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Volume 3, Issue 1
Jan/Feb 2003



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MTBE: A Tasty Morsel?

Filling The Holes in Swiss Cheese Cybersecurity

The Power of Distributed Power

Maintaining Security While Respecting Privacy

Berkeley Engineers: Eric Schmidt

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Lab Notes, Research from the College of Engineering


Berkeley Engineers: Changing Our World

Eric Schmidt Searches and Finds Success (Again)
by David Pescovitz

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Eric Schmidt
Photo credit: Yvette Subramanian Photo

Google CEO, UC Berkeley alumnus, and Berkeley in Silicon Valley symposium keynote speaker Eric Schmidt (EECS, MS '79 PhD '82) is a rare breed in Silicon Valley — a technology guru with an aptitude for business innovation.

After earning his Master's and PhD from Berkeley, Schmidt launched his career at several of the digital age's most esteemed institutions: Xerox Palo Alto Research Center and Bell Laboratories. In 1983, he landed at Sun Microsystems, co-founded by other Berkeley Engineering alumni, and served as Chief Technology Officer from 1983 to 1997. While at Sun, Schmidt led the development of the platform-independent Java programming language that universally heightened the Web browsing experience. Prior to joining forces with the two founders of Google in August 2001, Schmidt served for four years as CEO of Novell, a 10,000 person software firm.

With Schmidt at the helm, Google is now the world's fourth most popular Web destination and powers the Web search features on AOL and Yahoo! (numbers one and three in the popularity contest).

Below is a brief interview with Schmidt. He'll share more of his myriad experiences in his keynote at the Berkeley in Silicon Valley symposium on March 1.



Do you consider yourself a technologist or a business leader and which hat do you prefer wearing?

The interesting opportunity at Google is that we're trying to solve some of the big networking challenges of the day. If you think about it, information retrieval is perhaps one of the oldest, and hardest, problems in computer science — and that's what we're working on at Google... on a scale that is just stunning. At the same time, we're developing a business model at Google that is sustainable for a network-based enterprise in the 21st century. It really is the best of both worlds. In addition to working on things that really matter, Google is just a fun place to work with a unique culture and an amazing collection of talent.

From a user's perspective, how do you envision Google.com ten years from now?

One of the "unwritten stories" about the Internet today is that a lot of people still don't have broadband connections. Consumers are frustrated because they can't get broadband in their homes because of where they live or because of price. Broadband is a no-brainer: It improves productivity and allows people to use more information resources. More significantly, ubiquitous broadband means more people will be able to enjoy the benefits of being online.

Today, while everybody is talking about new devices, the more important story is the adoption of broadband over the next year or two. Broadband usage reached 10 million households about six months ago and is expected to reach 20 million in the next six to nine months. That's almost half of the 50-60 million eligible households.

So, when you look at the way traffic is growing at Google today, we are ideally positioned to enjoy the benefits of broadband to the home, which will likely occur in the next ten years or so. Moreover, with that technology in place, we're likely to see the introduction of a number of powerful new services and applications that take advantage of virtually limitless bandwidth.

Google lobby lava lamps
Lava lamps adorn Google's lobby in Mountain View. "Google is just a fun place to work with a unique culture," says Schmidt.
Courtesy Google

What do you consider to be the greatest power or potential benefit of the Internet?

Contrary to the popular opinion, we're probably at the beginning — not at the end — of something quite profound when people begin living and working on the Internet. It's been amazing to see my colleagues in the Engineering group at Google building services and application enhancements on top of an infrastructure that no one even imagined 10-15 years ago. It's equally astonishing to see how adaptable the team is when a change occurs in the system or infrastructure.

Clearly, the Internet — both the boom as well as the bust — created a huge amount of disruption... Now, there are two kinds of disruptions — technology disruptions and business model disruptions. We all understand technology disruption as being driven by Moore's Law. Using PCs as an example, there's a point at which PCs became useful enough that you could use them to compete with workstations, which is what hurt Sun. There was a point later at which PCs became useful enough that you could use them to compete against servers, which is what we do at Google. Five or 10 years ago, Google would have been using Suns or other UNIX machines because the PCs weren't good enough. The underlying technology disruption was enabled by Moore's Law.

The premise here is that innovation occurs at universities, and that one way to try to understand where disruption will come from is to look at what universities are working on. Graduate students doing research are forced to deal in new ideas, and they disrupt the status quo.

Business model disruption is much tougher to deal with. Imagine a situation in which community-based wireless networks could route cell phone calls. That would dramatically change the revenues of the cellular phone industry. These companies have high fixed costs. They have a billing structure. That kind of business model change would be very disruptive.

It takes a CEO change to deal with a disruption in business model. There are very few examples of companies whose executives correctly foresaw and maneuvered their company through a transformative business model event. There are some exceptions, but they're quite rare.

Your Turn

Have a story you want to share about Eric Schmidt?

We want to hear from you...

By the way, one final example of a technology-enabled business model disruption is unlimited long-distance phone calls at the same price as local calls.

Taken as a whole, the disruption that the widespread adoption of the Internet has caused has been, by and large, a benefit to society. I just hope someone will at least tell me when the next disruption is going to happen!

What was your most memorable experience at UC Berkeley's College of Engineering?

In no particular order: 4 AM at Giant Hamburgers with Bill Joy and Randy Katz, playing Adventure on the PDP-11 (a classic supercomputer) in Evans, wearing my motorcycle leathers to class, my study group for Orals, the satisfaction of a wonderful education from a tremendous school.

What is your advice for young engineering students?

A few years ago, I was invited to address a group of graduating students here in the Department of Electrical Engineering and Computer Sciences at Berkeley. I encouraged them to give equal attention to the "triumph of human values" as they do to the "triumph of technology's values." Like today, a great deal of energy was focused on developing technology for its own sake, without reflecting on why such developments matter to people. The message was not intended to undermine the role that universities and research groups have in developing innovative technology. Rather, it introduced a new level of responsibility to the awesome power that technologists and computer scientists have in society. Aside from that, I'd encourage them to ride a motorcycle across the country before they get a job!


Related Sites

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