established players, including the iPhone.

Video Games
Video games are cheap sources for entertainment for a laid-off population with more free time in 2009. As the popular comparison goes, "a $60 computer game can easily provide 50-100 hours of entertainment."
Related things that will also sell well: Social games, Virtual goods.

Cloud Computing
In a cash-strapped/cash-savvy economy, more companies with 1000+ employees will go "Server-Less". Google will focus more on convincing and winning over big corporate buyers into using Google Apps.

A rise in server-less companies with 1000+ employees. In 2009, the market will start to hear about more and more companies going completely server-less.

Affordable Greening
Alternative energy may indeed flourish under Obama's enlightened Administration. but, many companies will have to make a hard choice between going “green” or just surviving through the year.

Annus Horribilis for New Media
As per emarketer, lower prices for most display ads and less competition for many search keywords will make online advertising a buyers’ market.

Jon Fine thinks that at least one top-50 magazine will do a TV Guide, selling for a nominal $1 to a non-industry entity, and onto a decidedly painful restructuring.

More Online Media startups
These will be headed by people laid off from troubled newspaper companies. Some of these startups may be playing a bigger role in 2010 and beyond.

Emily Gordon of Emdashes.com has a great take on the future of New Media in 2009:
The good, the bad, and the Ghost of Media Future: Newspaper veterans will unite to create the greatest online resource of all time and overthrow all the sites that put them out of business. Newsday (snappy URL, right?) will rise again as a megasite that dwarfs other news aggregators. PR and journalism will merge to become flackalism. Someone will design an online course called "Multimedia for Magazine Editors in Five Minutes a Day" that will make that someone a whole bunch of money; why not you? Professional bloggers nationwide will unionize, with the encouragement of President Obama and Mayor Bloomberg, and demand full benefits and reasonable work conditions. Readers of long, focused stories online will get tired of scrolling and pay for well-designed paper versions—even more for signed copies from the right authors. (This I can prove.) And someone's got to start paying for the Internet, maybe with a package subscription to favorite sites, which would come, Salon Premium-style, with magazines, music, party invitations, and meaningful community privileges.

Investing
From Fortune Magazine
… stay away from risky assets. .. stay away from the stock market… stay away from commodities. … stay away from credit, both high-yield and high-grade. .. stay in cash or cashlike instruments such as short-term or longer-term government bonds. .. stay in things with low returns rather than to lose 50% of your wealth. .. preserve capital.

Identity Theft
Real Estate-based scams will thrive: Experts warn that your home, while fully paid for, could even be entangled in a second mortgage without your knowledge.

Retail

Online retail sales
The number of online buyers is fast approaching saturation. Online retail sales (excluding travel) will grow by only 4% in 2009—the first full year to feel the impact of the economic crisis that started in 2008.

Offline Retail
Amidst wide scale "retail space" downsizing in an "over-built" America, where many "Mom and Pop" stores will also go under, Mr. Swing predicts that 5 major "name brand" bankruptcies will occur in national retail chains by Memorial Day 2009. Strip malls will run almost empty.

Global Economy in trouble
The Trouble in America and Europe will lead to more trouble in the Emerging Economies. The Dollar will remain strong as long as economies dependent on America suffer and for the first time in history, people over the age of 65 will outnumber children under the age of 5.

Unemployment in America
Mr. Swing predicts t a " >750K" weekly unemployment claim by Easter despite an increasing number of construction jobs due to Obama's announced work plan for improving America's infrastructure.
Mr. Swing also warns that 3000+ car dealerships will close shop in 2009.
Restaurants will also close.

Best Careers in 2009
In its annual list of best careers, the U.S. News lists out jobs in hospitals and pharmacy, education, therapy, user experience/usability and urban design

American Sports
Mr. Swing predicts that the LPGA and potentially even the PGA will cancel tour dates.
People will question high salaries for sports superstars.

Revolution in Iran?
This article on CNBC says that if oil prices continue to decline, the Iranian society will be badly affected as Oil is Iran's#1 commodity. Can this dissatisfied society rebel against a non-performing government?

Amidst all this, keep dreaming.
Rohit Bhargava puts it best, “You may not always start the year as a leader, but you can certainly finish it.'' that way.”
Amen.

Stories you might also want to read

A simpleguide to India in 2008

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Thursday, December 27, 2007

What will happen next: Rounding up the 30 best predictions for New Media 2008

These are 30 of the best predictions about the internet business in 2008 that I have had the opportunity to read this week. As I mentioned in January 2007, a phase of consolidation is on in the web 2.0 field, this BBC story makes some interesting points about it, and I see no reasons to think otherwise.

I only wish that more people get a chance to make a better living through online publishing.
So far the internet is dominated by a few of the so-called Plantations (thank you Nick Carr).

1. Giant Blog Publishing House Takes Birth: TechCrunch + GigaOm + VentureBeat + Read/Write Web

2. Cash Rich Media buys more into successful blogs.

3. Clicks & Bricks back in vogue, in true web 2.0 style, of course.

4. Books are very much in (Lulu.com self publishing, print on, small magazines, rss subscriptions, and Kindle?).

As Bill Murray once said about computers, "we are reading more on the screen", or something to that effect.

5. "Friendiligence" will be hot: we will conduct due diligence on friend requests on Facebook, Myspace and all other me-too social networks.

6. "MicroTubing" zindabaad: More and more small publishers (mostly single person startups) using innovative video content to prosper.

7. Google Buys an Ad Agency: WPP?

8. The Wall Street Journal will follow NYT and go free online.

10. Large magazines, part of large publishing conglomerates will fold at a higher rate than 2007 and Niche, targeted titles will flourish.

11. Internationalized Domains Names become more and more popular (as sensible .com names become more scarce, expensive and crazy)

12. Someone from among the troika of News Corp, Microsoft or EBay buys Yahoo.

13. Another Twitter-like success, coded by a 20-year genius kid (no hope for us 30-somethings) will rule users' hearts, with a similarly simple interface (and hopefully better productivity and healthy monetization prospects)

14. Ajax will get serious or people will dismiss it for a time-waster.


15. Social Networking (along with gaming environment and virtual worlds) will cause serious security incidents as Malware gets another mode of distribution - "social networks +social engineering"

16. One of the trio among probable Google killers, Mobile search will finally take off by the end of 2008 (other hyped Google killers include Classifieds and Local)

17. A massive datacenter meltdown will happen when one of these energy guzzlers finally gives in to the constant barrage of worm infections.

18. Users of web 2.0 sites will revolt, demanding a better privacy deal and moving on if things don't change.

19. More Blog-led publishing media startups (including Blog Networks) take root and flourish (with hopefully less rewriting and spam)

20. Big Brands get into Web 2.0 in a big way, opting to create their own content.

21. Search Engines use more user data (user preferences, search history, etc) and customized search results become common.

22. Casual games will be the social networking of 2008.

23. "WEB TO WEDDING" will gather force. Did you know that almost 3 million adults have converted online dates into a long-term relationship including marriage?

24. In this age of blogs, twitters, Forums, Facebook, and Youtube Videos, companies become more careful with Online Branding, and hope that they are well equipped to deal with irate citizen journalists (read: customers, competitors) of the world.

25. Crowdsourcing, aka Crowdmining will continue to prosper and will have more innovative uses from some of the best companies in the world.

26. Demographical targeting becomes more difficult as age, gender, marital status are but only a few things that determine consumer behavior in the internet age.

27. While Group Lending got a leg up in 2007 via sites like prosper.com, Group Buying will be hot in 2008.

28. The Internet will slow down considerably as data centers and service providers reel under the increasing demand for multimedia content.


29. Some Asian startups get a hold in the tough U.S. market, despite the inward-looking, arrogant Silicon Valley types.


30. No one (except perhaps the Blackberry and the Google Phone/Android when it is a reality) will challenge the iPhone in 2008.

31. The opening up of the U.S. cell phone setup will create an exciting variety of new applications and cheaper service offerings, more in line with that in Asia, the leader in cellphones.

32. Google gets into the Cable Operators' Set Top Box business.

More Google predictions, all the usual ones are here.


While we are with predictions, indulge me for some predictions from the offline world:

Green IT takes a big foot forward in 2007

China and India will finally begin to emerge as strong domestic markets for solar.

Reverse knowledge migration will gather force: bright and well-educated workers (not exclusively returning prodigal sons will move from developed countries to developing courtiers creating a new class of "cyber-gypsies".

The Rich will get richer and lead more outlandish lifestyles.

The Fed will continue to cut rates and the U.S. economy will begin to pick up steam in the later half of the year.

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