Distributed computing is part of the essence of Internet. The network of networks is built around distributed routing nodes (routers), that route IP packets with no central intelligence nor control. Internet protocols are “distributed” by design, and that is what gives Internet the power to scale without limits. P2P is also a showcase of the power of distributed architectures, where the client and server decentralization is taken to a extreme.

The Fuel Cell Boxes, like those of Bloom Energy in the CBS video clip above, will bring to power generation the same kind of revolution that Internet continues to bring to telecommunications. If the promise of the Bloom boxes at reasonable prices in 5 years turns true, power utility companies are going to go through a big transformation and we are going to have a much greener planet.

The video is worth watching, but if you are outside of US (the clip might not play), you can read a good summary of it here.

By the way, The Federal Energy Regulatory Commission issued an order last week giving Google the authority to buy and sell wholesale electricity just like a utility. Google was the first customer of Bloom Energy. Any connections?

Via Martin Varsavsky, I find a WSJ article where Steve Forbes gives a provoking view on the roots of the Banking Crisis. Mark-to-market or “fair value” accounting for financial institutions was re-established in 2007 in USA. The Financial Accounting Standards Board (FASB) rules that the balance sheet must reflect the “market” value of the financial assets.

With the market value of financial assets  falling after the system credibility crisis, banks are dragged close to bankruptcy only due to the need to account for assets at today’s market valuation.

Quoting Mr. Forbes:

Regulatory capital by its definition should take the long view when it comes to valuation; day-to-day fluctuations shouldn’t matter. Assets should be kept on the books at the price they were obtained, as long as the assets haven’t actually been impaired.

Mark-to-market accounting does just the opposite. When times are good, it artificially boosts banks’ capital, thereby encouraging more investing and lending. In a downturn it sets off a devastating deflation.

Mark-to-market accounting is the principle reason why our financial system is in a meltdown. The destructiveness of mark-to-market — which was in force before the Great Depression — is why FDR suspended it in 1938. It was unnecessarily destroying banks.

And a proof point of this thesis can be that while American banks like Citibank are near-bankrupt, other banks in Europe like Santander, less exposed to American accounting rules, seem healthier even though the fundamentals of Spanish economy are much worse than in US.

Markets are so volatile that the idea to use them for accounting is a recipe for system instability.

Take Santander stock price as an example. Why Santander PER is currently 4 (with a 11% yield), when during last 7 years it had always been above 20, with a mere 2% yield? Which valuation is “fair” for accounting? the one of last 7 years? or that of last 7 months? Isn’t the valuation just reflecting how optimists or pessimists are investors? should “optimism” be accounted in the books??

Economics is far from exact science, and it is remarkably incapable of predict, sometimes even explain a posteriori, events such as the current crash. What we know from economists is that people expectations are the most reliable indicator to predict the growth or slow down of economic activity. The credibility of the financial system is now below limits. Fear (panic) to a banking system collapse is reducing consumer spending, companies forecasts are revisited and unemployment surges as companies prepare for the downturn. A vicious circle that the accounting rules strangely help accelerate.

An accounting system based in market valuations, under the current gloom, makes the simple possibility of bankruptcy a self-fulfilling prophecy. 

One year has passed since we started this blog with Steve Job’s famous commencement address.

Less than one month later a post on LinuxMCE made it to the front page of Digg, and got 25.000 visits in one day!

Since then, we have spoken about iPhone, Android, Mobile Internet, Mobile TV, IPTV, Internet TV, the economy of free, netbooks, WiMAX, clouds, pipes and even nanotechnology. We have also echoed from great entrepreneurs as Guy Kawasaki, Tim Ferriss or Martin Varsavsky.

It has been close to 200 posts, 250 comments, 139.000 visits and 260.000 pages.

Thank you for being there.

Note: Did I mention we also wrote about iPhone?

Financial Crashes and Bubbles are opposite expressions of how absurd and irrational markets can behave. Markets over-react irrationally, driven by the irrational sentiments of fear and greed. Panic drives the Crashes and over-enthusiasm drives the Bubbles.

Larry Page, co-founder of Google, just landed in Spain to receive the Principe de Asturias Prize, the Spanish version of the Nobel Prize. In his dialog with the press, Larry said that, working in Search, Google aims to be more and more intelligent, know more and more, gather more information and develop more intelligent computers. Artificial Intelligence is their next target.

Is this funny video an exaggeration or is it what Larry and Sergei really aim at?

Know everything about you and those around you.
Decide and act on your behalf.
Suggest new initiatives.

Isn’t life so much easier thanks to Google?

The video shows a keynote of inventor and futurist Ray Kurzweil in February 2005. Despite being more than three years old, his insights remain as valid as ever.

Some of the points Mr. Kurzweil makes:

• Most new inventions fail only because of wrong timing. Not all enabling factors will be in place when needed.
• The price of Google stock in three years, or which wireless standard will win, can not be predicted.
• The cost of a MIPS or a MB of data transmitted wirelessly in 5 years can be quite accurately predicted.
• As the power of computing grows new applications will emerge to benefit from it.
• In 2020 there will be no computers as we know them today. They will be embedded into other systems, including our body.
• In 2020 computers will be able to record and reproduce emotions our nervous system.

In summary, when searching for the next breakthrough application always consider what future we are facing, what kind of computers we will have in the next 5-10 years, and more importantly what kind of problems will all this bring.

Focus on solving the problems of the future by harnessing the power of the computers of tomorrow.

A few weeks from its first anniversary, tech-talk.biz becomes Disruption Matters.

The change in name stresses the increased focus this blog will have on technologies and ideas that are transforming our World. And few areas are changing it as fast as the Communications Industry and the convergence of Telecom, Internet, IT and Media.

According to Wikipedia:

A disruptive technology or disruptive innovation is a term describing a technological innovation, product, or service that uses a “disruptive” strategy, rather than an “evolutionary” or “sustaining” strategy, to overturn the existing dominant technologies or status quo products in a market.

Disruptive technology (and later disruptive innovation) is a concept coined by Clayton Christensen, and widely extended in the industry after Christensen’s book The Innovator’s Dilemma.

Disruption is about creating new markets, either with discontinuous technology or with disruptive business models, and sometimes with both. Skype, the iPod, Amazon Kindle, and even the iPhone are examples of disruptive innovation, not just based on technology but also on new business models with a great product packaging.

Disruption is creating and destroying whole industries at its fastest pace in History. It deserves attention. Disruption matters today more than ever.

After a few days of use, I am delighted with the simple, clean, minimalistic user interface. Some people complain about lack of support for toolbars or not having a proper bookmarks organizer, but I love the Google concept of “forget about folders and simply search” when you need to find a page you bookmarked, or you visited. Same as in Gmail. Why waste time organizing emails into folders, if you have a powerful search feature. The single box for search and URL with autocomplete it is also an improvement once you get used to it, even if it feels strange at the beginning to search for words on what used to be the URL box.

Great job Google!

After a long summer break, welcome to the new season of tech-talk.biz

It has been two months with big sport events as the UEFA EURO Cup and the Beijing Olympics, covered for the first time not only on TV but also on Internet and mobile phones. And competition has not been intense only in Beijing these days among the Phelps, Bolts or Nadals, but also between the biggest challengers to Nokia’s reign in the handset market.

On 11 July Apple launched the much awaited 3G iPhone in 21 countries, and 20 more would follow on 22 August, including Singapore, Philippines or India. The 3G iPhone has not disappointed, though some complained about 3G connectivity issues supposedly linked to its Infineon chipset, and promised to be fixed in the next iPhone software update. Still the launch can be considered a great success with more than 6 million units being sold in the first 2 months.

iPhone competition has not taken any break, and the first Android handset is rumored to be launched by T-Mobile US as early as September. The handset comes from Taiwanese vendor HTC, and has been dubbed Dream, although the official name will be G1, reminding it is the first Google phone in the market. Equipped with a sliding full qwerty keyboard, a full web browser and a powerful CPU,  it will have access to plenty of applications to download from Google’s App Market. I can not wait to grab one.

In parallel, RIM is about to launch its Blackberry Bold, targeted to keep the heavy email business users away from iPhone, and adding functionality such as iTunes sync, GPS, Wifi and HSDPA support. Even some iPhone users might switch back to this beast from RIM once they realize email is so much easier.

Competition is great, both at the Olympics and at making us mobile users happy.

Spain is the Champion of the Euro 2008. Forty-four years after the European Cup that Spain won in Madrid in 1964, this is the only major title the Spanish squad has conquered.

Spain has been a favorite for many major tournaments before only to disappoint and lose in quarter finals in most of them. But this time the Spanish team has not only displayed a beautiful game, but also has shown a determination to win, not seen ever before in the Spanish team.

A great team spirit and huge self confidence, but above all the winning attitude free from the ghosts and fears from the past.

The Spanish soccer team joins Fernando Alonso, Rafael Nadal and a bunch of great basket-ball players moving to the NBA, led by Pau Gasol. A generation of winners that are a true inspiration.

“Podemos” was the cry from Spanish media to motivate the soccer national team. It translates as “Yes, We Can”. Barack Obama may have had an influence well beyond USA borders.