Tech bubble: does it matter?

This morning’s Observer column.

If one wanted to be critical, the most annoying thing about the current bubble is the way the visions and ambitions of startup founders seem to have narrowed. Many of them claim, of course, that what they want to build is a company that in the long term will transform the world or disrupt a particular market. But in actual fact their strategy is to create a product or a service that is sufficiently interesting or annoying to induce Google, Amazon, Facebook, Yahoo or Microsoft to buy the upstart venture. The poster child for this is WhatsApp, a fine company with a viable business model that did not depend on monitoring users and which was run by a chap who fervently declared his resolve to build a great, sustainable enterprise that treated its users well. And he doubtless believed that right up to the moment that Facebook offered him $19bn. And who can blame him: you only live once, after all.

At the end of the day, though, what’s much more worrying than the spectacle of venture capitalists blowing investors’ money is the fact that everywhere state funding for the kind of long-term, fundamental research that is needed to produce the technologies of tomorrow has been shrinking. The current wave of innovation and economic development enabled by the internet has only come about because 60 years ago the US government funded the project that produced first the arpanet and then the internet.

Private enterprise would undoubtedly have produced computer networks, but it would not have created the free and open platform for “permissionless innovation” that we got as a result of public investment. And we would have all been poorer as a result.

Read on

In a national surveillance state, privacy is seen as “a luxury of the guilty”

Terrific piece by Andrew O’Hagan on Edward Snowden and Glenn Greenwald in the London Review of Books.

Sample:

Surveillance in the UK is an implicitly sanctioned habit that has smashed the moral framework of journalism. Protection of sources is not an adornment, not some optional garment worn only when it suits, but a basic necessity in the running of a free press in a fair democracy. Snowden proved that, but not to the satisfaction of Britain’s home affairs establishment, or the police, who like to behave as if all freedoms are optional at the point of delivery. [Alan] Rusbridger recently made the point that source confidentiality is in peril, after the revelation that the Metropolitan Police had spied on the phone records of the political editor of the Sun, Tom Newton Dunn. Snowden might have taught us to expect to be monitored, but his message, that our freedom is being diluted by a manufactured fear of the evil that surveillance ‘protects’ us from, is not being heard. Louder and clearer to many is the message that comes from the security state mind, a suspicion carried on the air like a germ, that certain kinds of journalism, like certain aspects of citizenship, are basically treacherous and a threat to good management. This germ has infected society to such a degree that people don’t notice, they don’t mind, and a great many think it not only permissible but sensible and natural, in a culture of ‘threat’, to imagine that privacy is merely a luxury of the guilty.

And this:

The first thing that amazed me about Julian Assange was how fearful he was – and how right, as it turned out – about the internet being used as a tool to remove our personal freedom. That surprised me, because I’d naively assumed that all hackers and computer nerds were in love with the net. In fact, the smarter ones were suspicious of it and understood all along that it could easily be abused by governments and corporations. The new technology would offer the chance of mass communication and networking like never before, but lurking in all those servers and behind all those cameras was a sinister, surveilling machine of ever growing power. The US government sought omniscience – ‘a system that has as its goal the complete elimination of electronic privacy worldwide’ – and showed by such actions that it considers itself above the prospectus set out in its own constitution. The leaders of the NSA said, ‘collect it all,’ and the people put up with it.

On this day…

Historic day, eh? The Royal and Ancient Golf Club, Golf’s governing body, votes today on the thorny issue of whether to admit women as members.

Oh, and the people of Scotland also vote on whether they want to be independent or not.

(Which makes one wonder what will the “United Kingdom” be called if they vote “yes”. The two candidates I’ve heard so far are fUK — “former UK” — and UK-lite).

UPDATES

  1. The R&A decided to admit women members.
  2. The Scots decided that it was still the UK, not the fUK.

So did they really go to the moon in 1969?

This is 13 minutes long, but worth every second. In it film-maker S.G. Collins argues that in 1969, it was easier to send people to the Moon than to fake the landing in a studio. Technologically speaking, he says, it was impossible to shoot that video anywhere other than the surface of the Moon. A lovely piece of debunkery, filmed with the assurance of an Errol Morris.

Old Amsterdam

Old_Amsterdam_blog

Just came on this photoshopped version of a photograph I took in 2003 from a boat on an Amsterdam canal. The building in the background is the Rijksmuseum. Corny but nice.

Apple Pay’s revenue stream

Further to my Observer column yesterday, this from Bloomberg.

Apple Inc. (AAPL) will reap fees from banks when consumers use an iPhone in place of credit and debit cards for purchases, a deal that gives the handset maker a cut of the growing market for mobile payments, according to three people with knowledge of the arrangement.

That’s a small cut on millions of daily transactions. Adds up to a formidable revenue stream.

Quote of the Day

You know what a learning experience is? A learning experience is one of those things that says, “You know that thing you just did? Don’t do that.”

Douglas Adams in The Salmon of Doubt