Marcus Cake

Morgan Stanley has released a research report on Internet Trends (June 2008). Some other Morgan Stanley Technology research is available here. I recommend reviewing the presentation.

Internet Trends, Morgan Stanley, July 2008

Table of contents:
1. Digital Consumer –Demand for Internet-enabled services / products is strong; enterprise playing catch up
2.Mobile –Innovation in wireless products is accelerating and wireless data take-up rates likely to accelerate
3.Emerging Markets –Pacing next wave of technology adoption
4.Cloud Computing –Shift to software-as-a-service (SaaS) for consumer / enterprise
5.Next Generation Data Center –Evolving to SaaSwith virtualization
6.Storage –Needs continue to ramp + underlying technologies changing rapidly
7.Recession –Uncharted territory in the modern era

Extract of some interesting points:

• Social networking rapidly growing as a proportion of internet traffic
• Internet advertsing growing at 26% per annum and averages USD288 per household. Newspapers advertising declining at 7% per annum with an average spend per household of USD818.
• Google and Yahoo have 61% of online US advertising revenue.
• Apple Iphone has nearly 30% of US Smartphone market within four quarters of launch.
• Non-US markets lead usage penetration in many technology categories.
• China has the largest number of mobile phones subscriptions, internet users, telephone lines and pay tv subscriptions.
• The demand for storage is growing at 62% per annum. Demand by home users is growing faster than professional demand.
• “US less relevant to global economy - US share of global GDP has declined steadily since 1999 from 24% of GDP to 21% in 2007. Asia/China is rising.
• 2% of public technology companies create 100% of wealth.
• 43% of global mobile subscribers in Asia, 8% in North America (vs. 33% in Asia and 16% in US in 2000)
• 47% of global internet users in Asia, 17% in North America (vs. 30 in Asia and 35% in US in 2000)
• 39% of Global Broadband users in Asia, 20% in North America (vs. 38% in Asia and 50% in US in 2000)