1. The Digital World in
40 Minutes
February 4, 2011, Long Beach
Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

2. overestimate what can
be done in one year
and to underestimate
what can be done in
five to ten years
J. C. R. Licklider, 1965
Copyright © 2011 Accenture All Rights Reserved. 2

3. In 2006 were
Over 600 million people being social
News reporting in under 140 characters
10 Billion apps downloaded on new platform
Gaming control in thin air
#1 smartphone OS you never heard of
Copyright © 2011 Accenture All Rights Reserved. 3

4. Digital Consumers
Media Consumption
Gadgets
Clouds
Copyright © 2011 Accenture All Rights Reserved. 4

5. Digital
Consumers
5

6. The Digital World - People
Global
Population
6.9 Billion
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Accenture analysis 6

7. The Digital World - People
Global Population 6.9 Billion
5.3 Billion
Mobile
Subscriptions
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Accenture analysis 7

8. The Digital World - People
Global Population 6.9 Billion
5.3 Billion Mobile Subscriptions
4.3 Billion
Mobile
Subscribers
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Accenture analysis 8

9. The Digital World - People
Global Population 6.9 Billion
5.3 Billion Mobile Subscriptions
4.3 Billion Mobile Subscribers
2.2 Billion
Internet
Users
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Accenture analysis 9

10. The Digital World - People
Global Population 6.9 Billion
5.3 Billion Mobile Subscriptions
4.3 Billion Mobile Subscribers
2.2 Billion Internet Users
824 Million
Mobile Internet
Users
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Accenture analysis 10

11. The Digital World - Households
1.8 Billion
Households
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Nielsen, Accenture analysis 11

12. The Digital World - Households
1.8 Billion Households
1.4 Billion TV
Households
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Nielsen, Accenture analysis 12

13. The Digital World - Households
1.8 Billion Households
1.4 Billion TV Households
640 Million
Pay TV
Households
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Nielsen, Accenture analysis 13

14. The Digital World - Households
1.8 Billion Households
1.4 Billion TV Households
640 Million
Pay TV
Households
640 Million
600 Million
Pay TV
Households
Households
with PCs
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Nielsen, Accenture analysis 14

15. The Digital World - Households
1.8 Billion Households
1.4 Billion TV Households
640 Million
Pay TV
Households
640 Million
550 Million
600 Million
600 Million
Households
Households
Pay TV
Households
with PCs
with Internet
with PCs
Households
Access
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Nielsen, Accenture analysis 15

16. The Digital World - Households
1.8 Billion Households
1.4 Billion TV Households
640 Million
Pay TV
Households
550 Million Households with
640 Million
600 Million Internet Access
600 Million
Households
with PCs
Pay TV
Households
with PCs
Households
100 Million
Households
with Internet TV
Copyright © 2011 Accenture All Rights Reserved. Sources: United Nations, ITU, Gartner, Nielsen, Accenture analysis 16

17. Internet Mobile Internet
Users Subscribers
World 2 Billion 824 Million 611 Million
North
312m 43m 195m
America
Western
286m 77m 121m
Europe
AsiaPac 767m 539m 103m
555m
ROW 165m 192m
Copyright © 2011 Accenture All Rights Reserved. Sources: UN, ITU, Socialbakers, Accenture Analysis 17

18. Internet Digital Ad Digital Ad
Users Spend (USD) ARPU (USD)
World 2 Billion $92 Billion $46
North $122
312m $38b
America
Western
286m $27b $94
Europe
AsiaPac 767m $22b $27
555m $9
ROW $5b
Copyright © 2011 Accenture All Rights Reserved. Sources: UN, ITU, Socialbakers, Accenture Analysis 18

19. Media
Consumption
19

20. People spend nearly 8 hours a day in front of a screen TV
dominates.
Average Daily Screen Time, US
Mobile
50 min
(11%)
TV PC
4 hr 24 min 2 hr 35 min
(56%) (33%)
Copyright © 2011 Accenture All Rights Reserved. Source: eMarketer, Accenture analysis 20

21. Increased concurrency puts the actual time closer to 6 hours.
Average Daily Screen Time, US
TV PC
Mobile
22%
Concurrent
43% Concurrent
19% Concurrent
Copyright © 2011 Accenture All Rights Reserved. Source: eMarketer, Ball State, Accenture analysis 21

22. TV
520 Daily Television Consumption per Household, US
500
501 501
494 494
491
480 55
Minutes per Day
481
478
460 464
Mins
460
455
440 446
420
400
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Copyright © 2011 Accenture All Rights Reserved. Source: eMarketer, Ball State, Accenture analysis 22

23. The Social Network Unlike any web phenomenon before.
700
Millions
611
600 580
550
485
500 470
410
400 Rest of
463
320 443 World
425
300 360 375
231 320
200 250
150
115 180
90
100 68 110
38 49 56
63
83
110 110 125
136 148 US
9 11 13 15 30 35 45 70 90
21 40 51
17 19 21 23 27 32
0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006 2007 2008 2009 2010
Copyright © 2011 Accenture All Rights Reserved. Source: Facebook, Socialbakers, Accenture Analysis 23

24. Android & iPhone driving mobile internet use.
Mobile Web Usage Growth over 24 Months in US
4,000
3,500
3,000
55% of
Ads Requested (Millions)
2,500 Growth
2,000
1,500
41% of
1,000 Growth
500
0 RIM
Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10
Others incl. Palm
& Windows
Copyright © 2011 Accenture All Rights Reserved. Source: Admob, Accenture Analysis 24

25. Copyright © 2011 Accenture All Rights Reserved. 25

26. Gadgets
26

27. More and More Connected Devices.
Copyright © 2011 Accenture All Rights Reserved. 27

28. Technology power laws will continue unabated.
Camera Sensor LCD Display
Megapixel per $1 Sq. In. per $100
0.4 10
0.3 8 CAGR 11%
CAGR 27%
6
0.2
4
0.1 2
0.0 0
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
ARM Processor NAND Flash
3 Speed (GHz) 400 GB per $100
300
2 CAGR 33%
200
1 CAGR 85%
100
0 0
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
Copyright © 2011 Accenture All Rights Reserved. Sources: iSuppli, Gartner, DisplaySearch, ARM, Accenture Analysis 28

29. sold worldwide will have
the internet built in.
Sources: iSuppli, Gartner, Accenture analysis 29

30. Mobile Phones Smart or Ultra Low Cost.
Annual Mobile Device Shipments 2009-14 CAGR
1,600
Unit Shipments (Millions)
21% Smart
453 507 Phones
390
322
1,200
247
(CMDs)
162
137
182
4% Feature
800
704 735 710 797
Phones
631 849 887 919
400
123 153 Ultra
181
290 245 198 194 13% Low Cost
214 175 178
102
0 Handsets
2007 2008 2009 2010 2011 2012 2013 2014
Entry Level handsets Ultra Low-cost handsets Feature Phones Smart Phones
Copyright © 2011 Accenture All Rights Reserved. Sources: iSuppli, Accenture analysis 30

31. Consumer tech spend overtaking corporate technology spend.
U.S. Corporate and Consumer Hardware
Spend ($USD) Technology Spend per Person
per Person1
(2000 2008)
1,400
1,300 8-Year
CAGR
1,200
Corporate IT
Hardware Spend2 + 7%
1,100 per Employee1
1,000 -3%
900
800
Consumer Electronic
700 Device Spend3 per
600 Person1
500
400
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008
Copyright © 2011 Accenture All Rights Reserved. Sources: BLS, IDC, CEA, Accenture Analysis 31

32. Stunningly High Sales of iPad in its First 9 Months.
2010 Worldwide iPad Unit Sales
Oppenheimer 1.1m Forecasts
Thomas Weisel 1.1m
Canaccord Adams 1.2m
Merrill Lynch 1.2m
Deutsche Bank 2.0m
Susquehanna 2.1m
BMO Capital 2.5m
Barclays Capital 2.9m
Piper Jaffray 3.5m
RBC Capital Markets 5.0m
Kauffman Bros. 5.0m
Morgan Stanley 6.0m
Goldman Sachs 6.2m
Broadpoint AmTech 7.0m 14.8 Million Actually Sold
Actual
Copyright © 2011 Accenture All Rights Reserved. Source: Asymco 32

33. iPad earning almost twice as much profit per day as Windows 7.
Operating Income
per Day (Consumer)
$8.7
Million
$5.3
14.8 Million Million 300 Million
Sold Sold
Copyright © 2011 Accenture All Rights Reserved. Sources: Microsoft, Apple, Accenture Analysis 33

34. Devices are being replaced by apps.
2006 2011 and Beyond
TV Video
Phone Voice
MP3 Player Music
Camera
Credit Card Payments
Copyright © 2011 Accenture All Rights Reserved. Source: Accenture Analysis 34

35. Clouds
35

36. SaaS Private Clouds
Multi-Tenancy Virtualization
SOA IaaS On Demand
Elastic Computing DaaS
PaaS Grid Computing
Hybrid EaaS Utility
Computing
Clouds Public Clouds 36
Copyright © 2011 Accenture All Rights Reserved.

37. Multibillion dollar physical clouds.
Prineville, OR USA Lockport , NY USA The Dalles, OR USA
Maiden, NC USA Morrow, OR USA Dublin, Ireland
Copyright © 2011 Accenture All Rights Reserved. 37

38. Built largely on consumer digital activities.
Size of the Digital Universe (ZB) Global IP Traffic CAGR 09-14
Zettabytes per year Exabytes per Month
PB (ZB)
64 34%
8.1 21%
35.0
Business
50
75%
6.8
Consumer
25.0 38
5.7
44x
17.8 28
55.8 37%
4.7
12.7 20 Consumer
43.1
9.1 15 3.9
32.5
6.5 3.1 23.8
4.6
3.3 16.5
1.7 2.4 11.6
.5 .8 1.2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014
Copyright © 2011 Accenture All Rights Reserved. Source: Cisco, IDC, EMC, Accenture Analysis 38

39. Consumer cloud scale in action.
65 Million
100 Billion
Users
Searches
Gaming
Per Month
Daily
1.2 Million
25 Billion
Photos
Tweets in
Viewed Per
2010
Second
Copyright © 2011 Accenture All Rights Reserved. Source: Zynga, Google, Twitter, Facebook, Accenture analysis 39

40. Next
40

41. Superhuman capabilities courtesy of your smartphone
Speak
to Tweet
Copyright © 2011 Accenture All Rights Reserved. 41

42. Cash and Cash Equivalents
As of 1/26/2011
$44.2b
$38.9b
$35.0b
$27.0b
$24.8b
$21.9b
$10.9b
$10.3b
10 Companies.
$6.6b
$5.9b $226 Billion.
Note: Numbers are rounded
Copyright © 2011 Accenture All Rights Reserved. Sources: SEC Filings, Accenture Analysis 42

43. By 2014:
1 Billion
New Internet Users
800 Million
will be on Mobile Devices
70 Million
Speak English as First Language
Copyright © 2011 Accenture All Rights Reserved. Sources: UN, World Bank, US, Eurobarometer, Gartner, Accenture Analysis 43

44. Thanks!
44

45. The Digital World in
40 Minutes
February 4, 2011, Long Beach
Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.