Bay area residents are very keen towards technology innovations. They have excellent views on the future of technology. They lead USA on technology issues.This market segmentation survey helped to understand how the US market respond to all the technology changes & the issues faced by them

1. NEW YORK • WASHINGTON • DENVER • SEATTLE • LOS ANGELES • SAN FRANCISCO • AUSTIN• LONDON • HONG KONG • BEIJING • DUBAI
TECHNOLOGY BY THE BAY
05.25.2010
© P E NN, S C HO E N & B E R L A ND A S S O C I A T E S , L L C .
VIEWS ON THE FUTURE OF TECH

2. METHODOLOGY
1
Objectives: To assess Bay Area residents’ understanding of tech
innovations and expectations for the future of technology,
compared and contrasted to those of other Americans.
Methodology: Penn, Schoen & Berland Associates (PSB) conducted
501 online interviews from May 10-13, 2010.
Audience: 251 Bay Area residents (living in or within 20 miles of San
Francisco, Oakland or San Jose) and 250 Americans not
from the Bay Area.
Margin of Error: Overall, the margin of error is +/- 4.38%. The margin of
error for the US and Bay Area subgroups is +/-6.2%. All
numbers shown in percentages unless otherwise noted.
If numbers do not add up to 100, it may be due to
rounding, inclusion of multiple responses or exclusion of
don’t knows.

3. BAY AREA LEADS THE UNITED STATES ON
TECHNOLOGY ISSUES
Bay Area residents are more excited by
technology – they want to know what’s next
and have the newest tech toys.
However, Americans are almost as inclined to
be early adopters and have the same urgent
need to be able to access tech.
2
Thinking about yourself and your personal
opinions / habits, how much do you agree or
disagree with each of the following statements? Agree Agree
I am excited to see what technology companies
and groups come out with next
67 78
I like to have the newest and greatest technology
available
50 60
I consider myself an early adopter of technology 49 51
I feel alone when I do not have complete access
to technology
49 53
I want to be involved in making new technologies
possible and accessible
49 57

4. BAY AREA RESIDENTS USE A WIDER RANGE OF
TECH TOOLS AT HOME
They use a broader variety of web browsers, do more
detailed social networking, are more productive at home,
and use their home tech setup more for entertainment
3
Which of the following applications do you currently use at home? Please
select all that apply.
Internet Explorer 74 68
Google Search 67 73
Facebook 52 62
WindowsMedia Player 50 53
Microsoft Office (e.g. Excel, PowerPoint, Word) 49 67
Mozilla Firefox 29 45
Microsoft Outlook 28 31
Bing 26 30
Gmail / Gchat 20 39
Twitter 20 17
iTunes 18 44
Google Chrome 16 24
Pandora 9 11
Google Docs 7 17
LinkedIn 5 18
iWork(e.g. Pages, Numbers, Keynote) 2 6
iLife (e.g. iPhoto, iMovie, GarageBand, iWeb, iDVD) 2 7

5. ADVANCEMENT OF TECHNOLOGY IS KEY TO IMPROVING JOB
CREATION, EDUCATION AND THE ECONOMY
The top three issues in America
today are job creation, the
economy and education.
6 in 10 Americans think the
advancement of technology is very
important to improving each of
these in the future.
4
How important do you think the
advancement of technology is in
terms of improving each of the
following? Important Important
Job creation / unemployment 92 89
Education 91 88
The economy 90 90
Terrorism / homeland security 86 86
The environment / energy policy 82 86
Immigration 68 69

6. TECHOLOGY EXPECTED TO OVERCOME
HUMAN LIMITATIONS
Nationwide, many expect fully functional prosthetics
(49%), hearing aids for the fully deaf (38%) and vision
assists for the blind (31%) to be available in the next
decade
Interestingly, Bay Area respondents were much more
optimistic about health-related and biotech
innovations. 27% even believe human cloning is within
reach over that time (versus 15% other US).
5
What other technology do you think will become reality by the
year 2020? All
Fully functional prosthetics 49 51 48
Alternate light sources 48 47 49
Hearing aids for the fully deaf 45 40 50
Sight aides for the fully blind 40 37 44
A cure for cancer 33 29 37
Personal servant / assistance robots 28 24 31
Human cloning 21 15 27
Vehicles that hover rather than using tires that touch the ground 20 19 20
Personal flight devices / jetpacks 12 12 12
Cities on other planets / moons 10 12 8

7. THE DEVICES WE USE ARE CHANGING
In five years, computers are expected to be more important to daily life than
televisions. But technologies that were cutting edge just 10 years ago are fading.
• 1 in 4 think that traditional cell phones will be obsolete within 5 years
• But TVs are not expected to go anywhere -- only 2% expect them to become obsolete
6
Which of these do you expect to be obsolete or no longer
used in five years? Please select all that apply.
Cellular phone (primarily used for voice and / or text messaging) 26 23
Desktop computer 25 26
Video game console (hand held) 18 11
Digital book readers (e-reader) 15 18
Portable digital media player (e.g. iPod, Zune) 13 6
Cable / Satellite TV receiver 11 9
Video game console (in-home) 10 13
DVR / TiVo 10 12
Digital video camera/ Camcorder 9 8
Tablet computer (e.g. iPad, Slate) 9 8
Home speaker system 9 7
3D TV 8 10
DVD / Blu-Ray player 7 11
Netbook computer 7 9
Blu-Ray player 5 9
GPS navigation device 5 4
Digital camera 4 5
Laptop computer 3 5
Flat Panel / Screen Television 2 2
Smartphone 2 2

8. WE WANT FUNCTIONALITY TO CONVERGE ON
OUR DEVICES
54% of both groups want one device that does
everything they need, versus 35% who prefer to
have multiple so they can choose the best one
for each need.
• Virtually identical percentages of people want to
use their device to make a phone call (26%) as to
read a book (28%) or watch TV (23%)
7
Which of the following is closer to your view? All
I want one device that does everything I need 54 54 54
I want multiple devices so I can choose the best one for
each need
35 34 37
Don’t know 11 12 9

9. MANY EVEN WANT THEIR HOME APPLIANCES
TO CONNECT
About two-thirds expect their security system,
lighting and thermostat to be networked together in
the near future.
• 34% expect their alarm clock to be included in that home
network!
8
What home appliances do you expect to become
networked or wirelessly connected to other devices
in the near future? Please select all that apply. All
Security system 72 66 78
Lighting 61 53 68
Thermostat (heating & air conditioning) 60 55 65
Alarm clock 34 33 34
Refrigerator 28 23 32
Coffee maker 27 22 32
Fitness equipment 15 13 17
Electric toothbrush 9 8 11
Don’t know 8 11 6
None of these 3 5 2
Other 2 2 1

10. BUT MANY RESPONDENTS DO PREFER SEPARATE
DEVICES FOR WORK AND PERSONAL USE
Even as we move towards single, all-powerful
devices, not everyone is convinced on whether they
want work and play to converge: 51% would prefer
having separate devices for their work and personal
activities.
Bay Area residents are split, but more receptive than
other Americans: 41% prefer one device for both
home and work, 43% want to keep them separate.
9
Which of the following is closer to your view? All
I would prefer having separate devices for my work
and personal activities 47 51 43
I would prefer having a single device for both my work
and personal activities 37 32 41
Don’t know 17 17 17

11. 10
BAY AREA RESIDENTS EXPECT CONSUMER
ELECTRONICS TO FOCUS ON MOBILE DEVICES
Computers are great, they say – but the real action is in phones, which are
getting smaller and faster and including touch technology
• Some brave souls are even looking forward to implants!
What do you think will be the next big breakthrough in consumer
electronics products?
US Bay Area

12. CONFUSION SURROUNDS THE CLOUD
Only 18% of Americans can accurately
describe or define the online Cloud.
• Though 23% if Bay Area residents know
what it is.
11
Which of these do you think most accurately describes
the Cloud in terms of online and internet use?
Storage and applications based on the internet 18 23
A brief outage or blockage in internet connectivity 11 6
An online security setting that helps prevent identify theft 11 6
A social networking group that creates a fad / trend and then
disbands 7 9
A new type of hard drive that does not use a spinning disc 2 7
None of these accurately describe the cloud 10 11
Don’t know 41 39

13. THE CORE CONCEPT OF THE CLOUD IS MORE
APPEALING TO BAY AREA RESIDENTS
Despite low understanding of the terminology, once
briefed on what the Cloud is 8 in 10 Bay Area
residents are interested in using it for storage,
syncing and apps.
• Indicating an opportunity for a company who can
clearly and accessibly communicate these
benefits to consumers.
- Other PSB research on Cloud computing reveals
that concerns about the security of these
technologies have not been effectively ameliorated.
12
How interested would you be in using the Cloud
for each of the following? (responses given once
briefed on proper definition) Interested Interested
Using web-based programs / applications 65 81
Backing up your computer or phone’s hard drive 64 72
Storing and syncing digital content (e.g. photos,
music, documents, contacts)
60 65
Collaborating on shared documents with others 51 66

14. AND CLOUD USES – LIKE STREAMING ONLINE
VIDEO – HAVE GONE MAINSTREAM
Online video is preferred over physical
discs (i.e. DVD, Blu-Ray).
• 32% of Bay Area residents would prefer
to get all of their video by stream or
download vs. 18% opting for a disc.
13
If you had to choose one of these to get all of your
videos and movies from now on, which would you
prefer?
Stream online (e.g. Netflix, YouTube, Hulu) 27 32
Physical disc (e.g. DVD, Blu-Ray) 21 18
Download a video file (e.g. iTunes, Xbox Live) 13 14
Mail delivery service (e.g. Netflix) 12 15
Video store (e.g. Blockbuster, Hollywood) 11 9

15. Consumers prefer to download music, but
stream movies. Possibly because of:
• Download requirements for larger movie files
• Storage needs for these files
• Mobility – movies tend to be a sedentary activity
compared to music
14
If you had to choose one of these to get all of
your music from now on, which would you
prefer?
AM/FM Radio 23 21
Download an audio file (e.g. mp3, iTunes, Zune) 22 33
Physical disc (e.g. CD) 18 11
Satellite Radio 17 18
Stream online (e.g. Pandora, GrooveShark) 11 8
OUR CONSUMPTION PREFERENCES FOR MOVIES
VERSUS AUDIO ARE VERY DIFFERENT

16. BAY AREA RESIDENTS EXPECT ENTERTAINMENT
TECH BREAKTHROUGHS ONSCREEN
15
Bay Area residents identify the computer and phone as key venues for the
future of entertainment – in addition to the TV
• And they’re noticing the rush to 3D taking place in Hollywood.
What do you think will be the next big breakthrough in entertainment technology?
US Bay Area

17. NEW YORK • WASHINGTON • DENVER • SEATTLE • LOS ANGELES • SAN FRANCISCO • AUSTIN• LONDON • HONG KONG • BEIJING • DUBAI
THANK YOU!
© P E NN, S C HO E N & B E R L A ND A S S O C I A T E S , L L C .