''Red Herring'' publisher Alex Serge Vieux is an opinion-maker in the global high-tech industry. Vieux is visiting Israel this week to attend Ernst and Young’s Journey 2005 Conference for Venture Capital and Entrepreneurs of Emerging Growth Companies. A Frenchman of Haitian extraction, he has a record as an entrepreneur, journalist, publisher, and academic.
Vieux started his career at Andersen Consulting, and later took a position as the US business correspondent for the French daily “Le Monde”. As an entrepreneur, Vieux co-founded CATS Software and Renaissance Software, two firms focusing on the banking industry. Today, in addition to being the publisher of “Red Herring”, he is chairman and CEO of Dascar, and has served or currently serves as a director of several international public and private companies, including Avanquest Software (Euronext:BVR) (formerly BVRP), Check Point Software Technologies Ltd. (Nasdaq:CHKP), Commerce One LLC, Computer Associates (NYSE:CA), Daum Communications (KSE:25720, Kyriba, Qualys, and Tandem Computers. In 1997, he was named president of the Infotech Commission for the French Republic, under the auspice of the Minister of Economics and Finance.
Vieux has been named one of the most influential people in the European technology community for several years running, in “Time” magazine’s Digital Europe A-List of the top 25 people shaping Europe’s new economy.
Vieux considers himself as a “living bridge” between Israel, Asia, the US, and Europe. At the Journey 2005 Conference, he will outline where high-tech and IT are heading in the years ahead.
Vieux told “Globes”, “I will try to explain to my listeners that IT is on shaky ground. IT is undergoing a great change, and companies must adapt to new territories and languages. There is immense pressure on the entrepreneurial community and companies to develop less expensive products that are easier to use.”
Vieux says IT is changing because customers want to understand what they are buying. “These changes will affect all companies. New products will be have to combine all forms of communications: to the home, handsets, and mobile computers. This will affect venture capital, entrepreneurs, and established companies. No IT sector will remain unaffected by great changes.”
Vieux claims that the center of power in the world of technology has shifted, and that China, India, South Korea, and other countries are already real high-tech centers. “Tennis once had a few stars who won every tournament: Bjorn Borg, John McEnroe, Steffi Graf, and Serena Williams. That’s how it was in technology: the US won every tournament. True, we sometimes saw a successful company from Japan or Europe, but the US usually dominated. This situation has changed. Today, there are Chinese, Indian or Korean companies that can threaten US hegemony, because they can win.”
“Globes”: Do you think US anxiety about job flight is justified?
Vieux: “Absolutely, but it’s too late. I’m talking to you from Shanghai, and I tell you that high-tech jobs have fled, and will stay here. There are reasons for this. I call it a vicious cycle. These countries have sacrifice and talent, there’s a strong value of creativity, and local governments directly and indirectly help financing of technological activity and companies. Capital is available for technology, and there is awareness of the change in the global IT food chain. The future is rosy and bright in China and India.”
What will be Israel’s fate as a high-tech power in the face of these world powers?
“You have to be fair. Israel has no way of challenging the fact that China and India each graduate 500,000 engineers a year. Tiny Israel simply cannot graduate such a number. In addition, there are huge domestic markets in the East, which Israel lacks. Therefore, Israel will have to overcome its fears, and understand that it will not be possible to compete against or fight against such forces. It’s like a monkey challenging a gorilla.”
So you recommend collaboration under these circumstances?
“It’s not clear whether China wants to cooperate with Israel. It’s necessary to fight every day, and it’s a hard fight. I wouldn’t rush to declare the results. Israel has had some tough battles in the past, and may be able to preserve its position, which is huge.”
What about European high-tech?
“Europe is like a nature reserve in this context; a history museum. It will remain thus until it wakes up. Not only governments, but also people will have to be ready to change their life styles. Europeans prefer to live well than to fight.”
Published by Globes [online], Israel business news - www.globes.co.il - on September 11, 2005