Major trends research notes: The Cambrian Explosion was an inflection point in biological experimentation, innovation and diversification. The Cambrian Cloud is a metaphor that seeks to capture a similar transformative period of rapid experimentation and innovation. The Cambrian Cloud is a low friction, emergent social space in which innovation, collaboration, science, entrepreneurship, complexity, non-linear systems, resources and the diffusion of opportunities all intersect.

1. 2012 Inflection Point Report
Ten Converging Global Trends impacting the social space of
ideation, collaboration and innovation
Trend One:
Leapfrog Technologies
Contact: Chris Jones
Chris@omnipresentmedia.com)
Copyright 2012 The Cambrian Cloud 1

2. 2012 Inflection Point Report
About
The 2012 Inflection Point Report seeks to identify emerging macro trends
and report on their impact in the areas of ideation, collaboration and
innovation.
Copyright 2012 The Cambrian Cloud 2

3. “The Information and Communication
Technology Industry is in the midst of a
"once every 20–25 years" shift to a new
technology platform for growth and
innovation — we call it the third platform
— built on mobile devices and apps, cloud
services, mobile broadband networks, big
data analytics, and social technologies”
~Frank Gens, Chief Analyst IDC
Copyright 2012 The Cambrian Cloud 3

4. “This Great Inflection”
“We’re at the start of a nonlinear move in innovation
thanks to the hyper connecting of the world —
through social media, mobile/wireless devices and
cloud computing — which is putting cheap
innovation devices into the hands of so many more
people, enabling them to collaborate on invention in
so many new ways.”
~Tom Friedman, New York Times Columnist
Copyright 2012 The Cambrian Cloud 4

5. Inflection Point
“An inflection point occurs where the old strategic
picture dissolves and gives way to the new“.
~Andy Grove, Former CEO Intel
Inflection Point
Copyright 2012 The Cambrian Cloud 5
~Source: Only The Paranoid Survive, Andy Grove 1996

6. Convergence of 10 Major Trends
All Location Independent
Leapfrog Innovation Ecosystem
Innovation Ecosystem
Technologies
• Growing Internet Population
• 50% growth within 3 years
• Mobile Aps, Devices, Broadband
• Android, Smart Phones, Tablets
• An Opportunity Platform
• Education, Employment
6
Copyright 2012 The Cambrian Cloud

7. 80% of the World Lives on Less Than $10
per Day
• 1.37 billion people live on less than $1.25 a day
• 2.56 billion live on less than $2 a day.
• 5.05 billion people (more than 80 percent of the world's
population) live on less than $10 a day.
Copyright 2012 The Cambrian Cloud 7
~Sources: World Bank & CIA World Fact Book

8. By 2015 The Internet Population Will Have
Increased by 50%
World Population
6,845,609,960
Number On The Internet 2011
2,080,000 (30.3%)
Number On The Internet by 2015
3 Billion = 50% Increase / 3 Years
~Sources: 2011 Internet World Stats & United Nation & Cisco Growth Forecast
Copyright 2012 The Cambrian Cloud 8

9. Emerging Economies Will Power Growth
~Sources: Internet World Stats & United Nation
Copyright 2012 The Cambrian Cloud 9

10. Worldwide Internet Growth 2000-2010
Source: Internet World Stats & United Nation
Copyright 2012 The Cambrian Cloud 10

11. Bridging the Digital Divide
The Coming 5 Billion Internet Users Want Economic Opportunities
The coming 5 billion seek economic opportunity and
connecting to the Internet is
Once basic necessities are met, people naturally look
to
Copyright 2012 The Cambrian Cloud 11

12. LeapFrog Technologies
"Leapfrogging" is the notion that areas which have poorly-developed technology
or economic bases can move themselves forward rapidly through the adoption
of modern systems without going through intermediary steps (hopping over
legacy technology).
The best-known example of leapfrogging is the adoption of mobile phones in the
developing world.
It's easier and faster to put in cellular towers in rural and remote areas than to put in
land lines, and as a result, cellular use is exploding
Copyright 2012 The Cambrian Cloud 12

13. Leapfrogging With Android
Africa Might Just Skip the Entire PC Revolution
Tim Worstall, August 17, 2011
350,000+ Kenyans have purchased Huawei’s $80
Android-based smartphone in a country where 40%
of the population lives on less than $2 per day
“The IDEOS’s success in this market firmly establishes the
open source Android as the smartphone of the people and “Huawei aiming to sell 50 million to 60
million smartphones this year up from
demonstrates how unrelenting upswings in price- 20 million in 2011.”
performance can jumpstart the spread of liberating ~Source: Mobile World: Huawei Aims
technologies. Thanks to low-cost Androids, the To Triple Smartphone Sales
Wall Street Journal Online February 27, 2012
geographically-untethered smartphone is here to
stay, and it simply cannot be stopped.”
“A sufficiently large number of these phones have been sold that we’re seeing local
apps for local needs being developed: the start of a self-reinforcing process.”
13
Copyright 2012 The Cambrian Cloud

14. What’s A Mobile Application (App)?
Mobile applications or mobile apps are
applications developed for mobile devices,
such as mobile phones, smartphones, PDAs
and tablets. Mobile apps can come preloaded
on the device as well as can be downloaded
by users from app stores or the Internet.
Mobile apps are often developed with a
freemium pricing model whereby developers
give away an application with basic features
but charge money for upgraded versions with
feature enhancement.
Mobile apps take cottage industry to a global
scale. One simple idea, well developed and
brilliantly executed, sold for a minimal cost Apps shrink the programs that were once available
(most apps cost around $5), to not just only on a desktop computer to make them usable on
thousands, but hundreds and thousands, smartphones and mobile devices
potentially millions of people. 14
Copyright 2012 The Cambrian Cloud
~Source: iQuantum

15. 15,000 New Apps Released Per Week
One Million Mobile Apps, and Counting at a Fast Pace
By SHELLY FREIERMAN Published: December 11, 2011
Around 15,000 New Applications Are Released Each Week
(and the number is growing)
“According to Mobilewalla, in a fairly quiet 14 days before the release of app No.
1,000,000, an average of 543 apps were released each day for Android-based devices,
and an average of 745 apps hit the market daily for the iPhone, iPad and iTouch. The
total for the two weeks across the Apple, Android, BlackBerry
and Windows platforms was 20,738.”
15,000 Apps Released per Week Works Out To:
• 2,143 per day
• 89 per hour
15
• 1.5 per minute Copyright 2012 The Cambrian Cloud

16. The “App Internet”
“The App Internet is an application architecture of native apps on a
range of smart mobile devices, cars, televisions, and appliances linked to
a broad array of cloud-based services to provide a optimized, context-
rich experience anytime, anywhere . . .”
~Source: February 28, 2011, “Mobile App Internet Recasts The Software And Services Landscape” Forrester report
Copyright 2012 The Cambrian Cloud 16

17. The “App Internet”
3 tenants of the App Internet:
•Rich features of the devices that require local intelligence.
•Apps support both online and offline usage.
•Cloud services make supporting local apps easier.
~Source: February 28, 2011, “Mobile App Internet Recasts The Software And Services Landscape” Forrester report
“One of the most important shifts in the digital world has been the move
from the wide-open Web to semiclosed platforms that use the Internet for
transport but not the browser for display.”
Driven by the iPhone & Android model of mobile computing
A world Google can’t crawl and HTML doesn’t rule.
~Source: The Web Is Dead. Long Live the Internet By Chris Anderson and Michael Wolff August 17,
2010
Copyright 2012 The Cambrian Cloud 17

18. Market Estimates Vary…
But the Mobile Apps Market is Going To Be Big
• MarketsAndMarkets expects the global mobile applications
market to be worth $25.0 billion in 2015
~Source: World Mobile Applications Market Advanced technologies, Global Forecast (2010 2015)
• IDC predicts app revenues will surpass $35 billion in 2014
~Source: Worldwide and U.S. Mobile Applications, Storefronts, and Developer 2010–2014 Forecast and Year End 2010 Vendor Shares:
The appification“ of Everything? Dec 2010
• Canalys expects that app store revenue will reach $36.7
billion by 2015 ~Source: Canalys Mobile App Store Analysis forecast, June 2011
• Forrester Research estimates an app market of $37 billion in
2015 ~Source: Mobile App Internet Recasts Software and Services Market, Forrester Research 2011
• Gartner predicts application stores are creating a revenue
opportunity that will reach $58 billion in 2014 18
~Source: Forecast: Mobile Application Stores, Worldwide, 2008-‐2014, December 2010

19. 1.360 Million Apps in Stores By 2012
By August 2012 both stores will have around 680,000 apps or 1.360 Million combined!
~Source XYOLogic October 10th, 2011 Copyright 2012 The Cambrian Cloud 19

20. 6.4 Billion App Downloads Per Month 2012
Globally, Android will catch up with Apple in June 2012 when both platforms will reach
20
3.2 billion downloads per month ~Source XYOLogic October 10th, 2011

21. 168 Billion App Downloads by 2013
By May 2013 Android will catch up with Apple and both app stores will have totaled 84 billion
app downloads ~Source XYOLogic October 10th, 2011
• IDC forecasts annual mobile app downloads to increase from 38.2 billion in
21
2011 to nearly 182.7 billion in 2015

22. Tablet Computers: Fastest Ramping Device
“We believe that we are in the
early innings of the mobile
computing cycle – the largest
in the history of computing.”
“By the end of 2020, we predict
that 10 billion mobile
internet devices will be in use,
up from 2 billion today.”
“Like smartphones over the past
two years, tablet growth is
likely to surprise to the upside,
in our view, pulling with it market
leaders and challenging legacy
technology.”
Copyright 2012 The Cambrian Cloud 22
~Source: Morgan Stanley Research “Tablet Demand and Disruption: Mobile Users Come of Age” Feb 14, 2011

23. Strong International Demand For Tablets
“…international demand could be materially higher than some expect.”
“Tablets bridge the gap between
traditional PCs and smartphones.
They combine a more PClike
computing and display experience
with the mobility, connectivity, and
touch optimization of smartphones.”
“Importantly, in addition to many
cloud-based services, tablets
gain access to application stores
that already contain hundreds of
thousands of smartphone
applications and a growing list of
tablet-optimized applications.”
Copyright 2012 The Cambrian Cloud 23
~Source: Morgan Stanley Research “Tablet Demand and Disruption: Mobile Users Come of Age” Feb 14, 2011

24. 2015 Tablets To Drive $8.1 B in App Sales
Mobile App Revenue to Reach $38 Billion by 2015, Report Predicts
By Nick Bilton February 28, 2011
Sarah Rotman Epps, an analyst
with Forrester who specializes in
tablet computers estimates: “the
tablet market is set to
generate a large portion of
app purchases in the coming
years.”
“Ms. Epps says tablet devices
alone will generate $8.1
billion in app sales globally
by 2015. In 2010, mobile apps
on tablets generated $300
million in sales.” Copyright 2012 The Cambrian Cloud 24

25. Tablet Adoption
• Tablets are cannibalizing PC sales
“Bottom line, we think that 29% of tablet purchases will cannibalize PC sales in 2011.
According to our survey, 33% of iPad owners and those somewhat or extremely
interested in purchasing a tablet said they do not need to purchase a PC after a tablet
purchase.”
• Already, over 20% of tablet users conduct work-related activities on their device
• The rate of tablet adoption will increase as PC related tools and resources become
more readily available.
“The lack of support for the Microsoft Office suite on both iOS and Android,
combined with the lack of a physical keyboard on many tablets, will lead
many consumers to require a traditional PC irrespective of a tablet purchase,
particularly those who require productivity software for out-of-the-office
work”
Copyright 2012 The Cambrian Cloud 25
~Source: Morgan Stanley Research “Tablet Demand and Disruption: Mobile Users Come of Age” Feb 14, 2011

26. $35 Tablet Computer
Hands On: India’s $35 Aakash Android
tablet lands in America 10/26/2011
“…with the addition of cheap headphones, and an equally
cheap microphone, the owner can make calls on Skype
and has the potential to communicate with people
around the world.”
“The Aakash Tablet is an example of a “leapfrog
technology,” a concept where the latest
innovations jump directly into areas where legacy
technologies never penetrated. Tens of millions of
people throughout India who never had access to
a landline phone now walk around with cell
phones in their pocket.”
“Now imagine the educational potential of the world’s
lowest-cost tablet being unleashed to hundreds of
millions of Indians eager to join the world economy. ”
26
Note: The Aakash tablet is regularly priced at around$75 but is offered to students at a 50% discount or $35.

27. Cloud Computing Enables Mobile
Mobile Cloud Adoption
Cloud applications and services allow mobile users to overcome the memory capacity and
processing power limitations of mobile devices.
• Global mobile data traffic grew 2.3-fold in
2011, more than doubling for the fourth year
in a row.
• Mobile Data Traffic Will Double Again in 2012
• Smartphone usage nearly tripled in 2011
• Number of mobile-connected devices will
exceed the world’s population in 2012
• Over 10 billion mobile-connected devices in Suneet Singh Tuli CEO of DataWind developer of
2016 the $35 Aakash tablet computer
• Mobile-connected tablets will generate almost as much traffic in 2016 as the entire
global mobile network in 2012. 27
~Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2011–2016 Published February 14, 2012

28. Mobile Data Traffic Is Exploding: 78% CAGR
• Middle East and Africa will experience the highest mobile data traffic Compound
Annual Growth Rate (CAGR) of 104%, increasing 36-fold.
• Asia Pacific will have the second highest CAGR of 84%, increasing 21-fold
• The emerging market regions of Central and Eastern Europe and Latin America will
have CAGRs of 83% and 79% respectively
28
~Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2011–2016 Published February 14, 2012

29. Rising Connection Speed Drives Adoption
There is anecdotal evidence to support the idea that usage increases when speed
increases, although there is often a delay between the increase in speed and the
increased usage, which can range from a few months to several years.
• Mobile Network Connection Speeds to Increase 9-fold, with 4G Impact
by 2016
• The average mobile network connection speed will grow at a
compound annual growth rate of 56 percent, and will exceed 2.9 Mbps
in 2016.
• Smartphone speeds will quadruple by 2016, reaching 5.2 Mbps.
Copyright 2012 The Cambrian Cloud 29
~Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2011–2016 Published February 14, 2012

30. Leapfrog Technologies Enable “This Great
Inflection” of Innovation
OP-ED COLUMNIST
The Last Person
By THOMAS L. FRIEDMAN Published: November 12, 2011
“The Aakash ($35 Tablet Computer) is a ray of hope that India can leverage
technology to
get more of its 220 million students enough tools to escape poverty and poor
teaching”
“We’re at the start of a nonlinear move in innovation thanks to the hyper
connecting of the world — through social media, mobile/wireless devices
and cloud computing — which is putting cheap innovation devices into the
hands of so many more people, enabling them to collaborate on invention
in so many new ways. This Great Inflection will be an opportunity and a challenge
for every worker and company because we’re going to see more and more product “price
points” broken in big ways.”
Copyright 2012 The Cambrian Cloud 30

31. Online Learning Scales Opportunity
MIT OpenCourseWare (MIT OCW) is an
initiative of the Massachusetts Institute of
Technology (MIT) to put all of the
educational materials from
its undergraduate- and graduate-level
courses online, partly free and openly
available to anyone, anywhere.
As of November 2011, over 2080 140 million visits by 100 million visitors
courses were available online. While a from virtually every country.
few of these were limited to chronological
reading lists and discussion topics, a MIT OpenCourseWare averages 1 million visits
majority provided homework each month; translations receive 500,000
problems and exams (often with more.
solutions) and lecture notes.
Copyright 2012 The Cambrian Cloud 31
~Sources: MIT OpenCourseWare & Wikipedia

32. Online Learning
Online Education Venture Lures Cash Infusion and Deals With 5 Top Universities
By JOHN MARKOFF Published: April 18, 2012
“Last fall a course in artificial intelligence taught by Sebastian Thrun, then at Stanford,
and Google’s director of research, Peter Norvig, attracted more than
160,000 students from 190 countries.”
“The scientists, Andrew Ng and Daphne Koller, taught free Web-based courses
through Stanford last year that reached more than 100,000 students.”
Copyright 2012 The Cambrian Cloud 32

33. Free Online Training
850 Free Online Photoshop Tutorials
33

34. Online Training And Certification
34

35. Everything Is Pulled Into The Digital Vortex
10101010101010101010101010101010
Copyright 2012 The Cambrian Cloud 35

36. Leapfrog Technologies Create A Platform of
Opportunity
A virtuous, self-reinforcing platform of opportunity for billions of people.
• Mobile devices
• Applications
• Faster data speeds
• Expanding online opportunities
Copyright 2012 The Cambrian Cloud 36

37. The Cambrian Cloud
Inflection Points
Growth & Connectivity of Internet Population
• 80% of the world survives on less than $10 per day
• 5 billion people have yet to come online.
• Current Internet population will increase by 50% within 3 years.
• Low cost technologies create a virtuous circle of innovation and opportunity
• Cloud-based services and downloadable applications reduce device requirements,
enabling low-cost devices to access remotely hosted and tailored resources and
services
• Mobile applications market is rapidly evolving to take advantage of growing regional
opportunities in a positive reinforcing loop
• Rate of global connectivity and leapfrog technology adoption will increase
• Amount of global data is exploding and a growing percentage will be mobile driven
• Mobile leapfrog technologies connect the world and provide a platform of opportunity
for information, education and improved economic status
• Net result: We are in the early stages of a transformative period which greatly expands
the globally connected network and enlarges both opportunity and talent pools 37