Stanton Champion

So after a brief delay, I thought I would follow-up on my last article about adults who think the youth of today are “dumb.” As someone who is almost but not quite 30, I figured I would reply with my own assessment about why adults aren’t so bright themselves.

Of course, these are all generalizations and many are a little sarcastic as well. Plenty of people over 30 don’t fit these descriptions, but since we’re throwing generational rotten tomatoes I figured I would fire a few myself.

1. You resist learning new things - It is my greatest fear that as I grow older I stop taking interest in new things. New stuff is fun! I don’t have time to dive into every single new website out there, but I love watching how people adopt and use things like Twitter and Facebook. I can’t wait to see what the future brings. Why do so many adults resist innovation as they get older?
2. The past wasn’t as great as you remember - In my lifetime, a vast superpower bent on my destruction has been largely tamed, vaccines have been discovered for several dangerous diseases, and a global communications network has grown to connect us all. These things and more have made the world a better place. “Simpler times” weren’t really that simple, and the reality is that almost everyone in the United States has a higher standard of living now than they did 50 years ago.
3. Young people are never good enough - Young people never meet with adult expectations, and what’s worse adults always fear our mistakes will end the world. Everyone makes mistakes, and most people rise above them while a few are left behind. This has been true for thousands of years, and today’s young people are not any different. Rather than complaining about our perceived foolishness, adults should try to mentor us instead. Most young people appreciate good advice and wisdom, especially if it’s given by people who want to work with us rather than against us.
4. You expect tomorrow’s generation to pay your bills - We have our lives to build, but if we’re also paying for your lavish decisions we’ll never succeed. Keep us in mind when you make your choices. Sometimes we just can’t afford what we want. We shouldn’t have to tell you this.
5. The unknown is scary for you - The world is full of interesting people, places, and things. Globalization has brought an encroachment of new cultures and experiences, and as a young person this is incredibly exciting. Don’t fear these realities, but embrace them. For example, when eating at a foreign restaurant, neither the food nor the people serving it are likely to kill you.
6. Don’t begrudge our choices - For a while, the news reported that Gen-Y really liked “praise” in the workplace. A lot of adults were befuddled by this, and everyone had a good laugh at our expense. Thing is, we’re used to instant feedback and constant communication. We like it. Instead of laughing at us, try to understand what we’re getting out of the proposition. We more rapidly learn from our mistakes and develop our strengths while sponging up knowledge in the process. It works! We’re coming after your jobs, after all.

Previously: You Think We’re Dumb? - Part 1, Your Logic Stinks

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It’s almost human nature to believe you’re better than those who are younger. Usually this griping is short sighted, and none of it more so than the dreck that has poured forth from Emory University professor of English Mark Bauerlein. The good professor recently wrote a new book titled The Dumbest Generation in which he complains that technology has lowered the standards of youth under 30 and made us all dumber. His eight points are neatly summarized by this feature in the Boston Globe.

Well, as a member of the under-30 crowd, I thought I would reply to his points as best as I could given my apparent lack of intelligence.

1. They make excellent “Jaywalking” targets - I’m not even sure what “jaywalking” means in this context (maybe I’m not bright enough) but supposedly we are cutoff from realities that don’t include “friends, work, clothes, cars, pop music, sitcoms, Facebook.” However, when has any society paid much attention to realities beyond immediate human contact? Up until this century, news from around the world was scarce and we only had our immediate friends and work. Meanwhile, the Internet has brought us access to people who are exposed to more experiences and places than ever before. For example, Twitter users were on top of the Chinese earthquake before the mainstream media.
2. They don’t read books — and don’t want to, either - Poor English professor, nobody wants to read his book. Bauerlein foolishly defines book reading as a metric of intelligence rather than reading itself. People who are online do a lot of reading, and the fact that books are in decline means absolutely nothing. This argument is equivalent to me saying that the “new generation is so unsophisticated because they refuse to use horse drawn carriages and prefer the disgusting and noisy automobile.”
3. They can’t spell - The good professor should leave his Ivory Towered office and go visit a social scientist in the linguistics field (maybe none of the linguists at Emory are over 30?). What he would learn is that language is fluid and relative and that spelling is really just a social construct. If he used many of the technologies he seems to dislike, he would also realize that the amount of communicating between people has reached a level where shorthand is more convenient. While long and thoughtful letters are nice, the form has languished due to the immediacy of instant messaging. We should be grateful, however, for this rapidity because it has unleashed an avalanche of economic wealth and benefit including rampant globalization. Instead of crafting a 30 page letter to an Indian developer that takes weeks to arrive, I can have an instant message conversation now.
4. They get ridiculed for original thought, good writing - I have never once been ridiculed for my writing - other things - but never my writing. The Internet is filled with excellent writing by people under 30. Idiots are everywhere and in every generation, so perhaps Professor Bauerlein is generalizing a bit?
5. Grand Theft Auto IV, etc. - What does the success of a video game have to do with anything? The new Grand Theft Auto has been praised for its immersive style and complex game environment. Much of that game was developed by people under 30, many of whom are very entrepreneurial. $500 million in sales represents a tremendous economic exchange, creating wealth for all participants. Maybe the professor believes that a violent video game creates violent people. Unfortunately, this idea has been debunked…by actual scientists.
6. They don’t store the information - We’ve grown accustomed to the vastness of the Internet, allowing us to focus on learning the things that matter while referencing the things that don’t. Are we “dumb” because we find Wikipedia more useful than rote memorization rather than focusing on innovation and creativity which are drivers of new wealth? We can only do so much with our free time, and if I need Wikipedia to tell me the state capitals, can anyone really argue that this is bad? If so, give me a good reason.
7. Because their teachers don’t tell them so - We are never told “no” or something. This reeks of generalization, but I can’t help but wonder if the professor was ever exposed to youth? Perhaps he was hatched, thus missing out on this life phase. Teens have spent hours pointlessly communicating with peers for a long time, and it’s all part of growing up. Prior to the web, it was constant talk on the telephone. Today it’s IM. Nothing’s changed. People grow up and do fine regardless.
8. Because they’re young - The worst argument of the batch. Everyone is young at some time, and that no more means we’re the dumbest generation than you were. However, plenty of young people are enormously successful. Bill Gates and Mark Zuckerberg both founded wildly successful companies while still in college, as did Michael Dell. Google and Yahoo! emerged as Stanford PhD projects.

The youth of today are doing just fine. We should be proud of their accomplishments and encourage them to do more.

Since we’re generalizing a bit, I figured I would next write something inflammatory about why adults are “dumb.” Stay tuned!

Follow-up: You Think We’re Dumb? - Part 2, Adults are Dense too!

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Now that I’m using Twitter, I’m having the damnedest time explaining it to anyone else. When I describe it, I always get blank stares followed by “I don’t get it.” What I need is a short description (Tweet length of less) that describes the real value of Twitter. This seems so easy for other technology:

• Email - send letters and messages around the world, instantaneously, and for free
• Instant Messaging - real time online conversations
• SMS - send a short message to any cell phone owner without worrying about where they are, what they’re doing, or if you are interrupting them
• Facebook - easily keep track of old and new friends
• Hulu - quality TV online when I want it

I could go on, but I think you get the idea. What do I say for Twitter? “like SMS but mass broadcast?” “short conversations with anyone?” “status updates for all your friends?” “like a chat room on the web?” I’m drawing a blank, but any ideas would help. How do I pitch Twitter to a non-user?

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Where is the most wind power produced in the United States? If you think it’s California, then you’ve picked the second biggest wind producer with 2,439 megawatts of installed power. The correct answer is Texas with a staggering 4,356 megawatts of wind power and another 1,238 under construction (California only has 165 under construction). This New York Times article has a great analysis of wind power here in Texas and why it’s growing so rapidly.

There are a few reasons in particular. One is that Texas is a vast state with both large empty plains and large cities that consume power. The second is that a single state controls the utilities connecting everything - you don’t have to figure out how to move power from one state to another. But the biggest is that Texans like making money from energy, especially when we make it ourselves. Quoting the Times who interviewed local billionaire T. Boone Pickens:

“I have the same feelings about wind,” Mr. Pickens said in an interview, “as I had about the best oil field I ever found.” He is planning to build the biggest wind farm in the world, a $10 billion behemoth that could power a small city by itself.

His windmill plans include a 4,000 megawatt site, while separately Shell and TXU are planning a 3,000 megawatt site in the panhandle. All told, Texas is looking to have over 12,000 megawatts within a few years. That’s equivalent to 4-5 large power plants (for perspective, the South Texas Nuclear Generating Station near Bay City generates 2,500 megawatts).

The wealth generated by wind power is plainly staggering. Entire West Texas towns are suddenly prospering, and one rancher mentioned in the article receives $500 per month per windmill. He has 78 today and another 76 coming, yielding almost $1 million a year for the value of capturing some wind flowing over his property.

On the other hand, not all Texas counties are alike. The map on this page (scroll down) breaks down the wind power available in different regions of the state, showing outstanding opportunities in the panhandle, the Pecos mountains, and along the coast. East Texas, sadly, is a little more out of luck. However, the possibilities are enormous for the future. Read Table 3 and you’ll see that the medium wind regions alone can power 371% of the state’s electrical needs.

I love the idea of wind power, and as the technology improves it’s only going to get cheaper. One doesn’t need to dig too deeply to see that there are tremendous opportunities here for making money, especially if you own land in one of these windy regions. The rest of the country will catch on soon enough, and pretty soon I think we will see wind farms up and down the plains.

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Blogger extraordinaire Robert Scoble paid a visit to Rackspace today to see what was happening with technology in San Antonio and to hang out with the company. He seemed to like the place and he had some pretty glowing stuff to say about what we were doing. After having a look at our new building, interviewing a lot of people here, and getting to know the business, he did an hour long Q&A session. A few notes:

• On SXSW Interactive - I got a little bit of one-on-one Q&A time with him before the session and asked how he liked SXSW. He called it “one big party where it’s all media people.” Compared to the Web 2.0 conference, it was less about the business and more about the technology and media. He pointed out that while Web 2.0 was about 10% women, SXSW was almost 50% women indicating it had a stronger media bias and a more laid-back focus.
• On Austin - I wanted to know if he thought the SXSW attendees were mostly from Austin or if they were coming from elsewhere. He answered that he thought they were largely coming from other places. That made me wonder what his thoughts were on Austin as a tech startup center, and he just didn’t sound that impressed. He wasn’t able to put his finger on what was missing, but he pointed to “lack of good PR” as the big reason. He said that there just isn’t that much to write about here, but in Silicon Valley PR people and great stories are everywhere. It feeds itself.
• On Management - From a question in the Q&A session, he said that Google is doing things right and they’re getting better. “They’re on five cylinders now, but soon they’ll be on six. When they finally get on eight, their engine will really purr.” He pointed out that while Microsoft and Yahoo! were going to be distracted by their merger, Google would be getting better each and every day.
• On Media - He pulled out a little 3G camera phone from his pocket and started live video blogging the session on qik. His video feed went live to the Internet, but more incredibly his phone would show comments back to him as they were posted on the website. In essence, he can create a live video blog post from anywhere he can pick-up a 3G signal while interacting with his audience in real time. Instead of just being content for his audience, he turned his audience into content.
• On Steve Jobs - When asked, he said that Steve was the guy he most wanted to interview. Scoble complained that Jobs is always on message and it’s really difficult to get him to relax and talk about something other than what he wants to share for PR purposes. He compared this to Rackspace where he could get people to talk about whatever and create a “really fun” conversation. During the session, he turned to our founder and said “Of course, when we talk about stuff I’m totally using you, but then again you’re using me. Still, that’s what makes this fun.” Like with the camera, it’s clear he sees that content can flow both ways.
• On Blogging - Scoble is most known for his blog, and he was emphatic about how incredible the technology had become as a relationship builder. As he put it, he gets to share what he’s passionate about with people who are also passionate about the same topics. However, he also talked about how his blog also let him archive things about his life in a way that made it easy to dig up later. If he wrote something and wanted to remember it in the future, all he had to do was turn to Google and dig up the blog post. This ability to rapidly search through blogs was also important for companies, and he again used Google as an example where he said that the Calendar team would use Google Blog Search each day to read new posts that had been written in the past 24 hours. From that, they would identify the issues on which they needed to focus and prioritize their daily work.

All in all, Robert Scoble gave a great session, and I’m really glad he had the opportunity to visit and talk with us.

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While it’s on my sidebar, I really want to point out the Silicon Alley Insider; a blog run by one time securities analyst now banned from Wall Street for life Henry Blodget. He made some bad calls during the dot-com era, but Wall Street’s government mandated loss is our gain - SAI is an outstanding wealth of technology business analysis. Blodget’s post titled Hulu: Great Product, Still Screwed is a perfect example that captures the unsettling economic problems facing NBC and News Corp’s soon to be released online video service. (Disclosure: I posted a comment on the Hulu post).

While Blodget’s thoughts are well reasoned, I should also add some positive perspective. I have a beta membership to Hulu and I have to say the service is outstanding. The video quality is great, the ads aren’t terribly intrusive, and the interface is decent. My biggest complaint is that searching for videos is more challenging than I would prefer, especially for shows like Saturday Night Live where there are literally hundreds of clips available. Still, as far as legal online video goes, Hulu is the best thing going right now and leaves iTunes in the dust by virtue of being 100% free.

Which leads me to my next question about why I would even want to own a TV. With so much quality media online, does the traditional TV even matter anymore? I, for one, am not planning on buying an HDTV any time soon, and might even take the opportunity to just throw away my old TV when the digital switch happens next year. What are your TV plans (there’s a poll here if you don’t see it in your RSS reader):

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I haven’t written anything about the Yahoo!/Microsoft deal yet, but this post on TechCrunch sums up some of the problems nicely.

In short, Yahoo! still has some very popular properties, and this is one of the reasons Microsoft feels like the two companies are a match. They can place ads on Yahoo!’s popular sites. Yet the question remains: can Microsoft retain the profitability of these properties given a very ugly and difficult merger? Internet companies are driven by the talent of their people, and without the right leaders providing vision for product, design, or engineering, Internet products can get really stagnant really fast. There’s some stickiness to some of Yahoo!’s products, like Flickr and mail, but customers will switch if they think their platform is dead or dying.

If this gets ugly, both Microsoft and Yahoo! will have a hard time retaining talent. That’s good for competitors, but bad for this deal and the shareholders of both companies. Ultimately, the lesson here is that hostile takeovers of Internet companies are really, really hard because the valuable assets are mostly intellectual and talent related. Microsoft may prove this wrong, but somehow I doubt it.

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David Boland, who graduated with me in my MBA class at Cornell, just launched a really interesting new business called AdJack. David’s site lets you watch advertisements in exchange for a chance to win a cash prize, all while letting you rate the ads you like and dislike. Each time you watch an ad, you get a random number. Watch six ads, get six numbers, and be entered into a lottery with a $100,000 prize.

David’s a great guy and he’s been working on this project for over a year. And if you’re not the type to be impressed by an entrepreneur starting a new business, then you should also know that prior to business school Dave was an F-18 fighter pilot instructor for the US Marines!

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Yesterday Fortune Magazine released their list of the 100 Best Companies to Work For in 2008, and Rackspace made the list at #32! Fortune requires that companies have at least 1,000 employees to enter the competition, so this is the first year Rackspace has been eligible. What’s amazing is that we could simply jump on the list at #32 with our first entry into the competition.

What’s also interesting is the list showing top companies by projected job growth. Rackspace comes in at #4 with 38% - a number that is simply huge when you think about it. To put that in perspective, we have something like 2,100 people this year while last year we had fewer than 1,000.

We’re all excited, and I’m not kidding when I tell people this is a great place to work.

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As TechCrunch, BloggingStocks, and others have reported, Apple’s stock price fell hard both during and after Steve Jobs’ keynote (summary here). Reasons vary for the now $12 drop, but certainly part of this is related to the overall market drop today on the Citigroup news. However, BloggingStocks hit on three other distinctly Apple reasons:

• The iPhone quite frankly hasn’t done as well as expected. Selling 4 million units so far isn’t bad, but they promised 10 million unit sales in 2008. Given that there were no updates to the core product itself (3G support), the expectation for a boost in sales this year beyond that figure will be hard to come by. Expect Apple to make their target but not kill it. End result: the stock is probably overvalued because it’s priced with higher expectations.
• The price drop for the Apple TV lowers its margins. I’m not so concerned about this, mostly because it’s a dirt cheap system to begin with, its specs aren’t dramatically changing, and it’s demand curve will likely change in the coming year because of the new movie rental deal.
• Nobody is really sure about the Macbook Air. It’s a cool product, but at $1,799 it almost seems overpriced. At $3,000 when equipped with a 64GB solid state drive, it definitely seems overpriced. My take is that it’s a gorgeous product as usual, but there’s nothing here to dramatically shift the market for lightweight portables. The people who bought thin notebooks before will find this interesting, but the average buyer will find more value in a regular Macbook at a far lower price point. Expect this product to do well, but not stellar.

End result: the stock just doesn’t have that much to go on. The biggest news from a revenue point of view is the iTunes rentals, but Apple makes very little off of traditional iTunes sales. If this boosts Apple TV sales, that might be nice, but it’s still an unproven product with a poor track record. Rentals might sell more iPods or notebooks, but all that is probably already baked into the price.

On the other hand, someone who thinks the Apple TV will be the next iPod could make a very nice purchase on AAPL today.

What do you think of the Macbook Air?

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