Intel Developer Forum, Spring 1999

Pat Gelsinger
Palm Springs, Calif., USA
February 23, 1999

Introduction: Now, to take this to the next step, let me bring out and introduce Pat Gelsinger, vice president and general manager of the Desktop Products Group.

MR. GELSINGER: Thank you, Paul. Thank you Albert.

It's great to be with you today as we continue IDF in Palm Springs. As I got on the plane to fly down here yesterday from Portland where we live, it was pouring rain. The wind was blowing at about 40 miles per hour and the weather was supposed to get worse for the next three days. So coming to a tough place like Palm Springs had a certain amount of appeal to it yesterday morning. But at the same time, we have a lot of work to do in the next couple of days that we're here. We have the hard work of keeping the PC industry the most exciting and innovative industry ever on the face of the earth. And that's our job and we can only accomplish that working together. We use IDF for the framework for how we as an industry cooperate together and maybe now we can just pause for a second and recognize everyone in the audience who is part of the press and analysts. If you're press analysts, take a second and stand up. That's right. You can do it. Okay. Come on. There's more of you out here. Okay. So we have about 120 press analysts. Stay standing. No, you can't sit down. Stay standing. Now, if you're part of the ISVs who are here today, if you could stand up here. ISV. BIOS writers, low level writers. I didn't say -- stand here. Don't sit down yet. Okay. If you're IHVs, stand up. All right. IHVs, graphic vendors, sound cards, modems, et cetera. OEMs, if you're part of the PC OEM community, stand up. Okay. I want to know what the rest of you are here for if you're not one of those. Give yourself a hand. You're the finest industry on earth. (Applause).

We have a very broad and impressive audience for our conference here today, and our challenge is, a framework for cooperation. Cooperation that will allow us to continue to move the industry forward, to catch the Internet wave as Paul has described, and continue to deliver compelling technology and products for our customers. We do so by the Intel technologies as well as working with those of our industry partners. We combine those into a set of initiatives, into a set of customer benefits that we can deliver into our ultimate products. And what we're doing with IDF is to create a framework to deliver those technologies in a meaningful and acceptable way to the industry.

Let's look at the sets of activities in just a bit more detail. First the Intel Developers Forum. This is now our fourth developers' forum. The second half of '99 we held it here in Palm Springs. We had about 1500 participants, we had a very intense, what we called graduate level training seminar there. We followed that by our worldwide roll out of the IDF audience, and both Taipei and Tokyo were very successful a total of almost 2500 people participating. I'm very happy today that we have over 2,000 people here that are registered as part of IDF today. Something about Palm Springs in February or the technical depth of content that we have here with over 110 graduate level classes and system design. We're going to follow this in April by taking the IDF content to Taiwan, to China, as well as Japan. So IDF is quickly becoming the premier developers' conference for the industry.

And we're planning on continuing this forward. It's amazing how rapidly up to date, detailed technical information is changing for our industry. Every six months we're committed to continuing the flow of IDF. And at fall IDF, you can see that we have significant new topics that we're bringing forward. Details in security, USB 2.0 and some of the new mobile and Internet technologies that Albert and Bob will be talking about in the course of the event. And then next year we'll have a major focus on IA-64, as we ramp those systems into the industry. Moving beyond the specification to deliver up to date and detailed technical information. It's quite amazing. We did a quick analysis and we found that over 80 percent of the content in that 5-inch binder on your desktop. Over 80 percent of that is entirely new content that's never been written or delivered before. So you can just imagine how quickly our industry is going forward and it's represented by the depth and breadth of the content that you're receiving here as part of the IDF.

It's not just the specs, it's not just the training. We also have to make these products work together. And to accomplish that, we've launched PlugFest. And I think of this sort of like when you get the formula right, you want to keep using it. And in this case, it's sort of like the formula for Coke -- it's just been right and it's worked very well. These are the ultimate geekfests, where we get together with products from competitors, partners, just make it work. All the many bits, the bytes, the kibbles, all of those lined up and work. And as you can see, PlugFests have been very successful, we've been increasing the number of PlugFests, everybody, the breadth of PlugFests and the amount participants from the industry. A very successful formula to accelerate the delivery of the products that implement the technologies that we're working and training on here at IDF.

Another key aspect of working with the industry has been the PCxx specification. These are the specs that define the baseline of the platform. We jointly author these with Microsoft Corporation, and have been very happy with the response of these and success of them in the industry. PC 99 was released in July of last year, and will go into effect in the middle of this year. There will not be a major PC 2000 design guide. Instead we're doing modest revisions to PC 99 and calling that PC 99 A. Also, today, as part of IDF, we're launching the PCxx. The next major baseline definition, and that's part of our activities here today, kicking off today, and we expect this to be published by the middle of 2000.

On the stage at IDF in September we announced the Intel University Press. The idea of delivering much more substantive and detailed technical information from the Intel architects. The response that we received from the industry to that has been very strong and today I'm very happy to announce the strategic relationship with John Wiley & Sons, who will be our publishing partner for Intel Wiley & Son. We expect the first titles to come out from Intel University Press in the middle of this year. Titles such as USB for example, programming with streaming SIMD extensions, and many other detailed technical documents on how to make the PC industry work and move forward.

While the specs are very good, the training is very substantialOne of the pieces of feedback that we've gotten is how do we actually test these things. How do we actually make sure they comply with the baseline specifications, with the PC9x series of specs. And we are concerned about that, and we launched a new forum to specifically address that concern. Our System Test Implementers Forum, we held the first meeting of this late last year and we had over 50 companies participating with us. Not just do the specs, but to develop the tests that are going to verify operation and compliance with the PCxx specification. The work that we're doing with the system compliance tests is going very well. We're very happy with the participation from the industry and we ask those of you who haven't joined us yet, to do so. These tests will also result in tests that will be used by Microsoft as part of the WHQL validation process that we are familiar with. So this provides a framework for how we work together. The specifications, the detailed training, the testing that we do together as an industry.

What I would now like to do is move to a view of what we need to do at the platform level for system design in 1999. And we've broken this up and we view that as the Four S's of system design for '99: speed, security, simplicity, and style. And we'll be covering each of those in order. Let's start by looking at speed.

What we would like to do is give you a vision. We'll call this our business vision for the year 2003. When we talk about high performance PCs, high performance platforms, we know what it means for workstations and servers, also for consumers, we have high performance games and 3D graphics.

All right. But what about business? So I would like to give a view of what the business platform requirements would be for 2003 and give you some perspective of how that would work.

So this gives a business computing environmental example, just an example, but we think one that embodies several important concepts. And we'll go ahead and log in here. We'll go through our secure log-in process. You can imagine this begins by normal password and account name. So we'll go through that. But in this case, as well, we're also going to use a form of biometrics and in this case we'll do that with a voice print. And so in addition to having what I know, my log-in and password, there's also what I am.

So we've now gone from our authenticated log-in process and now you see that the screen looks very different. I have a 3-D simulation of transparent 3-D user interface of a broad set of information. Let's take a look at some of that.

And I'll start out with my infosphere. You can tell I've had a light day of e-mail. I only have 52 new messages, so it's obviously going to be a slow day for us here in Palm Springs. So let's take a look at our messages. You can see here I have an integrated in-box full of the different types of information that I would receive. In this case I would have e-mail, I would have faxes, I would have voice mail and video mail. Let's start by looking at mail from Greg. So in this case I have two different Gregs, let's go click and we'll look at the mail from Greg Holland.

"Say, listen. Our meeting at Smiths has been changed to 1:00. Hope this still works for you. To get there, head north on Highway 50 and turn off at the Main Street exit and Smith Cameras is on your right."

Okay. In this case, we have mail, voice mail from Greg Holland, and delivered to me, and Greg Holland happens to be from Smith Cameras and I have a meeting with him later today. Now, notice that not only did I get the voice mail from Greg, but I also got a lot of other information. My PC automatically pulled up relevant contextual information from my conversation with Greg. It pulled information on the last meetings I had with him. Also knowing he's from Smith Cameras, it also pulled up some of the relevant and recent information that I had for my conversation with him. So it put me in context. I didn't just get the messages. I got the complete context of my discussions with Greg.

The next thing I would like to show you is, now, we want to see an automation of knowledge management for my business user. So in this case I'm going out, I'm going to have this meeting with Smith Micro today, so I would like to pull together the complete set of information for my meeting with Smith Cameras, so I'm going to have my little robot out here, my little automated agent, go pull together a complete set of information; out of my e-mail out of the company databases, et cetera, on Smith Cameras. So we'll pull that up. And I want a competitive analysis on them. I would like market analysis. I would like to know recent press announcements. The full set of the information that I might be able to use in my conversations with Smith Cameras. Then I'm going to tell the robot to go out and essentially build this knowledge database for me.

As you can see, it's gone out, it's started to pull the information from the corporate databases, from inventory, from billing, from press, from other Internet-based search engines that can pull together a complete set of context for a Smith Camera interchange later today.

So my PC has become my powerful agent working on my behalf.

This is a business vision. Not a complete picture for what we're going to do. Not necessarily one that we entirely know how to implement. It gives an idea of how we expect business computing will evolve and will continue to benefit substantially from MIPs. We saw a significant new user capable, transparent 3-D with speech and natural language recognition. We also saw automation of tasks as it goes and pulls the full set of knowledge together for me, and intelligently processes that and presents it for my use.

So we see that there's, you know, compelling benefits to increasing MIPs and we're very committed to increase the speed of the platform. Not just for workstations and servers but also for business users as well. So let's take a look at some of those major new platform technologies and what we need to do to accomplish them in the platform.

Albert described the road map for the processor that we have going forward, the Pentium® III processor lineup. I would like to describe the rest of platform, how we're going to plug that in and make the rest of the platform work with those high performance processors. The first thing we're going to do is increase the front-side bus speed. Today we're at a 100 MHz. In the second half of this year we'll be introducing new platform capability that will take to 133 MHz, or a 33 percent increase in the bus bandwidth going into and out of the processor.

The second major enhancement this year will be the increment of the graphics subsystem, moving to AGP 4X or a doubling of the bandwidth available to the graphics subsystem. When we introduced AGP, we had a significant challenge. PCI had become much too slow and bottled -- and became a bottleneck for graphics performance.

As this graph shows, the adoption and acceptance AGP into the platform had been very stunning and successful. AGP is essentially now seen in every platform including mobile platforms. With AGP 4X you can see that late this year we expect the next major transition to move to AGP 4x beginning in the platform and again we expect this adoption to be rapid as we go past 2000 and into 2001. We're very pleased with the industry adoption of AGP 4x, and as you can see from this, veritably every graphics vendor, all of the graphics leaders for the industry have announced their commitment and participation in developing and delivering products against AGP 4X.

Graphics on the desktop is very important, but for workstations it's absolutely essential. For workstation eye candy, the compelling graphics performance, the defining element is how fast can we make 3-D. Video and graphics display on workstations.

With that in mind, we've also announced the AGP Pro specification, which defines terminal and power requirements that take AGP 4X into the workstation class of graphics performance.

As you can see on this slide, we're very pleased again with the acceptance of AGP Pro by the graphics and the workstation industry. As part of our form factor enabling work we've also announced the WTX specification. The next generation chassis specification for high-end workstations, and what this will allow is the introduction of high performance IA-32 as well as the smooth migration to IA-64 class workstations in the future. And it's also architected and designed to specifically allow for the high performance thermal and mechanical requirements for AGP Pro. AGP Pro is delivering the highest performance graphics into the workstation marketplace in a standard, high volume way.

So we've looked at the front side bus. We've looked at graphics. Let's take a look at memory. And for memory bandwidth to a high performance platform the answer is never enough. It's like candy for a child, it'd never enough. And every platform, we need to keep moving the memory bandwidth forward substantially. The next step in that is Direct RDRAM, doubling the memory performance up to 1.6 gigabytes per second. Well, as this graph shows, are very pleased with the success we've had in moving the industry to SDRAM 100. That transition has been very successful for us as an industry and is now accepted throughout the performance desktop space and is beginning to move into the value segment of the product line as well.

Beginning in the second half of this year, we expect the ramp for Direct RDRAM to begin. This is somewhat delayed, but we believe the necessary platform, the full set of platform components comments together in the third quarter of this year to begin the RDRAM ramp into the performance segment of the desktop product line.

We also believe this ramp will occur in the mobile segment following shortly thereafter, with SDRAM 100 being accepted as the top-to-bottom solution for the mobile segment and the RDRAM ramp beginning in the mobile segments very late this year and into early next year.

What I would like to do now is give you a demonstration. And if you'll join me over here at this side of the stage, what we have is the first-ever demonstration of all the components that I just described.

So -- we'll spin this around here and what we have is an AG 4X card. This happens to be from nVidia, in the system. This is a Pentium III 500 MHz processor run at 133 MHz on the front-side bus. Over here we have Direct RDRAM memory operating at 400 MHz. So the tour de force platform of all the components that we just described. And just to show you that this is real, I will move over here where we have our Rage demonstration that we have up on the screen and in this demonstration we see a fly-through showing the APG4 X, the performance of RDRAM, and the higher performance front side bus. We're currently running about 30 frames per second and this is with the streaming SIMD extension enhancements turned off. I'll turn those on and what we'll see is that the machine will pick up to about 60 frames per second, about a doubling of the performance capabilities by turning on the streaming SIMD extensions. And we'll see that pick up there, catch up. And you can see -- it's alive here. Play around with it. So the tour de force platform, the next generation platform and all of its components demonstrated for the first time today. (Applause.)

So we've seen the front-side bus graphics, memory subsystem. Let's talk about the I/O subsystem as well.

The next generation platform will include the ATA 66, the doubling of the bandwidth to the hard drive and the storage system of the platform. Desktop storage continues to be on a dedicated internal bus. We believe this is the most performance and cost effective solution. We believe that we'll continue to be based on ATAPI protocols. The ATA protocol set. The ATA 66 conversion begins in the second half of this year. We expect that conversion to be very rapid and successful. And beginning in the second half of 2000 we expect the transition to future ATA. Again, following a very similar protocol architecture, move to a narrower, higher speed version of that, narrower for cost savings reasons and higher performance or higher speed for performance increases. We expect future ATA to begin in the second half of next year and to provide us the opportunity to increase performance in the I/O subsystem through 2005 and beyond.

For server I/O, the next generation architecture will be based on NGIO. NGIO is the successor to PCI as the basis for I/O connectivity on servers and high-end workstations. This architecture is built on -- allows for multiple physical transports, both copper and fiber. It's channel-based, which will allow increased scalability, as well as in-the-box and out-of-the-box connectivity for high performance I/O. NGIO is the next generation I/O system for servers.

As the graph shows we expect this transition to begin in late 2000 and to become prevalent throughout the platforms, the server platforms by 2002. We do expect the role for PCI-X, in the platform but we expect this role to be narrow and transitionary as we move to NGIO for the next major standard for server I/O in the future.

The next area for desktop and systems and platform speed is external I/O, or desktop I/O. I'm very happy today to announce the formation of the USB 2.0 development partners working group.

I see I have a fan of USB 2.0 in the back of the room here. Very good. USB 2.0, we have the companies that created USB 1.0, who are part of this effort, the four companies that created USB 1.1. In addition, we've added three companies to that core working group. And we're launching this and announcing it here with our technical meetings beginning here as an industry. We're very happy with the early work that's gotten under way on USB 2.0.

We expect this specification to develop very rapidly and to be at a rev 0.9 level in Q 3 of this year. So by our next IDF event we expect rev 0.9. Actually, I'd be sort of disappointed if we didn't get 1.0 by then. So for all of you on this list, my challenge is that we're announcing the 1.0 specification by September IDF of this year.

Yeah, I see my Intel guys are cringing as I raise the bar on them.

Intel's expectation for this are very substantial. We believe the success and building on the momentum of USB, the five-year effort that we've had, and the building on that momentum we expect USB 2.0 to supersede USB 1.0 in 2000. We'll do this with a significant increase in performance. A 10x or 20x increase in performance, but we'll do so in a way we can maintain backward and forward compatibility.

As part of the technical track on ease of use today, we'll have the detailed technical disclosures. And this will be beginning today.

As the graph below shows, we expect the USB 2.0 transition to begin in the second half of 2000, and to be a very rapid transition. In addition, to being the peripheral I/O connectivity, we also expect it to replace SCSI as the external storage interface of choice in the platform. In that sense, we expect USB 2.0, with its higher performance characteristics, to even have a more significant impact in the platforms and in peripherals going forward. Like USB 1.1., we expect USB 2.0 to be born a winner.

In the area of consumer electronics, we believe 1394 has a role as the digital convergence pipe to connect the PC to the consumer electronics world in the area of audio or visual high performance devices. We believe that the PC can add tremendous value to consumer electronics devices and that that's the role that we are seeking to have by enabling 1394 into the PC platform. Broad deployment requires reasonable licensing terms around this technology for it to be accepted and deployed by the industry. In that sense, we're very happy with the progress that's been made recently announced. And we're looking forward to seeing those licensing discussions complete. And we believe that the PC can play a very valuable role in enhancing the consumer electronics experience over 1394.

As the graph shows we expect 1394A, to begin ramping in 2000 based on IEEE specifications and the resolution of the licensing issues and terms.

As we roll this up, we see the peripheral connectivity and the role USB 2.0 will play. It becomes very significant throughout the platform and peripherals. We see this important but very focused role for 1394 in the area of consumer electronics connectivity. And finally the role that ATA will play as we continue to migrate storage I/O forward over time.

Our goal is no speed limits in business. We believe that there is a tremendous value and benefit for continuing to enhance the performance of the PC and our objective is working with you as an industry to deliver the speed required for consumer business and all of the vertical segments that Paul described in his conversation this morning.

I would now like to move on to the second S, security.

As Paul described this vision of a billion connected computers, we think to enable that vision there's a very important word missing that we have to add to the platform. The idea of trust. Not only in the network, but in the client and axis devices themselves also, we have to build the notion of trust, and trust will become a required element to accomplish a billion connected computers. Our vision, a trusted, virtual world. Where we are reforming society as we speak, the Internet is changing all of our social norms. We spent hundreds of years developing norms for when we see each other face to face. We spent tens of years developing norms for how we operate when we're over telephones. Now we have to create the social norms in the new world for an Internet society.

We see this Internet society impacting everything that we do. And we have to deliver trust as part of that vision for. For businesses, we believe this means a trusted virtual enterprise, where I can run my entire business over the Internet, I can operate with all of my suppliers and deliver all of my products in a world wide basis in a secure virtual enterprise.

For commerce, this means a trust, a world of trillions of trusted transactions, where I can buy, sell, and perform any of my financial transactions over the Internet. And for content, this means any form of my, you know, software, of my legal, of my medical information, of analog and digital content, all being ubiquitously available and securely delivered. What Intel will do, we're going to build into our core CPU and chipset security building blocks to enable this trusted, connected computer. We're going to enhance the software solutions by giving them a firm foundation of secure building blocks in the platform. We're also going to work with you, the industry, to develop a common architecture view for the platform for middleware and for the end-to-end solution required to deliver security. And finally, promote common policies for security and privacy.

All right. If any of you haven't heard, you know, we've encountered some interesting issues in the industry, in the area of privacy, as we've introduced the processor serial number. And obviously the social norms, the expectations of governments, regulations, and the self-governing policies for we as an industry, become very critical to create this Internet society. To do so, we have to work together to deliver policies, work with governments, regulatory bodies, to enable those policies and security and privacy.

A year ago, we formed the 5C group, the DTLA. And the DTLA, Digital Transmission Licensing Administration, has now completed the rev 1.0 of the specification. We're very happy with the cooperation and work of the 5C companies that are listed here. We're also very happy that we've now completed export approval. So this is now a worldwide technology. And we've also gone into manufacturing for the first sets of public and private keys. We've now manufactured and delivered over 200,000 keys for DTCP compliant systems. We expect the digital content, the actual DTCP protected digital content to begin emerging in the second half of this year.

So what I would like to do now is give you the first-ever demonstration of the DTCP content in the world. What we have here is, we have digital VHS. This is a production unit that we expect will be shipping in later in this year. This is the actual digital VHS, from Panasonic.. We have already recorded on it actual MPEG, broadcast MPEG content that we've recorded on digital VHS.

What we have here is, we've connected this over a 1394 connection to two PCs. The first is our concept vehicle, our Mayan pyramid that we showed at last IDF, and this machine is enabled with the DTCP technologies. Down here we have a second machine, and this is not enabled with DTCP. Both of these are 500 MHz Pentium III processor systems.

So what I would like to do is actually play the content. We'll then stream this MPEG content over 1394, and we'll be seeing it on both systems here. Take this up to full screen. What you see here is, this says "copy free" for our demonstration. What that means is for this digital content, we're actually seeing the content. And it doesn't require copy protection on either system. So on the one over here, I have the system with DTCP. Over here, I have the system without it. And in both cases we're able to display this copy content. What you'll see in the next segment is "copy no more," which means in the DTCP architecture you can make exactly one copy of this. And we've copied that, and on the digital VHS that you see here, but now, only the DTCP-compliant system is allowed to play that back. And you see the beautiful pictures of Norway over here, but on this machine, we get a blank screen. In other words, this machine down here without the DTCP technology was able to view the "copy free," but the "copy no more" content is not displayed and will not show up on the screen over here. First-ever demonstration of DTCP technology at work. Thank you. (Applause.)

DTCP and many of the other activities that we have in the industry, in the CDSA, and in the key middleware from establishing software and architectural environments of end-to-end solutions. Underneath those solutions we're committed to deliver hardware building blocks that will further enhance those. In '99, these are primarily focused in the area of identity with the processor serial number, the ability to identify PC users and also enhance encryption in the platform. In 2000, trusted access, where you actually authenticate the access coming to the PC, where you're "permissioning" through the PC and further enhancements in the area of applications, hardening of encryption algorithms and certificates.

In 2001, we enhance the full range of trusted transactions, as well as of valuable contents, delivering our technology, such as authorization, repudiation and platform integrity. Building more and stronger capabilities into the PC in hardware as a firmer foundation for software solutions to be building upon.

Looking at more detail, these are the specific building blocks that we'll be delivering in 1999. The first of which is the processor serial number, which Albert described in his -- in his speech this morning.

The second is random number generator. My favorite quote for random number generator is from a guy by the name of John Von Neumann. What John said is, "Anybody contemplating generating random numbers in software is living in a state of sin."

Now -- so our job very simple, right, it is to help all of you repent, to remove you from your state of sin, right, and come into a world where you're actually using hardware-based random numbers. And that will be delivered as part of our platform later this year.

Also, the idea of authenticated boot, where the actual boot process is done in a secure manner and allows for secure remote manageability. This is part of the WfM 2.0 specification, the boot integrity service piece of that. We will also be adding IPS, the security protocol to the platform and to your networking solutions. And, on Thursday, Mark Christensen will be describing that in more detail as part of his keynote.

Simply, a trusted virtual world requires security. We as an industry must work together to deliver it to enable the full set of what we can see in the Internet society going forward.

So we've covered speed, security, now, simplicity. The next quote comes from -- this is my favorite quote in the area of simplicity-- it comes from Walter Mossberg of the Wall Street Journal. "The personal computer remains the only common possession that makes smart people feel stupid and requires the constant ministration of a priesthood of experts." This is a pretty harsh condemnation for our industry in many ways. You know, it's amazing that we're able to do a hundred million of these a year given as hard as they are to use in many cases. I know at home, you know, my kids think that I can do anything with the computer. So every time I go to do an upgrade or enhancement, my palms get a little bit sweaty, because, you know, I might not be successful and they'll realize that dad isn't the perfect father in the area of computers, and that is, a little bit frightening.

So our job is very hard. We have to make the platform simple. And we have to simplify purchase, simplify expansion, the reliability, the setup and operation. Intel and Microsoft are jointly working together to lead an industry effort to accelerate the delivery of easier to use PCs, and our challenge to you as an industry is to work with us in accomplishing these objectives. We expect the first ease-of-use systems to be delivered in the second half of this year. Those new systems will be enabled by the Hardware Implementers Guide, the Ease-of-Use Implementers Guide. We announced this at IDF last year, and today we're releasing the 1.0 version of that Hardware Implementers Guide, and that will be detailed in the ease-of-use track.

We've also created a new form factor. The FlexATX form factor. I have an example of it here. A new form factor that enables the removal of significant legacy devices from the platform. As you can see, a very small, sleek form factor. By removing many of those legacy devices, we're able to decrease the size of it, which lowers costs and increases the appeal of those platforms which we'll see in the course of our conversation today.

And the third area is future Microsoft Windows 98 enhancements. We're very happy with our cooperation with Microsoft in this area, and their committing to significant enhancements of Windows 98 to improve ease of use.

Our challenge to each of you today is don't miss the ease-of-use wave. We believe this is a significant new capability and desire on the part of your customers and a major new differentiation. Don't miss the wave.

One of the key technologies to deliver on ease of use is instantly available PCs. We believe this is a key technology to making PCs easier to use and making them like a consumer would expect them to be. You know, where you hit one button and it comes on in a few seconds. You hit another button and it goes off in a few seconds and you don't see endless pages of techno jargon that none of us quite knows why it exists any longer. The ingredients are available today. We're starting to see the first instantly available PC systems available from vendors just coming on to the marketplace now.

I would like to emphasize that this is an industry activity. Every one of you needs to make your applications OnNow aware. Every IHV needs to make -- needs to take these ingredients and make sure that they've done a proper implementation of those for instantly available.

Fundamentally, we've been working on power management as an industry for ten years, and the fact of the matter is, for ten years it ain't worked. All right, our challenge now is to make this really work, to make it robust, ironclad; that every time the platform is turned on, off, booted, every application, every IHV, every enhancement to it works in proper power-managed fashion and that's the challenge that we as an industry must work together to deliver.

We also believe that there will be significant new metrics to ease of use PCs. These metrics will become new buying criteria. It's not going to be MIPs, Nega-bauds and megahertz. It's also going to include things like how easy is that platform to use, how fast can I take it out of the box and configure it, how quickly can I get up on the Internet, how easy is it to enhance it with new peripherals. We expect that these will become part of the buying criteria for platforms and we expect that magazines, trade writers, will start to measure PC platforms against metrics such as these in 1999. A key new value, a differentiator for the PC platform.

And this task of making things simple is not easy. The PC has become a junk truck of technology. You know, a marvel to technological evolution, and now we have to deliver a consumer appliance. We must all work together and get underway with the hard task of making things simple.

So we've covered speed, security, simplicity. The last area I would like to talk about is style.

You might feel a little uncomfortable. Style! This is the PC industry? Yes. I mean style. We're beginning to see that MIPs, megahertz and rectangular beige boxes aren't necessarily the form factor that everyone desires, right? We're starting to see in some countries such as Asia and Japan new form factors are starting to emerge. We talked about this at the last IDF forum. We also are starting to see LCDs allow for knew innovations in form factors in Japan. The PC is becoming quickly redefined before our eyes. And our challenge now is to lead that redefinition.

You know, there are a lot more interesting colors than beige, and interesting innovative system design isn't only occurring in the iMAC. We believe as a PC industry that we can accomplish this in a very powerful way and deliver this with incredible consumer value. We believe there are opportunities for significant advances in form factors. The removal of legacy features. Examples such as Flex ATX allow us to have higher feature integration, so you have all of the capabilities that customers would want. The flexible form factor standards such as Flex ATX, which we are announcing today, allows us to introduce new capabilities that will allow the shrinkage of the actual form factor to come up with new and innovative footprints, sizing and styles of the platform, and we'll look at several of those this morning.

At fall IDF we announced the formation of DDWG, or the Digital Display Working Group. This activity is formed of the companies that are listed here. We're very happy with the progress that DDWG has made and is up and running to deliver the 0.9 specification that's available today, and we expect the first digital products to be available in the industry in the second half of 1999.

What I have running here is a Phillips 42-inch monitor. So this is a digital plasma display running here, and right in the back of this, they've actually built in a 500 MHz Pentium III PC as well. And the example we have here, this is DVD content that is being played back here on the 42-inch plasma display. And for those of you here in the audience, you know, maybe this is your desktop display of choice. I'm glad I don't have any of my kids here. They would be wanting one of these in their room very shortly. Just to show you it's a real PC - okay. There, we go. And we have a PC.

So, very happy with the progress of the digital display working group. Rev 0.9 available today and systems shipping in the second half of this year.

What we'd like to do now is the first ever IDF fashion show. And we're showing a set of concept designs, new PC platforms so that you can give feedback to us as well as to designers of these platforms and hopefully spur forward innovation in the PC industry around new platform designs.

We ask you to stop by the demo showcase next door and fill out one of the feedback cards that we have on this. Some of these designs that we've put together very quickly, you can see the compelling new content that we can bring to the platform in stylish new form factors.

And with that, on with the show.

Our first design is Aztec*. This is a working model that was introduced last year at IDF. This features a 500 MHz Pentium III driving the product. This product is a pyramid of power. Aztec. (Applause.)

Our second design is Twister*. This is the business brother of Aztec. This also includes a 500 MHz Pentium III driven machine, with LAN connections for all of your business needs. Twister. (Applause.)

Next we have the NEC Millennium*. This is our first all in one design. It's a currently shipping platform in Japan. Later this year we'll also feature 500 MHz Pentium III versions of this product. The NEC Millennium. (Applause.)

And what's a fashion show without a Swedish beauty. This design is from MultiQ* of Sweden. Currently shipping Pentium II technology, soon to be available with Pentium III processor as well. Our Swedish beauty, MultiQ. (Applause.)

And from Phillips, we have our 42-inch flat screen display using Pentium III technology to a large drive plasma display. A new digital interface, DDWG. In this case, flat is beautiful. (Laughter.)

Our next design, Palo Alto*. This design is done with the new Flex ATX motherboard from Intel. This will be a product shipping in the fourth quarter of this year. This shows FlexATX is very real. Palo Alto.

From Hauser, this PC is for grandma and novice users. It takes power to make computing simple. This unit also features a 500 MHz Pentium III processor. Hauser.

And from Stratus, we have Silicon Bonsai*, on a pole to make computing easy. There's only one way to go with this design, up. This home information center comes with natural RF extensions. Footprint, no. Toeprint, yes. From Stratus. Silicon Bonsai.

InSync*. This is a flexible unit for a flexible worker. This strap allows you to take this computer where you want, home or office, work or play, on the go, anywhere you want to go. InSync.

Velocity Group, by Anderson Design, brings you Fun-Kshun*. Play with it or work with it. This design gives you a handle for in computing that is fun. Fun-Kshun is Pentium III technology ready for the Internet, Ethernet, or "whatevernet" you have in mind. Fun-Kshun.

Also from Velocity Group by Anderson Design, we have Ichibana*. This is Japanese for flower. Why hide components when you can turn them into a beautiful bouquet. This is a very high concept design for cosmetic. Ichibana.

Next we have Zeba, which brings us three designs. First, we have Casthia*, funny shaped for attracting small children. It's nice to see a bunny person holding their bunny child.

Next is Koi*. Again, a working design, a beautiful blue fish for a teenaged boy or girl. Who wouldn't want to go fishing with Koi.

And finally, Tetra*, a real working model. This unit is only four pounds and uses a Pentium III 500 MHz processor. Just look at it. It's beautiful -- from every angle. Tetra.

Ladies and gentlemen, let's bring out the bunny people one more time. And a round of applause for all of our designs, our first ever IDF fashion show.

A little bit of fun, maybe a little bit over the top, but a new breath of life of concept design, of new innovation in the area of style coming to the PC platform.

Summarizing the Four S's of design in 1999:

First, the continuing need for speed and our ability to deliver that with a full set of platform technologies.

Second, building trust. How will we do that? By adding security to the platform. A trusted virtual world requires security.

Third, we have the hard work to make our technology simple. And we must commit to working and delivering simple, easy to use PCs.

And finally, I think as our fashion show demonstrated, style matters. A whole new vector for innovation and differentiation in the PC platform.

Thank you very much.

About Intel
Intel (NASDAQ: INTC), the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com.

* Other names and brands may be claimed as the property of others.