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Nutanix launches and a new era for data center computing is born — No SAN or NAS required! August 16, 2011

Posted by ravimhatre in 2011, Cloud Computing, data, database, datacenter, enterprise infrastructure, Infrastructure, platforms, Portfolio Company blogs, startup, startups, Storage, Uncategorized.
Tags: , , , , , ,

The Nutanix team (ex-Googlers, VMWare, and Asterdata alums) have been quietly working to create the world’s first high-performance appliance that enables IT to deploy a complete data center environment (compute, storage, network) from a single 2U appliance.

The platform also scales to much larger configurations with zero downtime or admin changes and users can run a broard array of mixed workloads from mail/print/file servers to databases to back-office applications without having to make upfront decisions about where or how to allocate their scare hardware resources.

For the first time an IT administrator in a small or mid-sized company or a branch office can plug in his or her virtual data center and be up/running in a matter of minutes.

Some of the most disruptive elements of Nutanix’s technology which enable the customer to avoid expensive SAN and NAS investments typically required for true data center computing are aptly described on company’s bloghttp://www.nutanix.com/blog/.

Take a look. We believe this represents the beginning of the next generation in data center computing.

The Lightspeed Summer Fellowship Program Explained April 12, 2011

Posted by John Vrionis in 2011, blogging, start-up, startup, startups, Summer Program, Venture Capital.

There’s been some great discussions recently about the Lightspeed Summer Program (http://news.ycombinator.com/item?id=2380567) and at several of the sessions over the weekend at the Stanford E-Boot Camp (http://bases.stanford.edu/e-bootcamp/ so I thought I’d do a quick post to help answer some of the recurring questions.

Background. I started the program at Lightspeed 6 years ago because as an undergraduate and graduate student I, as well as many of my entrepreneurial classmates, took on “real” internships during the summers in order to pay the bills (rent, gas, beer…).  We worked on our startup ideas on nights and weekends out of necessity.  When I joined Lightspeed in 2006 and realized that we had the resources to facilitate some number of idea-stage projects, we put together the Summer Program and opened it up to student led teams.  Why did a student need to be involved?  We had to draw the line somewhere.  The program could not be just another entryway for entrepreneurs to pitch Lightspeed.  We wanted to target young, entrepreneurial minded people and give them a viable summer alternative to taking that traditional internship.

I know from personal experience just how hard starting a company can be.  It’s a BIG DECISION to tackle early in your professional career.  Pieces of the program have changed over time, but the GOAL has remained constant since inception and that is simply to give young entrepreneurs the time and resources to fully experience what it is like to start a company.

Purpose. The Lightspeed Summer Program is NOT an incubator, nor was it ever intended to be.  We are not looking to fund companies out of the program.  Really. I promise.  We want people to experience startup life fulltime and have the opportunity to learn if it is something they truly want to do.  Is there benefit to Lightspeed?  Yes, of course.  We hope to build relationships with young, talented entrepreneurs at this stage in their careers.  We are in the business of fostering entrepreneurship.  We also have a very long term view on what this means.  The opportunity to work with bright, energetic people who have ideas about how to change the world is exactly why we do this job in the first place.

Why don’t you ask for equity or a right to invest? It’s funny, people have asked me “What’s the catch?”  Or, “It sounds too good to be true, so what am I missing?”  I appreciate the genuine skepticism so I want to be as clear as I can on this one.  The reasons we don’t require an obligation from the entrepreneurs we accept are simple:

First, we don’t have expectations that the teams we accept will be ready for venture capital during or after completing the program.   In fact, I’ve been surprised by the number (12+) that have gone on to receive venture or angel funding.

Second, we look at the program as a way to engage with people at this stage in their careers.  If we do a good job and they like working with us, they should want to come back and work together down the road if they want to pursue entrepreneurship.  If we don’t do a good job, and they don’t like working with us, well, shame on us(!), but the entrepreneur shouldn’t be obligated to work with Lightspeed.

Evolution. I’ve changed the “rules” of the program over the years to try and make it a better experience.  For example: I learned in Year 1 that teams without engineers didn’t accomplish much in the 10 week time frame.  Without fulltime “doers” teams ended up with a lot of ideas and power point slides but very few actual results.  So we adapted and started requiring that every team have at least one CS or EE major as a way to push teams to have members that could actually build stuff over the summer.  Example 2: I learned that what is most helpful to the Fellowship winners in terms of guest speakers and introductions is other young founders who have successfully raised money and angel investors.  So I changed our guest speaker lineup and invited fewer attorneys, CFO’s, and recruiters and went with a healthy dose of entrepreneurs, CEO’s and investors.  Example 3: Entrepreneurs like lots of free food, so we added more snacks.

If I participate in the program and Lightspeed doesn’t invest, isn’t that a bad signal? This is something I didn’t think about when we first started the program. It’s a very valid concern.  The LAST thing I want to do is have a program that creates friction for any entrepreneurs who want to continue to pursue their company after the program.  So we made a change.  Starting last year, we made a commitment to every team we accept.  Lightspeed will invest a minimum of $50k in any Summer Program winner that continues on with a company and is able to pull together a round of at least $500k from other investors.  It’s very important to  understand that the Lightspeed investment is completely at the entrepreneur’s option. If you don’t want it, don’t take it.  But this way, if any investor ever asks, “Is Lightspeed investing?” the answer is “Yes, if we want them to.”

Competition. People often ask or comment about other programs (YC, Angel Pad, etc).  I’m thrilled these programs exist and are flourishing.  I think the more opportunities out there for young entrepreneurs to try the startup life, the better.  We’ve had teams in multiple summer programs in the past and its been great.  The one requirement we ask is that teams dont participate in more than one program at the same time.

Resources. The program gives Fellows office space, some funding, VC mentorship (each winning team has a Partner from Lightspeed as a mentor), introductions to founders and angels, and a chance to work on your idea fulltime.  I’ve learned that our Fellows also benefit greatly from the camaraderie that emerges from working with other entrepreneurs in a close environment and that these lasting relationships mean a great deal to people.

This program is NOT for people who want a lot of hand holding.  As an entrepreneur, I learned you need to be scrappy.  The program is designed to give you all the resources you need but ultimately it is best suited for entrepreneurs who just need the chance to make things happen.

Application. We one round for 2012.  The deadline for is March 2, 2012 so get them in!  Find the app here: http://www.lightspeedvp.com/summerfellowships/

Enterprise Infrastructure – What we are working on at Lightspeed in 2011 February 8, 2011

Posted by John Vrionis in 2011, Cloud Computing, database, datacenter, enterprise infrastructure, Storage, Uncategorized, virtualization.

We continue to be very enthusiastic about the tremendous amount of opportunity in the Enterprise Infrastructure sector for 2011. In the past few years, we’ve seen significant innovation in technologies such as virtualization, flash memory and distributed databases and applications. When combined with business model shifts (cloud computing) and strong macroeconomic forces (reduced R&D budgets), a “perfect storm” is created where the IT ecosystem becomes ripe for disruption. Startups can take advantage of the changing seas and ride the subsequent waves to emerge as leaders in new categories. For this post, I’ll highlight three categories where I believe we’ll see significant enterprise adoption in 2011 – big data solutions, use cases for cloud and virtualizing the network. Startups in these categories are now at the point where ideas have become stable products and science experiments have transformed into solutions.


There’s been a lot of “big noise” about “Big Data” for the past couple of years but, there has been “little” clarity for the traditional Enterprise customer. Hadoop, Map Reduce, Cassandra, NoSQL – all interesting ideas, but what Enterprise IT needs is solutions. Solutions come when there are products optimized to solve the challenges with specific applications. Most of the exciting, fast growing technology companies we hear about daily (Facebook, Zynga, Twitter, Groupon, LinkedIn, Google, etc) are incredibly efficient data-centric businesses. These companies collect, analyze and leverage massive amounts of data and use it as a fundamental competitive weapon. In terms of really working with “Big Data,” Google started it. Larry and Serge taught the world that analyzing more information generates better results than any algorithm. These high-profile web companies created technologies to solve problems other companies had not faced before. In this copycat world we live in, Enterprise IT is ready to follow the consumer-tech leaders. The best enterprise companies are working hard to leverage vast amounts of data in order to make better decisions and deliver better products. At Lightspeed, we invested in companies like DataStax (www.datastax.com) and MapR Technologies (www.maprtech.com) because these are startups building solutions that enable Enterprise IT to work with promising Big Data platforms like Cassandra and Hadoop. With enterprise-grade solutions now available, I expect 2011 to be a year when tinkering leaps to full-scale engagement because these new platforms will deliver a meaningful advantage to Enterprise customers.


The hype around “Cloud Computing” is officially everywhere. My mom, who is in her sixties (sorry Mom) and just learned to text, recently asked me about Cloud Computing. Apparently she’s seen the commercials. In Enterprise IT circles and VC offices, there’s a lot of discussion around “Public” clouds vs. “Private” clouds; Infrastructure as a Service vs. Platforms as a Service; and the pros and cons of each. It’s all valuable theoretical debate, but people need to focus on the use cases and the specific economics of a particular “cloud” or platform configuration. As of right now, not every Enterprise IT use case fits the cloud model. In fact, most don’t. But there are three in particular that definitely do — application management, network and systems management and tier 2 and 3 storage. At Lightspeed, we’ve invested in a number of companies such as AppDynamics (www.appdynamics.com) and Cirtas (www.cirtas.com) which deliver solutions that are designed from the ground up to enable enterprise class customers to leverage the fundamental advantages of “Cloud Computing” – agility, leveraged resources, and a flexible cost model. Highly dynamic, distributed applications are being developed at an accelerating rate and represent an ideal use case for cloud environments when coupled with a solution like the one offered by AppDynamics which drives resource utilization based on application level demands. Similarly, Enterprise IT storage buyers have gotten smarter about tiering data among various levels of storage media, and infrequently accessed data is a great fit for cloud storage. Cloud controllers like the one offered by Cirtas enable enterprises to have the performance, security and reliability they are used to with traditional internal solutions but leverage the economics of the cloud.


To date, the story of virtualization has been primarily about servers and storage. Tremendous innovation from VMware led the way for an entirely new set of companies to emerge in the data center infrastructure ecosystem. At Lightspeed, we talk about the fundamental pillars of the data center as application and systems management, servers, storage, and networking. Given all the advancement and activity around the first three, I think it’s about time the network caught up. As Enterprise IT continues to virtualize more of the data center and adopts cloud computing models (public or private), the network fundamentals are being forced to evolve as well. Networking solutions that decouple hardware from software are better aligned with the data center of the future. Companies such as Embrane (www.embrane.com) and Nicira Networks (www.nicira.com) are tackling this challenge head on and I believe 2011 will be the year where this fundamental segment of data center infrastructure starts to see meaningful momentum.

Startup CEO New Years Resolutions January 6, 2011

Posted by jeremyliew in 2011, culture, growth, HR, new years resolutions, product management.

I asked the CEO’s of the companies that I work with,  “What are your company related new years resolutions?”. Each had a different spin, but they mostly fell into a few themes of:

  • Great people
  • Improve the product
  • Stay Lean
  • Grow fast
  • Internalize culture and values

Lisa Marino of RockYou,  a leading developer of social games and advertising solutions for social media, is focused on building a great team with more gaming DNA to improve the quality of the games it publishes:

Make RockYou the place talent wants to be.

Many of the companies had resolutions focused on their product management and development. From the social gaming companies, Will Harbin of Casual Collective, which publishers the popular game Backyard Monsters, said simply:

Mo’ money, mo’ fun

As games like CityVille have shown,  mo’ fun usually leads to mo’ money! [And congrats to Alex Le, cofounder of a prior investment, Serious Business, whose first game since the Zynga acquisition is CityVille.]

Scott Albro of Focus, a knowledge sharing community for business people, has fully embraced the idea of constant iteration for 2011, taking the best practices of social media to the business media world.

Plan big, increment small. Meaning: set big, audacious goals for the year, but understand how the little things you do every day link together so you can achieve those big goals.

Ed Baker of Friend.ly, a fun way to meet new people, is focused on driving innovation:
Encourage more product suggestions from our engineering team. Our engineers often come up with great ideas, and they are the most productive when they work on these ideas. in 2011, I’d like to encourage a culture where this happens as much as possible.

Shawn Gupta of OhLife, a personal journaling tool over email, has similar sentiments in using metrics to drive product innovation:

Make metrics a core part of our product development. It will be a lot easier for us to make improvements to our product when we have data-driven discussions and decisions.

Although the industry is in much better shape than the dark days of 2008 and 2009, many CEOs have fully embraced the continue to internalize the lean startup principles that came out of those years. Joe Greenstein of Flixster, the leading movies app on all social and mobile platforms, wants to take big risks with small dollars.

Stay hungry, stay foolish.
Steve Semprevivo of RetireEasy, a  company helping baby boomers manage their retirement, is also focused on staying lean:
Pursue our passion, build lasting strategic relationships and most importantly use our cash wisely.
Other companies are fully focused on growth. Tim O’Shaughnessy of Living Social, a local deals site, says simply:

Put the pedal through the floor.

Glenn Rogers of CarDomain, a community of auto enthusiasts, concurs:
Traffic,traffic,traffic! For media sites like ours you are either growing traffic or or you are dying. Our whole focus this year will be on finding new users, improving the user experience and increasing their engagement with our sites.

Two ecommerce companies that have seen tremendous growth are paying attention to their core values and culture to keep their organizations coherent as they dramatically increase in size. Andy Dunn of Bonobos, a vertical web retailer, will be driving attention to one of their core values in 2011:

Focus on self-awareness, the core trait of leaders, both people and firms.

We will measure our traction in three ways:

1. Knowing we are becoming self-aware as a team. Measure of success: 360 degree reviews done smartly (meaning efficiently and not dreaded by all involved).

2. Marketing who we are, not who we may want to be one day. Measure of success: more than doubling our customer base without doubling our cost per acquisition.

3. Developing products based on knowledge of our strengths and curating products based on knowledge of our weaknesses. Measure of success: sales growth and gross margin return on investment.

Brian Lee of Shoedazzle, a personalized fashion etailer for women, is also focused on one of their core values, great customer service:

Treat every client like they are part of your family.

Scott Brady of Project Slice, a stealth company helping to simplify online shopping, also has cultural values core to his new years resolutions:
Simplify – Challenge ourselves to simplify, we can strive for perfection in the next version.
Celebrate – Take the time to celebrate small wins in all areas of the company, and do it every day as they happen.
Feedback – Continue to foster an environment where everybody on the team communicates feedback, good and bad, in an open and honest way.

What are your new years resolutions?

More on internet trends December 22, 2010

Posted by jeremyliew in 2011, Internet.

UPDATE: Bloomberg has made this video private so it is no longer available. Sorry


I was interviewed on Bloomberg TV this morning about internet trends. It’s about a five minute video. You will have to click through to Youtube to watch as Bloomberg doesn’t allow embedded video watching.

Let me know what you think.

2011 Consumer Internet Predictions December 3, 2010

Posted by jeremyliew in 2011, advertising, Consumer internet, Ecommerce, ltv, mobile, predictions, social games.

Once again Lightspeed is going on the record with some prognostications for what the future holds. Before I try gazing into my crystal ball to see what 2011 will bring for the consumer internet industry, let me first see how I did on last years predictions:

1. Social games overflow out of Facebook

Grade: C+. While the amount of social gaming on other social networks, especially the Asian networks, has significantly increased over the course of the year, the vast majority of social gaming still takes place on Facebook. While Farmville.com now has 6M UU/month, this is still only 10% of the number playing Farmville on Facebook.

2. Brand advertising starts to move online, boosting premium display, video and social media

Grade: A. The recovering economy has really boosted brand ad budgets in 2010, with online ad spend back to setting records again. Automotive and CPG in particular are both seeing significantly increased online budgets. The online video networks are doing terrific business, and even Yahoo is benefiting from increased brand spend, seeing revenue growth for the first time in a while. Many brand advertisers are spending their experimental budgets widely in social media as they attempt to figure out how to promote themselves through Facebook, Twitter, Foursquare and other platforms. The key driver of this renewed confidence from brand advertisers is better measurement of brand metrics that can show the impact of online advertising beyond clickthrough.

3. Direct Response Advertising becomes ever more efficient

Grade: A. According to Adsafe, approximately half of display advertising inventory is now moving through exchanges, Demand Side Platforms (DSPs) and realtime bidding platforms, with another 23% moving through Facebook’s self service ads. These platforms are rapidly commodifying a lot of “low quality” ad inventory, enabling the use of data and targeting to find the best use of this inventory, and thereby creating a very efficient marketplace. Direct response advertisers have benefited the most from this transparency.

4. Finding money and saving money online

Grade: B-. Saving money online has been a real driver of ecommerce growth in 2010. The breakout categories of 2010 are Local Deals (Groupon, Living Social* etc), and Flash Sales (Gilt, RueLaLa, HauteLook, Ideeli etc), and both are squarely aimed at helping consumers save money. Finding money online (principally online lending) has not seen the same level of explosive growth in the US, although in Europe and India there has been real growth in microlending (including “pay day loans”) from companies ranging from Wonga to SKS Finance. I think we’ll see more from the online lending space in 2011, so I may just have been too early on that part of the prediction!

5. Real time web usage outpaces business models

Grade: B-. Twitter continues to grow in usage, overtaking Myspace to become the third largest social network in the world. Foursquare and Gowalla have grown too, but off of much lower bases, such that only 4% of internet users currently use a check-in service. Facebook also joined the Location Based Services (LBS) party this year, enabling Facebook places, which some speculate is getting 30M users already. Last year I speculated that monetization would be hard for these businesses since CPM models have traditionally been hostile to user generated content, and local ad sales is an expensive and difficult proposition. But these companies have innovated new monetization models. Twitter, through its Promoted Tweets, Promoted Trends and Promoted Accounts, is not selling media on a CPM basis, but rather selling attention, and the early returns suggest that brands are willing to pay for more attention. Similarly, the check-in services are attracting experimental budgets from national retailers as well as forward thinking small businesses who are eager to attract new customers into their stores, and reward regular customers. While the revenue numbers may not be huge in 2010, there is certainly promise to the business models that are developing on these platforms.

Overall for 2010, I figure a B average, a little worse than last year. But there is always grade inflation when you grade yourself, so let me know what you think. Now, on to my predictions for 2011:


1. Putting fun into ecommerce

In 1995, when Amazon was founded, e-commerce was like the proverbial talking dog. It wasn’t about how well the dog could talk, it was amazing that the dog could talk at all. The first generation of ecommerce sites were focused on functionality, getting the dog to talk better. We got everything from price comparison engines to aggregated user reviews to one-click checkout. These early innovations were focused on optimizing the “workflow” of shopping to get users into the checkout as quickly as possible.

This worked great for most internet users at that time because back then most internet users were men, and in general, men do not like to shop. They treat it like a chore, a necessary evil that would ideally be minimized and optimized to take the least amount of time possible. Then they could get back to doing something they enjoyed, perhaps playing video games, or watching football!

But a few years ago, that changed. There are now (a few) more women online than men. And in general, women tend to enjoy shopping more than men. Certainly more than playing video games, or watching football! If you enjoy shopping, you don’t want your “workflow optimized”. You don’t want to be rushed to the checkout as quickly as possible. Instead, you want to linger, to be delighted, to discover new things, to find great deals. You want shopping to be fun.

The Flash Sales sites and Local Deals sites both make shopping fun by offering deep discounts. This is the mechanism that they use to entice shoppers to buy something, even when they are not looking for anything specific. But discounts are not the only way to make shopping fun.

Sites like Modcloth make shopping fun through discovery. Modcloth highlights women’s clothes from modern, indie and retro designers. Because each item has limited supply, and selections are constantly changing, Modcloth builds an urgency that has users coming back frequently to see what’s new and to make sure that they don’t miss out.

Shoedazzle* makes shopping fun by democratizing the personal stylist experience. After users take a style quiz to assess their profile, they are shown a selection of shoes, bags and accessories that have been specifically chosen to match their taste. Each month they get a new selection of on-trend pieces that fit their profile. JustFab and JewelMint have subsequently launched with similar models.

More models keep popping up. Recently launched Birchbox focuses on sending cosmetic samples to its users to help them discover the perfect eyeliner or blush. Pennydrop is a Facebook app that lets users peek at discounted and constantly dropping prices on items and jump in to buy when the price is low enough.

All these sites play to the idea of making shopping fun. I expect to see more applications of these formats, as well as more new formats, all under this overarching theme. A little social shopping anyone?

2. Self-service ad platforms find their ceiling, and brand advertisers seek other avenues

As noted above, about half of display advertising inventory is now moving through exchanges, DSPs and realtime bidding platforms. Yet these platforms are only two to three years old. While perhaps only 10% of online ad revenue is currently flowing through these channels, the trend here is clear. Today, two thirds of online ad spending comes from direct response advertisers, and soon the bulk of these budgets will likely flow through bidded platforms such as these, including Facebook ads. Direct response advertisers move their budgets quickly to follow results, so this could happen within the next year or two.

Brand advertisers are also experimenting with bidded platforms. Each of the big ad agencies have their own trading desks. However, adoption on the brand side will likely be slower and far from complete. Many of the exchanges, DSPs and RTB platforms allow for bidding strategies that are easily optimized for click-through rates, but optimizing for brand metrics is much harder. Brands also care more about content adjacency and brand safe content, and these are harder to guarantee on an exchange type platform, where in some cases, ad impressions are traded several times before finding their final buyer.

In addition, exchanges by definition can only support standard ad units. Many brand campaigns incorporate custom elements, ranging from social media and other earned media components to custom microsites, site takeovers, roadblocks and other high impact units. These are often tied to specific publishers, and bundled into a broader media buy including standard ad units. Premium publishers depend on this sort of creative advertising to maintain the ad rates required to support the creation of high-quality content, and I think it is likely that this symbiosis between brands and premium publishers will continue to capture a large chunk of the brand ad budget. In fact, I expect to see a proliferation in custom ad units from the biggest and most premium publishers as they work to capture a greater share of brand budgets. Non-premium publishers that have reached the scale to become “must buys” are doing exactly the same thing. Twitter’s Promoted Tweets, Promoted Trends and Promoted Accounts, and Facebook’s Social Ads and Likes are all great examples of this trend.

3. Competition shifts from user acquisition to user retention

Today many e-commerce and subscription companies are growing very quickly through smart marketing. They are taking advantage of cheap media to cost effectively acquire new customers. As I’ve mentioned above, I think the exchanges will continue to make it easier for direct marketers to reach their customers. Facebook’s self service platform is still a relatively inefficient market, allowing savvy, analytical marketers to quickly and cheaply gain market share. However, in some categories (e.g. Local Deals) Facebook has quickly become efficient and there is already a “market price” for a new Local Deals subscriber. As more marketers take the plunge into Facebook’s platform, more categories will become efficient, just as Google became an efficient market over time for almost all keywords. Once this happens there will be a market clearing price for new customer acquisition across almost all categories, and smart marketing will no longer be as much of a differentiator.

On what basis then will winners pull away from the rest? Companies who are able to derive the highest lifetime value (LTV) from their users will squeeze out their competitors with a lower lifetime value. How can you improve LTV? There are three key factors:

  • average revenue per user
  • gross margin
  • average lifetime.

The e-commerce and subscription based companies that pull away from their competitors in 2011 will find a way to differentiate themselves from their competitors on one or more of these dimensions.

4. Social games chase hardcore gamers

Notwithstanding Disney buying Playdom* this year and EA buying Playfish last year, Zynga is still the market leader in social gaming. Their enormous installed user base gives them a real advantage in customer acquisition cost over their competitors; their ability to cross-sell installs to their new games at zero cost allows them to get a new game to scale with much lower marketing spend then smaller competitors.

To combat Zynga’s might, the other social game publishers have to focus on games with a very high LTV. High enough that the publisher can afford to rely on paid customer acquisition alone to build a user base, and still make money. Kabam (once know as Watercooler) pioneered this approach with Kingdoms of Camelot, a relatively hardcore social game that is reputed to be doing low to mid single digit millions in monthly revenue from  about 750k Daily Acitve Users (DAUs) – a monetization rate that is dramatically higher than the norm for social games. Other publishers have taken note, and I would expect more games aimed at the hardcore gamer market to emerge over 2011.

5. Year of the tablet

Smartphones transformed the mobile internet. Apps will drive $5bn in revenue in 2010. Mary Meeker presents some great insight into the future growth potential of mobile in her Web 2.0 Summit presentation, Ten Questions Internet Execs Should Ask and Answer.

The same thing will happen with tablets. While the iPad has the tablet market largely to itself this year, that will change dramatically in 2011 and beyond, just as Apple’s iPhone had the truly web-capable smartphone market to itself in 2008, but is now a minority as competition emerged from Android, WinMo7 and the modern Blackberry.

The key difference between these new platforms and the PC web isn’t mobility (although that is part of it), but rather that these devices are always on and always with you. However, use cases differ between the phone and the tablet.

Phones are with you all the time, in particular when you are out of the house and out of the office. The most popular genres of app fit well with this “on the go” usecase. Local information, “snacky” entertainment, music, games have all been killer apps on smartphones. Some web incumbents made the transition well, including Yelp, Flixster*and Pandora. Many new companies also gained ground on the phone through this disruption.

Tablets tend to live in the living room. They lend themselves more to leisure than PCs, and to more protracted content consumption than phones. Killer apps might include, video, music, games, and “reading”, broadly defined. Again, some web incumbents will make the transition well, but once again I expect to see new companies gain ground through this disruption.

What do you think will happen in 2011? This time next year ,I’ll look back to see how accurate I was. In the interim, stay tuned for more Lightspeed predictions in other tech sectors over the next few days.


* A Lightspeed Portfolio company