From storage devices, semiconductors, and personal computers to software, artificial intelligence and robotics, Dan Cooperman has witnessed nearly four decades of innovation in Silicon Valley. First as a corporate lawyer in private practice and then as a general counsel working alongside some of the most iconic names in tech, including Larry Ellison at Oracle and Steve Jobs at Apple, Cooperman wasn’t just in the Valley when big change happened, he was in the room.
Cooperman, now of counsel at DLA Piper, will moderate a keynote address with Mike Callahan of LinkedIn and Hillary Smith of Zenefits at the firm’s Global Technology Summit, September 27-28, 2016.
As the event approaches, Cooperman shared his thoughts on how things have changed in Silicon Valley over the past two decades – and what he thinks lies ahead.
1. You must have some interesting perspective about the tech ecosystem in Silicon Valley. What are some of the biggest changes you’ve seen in your career?
The emergence of software as a dominant force is certainly one of the most striking trends that has shaped the tech ecosystem and the broader world over the past few decades. Just to illustrate, back in the 1990s, I worked with a client that was one of the major players in computing, with roots tracing back even to the 1950s. In the early days of computing, hardware was the focal point for the industry. My client sold minicomputers and essentially gave its software away for free in order to make a sale. Gradually, companies began to recognize that it was software, more so than hardware, that held the greater promise to revolutionize computing. Today, in all of its many manifestations – whether client server or cloud, mainframe or mobile, gaming or fitness apps, big data, machine learning or robotics – software is still driving the tech industry – and, importantly, virtually all other industries today.
Certainly, the Valley has experienced a boom and bust cycle, perhaps best evidenced by the dotcom bubble and burst in the late 1990s and into the early 2000s. Companies came out of nowhere, scaled monumental heights and then often crashed. Software engineers moved on and found new targets of opportunity. Looking back, this experience and many cycles like it have demonstrated the Valley’s and the tech industry’s resilience and constant state of reinvention.
2. What are the biggest challenges and opportunities currently facing global tech companies?
Global tech companies today have the opportunity to bring technologies and information to the entire world faster than ever before, thanks in part to improved communication networks and the proliferation of mobile devices and social media. This can in turn drive the efficiency of businesses, financial institutions – and even governments. And these technologies can empower individuals, as well – look at India, where even the poorest villages have mobile phones that connect family, friends and businesses around the world.
One current challenge for global tech companies is political. The companies must work sufficiently closely with government officials at all levels – foreign, domestic, state and local – so that the policy makers can stay abreast of advancements in technology and respond with regulations well suited to their regions that enable the full benefits of the technology while addressing important issues in their jurisdictions of privacy, security, health, safety and public welfare. Working through these issues takes time, and tech companies must demonstrate patience, understanding and cultural sensitivity.
3. You’re in the unusual position of having served in-house at global tech companies and worked in private practice at a global firm. With that background, what are the most pressing issues facing corporate legal departments?
As corporate legal departments grow and handle a larger percentage of a company’s legal needs, traditional economic models of our industry are being reconstructed. In-house lawyers, under intense pressure to reduce the spiraling cost of legal services, will turn to a select few outside lawyers and law firms who possess deep knowledge of the client’s industry and business and are experts in specialized areas of law. By defining engagements in such a focused way, in-house counsel believe outside firms can supplement the skills and capabilities of the in-house team, providing leverage and greater value. And value is what it is all about.
This trend presents a clear challenge to the status quo but also an opportunity for clients and law firms alike. As we are witnessing today, new tools, such as predictive analytics, knowledge management and project management software, and automated document assembly, can play a key role in reducing legal costs. In the future, I expect that legal services will be unbundled so that discrete pieces of a project can be delivered by different providers, whether lawyers, paraprofessionals and other trained specialists, and priced accordingly.
4. What events and trends over the past 12-18 months, or in the months ahead, are shaping the tech landscape?
One such trend is the ongoing move to the cloud. As IT infrastructure has hardened, security concerns have abated and companies are getting increasingly comfortable with the efficiency and cost advantages of maintaining data in the cloud and utilizing cloud services. Another powerful trend is the move to mobile and decentralized computing. This has enabled great efficiencies in such areas as logistics and distribution. For example, field salespeople can access the company’s core information systems, including finance, order entry and HR applications, remotely on their phones in the delivery truck or on the customer’s doorstep.
Along with the emergence of data analytics and artificial intelligence, we’re also starting to see the emergence of robotics (for example, drones and autonomous vehicles) in ways that will significantly change the transportation infrastructure, urban planning and personal lifestyles. Governments will need to adopt new rules – in fact, the Federal Aviation Administration has done so for drones and the Federal Highway Safety Administration is considering the appropriate regulatory regime for fully autonomous vehicles. The impact of autonomous vehicles on our everyday lives will be dramatic, and provides just another example of the exciting developments that we’ll see in the years ahead.