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TIME ASIAWEEK ASIANOW TIME


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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   ASIAWEEK
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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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