A Software Business Model That Turns Users into Partners

By Jason P. Clark

A new start-up has built “economic self-empowerment” for its users into the core of its mission.

I believe it’s safe to say that the next 10 years will give rise
to some of the greatest advances in technology we have
ever seen. We have witnessed a steady climb to a new
level of collective consciousness and distributive
intelligence through increasing Internet use. Today, social
media sites such as Facebook, Reddit, and many others
each possesses its own unique hive mind, wherein
knowledge and life experiences are shared across the
planet at the speed of light.

Yet, there is a major drawback to this fantastic future. As

we progress, we simultaneously create a great divide that
leaves behind those who do not have the means to
participate in the global hive. These individuals are
separated by economic challenges and thus are limited to
this collective information. There is a chasm between those
who have access to the Internet and those who do not.

Most of us take for granted our privileged exposure to

technology and do not think about how this exposure
creates opportunities for us later in life. Over the next 10
years, some aspects of this problem will be resolved by
cheaper access to computing and the Internet. Case in
point: The Federal Communications Commission has
submitted its National Broadband Plan for the next decade
and proposes that every American should have affordable
access to “robust broadband services.” That means at least 100 million U.S. homes should have
affordable access to speeds of at least 100 megabits per second (Mbps) for downloading and 50 Mbps for
uploading.

By 2020, access to the Internet will no longer be an issue for most who desire it. Computers will be
handed out as readily as textbooks in schools and communities. Yet, simply having access to these tools
does not instantly solve the problem of a knowledge divide. So long as a paradigm exists by which
corporations profit by directly charging the end user for their services, there will be so-called “haves” and
“have-nots” of the Internet.

Turning Have-Nots into Partners

One way in which we at Syntiant, the company at which I serve as chief technical officer, are working to
actively shift this paradigm is by incorporating philanthropy — or, more specifically, “economic self-
empowerment” — into the core of our business model. Empowering people to help themselves through
knowledge and a marketplace for knowledge fosters loyalty, spurs creativity, and creates a potential
revenue stream in the process. This approach weds individuals’ ideals with their financial interests and
shatters the attitude that an organization can’t be philanthropic and make money at the same time.

One of Syntiant’s goals is to facilitate education and social interaction, while providing the requisite
equipment and connectivity to those who need it most. Syntiant’s goal is to introduce a new profit
paradigm for a global social media company. Here’s how it works: Instead of charging users for the use of
our basic services, we will offer free access in exchange for a small computational contribution. In
essence, Syntiant will request four to five hours per day of an end-user’s unused computing time, a tit-for-
tat trade in which everyone benefits.

Syntiant will use the millions of combined hours of excess computing power to create a Global Exaflop
Supercomputing Cloud (GESC), the fastest and most distributed system of its kind. Instead of feeding
from our users’ pockets, we receive their donations of unused clock cycles, thus turning users into
contributors. By utilizing a distributed computing network already in existence, we eliminate the need for
the costly overhead associated with deploying and managing our own computing infrastructure. Syntiant
will also offer an app-store model for user-based transactions within our operating environments.

We are working on a wholly new way of delivering social networks — evaluating them as a microcosm of
the Internet itself and using already proven models of browsing and searching to improve content and
advertising delivery in a way that is tailored to each and every individual user.

The year 2020 should see many variations of this distributed, consumer powered — but not consumer-
based — revenue model. The companies of tomorrow that embrace this philosophy will stand a much
better chance at prosperity long after organizations adhering to the traditional model have run aground.

It is difficult to visualize and prepare for a coming phase change before the event, when it seems as if
chaos and entropy are increasing boundlessly. Consequently, when we originally shared our
comprehensive vision with potential investors and other stakeholders, we were told that our ideas are
scattered, unfocused, and without direction. Yet it is precisely this model of scattered, distributed
components working together as a global information system that creates value in the Syntiant network.

We are committed to overcoming the challenge of limited information access and striving to bridge the
gap by creating a global, user-built community. We believe the tipping point is soon upon us for a more
consumer-driven, user-focused world in social networks.

About the Author

Jason P. Clark is a serial entrepreneur in the field of network infrastructures, multimedia, and virtual-
reality content. He’s the creator of three international patents for uni-directional audio navigation, which
were later purchased by Hewlett-Packard. At age 32, he’s developed and acquired funding for more than
five start-up companies. He’s currently chief technical officer for Syntiant, www.syntiant.com/.

The author acknowledges Brad Thompson, CEO of Altruent, and Elliot Kulakow, partner/VP Technology
R&D at Syntiant, as contributors to this article. Without their distributive intelligence and vision, this article
would not have been possible.

http://www.wfs.org/Jul-Aug2010/Clark.htm