Mary Meeker’s Internet Trends 2014
Last week Mary Meeker of the venture capital powerhouse Kleiner Perkins presented her annual Internet Trends Report, and as always it's a treasuretrove of insights. I've posted the whole thing below (it's 164 dense slides) but I thought I'd mention a few key points:
- Web growth is slowing (<10% y/y), while smartphone growth continues at better than 20% and tablet growth is still on the steep part of the curve with a whopping 52% y/y growth.
- Users continue to move away from "Swiss Army Knife" platforms (think Yahoo!) to narrow-focus branded applications that do very specific things very well (Tinder, Instagram, Twitter).
- Personal transportation is being completely transformed by players like Uber, Waze, and ZipCar and the whole sector will continue to be disrupted (which is why Google is investing a zillion dollars in driverless cars).
- Infrastructure costs continue to plummet. In 1990 processing power was $527 per million transistors, today it's .05. Storage was $569 per gigabyte in 1990, today it's .02. Bandwidth was $1,245 per 1,000 mbps, today it's $16. Those are incredible numbers.
- Meeker sees education and healthcare as being two sectors that are at an inflection point today. Both will provide tremendous opportunities for internet companies in the years ahead. On the education side, costs are currently out-of-whack with value received ($200K+ for a college degree) which presents a situation ripe for disruption. Similarly, health care costs are driving demand for efficiencies (67% of CFOs interviewed cite health care costs as their primary concern).
- The intersection of health and education may be the biggest opportunity of all. Meeker says that $100 billion/year is spent on "avoidable" hospitalization that could be reduced through better patient education on issues such as obesity, lifestyle, diet, etc.
I've posted Meeker's whole presentation below – great data, great insights. Browse through it if you have the time. Lots of opportunity ahead.