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about Asia Buzz
Asia Buzz: Golden Boy
Is
Indian-born Sabeer Bhatia onto another winner?
By ERIC ELLIS
July
18, 2000
Web posted at 1:00 p.m. Hong Kong time, 1:00 a.m. EDT
Who is Asia's biggest cyberhero? A kid called Richard with a buzz cut and an extremely rich daddy who gave him a good start? A Taiwanese boy called Jerry whose parents moved from Taiwan to grasp the opportunities of middle-class California? Or what about a moonfaced Indian programmer who left Bangalore with $250 in 1988 and returned a decade later with upwards of $1 billion?
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For pure return on investment, my money would be on the third, 30-year-old Sabeer Bhatia. His name doesn't exactly slip off the tongue as easily as Pacific Century's Richard Li or Yahoo's Jerry Yang, but his impact on Net users is just as far-reaching, if not moreso.
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If it wasn't for Bhatia, I doubt there'd be a cybercafe industry
as widespread as it is. Bhatia, of course, was the brains behind
Hotmail, the free e-mail service that more than half of the world's
Internet users have signed up for. By old economy standards, it
seems like a dumb idea; providing something expensive -- communication
access -- for free. Where's the money in that?
But
Bill Gates didn't think so, which is why he paid Bhatia and friends
$400 million -- mostly in Microsoft shares -- in 1998 to propel Microsoft
back into the heart of the Internet economy. It was the deal Gates
had to make, coming at the height of the Netscape browser challenge.
Hotmail was integrated into the Microsoft network, and now there's
barely a Web user amongst us who has never received, or sent, an
e-mail via Hotmail.
Gates
got Hotmail cheap; The tech boom picked up in 1999, giving Hotmail
a notional value at one point of about $6 billion. As well, Bhatia's
Microsoft stock took off -- and so did he. The agreement provided
for him to consult Gates on techie matters, but Bhatia had other
ideas, one of which is generating considerable buzz just days ahead
of its launch. Silicon Valley is getting all excited about Bhatia's
new venture, Arzoo.com,
mostly because he's a proven winner and Nerdistan (a.k.a. Silicon
Valley) loves "serial entrepreneurs."
Arzoo
is a Hindi word meaning "heart's desire." Its original intent was
to be a buyer's guide to the Net, a super e-commerce play with live
reviews of what to buy and where to get to buy it online. But along
came the tech-stock crash of April and the B2C [business-to-consumer]
plays were about as compelling as Singapore television.
Arzoo's business plan has since changed and it is now touting itself
as an "online marketplace for intellectual capital." So it's a job
search site? That's not new. The way Arzoo spins it, the site is
for anyone who wants information about the techie world; building
a website, fixing your home network, and the like. This is a one-stop
shop for technical experts.
To someone like Bill Gates, the idea doesn't seem as immediately
"gettable," or as unique, as Hotmail. But there's no doubting the
need for accessible technical assistance beyond those extraordinary
tomes you see geeks carting out of computer shops. I wrote last
week about the need for Home CTO's, a Chief Technology Officer for
the house who'll fix the increasingly sophisticated networking needs
of the average family home.
The
beauty of the Net will be its ability to be accessible to, and by,
all. If Arzoo can help deliver that, then it will be a winner. Whether
it will make money is another matter, but if someone flips out throwing
a Palm Pilot against the wall in disgust because it won't synch
with their laptop, then $50 spent at Arzoo might be better value
than $400 for a new PDA. Keep your eye on Bhatia.
Eric Ellis is the Southeast Asia and Technology Editor of the
regional finance portal AsiaWise.com
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