The Smart Enterprise Wave (8VC)

Summary

• Five major trends dominated Silicon Valley over the last hundred years, and a sixth, Smart Enterprise, has emerged.§1
• In the past five years alone, the amount of data in existence has grown to over 2 trillion gigabytes.§1
• Smart Enterprise companies integrate heterogeneous big data, leverage consumer-wave IT advances, and harness network effects within industry verticals.§3
• The major enterprise industries comprise 70% of industry value as a percent of GDP.§4
• State and local governments spend more than $30 billion on old enterprise software, and three cities in California filed for bankruptcy in 2012.§4
• Startups will play an important role, as the financial cost to innovate has decreased and continues to fall.§5

Key insights

1. An iOS developer can build one application and potentially reach over 400 million iOS devices.§3
2. More than 50% of original US oil reserves remain down hole, leaving 100 billion barrels ($10 trillion) not economically recoverable today.§4
3. OpenGov's platform lets governments visualize financial data, flag waste, and benchmark across cities.§4
4. Palantir, Box, Addepar, and RelateIQ attract top engineers.§5
5. Enterprise software of the Oracle and SAP era streamlined back-office processes but innovation grew stagnant.§2
6. Large corporations must partner well and share the upside with Smart Enterprise companies or fall behind.§6