I remember well during the fun days of dotcom 1.0 when Bill Gross came up with wacky idea after wacky idea, most of which happily bombed. So I wasn't entirely surprised to see him come out with stuff like this:
We started making only Internet companies because we felt this was an incredible new medium that had unbelievably high gross margins. If you could make a Web site, you could sell something online and you could make margins of 90 percent or higher. When we looked back at the ones that were most and least successful, we realized it had nothing to do with their margins. It had to do with how protectable the idea was. Was there a core intellectual property with which you could differentiate yourself and earn sustainable margins? Because you can make good margins online, but if you can't sustain them, it doesn't mean anything.
So that led us to take another look at all businesses - even companies that make physical products. We had shied away from making anything with atoms; we were all caught up in doing only things with bits. But you can make things with atoms and still have a huge amount of intellectual property in them, where you can earn good margins and protectable margins.
That sounds, well, just gross, really, with its sad little obsession about intellectual monopolies. But reading further on I came across this:
I feel that the biggest disruption that will happen in this century is distributed energy generation. In the past, there was an economy of scale, so you had to build a 1-gigawatt nuclear or coal plant somewhere, and you had to do it far away from people because no one wanted it in their backyard. That was possible because of copper. Only copper could keep that plant far enough away that we wouldn't see it or smell it, and copper could bring those electrons magically into our house. But there's a huge loss by the time the power gets to us - with copper, it's up to 15 percent.
When you can build distributed energy generation on your roof with 10 feet instead of hundreds of miles of copper, you can avoid those huge losses. If you can get lower-cost solar, which we're working on very hard, and if you have the subsidies, all of a sudden it makes sense to have your own power plant on your own roof. Having your own power plant on your roof is just an unbelievable concept that wasn't even possible in the 20th century. It is going to be possible - and necessary - this century if we're going to solve the climate problem.
Spot on. Let's hope this is one Gross idea that succeeds.
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