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In a recent speech to the Economic Club of Washington, Schmidt voiced what many have already known: that newspapers and music labels have adapted slowly to the Internet and that the Internet will bring even more changes in the coming years, as users increasingly move from traditional to cloud computing.

Cloud computing, where the information is kept on servers somewhere else, will be "a permanent shift" that will have profound implications for many businesses, Schmidt said.

Furthermore, the Google supremo conceded that "Most businesses blow transitions", adding that information in newspapers has never been in more demand, but people are "getting that information in ways that doesn't create revenue for newspaper companies".

And to underline this point, Schmidt pointed out that the Dow Jones Industrial Average had 12 companies in 1905 and only one of them is still operating today.

He urged businesses to embrace competition and open systems. "Control and exclusivity in business settings will be replaced by speed and innovation in coming years", he said.

Business success needs a positive environment and encouragement for employees to be more creative and innovative, Schmidt added, also noting that, "It is possible to build a culture around innovation, it is possible to build a culture around leadership, and it is possible to build a culture around optimism".