2009 is the best time to graduate in last 50 years: Google CEO Schmidt @ Stanford

Google Chairman and CEO Eric Schmidt knows well that the global economy is staggering, that the job market is downright ugly, and a recovery is unlikely before 2010. But he also believes 2009 is a great year when it comes to one thing: potential.

Change happens when things are hard, Schmidt said in March at the View from the Top Speaker Series at the Stanford Graduate School of Business, Silicon Valley (USA). The economy and the situation that were in now will create phenomenal opportunities that are before each and every one of you. If you think about it, this is literally the best time to graduate in 50 years. Assets are cheap, and expectations are set realistically.
The genius of the American system is that it corrects, said Schmidt, who advises the Obama administration on technology policy and the economy, and is a lecturer in strategic management at the Business School. Whatever you think of the previous structure, its just being corrected big time. And I mean big time. In one month, enormous aspects of our government are being redone.

Assumptions have changed since many technology companies were founded, Schmidt explained. For example, Larry Page and Sergey Brin created Google on personal computers at a time when networks were less reliable than computersunlike nowand smart phones and other internet-accessing devices were far less ubiquitous.

Why did Larry and Sergey use PCs? Schmidt said. Because they were cheap.
Now internet access is cheap and widespread, and businesses rely on it far more, he said. With cloud computing its now possible to have the same apps at home and at work and still have the same level of security.
But cloud computing needs to evolve, Schmidt said. When television first came out, the first shows were radio shows on television, which didnt take advantage of the visual medium, he said, adding that people are just learning how to take advantage of cloud computings potential. If users allow companies to amass data on queries without invading privacy, for example, trends can be seen about everything from food preferences to pandemics.

Instead of reading from textbooks, students could be assigned a set of queries, he said. Some would find information that would enthuse them, and they would become experts for their classmates. You have all the information in one place and you have access.

Having so much information so accessible leads to exciting applications, Schmidt said. He said Googles Android operating system in cell phones, for example, can take pictures of the buildings around you and use GPS to tell you a lot about each of themand what goes on inside.

All of a sudden, youve got a GPS and a camera and a supercomputer in your hand, backed up by all the worlds data. Another of his favorites: A product lets you scan the bar code of an item in a store, then tells you if its cheaper online.

Amid his enthusiasm, Schmidt also realizes there are always people resistant to change, particularly companies afraid of competition. That resistance weakens during a recession, however, which is why he expects changes soon.

Literally in the next year, Schmidt said. Thats how quickly.

The View from the Top Speaker Series is organized by students of Stanford Graduate School of Business with the cooperation of the Schools Center for Leadership Development and Research.