This document summarizes the results of a survey of 251 Bay Area residents and 250 other Americans about their views and expectations regarding technology. Some key findings: - Bay Area residents are more excited about new technologies and use a wider variety of tools at home for productivity and entertainment. - Around 6 in 10 Americans believe technology advancement is important for improving job creation, education, and the economy. - Many expect health technologies like prosthetics and vision/hearing aids to be highly advanced in the next decade, and Bay Area residents were more optimistic about biotech innovations. - Computers are expected to overtake TVs in importance within 5 years, while phones will continue advancing with smaller/faster designs and touch interfaces.

1. TECHNOLOGY BY THE BAY views on the future of tech 05.25.2010 ©Penn, schoen & berland associates, llc.

2. METHODOLOGY 1 Objectives: To assess Bay Area residents’ understanding of tech innovations and expectations for the future of technology, compared and contrasted to those of other Americans. Methodology: Penn, Schoen & Berland Associates (PSB) conducted 501 online interviews from May 10-13, 2010. Audience: 251 Bay Area residents (living in or within 20 miles of San Francisco, Oakland or San Jose) and 250 Americans not from the Bay Area. Margin of Error: Overall, the margin of error is +/- 4.38%. The margin of error for the US and Bay Area subgroups is +/-6.2%. All numbers shown in percentages unless otherwise noted. If numbers do not add up to 100, it may be due to rounding, inclusion of multiple responses or exclusion of don’t knows.

3. Bay area leads the united states on technology issues Bay Area residents are more excited by technology – they want to know what’s next and have the newest tech toys. However, Americans are almost as inclined to be early adopters and have the same urgent need to be able to access tech. 2

4. Bay area residents use a wider range of tech tools at home They use a broader variety of web browsers, do more detailed social networking, are more productive at home, and use their home tech setup more for entertainment 3

5. advancement of technology is key to improving job creation, education and the economy The top three issues in America today are job creation, the economy and education. 6 in 10 Americans think the advancement of technology is very important to improving each of these in the future. 4

6. TECHOLOGY EXPECTED TO OVERCOME HUMAN LIMITATIONS Nationwide, many expect fully functional prosthetics (49%), hearing aids for the fully deaf (38%) and vision assists for the blind (31%) to be available in the next decade Interestingly, Bay Area respondents were much more optimistic about health-related and biotech innovations. 27% even believe human cloning is within reach over that time (versus 15% other US). 5

8. But TVs are not expected to go anywhere -- only 2% expect them to become obsolete6

9. We want functionality to converge on our devices 54% of both groups want one device that does everything they need, versus 35% who prefer to have multiple so they can choose the best one for each need. Virtually identical percentages of people want to use their device to make a phone call (26%) as to read a book (28%) or watch TV (23%) 7

10. Many even want their home appliances to connect About two-thirds expect their security system, lighting and thermostat to be networked together in the near future. 34% expect their alarm clock to be included in that home network! 8

11. But many respondents do prefer separate devices for work and personal use Even as we move towards single, all-powerful devices, not everyone is convinced on whether they want work and play to converge: 51% would prefer having separate devices for their work and personal activities. Bay Area residents are split, but more receptive than other Americans: 41% prefer one device for both home and work, 43% want to keep them separate. 9

13. Confusion surrounds the cloud Only 18% of Americans can accurately describe or define the online Cloud. Though 23% if Bay Area residents know what it is. 11

14. The core concept of the cloud is more appealing to bay area residents Despite low understanding of the terminology, once briefed on what the Cloud is 8 in 10 Bay Area residents are interested in using it for storage, syncing and apps. Indicating an opportunity for a company who can clearly and accessibly communicate these benefits to consumers. Other PSB research on Cloud computing reveals that concerns about the security of these technologies have not been effectively ameliorated. 12

15. And cloud uses – like streaming online video – have gone mainstream Online video is preferred over physical discs (i.e. DVD, Blu-Ray). 32% of Bay Area residents would prefer to get all of their video by stream or download vs. 18% opting for a disc. 13

16. Consumers prefer to download music, but stream movies. Possibly because of: Download requirements for larger movie files Storage needs for these files Mobility – movies tend to be a sedentary activity compared to music 14 Our consumption preferences for movies versus audio are very different

18. Thank you! ©Penn, schoen & berland associates, llc.