Silicon Valley’s journey from High Tech Capital to Disruption Capital

Author: Mark Zawacki, James Kirk (

Categories: Silicon Valley
My focus is at 650 Labs is to look at disruptive innovation and specifically how Silicon Valley is making a major shift from what we historically think of as the high tech capitol of the world to now the industry disruption capital of the world.  Eco systems are forming there and they are disrupted entire industries. So the old model is that Silicon Valley sold everybody a so called technology stack and now it is building businesses that compete with the very industries that once it was just a technology provider to, so the old model – kind of think of it as an arms merchant, Larry Elison sold everyone in the world the technology stack and he bought a lot of nice sail boats, the new model we think of more as a mercenary and a mercenary is very different than an arms merchant.  What a mercenary does is he builds a professional army, gives them the best equipment and tools, they are well funded and they put them on the battle field and they say take land, take market share – very simple example is iTunes.  When iTunes was created Steve Jobs didn’t go to EMI music and say would you like to license my music database that would have been the old model, the new model is he put it on the battle field and it is a 20 billion dollar business for Apple now in digital goods.  
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