Hollywood Hunter

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Simon spent a week in San Francisco, only to find that there were more problems to deal with than he had imagined in order to lay out his own layout for the Internet industry.

Just as the founders of America Online’s predecessor came up with the idea of ​​online music and online games in the early 1980s, in the Internet field, ideas are not so valuable. The mature Internet industry model in Simon’s memory was before the rise of this industry. , there are probably many people who have had countless similar thoughts.

The key is execution.

Therefore, in addition to Simon, who is at the helm of the general direction, whether it is Igret or AOL, what is most needed is a management team with real efficient execution.

Speaking of which, many of the companies that Simon invests in based on his prophetic advantages are, in the final analysis, investments in the management team.

More precisely, it is an investment in people.

Simon invests in Microsoft because Microsoft has Bill Gates; invests in Nokia because Nokia has Joma Ollila; invests in AOL because AOL has Steve Case.

Within a week in San Francisco, Simon also sent an invitation to John Chambers, who brought Cisco to the top in the original time and space, and hoped that after Westeros achieved absolute control of Cisco, the other party would be in charge of the company.

Because of this philosophy, Simon can easily find that Tim Berners-Lee, who is in charge of Igret at this time, may be very suitable as Igret's CTO, but as a founder similar to Apple's A tech executive like Wozniak was not up to the overall management of Igret.

In addition to Tim Berners-Lee, Simon desperately needed a 'Steve Jobs' from Igret.

Of course, this is just a metaphor. Simon will never invite Jobs who is completely out of his control to manage Igret. It is difficult to imagine which direction Jobs with his own twisting force field will take this company.

On the flight from San Francisco back to Los Angeles on Sunday, April 29.

Simon didn't go to the suite in the front cabin. He sat casually by the porthole in the middle of the cabin where the sun could shine, and looked at the results of this week's work while thinking about finding a manager for Igrit.

It is mainly due to the readjusted development plans of the two companies, Igreit and AOL, after the absolute control of AOL.

As for Cisco, Simon intends to hand it over to John Chambers, who has been confirmed to join. The two have discussed in detail about Cisco's future development direction. Chambers' business philosophy of customer first and rapid expansion through mergers is basically the same as that of Cisco. The information in Simon's memory matched, and Simon did not make adjustments without authorization.

Of course, in order to facilitate Cisco's expansion, the company must also conduct an IPO as soon as possible.

After Igreat and AOL obtained absolute control, Simon did not hesitate to subdivide the business of the two companies, insisting that AOL divest the content business and focus on the role of Internet service providers.

Igret is in charge of the content.

The online games and other content that AOL originally provided to customers was originally a value-added service based on basic access services. Because the current user base is too small, only more than 60,000, it is still impossible to make up for the expenses by inserting online advertisements. Being able to strip these off could actually save AOL money as well.

Of course, Steve Case didn't think so, especially after seeing Simon's idea of ​​a lot of what Igreit had arranged.

However, Simon did not give Keyes too many options.

The reason why America Online in the original time and space quickly declined after the burst of the Internet bubble is that its business coverage is too large and complete, but it has no core competitiveness. In terms of content, it can’t compare with Yahoo, which has come from behind. In terms of access services, it is easily surpassed by traditional operators with infrastructure advantages, so the market value of 100 billion US dollars at its peak has shrunk by more than 90% in just a few years.

This time, Simon's positioning of AOL is to be an accurate Internet service provider. In the early stage of the development of the Internet industry, this business will be perfected, and then it will closely follow the general trend of the integration of telecommunications network, TV network and Internet before and after the new century. Choose the right time to annex an old traditional telecom operator and completely consolidate its position in the industry.

In addition to long-term planning, considering its own scale, in the next few years, AOL will first expand its business in the coastal metropolitan area from California on the west coast and Boston to Washington on the east coast. The vast central area includes the Great Lakes District and the equally prosperous. The southern coast can only be ceded to other companies for the time being.

Most of the population of the United States is concentrated on the east and west coasts, and these two regions are the essence of it. As long as it can gain a firm foothold in these two regions, AOL can easily expand to other regions.

In order to save expenses, in addition to the top-level server, AOL will temporarily lease the line network of traditional operators as far as possible in terms of terminal network.

Of course, this must be temporary.

It is necessary to gradually build and improve its own network without being strangled by traditional operators such as at-t. However, this obviously means a very huge expenditure of billions of dollars, and it is not realistic to achieve it in the short term.

Another reason for the rapid decline of AOL in the original time and space is that it believes too much in its own content advantages. Until traditional operators have begun to provide ISP services, they still rent other people's lines, sluggishly fail to improve their own network, and even fail to follow up with high-speed broadband. The promotion, the end can be imagined.

In addition to these major plans, among the confirmed plans, AOL will open 100 Internet cafes in Los Angeles, Boston, New York and other cities in the next few months.

This program is naturally proposed by Simon.

Simon's first contact with the Internet in his previous life was in an Internet cafe.

However, the Internet cafe industry has not caught on in North America.

The main reason is the difference in spending power.

Like VCRs, video halls on the other side of the ocean should have become popular now, but in North America, this is not necessary at all, because the penetration rate of VCRs in North American households has exceeded 70%.

Similarly, since the birth of the 1970s, the number of PCs in American households has also increased rapidly. The reason why they have not been popularized in just ten years like video recorders is mainly because the PCs of this era lack enough entertainment. More Prefer to work.

The number of PCs in American households began to explode, just in the 1990s when the Internet was rapidly spreading.

Simon's trip to San Francisco this week has attracted many media attention to the new technology companies he is deploying, such as America Online, Igret and Cisco, but at present, most American people do not have the concept of the Internet in their hearts.

Simon did not intend to make a profit when he proposed the idea of ​​an Internet cafe, but mainly to promote Igret and AOL to the public, as long as people can experience online news, e-mail, online games, online forums, personal homepages, etc. in the Internet cafe. With all the benefits of Internet applications, it is natural to consider accessing the network at home.

100 Internet cafes, even with a minimum budget of $100,000 per Internet cafe, will require a total of $10 million in expenditure.

If it were paid entirely by AOL, the cost would be equivalent to 20% of Westeros' $50 million capital injection, not including the development and post-operation costs of the Internet cafe management system.

Such a huge amount of "marketing expenses" is completely unbearable for AOL.

When Simon left San Francisco, Steve Case was already contacting various PC manufacturers to find partners. These 100 Internet cafes that do not intend to make money will also be operated separately in the form of AOL subsidiaries, and even packaged and sold at the right time. go.

Simon also personally called the door classmate and asked him if he was interested in sponsoring a batch of the latest windows 3.0, or he could ask Apple himself.

Then successfully got 1000 sets of free operating system software.

For the project initiated by Simon himself, there must be many manufacturers willing to participate. The cost of the most expensive PC equipment should be saved, and even the operating system software of Internet cafes can be handed over to interested software companies. All AOL expects to pay is the cost of Internet access and the lease of the place of origin.

The money saved can be used by AOL to grow its core business.

As for the Igret company, Simon's mind has been on it most of the week, which is why he is so eager to find another suitable manager for Igret, even the self-aware Tim Burton. Nas Lee himself agrees with Simon.

The most important thing for Igreit is to confirm the revenue model.

It's still the same point of view that any company that wants to grow must have a sustainable revenue and profit model.

Portal memberships, e-mail charges, online news subscriptions, etc., were all considered by the Igrit team.

Simon did not hesitate to reject them one by one.

To attract users quickly, basic content services such as portals, e-mails and online news must be free.

Although the soon-to-be-opened Daenerys Studios in Malibu has installed enterprise e-mail, Simon also rejected the idea that the e-mail system that Igreit has mastered technology patents to develop into the enterprise market. This matter may be handed over to other companies in the form of technical authorization and equity participation, but Igreit must adhere to the development line of Simon's popularization.

Simon's positioning of Igreat for the next ten years is an Internet technology company with the veneer of an online media platform.

Network media, this is a concept that was very able to stimulate the stock price of companies in the 1990s.

However, from the fate of Yahoo and America Online in the original time and space, we can know that online media is not sustainable, and the core of the Internet giants that survive and grow, whether Amazon, Facebook or Google, are technology companies.

Creating a platform through technology and attracting a large enough user base to produce 'content' by themselves is the way for Internet companies to dominate.

In contrast, the business model of online media is to produce content by itself to meet the needs of users. This was feasible in the early 1.0 era of the Internet, but in the 2.0 and 3.0 eras after the outbreak of Internet users, it wants to use its own efforts to meet the needs of thousands of people. The content needs of billions of Internet users are simply impossible.

Since it is impossible to obtain revenue from services such as portal websites and e-mails in the short term, everyone's attention will naturally turn to software again.

Applications such as server software and web page design software developed by Igreat based on the World Wide Web technology have been confirmed to be commercialized.

Simon's original idea was that the IE browser with a graphical interface would be promoted in a free form. This idea was not accepted by the Igrit team. Most employees believed that the company invested heavily in the development of this software is very good. , even has the value meaning of creating a new era, it should not be free.

After several discussions and even disputes, Simon also had to make a compromise.

In other words, Simon also admits that his own ideas are too radical.

Just like he hoped that AOL's network access service should be monthly rather than hourly billed, at least in recent years, this idea is not realistic. Before the user scale develops to a certain level, AOL's network access service will still be To be billed hourly.

On the other hand, the server software, web design software and other applications developed by Igreat have a small market capacity in the short term, and even more are only used by the team of Igreat.

Therefore, ie, a terminal application software that is expected to have a wide audience, is crucial.

The final solution is that the IE browser will also adopt a charging model.

This is also the most practical means by which Igreit can obtain real revenue as soon as possible.

However, compared to Netscape's browser pricing of up to $50 in Simon's memory, the team finally confirmed that the retail price of the IE browser is $15, and the installation costs of these network service providers such as AOL are lower, and each set charges $10. .

At $10 per set, it's actually pretty affordable for AOL.

Moreover, Igret will not authorize only one service provider of AOL. After all, AOL’s expansion focus in recent years will only be limited to a few densely populated states on the east and west coasts, and most areas in the United States are still unreachable. , seeing AOL grow, there will surely be other ISPs coming along.

Although Igreit will open most of the authorization of the World Wide Web technology for free, but for the core website and terminal application software, Simon will not allow a second manufacturer to appear for a long time in the future. As long as the World Wide Web can reach the speed of popularization in the original space and time, the software revenue alone will be enough to cover most of the expenses required for the development of Igret.

In the short term, that's all it can do for the time being.

Elitetreat has completed the construction of two data centers on the east and west coasts that can accommodate 100,000 users, and the internal test has also been completed. Although it is shabby compared to the large data centers in Simon's memory, it is enough to cope with the current situation. Internet user access.

In addition, Igretech has also compiled a complete set of World Wide Web technical materials, which will be available for free download on Igretech's portal'' and the official websites of some partner universities. The team also plans to publish physical books related to World Wide Web technology as a supplement. .

At the same time, a simplified version of the World Wide Web application software for students only will also be released to major universities in North America.

Next, it only needs two companies, America Online and Igret, to work together to fully promote the World Wide Web.

This coming May is destined to be the beginning of an era in the memory of many people.

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