In this summary you will find insights into the three big trends in technology investing including mobile, big data and cloud computing.

1. inSPiration Summit THE GREAT DISRUPTION
This discussion focused on
three big trends in technology
investing: Mobile, big data, and
cloud computing. How are these
trends driving the investment
decisions of leading venture
capitalists?
These themes emerged during the
discussion:
Monetization of mobile
• Mobile carriers realized late in the
game that monetization lies not in
the devices but in the apps, says
Hernandez.
• The app space became much larger
than anyone predicted, including
Apple, says Keoppel.
• Most advertising models are built as
web-based tools, such as pop-ups and
recommendation engines. The next
wave will be more unique to mobile
and will provide just-in-time supply to
targeted consumers, says Visvanathan.
One example is Hotels Tonight, which
sells off last minute hotel rooms at
discount prices.
Beyond mobile
• One of the new areas of focus for
Verizon Ventures is microlocation:
geolocation inside of buildings, says
Koeppel.
• “Big data” are just words that reflect
the output of other technology trends,
says Visvanathan. More interesting are
the underlying technologies that have
developed to support big data.
• Verizon has shifted its focus from
investing in companies with direct
commercial support for their business
units to thinking ahead and seeing
where business units can go in the
future, says Keoppel. Many carriers
have great service but still need to
grow in the area of creating new
services on that network for customers
to use.
Juniper inSPiration Summit
Barcelona:
The Great Disruption
Leading venture capitalists on how technology
is changing business models
EVENT HOST:
Vincent Molinaro, SVP, Service
Provider Sector, Juniper
Networks
PANEL MODERATOR:
Ludwig Siegele, Online
business and finance editor,
The Economist
PANEL PARTICIPANTS:
Krishna Visvanathan, Partner,
Encore Ventures
Bernardo Hernandez, Advisor,
Google Ventures
Daniel Keoppel, Executive
director, Verizon Ventures
VENUE:
Hotel Arts Barcelona
Barcelona, Spain

2. inSPiration Summit THE GREAT DISRUPTION
Platform creation is critical for
attracting innovators
• Google’s API gives developers
what they want: free, fast, and
open. This strategy attracts
thousands of developers to the
platform, says Hernandez—and
it enabled Google create a new
business model for advertising.
• Verizion is allocating resources
to create a platform to work with
developers more effectively,
recognizing that the only way to
make the platform attractive is to
provide things to developers that
they can’t get anywhere else, says
Keoppel.
Business models must evolve
• The panel agreed—many new
startups are still focused on
web-only thinking, and consider
mobile to be just a small-screen
version of the web.
• For every web-only service or
site, Keoppel predicts, there will
be a “mobile pure play” that will
take its place. Most mobile web
companies are too slow to adapt.
In some cases it makes sense for
big companies to purchase existing
apps, like chat apps in Asia that
mimic Facebook, to evolve faster,
especially if they support strategic
objectives, he says.
• Many who fail at new business
models are those seeing them
from a position of strength—blind
to real opportunities and real
threats, said Hernandez.
Hardware is the new software
• Verizon has three innovation
centers: software, networking and
hardware. The most intense focus
is on hardware, says Keoppel.
• The next wave of innovation
will focus on offline problems
like moving people and goods;
hardware can help with that, says
Hernandez.
• Seeing that there are many vertical
opportunities at the moment,
Verizon is looking into machine-to-
machine solutions, says Keoppel.
A challenge to telecoms
• It’s difficult for large carriers
with brands based on perfect
delivery to innovate as quickly
as start-ups—to quickly release
incomplete products to attract
customers and then quickly
iterate improvements without loss
of brand value, notes Keoppel.
• Consumers view carriers as a
utility, says Visvanathan. So
carriers need to adopt new
mindsets that follow actual
consumer mobile habits, like
focusing social.
Krishna Visvanathan, Partner,
Encore Ventures
Bernardo Hernandez, Advisor,
Google Ventures

3. inSPiration Summit THE GREAT DISRUPTION
“The value of a bit is in
the eyes of the beholder.”
- Pradeep Sindhu, Vice
Chairman & Chief technology
officer, Juniper Networks
Daniel Keoppel, Executive director,
Verizon Ventures
• Often the technology is way
ahead of adoption by consumers
because carriers have slow
pipelines and too much of a
focus on controlling the market,
says Hernandez. Technologies
explode when more players have
access. It’s not about owning
the utility relationship; it’s about
building on top of mobile.
• On the contrary, capital needed
to create new carrier networks
is so massive that they are
singularly positioned for some
innovations, like 4G and FiOs,
says Keoppel.
THE TELECOM PERSPECTIVE
Following the venture capital roundtable, we featured
reactions from chief technologists from the telecom
industry. Here are two highlights
“The industry...needs
a two-sided business
model that says, ‘if
I want to send some
data that’s of value
to me, I will pay for
it’. And I think that’s
achievable. But we’ve
got to get firstly to the
economic rationalisation
that a resource costs
something.”
- Mike Wright,
Executive director, Networks &
Access Technologies, Telstra
“I think the new
generation are quite
conscious of what is the
value of connectivity…
70% of our traffic is
coming through WiFi.”
- Cayetano Carbajo,
Chief technology officer,
Telefonica Deutschland