Pat Gelsinger Keynote -- IDF Fall 1999

Intel Developer Forum, Fall 1999

Pat Gelsinger
Palm Springs, Calif., USA
September 1999

PATRICK GELSINGER: Thank you, Craig.

Now you've seen Craig in action for the last hour, and when I introduced him, I introduced him as the ruthless dictator. After seeing him for the last hour, do any of you doubt me?

(Laughter.)

PATRICK GELSINGER: Do you? Look at all the action items I got? I have to make .18 happen, get the first digit a 7, give the big beige boxes the boot. I have a lot of work to do after listening to him for the last hour.

Thank you, Craig, very much for that demonstration and overview, introduction of the e-business and e-home vision for the Internet.

What I'd like to do now is take a minute and recognize the sponsors for IDF.

We thank very much those who committed their technology, their personnel and their resources in numerous ways for making this successful.

And just pointing some of those out right now, Analog Devices, Hewlett-Packard, Lucent Technologies, Microsoft, probably heard of them before, Novell, Rambus, and Texas Instruments, and ViewSonic. These are our gold sponsors for the IDF conference.

The silver sponsors, Conexant, EarthWeb, LSI Logic, Motorola, Samsung Semiconductor, Seagate, and Tektronix.

These are the companies that are working most closely with us in bringing you the developer forum that we have today. And we want to express our appreciation and sincere thanks to their making contributions and making the developer forum a success and bringing us all together here this week. Thank you very much to each one of them.

(Applause.)

PATRICK GELSINGER: What I'd like to do to kick off my keynote is to sort of build on the themes that Craig has described, the e-business and the e-homes theme that he's described, but to demonstrate them to you in meaningful and powerful ways, to show these technologies at work.

And to do that, we're going to use a different presentation style this morning. Rather than going through a series of road maps, directions, and slides, we're going to do that primarily via demonstration. We're going to demonstrate what the e-home and demonstrate what the e-business of the next 12 to 18 months could look like by us working together.

And as we go along we're going to highlight some of the key technology, style, the new chipsets, the ease of use technology advancements that we've made, but do so in the context of demonstration scenarios for the home and for the business.

And on stage here, we've modified our sets over here. We have our e-business environment of multiple work area and conference rooms. And over here we have our e-homes, the multiple rooms in the homes of the future.

Before we do that, let me set a little bit of context for our business vision. For those of you here at the February IDF, you may have recalled the business vision we started to paint where the PC has now evolved to become an integral part of the Internet business environment. The PC has changed to become the user interface, 3D, more visual, a powerful role for speech. It has evolved to be much more of an agent and personal assistant, working on your behalf. Integral roles for knowledge management and live connections to multiple data sources. A significant progress and change in the role of the PC in accomplishing the e-business environment.

Since February we've seen significant progress consistent with that direction. HTML is going out and reaching and searching and grabbing a page, and now we see a move to XML or smart data. We see progress in the area of automation of data access where you now have persistent links able to not just reactively go out and grab information from the Internet but my data sources, my clients and servers are able to have persistent links to smart data on servers throughout the Internet.

We see the role of knowledge management and personalization beginning to emerge, all of this leading to e-business and making the PC connected to the Internet a personal Internet, make it go far more powerful and productive for business users.

This leads to this very simple view that all business will become e-business of the future. And our demonstration this morning will be showing many of these applications, powerful new applications. But let me start that by showing the first application, our first audio mining application. And what we've done in this demo is we've taken the keynote speech that I gave at the February IDF, we've loaded it on the system, we've digitized it, we've taken speech to text, and we've then loaded it up here, collated it, coalesced it, and indexed it. So that's my IDF speech. And now we're able to make queries on that speech.

So what did we talk about in February? One of the technologies, RDRAM. Let's see what we said about RDRAM.

Okay. Well, maybe we'll talk about RDRAM. Let's try it again. Great.

So what we see is here, after we type RDRAM, it shows us the occurrences of this in our keynote. We'll click on the first example, and we'll see what I had to say about RDRAM.

"The next step in that is Direct RDRAM, doubling the memory performance."

PATRICK GELSINGER: So what we saw is we're able to make a query against that speech-to-text database and go to that exact point in the keynote speech. That's pretty impressive. Let's try another one.

Let's try "digital." We talked about digital displays in February.

Okay. And what we have here, it's showing the multiple occurrences of "digital," and the light green ones are the highest probability of occurrences and I've set a threshold to take us to the first one of those. And you can imagine audio mining as an application, very computationally intensive, maybe applications like voice, voice mail, where you could index it, collate it, be able to look it up, or other applications, maybe like a call center where you wanted to record and look at all of the caller information, and actually be able to more accurately look at what your customers exactly had to say.

So you can see this being applied in numerous applications in the business environment.

So let's go back and look at what we said about digital displays. Let's look at the first one.

"This is a production unit."

PATRICK GELSINGER: Oh, this isn't what we want. This is digital VHS. So let's try next here.

"Copy that and on the --"

PATRICK GELSINGER: Let's go to the next one.

"Digital display working group. This activity is formed of the companies that are listed here."

PATRICK GELSINGER: So we'll just pause that a second, and in our keynote speech we talked about the formation of DDWG, the Digital Display Working Group, and that was formed at the fall conference last year, and in February we're pretty delighted that we could announce that we had achieved the .9 version of the specification. And that we committed to having the first digital products available at fall IDF.

Well, we said in the fall of the year. Guess what? It's the fall. Do we have products?

Well, I'm very happy this week that we have some 17 different announcements about DVI products this week. Companies announcing that they have DVI compliant products. That's pretty exciting.

And as you'd expect, we have LCDs and flat panel displays of DVI. But not only LCD displays, but an exciting development since February IDF was digital CRTs. And what we found in CRTs is we could reduce the cost and increase the quality of the CRT by going to the DVI connector. And in this case we have a DVI CRT from IBM on stage being connected to an IBM platform running at 667 MHz on the 820 chipset with RDRAM.

We're very happy with the progress that this has made. Also this week we have an announcement in the DVI track of the .8 version of the content protection specification. This specification is adding on top of DVI content protection. So now we can take digital content from the PC and display it in a protected manner, assuring the content industry that their content is being properly protected throughout the PC environment. And in fact, that track is being kicked off by Time Warner, one of the major providers of digital content to the industry.

And in the demo showcase you'll see some 150 DVI displays throughout the showcase this week.

We're just happy to say "just say no to analog". This is the last bit of analog in the PC connectors, and we're now removing this from the platform as well and moving to an all digital PC.

What I'd like to do now is to start our demo scenario, and to do this I have several demo assistants. We have Bert, we have Terry, and -- are you guys coming up here? Okay. Jory and Victoria. And we're going to walk through a day in the life of business. And Bert and Jory and Terry will help us. And, Victoria, we'll have you kick this off.

VICTORIA: Good morning, Bert.

BERT: Good morning, Victoria. How are you?

VICTORIA: Good. Have you had an opportunity to do more research on the off-site?

BERT: We're trying to search for a place that is adequate for our off-site, as you know, and I'm employing En Route and it's by Immersive Media. And what they've done is they've actually gone to a dining and meeting facility up in Portland, Oregon, and it's called the Edgefield.

Now, this is their Web site, or their prospective Web site.

As you can see as I scroll across, you can see the different areas in this facility, pubs, theater, winery, but we're interested in event spaces that we want to check out.

So what we're going to do is virtually go to their facility, and as you can see here, we're actually walking down the hall. I'm directing the right and left here, so I'm looking to the left and we're moving into this hall. Let's stop here a second. What we're looking for is a place that we can set up a lot of computers. So I've stopped the procession through the area and we want to stop here and look around and just check this place out to see if this is what we want, if it has everything we need.

Obviously this is a very nice area, a lot of antique equipment, a place with a lot of history.

So that's a very nice room. Let's move on. Now we'll go on into the dining facility.

You can see, it's Christmas here. Let me move up here, we'll spin around using the mouse, I can turn right and left and see whatever is there to see. And again, I can stop there and look at all the people there having fun and watching them look at us moving through their facility.

Now, you need a strong PC, something with the -- like this Compaq with the 820 chipset and RDRAM to bring this immersive experience to a richer environment like this where you can actually see what's going on. In the past, a search like this would have required phone calls and a lot of times an actual drive where you have to bring people there and you have to walk through, and it's very, very time intensive. But in an area like this, it makes your search much more efficient. And in fact, as more and more companies begin to use this technology to advertise in this rich environment that needs this kind of power, it's going to be a real challenge for the industry to provide these systems with RDRAM and 820 chipset and the Pentium III processor to the consumer so they can enjoy this type of experience and improve their productivity.

VICTORIA: Plus they save a ton of money on travel.

BERT: Exactly.

PATRICK GELSINGER: So in this case what we're doing is we've demonstrated the 820 RDRAM AGP4x. We actually benchmarked this exact scenario. We showed it on a BX platform as well, on AGP2x system. And what we saw is we're able to increase the frame rate by 20 to 30 percent in this demonstration as well as increase the visual quality significantly of that platform.

Let me give you a brief update on the Intel 820 committee. At the IDF in February I called this the tour de force platform for the year, and we're on track to deliver the 820 chipset in the very near future, the next generation of platform performance. Significant advancements throughout the platform. We're offering performance headroom for future applications, a balanced system by which we've increased the performance of the IO subsystem, the graphics, the front side bus of the processor, and the memory as well.

Maybe I can give you a brief demonstration of the AGP4x performance capabilities of the platform. Victoria.

VICTORIA: What we're going to do here is render a very graphical image.

PATRICK GELSINGER: Wow, that's impressive. Look at the light dancing off of the ceiling and the reflections, the multiple video screens. This is very impressive.

VICTORIA: There's text showing on every single surface in the image. And this is ass an 820-based platform. And as you can see here, our frame rate is exceptionally high, 41.1 frames per second.

PATRICK GELSINGER: 41 frames per second. So we're stressing the AGP bandwidth of the system, also the processor capabilities of the system, and this is something like 30 percent faster --

VICTORIA: Right.

PATRICK GELSINGER: -- than platforms before the 820. That's very impressive, Victoria.

VICTORIA: And remember that system you were trying for us to get you for the event? We've got an 800 MHz running this demo.

PATRICK GELSINGER: In this particular case, not to be outdone by Craig Barrett, we're running this on an 800 MHz, 0.18 micron system. And this is all standard production cooling, no fancy Freon or any cooling. A standard product like this with a standard cooling technologies that are shipping and available in the industry today. And we're pretty excited with the progress of the .18 micron processor technology that we'll be bringing forward in the fourth quarter of this year, or like Craig said, in Q4 in October. I just changed the schedule on that this morning.

Also, we'll have frequencies including 660 MHz, 667 MHz, and a 7 in the first number, as I heard today.

So we're working very rapidly towards the launch and the ramp of this technology in the industry.

So you can see here as well, we're making significant advancements in the graphical performance of the platform, AGP4x, a doubling of the AGP performance of the platform, working very closely with the ISVs, so we can optimize and take advantage of the streaming instructions. Also deliver new compiler technology to take advantage of the capabilities of this platform in new and compelling ways.

Not only does the copper mine products include the .18 micron, but it's also microarchitectural enhancements as well. It's more than just a speedup of the processor. Microarchitectural enhancements that will further improve the performance of this processor family of products.

As we touched on the 820 chipset, we also touched on RDRAM. So how is our RDRAM ramp doing?

Well, RDRAM is ready for a ramp beginning this fall. We have 14 different RDRAM products from five different suppliers that are now validated. You can go up to our Web site and take a look at that and get the specifics on who those suppliers of products are. That includes 46 different RIM modules as well as the numerous other components required to deliver this platform, validated motherboards, impedance control motherboards, the clock circuits, the connectors, all the pieces that are required to deliver an RDRAM system.

In addition to that, we have throughout the conference public demonstrations showing these technologies, and all these pieces coming together this week. This technology is ready to begin its platform ramp this quarter.

This week, we're also happy to announce the RDRAM Implementers Forum. What this is an industry group coming together with the major DRAM suppliers, and Intel and Rambus, to work together to ramp this technology, to work together at the validation, the interoperability and compliance workshops. To also drive the cost reduction of this technology, to make it a volume available technology for this ramp and into 2000 and beyond.

Immediately after my keynote speech, we'll be having a press conference where we're be announcing the implementers forum with myself and the RDRAM, the senior executives from the RDRAM companies that are joining us in this, Hyundai, Infineon, Micron, NEC, Samsung, and Toshiba.

With that, back to you, Bert.

BERT: So, Terry, as you saw earlier in our search at the Edgefield, the facility is nice and we're going to probably use it for a Christmas function.

TERRY: Beautiful for that.

BERT: But for this particular event it's probably not going to be the perfect fit. And I heard you had some technology over here that helps us sift through a lot of incoming information.

TERRY: Yeah.

BERT: Is there a way you can help us out?

TERRY: I'm running Novell's Groupwise. You can imagine with this project I'm getting an enormous number of these, and I know that information is in there.

I want to show you something that we have that will improve this productivity as well. Tease called an intelligent folder. And what it does is it lets me organize this information based upon the content of those e-mails.

Let's go make one.

So I simply come over to the side here, I'm going to create a new folder over here. I'm going to call this folder Q4 events.

Creating this folder is really easy. The next step is to train it. And train it I mean I simply indicate e-mails that I want this folder to organize itself by. So let me select a couple of those. It takes five to train this system, and there's a couple of them collected, already. Let me try this one so we're up to four. We're going to need another one. That one looks like a good one right there. And now I indicate which folder this information is going to go into.

So I'm going to add it to the folder I just created. Clicking on the folder. Okay. And the system is now automatically training itself, understanding what a Q4 event message is, something that I, the user, understand.

BERT: So this is kind of like the key words and rules that we're used to?

TERRY: Well, it's a significant improvement in that information manageability. This is what we refer to as information knowledge management. And as you can imagine, with key words searching like that, you have to come up with the topics and words prior to you finding this information. What this is doing is reading my e-mail and learning this and training itself as we go.

We picked five e-mails out there. I'm going to open up the folder and now we have a total of 17 that it's gone out and found that match this criteria it's learned. Let's pick this one right here, this is the one that's going to make it.

BERT: Looks like we found a fit. Definitely go check that place out.

Thank you very much, Terry.

PATRICK GELSINGER: So what Terry and Bert were showing us was a technology demonstration results of a working relationship between Intel and Novell in the area of developing technology for information management as a step toward knowledge management. And they demonstrated this idea of intelligent folders, that the folder itself is able to learn from the data that you're putting into it and then apply that to other data sources, in this case mail, but it could be any other data source over time.

And this is a step in the -- step toward a true knowledge management environment. One of the critical elements of our business computing vision of the future.

As a result of technology like this, we have this deluge of information that the Internet is providing us, and this technology will allow us to categorize it, manage it, and keep our lives manageable going forward.

>>{}: Market research data here.

BERT: I sure do.

THE WITNESS: I see you're logging on to the system.

BERT: Is that a mart card?

>>{}: Yes. We secured our database now and we've moved to Windows 2000 and we've got our database completely secured.

So secure, I can't even get into it.

BERT: Try one more time.

>>{}: We'll try it again here. Okay. I need a little more training on this system, I think.

After I inserted the card, I also enter a personal identification number which gives us even further security here.

BERT: Okay.

>>{}: It's taking its time this morning for us. What we're looking at, Bert, is our West Coast region data for sales, and we're using the Coronado animated interactive 3D visualization tool from Portola dimensional systems. Now, what we're seeing here represents thousands and thousands of Excel spreadsheet cells, but it allows us to quickly analyze our market trends and tightly control our inventories because we can look at this stuff interactively and graphically over time.

Now, looking at these, I notice when I drill down here on our California segment, you'll see that the San Francisco store -- oops, we've got Washington. Well, Washington here, we can still see that the Yakima store even throughout the entire year, volumes are remaining very low, and it's showing me about a four percent to the bottom line,

I think it might be time for you to organize one of your famous motivational sales speeches. Get down there and talk to them.

BERT: That looks pretty complicated. How do we keep it running?

>>{}: This particular system we're running a 667 MHz next generation Intel microprocessor. We also have the 820 chipset which brings us RDRAM at 4x AGP.

BERT: Where do I buy one of these?

>>{}: I have a connection over there at Intel and they've loaned us this system, given the intensive market research we're currently doing.

BERT: That's very cool. Thank you.

PATRICK GELSINGER: So you've seen demonstrations of 667. We've shown you 800 MHz, some very high performance processors. All of the demonstrations we're showing on stage today are based on either our 810 or 820 platform or next generation chipset technology as well.

In this demonstration we also saw the critical role that security will play in accomplishing the e-business vision of the future. We see a critical role to secure the platform, the network, and the user.

Some of the technologies that will be part of the trusted connected PC of '99 and 2000 are shown here. 810 and 820 chipsets, they include a random number generator using a true source of random information, a thermal -- the thermal characteristics of the transistor, able to produce pure random numbers. Adding integrity to the platform, the boot integrity services, adding remote managed secure capabilities.

Also securing the pipe from the PC to the network and the server with IPSec. And finally in this demonstration we showed personal identification using smart cards and other tokens and other capabilities like that in the future. These steps towards delivering the trusted connected PC.

This concludes the e-business portion of our demonstration this morning. And what you've seen is steps towards the e-business vision that we have. We're able to build on security and manageability a firm foundation.

On top of that, we have capabilities and advancements in the areas of user interface, knowledge management, objects and agents, and the integration of voice and data in the platform. We've put those together in the demonstrations of these four applications, audio mining, immersive video, and knowledge management and data visualization, all demonstrating steps towards a complete e-business environment of the future.

What I'd like to do now is turn our attention to the e-home of the future with a very simple message that the homes of the future are all becoming e-homes.

Let's start by giving you a quick tour of our e-home of the future. And what we have here, this is the den of our house. I don't know, my den is usually not quite this clean. Maybe yours is. I need more stacks of paper here. But in our den we have a concept PC here. This is the Entrata from Fiora, a concept design house. You can see the spoilers on the side here that can close it up and protect the PC. You can pull it back and have access to the CD-ROM, to memory upgradability, the USB capabilities of the platform.

This is an 820-based platform with RDRAM capabilities. This also has networking built in. So networking on the motherboard. In this case we have a 10 base/100 base T connection directly into the motherboard. It's also a DVI connection into a ViewSonic display that we have here, a DVI CRT from ViewSonic. And this PC is acting as the hub of our home and it's delivering Internet to all the other PCs of the household.

Walking over here to the family room, we have a large display. This is AST system is a legacy reduced system. We've removed serial port, parallel port, mouse port from it. An AST system that will be shipping later this year. It's based on the 810 chipset, and again an advanced .18 micron microprocessor in it, also a DVI connection in the monitor.

The final room of our household is the kids' room or the teen room, PCs with an attitude and the style associated with this. This is from Daewoo. Again, this product will be shipping later this year. This is based on the 810. Also a legacy reduced platform.

All of these PCs built on 810 and 820 chipsets, all of them using our .18 micron processor technology, all of them networked, home network capable and broadband capable as well.

As we start this section, maybe we can again look back to what we said in February and go back to our audio mining demonstration and see what we said about fashion in these new concept PCs, and we can see if we're delivering on those promises.

So I'll come back to my audio mining demonstration and we'll type in "fashion." And now what we'll do is go look to see what we said about fashion PCs or fashion show. And you might recall at the February IDF we held the first ever fashion show for the PC industry. So let's see what we had to say about fashion. We go to the first occurrence there.

"What I'd like to do now is the first ever IDF fashion show, and we're showing a set of concept designs."

"Twister. "

PATRICK GELSINGER: So what we launched there was a set of concept vehicles for the industry to make progress, to move us forward in the area of fashion and style, and we demonstrated a 13-different concept PCs, and we said we were going to move the industry forward in this industry of easier to use PCs. Let's see what kind of progress we've made since IDF.

Well, in March we announced at the WinHEC forum with Microsoft the joint PC initiative with Microsoft and Intel and many other people from the industry; an initiative designed to revitalize the PC industry, to give beige and boring the boot, and to focus on easy to use and new styling and design. With long-term goals of making the PC easier to use, easier to set up, easier to expand and easier to maintain. That effort is gaining momentum and we have some check points, some deliveries that we can show you today around that.

This work will also be part of future PCxx design guides which will be very specific on the steps to deliver easy PCs. And finally, we need to make this work more quantitative. This is easier to use than that one and move it from the qualitative realm to the quantitative with some specific experts that will allow us to measure the progress of the industry in delivering ease of use.

1999 will focus in the areas of legacy reduction, the out-of-box experience, and kicking off an entire industry of style.

And as you can see here, we expect that easy PCs will become characteristics and will eventually replace all consumer and business PCs as those features and capabilities become part of the PC industry.

Not to be outdone by our February IDF, we had many new concepts that spring, and we have many again as well. And you saw Craig demonstrate a few of these over in our e-homes and showcase area. You can see many others. We have our bean PC down here. We had our Fiora , Fiora Tivo PC, and finally you saw Craig sit on our ottoman PC here. So some new exciting concept PCs there.

But what we really promised in February is we were delivering products this year and we have about ten different OEM announcements this week of announcing products that are consistent with the directions that we laid out in February.

I have two of those up here on stage with me that are products that are shipping this year. This is the E1, the e-machines all in one CRT legacy reduced design. Next to it here is the Hotwheels PC by Mattel and Patriot. If you haven't seen this one yet. We have Barbie in the showcase, but I brought Hotwheels on stage. I have three boys, 13, 11 and 9. I'm sure that one of them is going to want this for the Christmas gift this year, but the Hotwheels PC. And these are products that will be available and shipping had year. We're delivering on the promises we made at the February IDF. We'll be delivering products that are easier to use.

But one more thing we decided to use is push additional incentive to the industry in delivering easier to use designs. So what we've done is we've come up with the Intel Innovative Desktop PC Award, by superior innovation, simplicity and style, making their machines measurably easier to use and taking some of the early work we've done in the metrics area and testing these PCs, is it really easier to use, easier to set up, easier to expand. And we've tested a number of machines that are shipping and available at the time of IDF. And today I'm very happy to announce our first award winner of the Intel Innovative PC Award, the first "way cool" PC, and our award winner today is: And what we have here is the NEC Z1 design from Packard Bell NEC. This is an all-in-one design, an LCD display built in with the PC, legacy reduced, significant enhancement in the area of out-of-box experience, setup, and we're very excited with our first Intel Innovative PC Award winner, the NEC Z1. Thank you very much to our friends at NEC for winning the first award.

(Applause.)

PATRICK GELSINGER: But this is just the first award. Our incentive for the industry is let's have many more awards at the next IDF where we're able to give out several more way cool PC design awards.

With that I'd like to go back and now let's begin our e-homes demo scenario, and Bert and Victoria, if you guys could kick us off here.

VICTORIA: Hey, Dad. Welcome home from work.

BERT: Hi, Victoria. How was your day?

VICTORIA: It was good. Hey, is it okay if we watch that movie tonight I've been wanting to download? Bert burr you know I was going to watch the Journey concert over the Internet.

VICTORIA: Isn't there something else we can watch we're both interested in?

BERT: Why don't you watch it with me. You've guilty to watch this. These guys are so cool.

VICTORIA: These guys are too old. Let's play a video game as soon as you're done.

BERT: Yes. All right.

PATRICK GELSINGER: Bert is slightly dating himself for showing a Journey concert, but this is a live concert being streamed over the live Internet. We have a launch live site where they actually are streaming this Journey concert.

We have coming into our den PC, into our hub here, we have a T1 connection running at 1.5 megabits per second, the equivalent rate of full rate ADSL. At my home we have ADSL available, and that's what we use. And this PC is then acting as the hub that's delivering this over the home network so Bert is able to enjoy the Journey concert here and see a tremendous concert live over the Internet.

BERT: Well, looks like the concert is just about over. So what was this we were talking about, doing some kind of a game you're talking about?

VICTORIA: Let's play that new game we've got.

BERT: Okay. Are you ready to get beat?

VICTORIA: We'll see about that.

BERT: Okay. You want me to start it over here? All right. Here we go.

PATRICK GELSINGER: So what Bert and Victoria are going to do is show over our home network, they're going to do some head-to-head gaming, and we'll see Victoria's PC being shown on the screen to your left and Bert's PC being shown over here on the screen to your right, and we'll see they'll be able to demonstrate Revolt, a new claim from Acclaim. We'll see special effects, the head-to-head gaming over the experience of the home network. And finally, you could do this over the Internet as well so you could have a whole set of people playing and competing.

BERT: Here we go. Are you ready?

PATRICK GELSINGER: In this case we're giving Bert as an old man here with slightly inferior game skills, we're giving him an advantage. We gave him the faster PC to see if he could beat Victoria.

BERT: Oh, come on. Oh. I need a shortcut here. I need a shortcut.

VICTORIA: I'm beating you, dad. Where are you? You're way behind.

BERT: I'm just about ready to catch you here. I need a ramp, I need a ramp. Oh, well. I'm done.

VICTORIA: All right. I told you I'd beat you. Hey, now that we're done with this, after I won, let's make that video postcard for mom.

BERT: Yeah, that's a good idea. Let me get this unloaded here.

VICTORIA: So I set up that new Intel PC camera pro pack, and it's really simple.

BERT: Okay. Why don't you sit down here and show me how it's done.

VICTORIA: All I had to do was take the camera into the USB port, and take the output from my camcorder straight into the camera.

BERT: Okay. Goes right through into the PC. That's pretty cool.

VICTORIA: Yeah. So from the video that we shot this weekend at the park, let me go ahead and input the video into an e-mail postcard so that mom can know how much we miss her.

BERT: Yeah, really. So we can just go ahead and --

VICTORIA: Little slip coming up here.

BERT: Is anybody else listening to this?

(Laughter.)

BERT: There it is. So it can actually just, like, type a message to her and stuff like that?

VICTORIA: Right. And here we are. Hey, you got your fingers up behind my head. What was that?

BERT: No one said I couldn't. I kind of liked that part.

VICTORIA: All we have to do is drag and drop this video into an e-mail postcard and send it off to mom. She'll know how much we miss her.

BERT: Very cool.

PATRICK GELSINGER: What we're demonstrating is USB out of the box plug and play. In this case we're also using it as a way to accomplish legacy reduction. One of the challenges of reduced legacy is how do you patch those (inaudible) {?} technology. And in this case through the camera we're able to bring the analog, the traditional video feed into the PC through the USB port.

One of the things we described in the February track was the launch of the USB 2.0 working group. We launched it and challenged it to make measurable progress this year. I'm very delighted today with the progress that the USB 2.0 working group has made.

And in fact, when we launched this group, we set them out with a challenge of keep all the benefits of USB, the ease of use, the out of box experience, the simplicity of it, make it forward and backward compatible as we move to USB 2.0, the same connectors, the same wires, the same peripherals all work, and do so at the same low cost, high volume capabilities and make it 10 to 20 times faster.

That seemed like a very daunting task at the time. But I'm very happy today to announce that the USB 2.0 working group has come back and well exceeded that.

Instead of 10 to 20 times faster, they're now committing to make the technology 30 to 40 times faster, and increase the performance of USB to between 360 and 480 megabits per second. The specification is on track. The draft specification will be released at the USB 2.0 developer conference to be held in October. The specification will move to the 1.0 level in Q1 of next year and the second half of next year will have both platforms and peripherals that are compliant with the USB 2.0 specification that are shipping and available in the marketplace.

Summarizing, the evolution to the e-home, what we've seen is that the PC, the evolved, easier-to-use PC, is and remains the Internet access point today and into the future. These PCs are becoming broadband enabled and that broadband connection is experiencing new applications and capabilities in the e-home of the future. Home networking emerges allowing us to take the capabilities of the Internet into more and more places of the home, and doing so on PCs that have evolved and become more appropriate to the kitchen, the living room, the den, the family room and the kids' room.

In summary, our message is the Internet is everything. The result is that every business is becoming an e-business and every home is becoming an e-home. We invite you to join with us in accomplishing this vision. We thank you very much for participating in the conference and we look forward to the incredible success of IDF going forward as we make the e-business and the e-home a reality. Thank you very much.

(Applause.)

CARL: Good morning, my name is Karl Zable, I'm part of the team bringing you the conference here. I want to make a couple of quick announcements before we get on with the rest of our day. One of the great aspects of this conference is that we do have computing industry experts available to you all week long at the conference in Palm Springs. Those people are recognized by the blue and black IDF shirts. This is your opportunity, really, to meet and discuss technical issues with the experts that are on-site here.

The latest conference schedule that you got in your registration package is current and up-to-date. Today we have seven technical lecture tracks taking place as well as five hands-on lab tracks taking place. So lots of opportunity to really dive into the technical details behind the content that Craig and Pat talked about this morning.

The hands-on labs, those are a special registration in addition to your standard conference registration. There still is availability in all five lab tracks. At the primary registration desk, you can register for those hands-on labs if you're interested.

We have a special feature that we're adding to the conference this year, and that are birds of a feather sessions sponsored by our gold sponsors. So today, at lunchtime, from 1:00 p.m. to 2:00 p.m., those BOF sessions are being delivered by HP, Lucent, and TI today. Those are offered over in the Wyndham Hotel technical lecture breakout rooms. And again, from 1:00 p.m. to 2:00 p.m. today.

Tonight we have a reception in the demo showcase. That's from 6:00 to 9:00 p.m. as well.

Couple of very important things that Craig touched on that are real critical for IDF team, first is your conference evaluation form, the orange form here. This is your opportunity to tell us about how to make this conference more applicable and more useful to you, the attendees. These forms, please keep these with you all week long. At the end of the conference on Thursday, we'll exchange a completed evaluation form four a conference T-shirt, and more importantly, for our conference CD which includes all of the technical presentations, over 130 that are being presented this week at the conference, as well as over 130 pieces of technical collateral that are being discussed in the technical breakout sessions.

So again, conference evaluation. Return that at the end of the conference in exchange for CD and T-shirt.

And then daily evaluations. We'd like to hear from you what you think and how applicable our technical breakouts and hands-on labs are to you. These are very important to us.

At the end of the day, you can turn these in to the room monitors, either in your lab room or in the technical lecture rooms. We'll collect these daily, and tomorrow morning, when you come in for the keynotes, there will be a new sheet for the day 2 evaluations.

Finally what I'd like to do is let everybody -- give everybody a chance to stand up and stretch your legs. It's now almost ten o'clock. We've got a break until 10:30. At 10:30, the seven technical lecture sessions and five different hands-on labs will begin, both in the convention center breakout rooms and the Wyndham Hotel breakout rooms. If you have any questions or comments we'll be glad to answer those for you up front in the

PATRICK GELSINGER: Thank you, Craig.

Now you've seen Craig in action for the last hour, and when I introduced him, I introduced him as the ruthless dictator. After seeing him for the last hour, do any of you doubt me?

(Laughter.)

PATRICK GELSINGER: Do you? Look at all the action items I got? I had to I make .18 happen, get the first version of 7, give the big beige boxes the boot. I have a lot of work to do after listening to him for the last hour.

Thank you, Craig, very much for that demonstration and overview, introduction of the e-business and e-home vision for the Internet.

What I'd like to do now is take a minute and recognize the sponsors for IDF.

As I've mentioned, the "I" is a lot more appropriate the Industry Developer Forum. We thank very much those who committed their technology, their personnel and their resources in numerous ways for making this successful.

The silver sponsors, Conexant, EarthWeb, LSI Logic, Motorola, Samsung Semiconductor, Seagate, and Tektronix. These are the companies that are working most closely with us in bringing you the developer forum that we have today. And we want to express our appreciation and sincere thanks to their making contributions and making the developer forum a success and bringing us all together here this week. Thank you very much to each one of them.

(Applause.)

Since February we've seen significant progress consistent with that direction. HTML is going out and reaching and searching and grabbing a page, and now we see a move to XML or smart data. We see progress in the area of automation of data access where you now have persistent links able to not just reactively able to go out and grab information from the Internet but my data sources, my clients and servers are able to have persistent links to smart data on servers throughout the Internet.

This leads to this very simple view that all business will become e-business of the future. And our demonstration this morning will be showing many of these applications, powerful new applications. But let me start that by showing the first application, our first audio mining application. And what we've done in this demo is we've taken the keynote speech that I gave at the February IDF, we've loaded it on the system, we've digitized it, we've taken speech to text, and we've then loaded up here, collated it, coalesced it, and indexed it. So that's my IDF speech. And now we're able to make queries on that speech.

So what did we talk about in February? One of the technologies, RDRAM. Let's see what we said about RDRAM.

Okay. Well, maybe we'll talk about RDRAM. Let's try it again. Great.

So what we see is here, after we type RDRAM, it shows us the occurrences of this in our keynote. We'll click on the first example, and we'll see what I had to say about are DRAM.

"The next step in that is Direct RDRAM, doubling the memory performance."

PATRICK GELSINGER: So what we saw is we're able to make a query against that speech-to-text database and go to that exact point in the keynote speech. That's pretty impressive. Let's try another one.

Let's try "digital." We talked about digital displays in February.

Okay. And what we have here, it's showing the multiple occurrences of "digital," and the light green ones are the highest probability of occurrences and I've set a threshold to take us to the first one of those. And you can imagine audio mining as an application, very computationally intensive, maybe applications like voice, voice mail, where you could index it, collate it, be able to look it up, or other applications, maybe like maybe a call center where you wanted to record and look at all of the caller information, and actually be able to more accurately look at what your customers exactly had to say.

So you can see this being applied in numerous applications in the business environment.

So let's go back and look at what we said about digital displays. Let's look at the first one.

"This is a production unit."

PATRICK GELSINGER: Oh, this isn't what we want. This is digital VHS. So let's try next here.

"Copy that and on the --"

PATRICK GELSINGER: Let's go to the next one.

"Digital display working group. This activity is formed of the companies that are listed here."

Well, we said in the fall of the year. Guess what? It's the fall. Do we have products?

Well, I'm very happy this week that we have some 17 different announcements about DVI products this week. Companies announcing that they have DVI compliant products. That's pretty exciting.

And in the demo showcase you'll see some 150 DVI displays throughout the showcase this week.

We're just happy to say just say no to analog. This is the last bit of analog in the PC connectors, and we're now removing this from the platform as well and moving to an all digital PC.

VICTORIA: Good morning, Bert.

BERT: Good morning, Victoria. How are you?

VICTORIA: Good. Have you had an opportunity to do more searching for our off-site?

BERT: We're trying to search for a place that is adequate for our off-site, as you know, and I'm employing the following technology here, this is called En Route and it's by Immersive Media. And what they've done is they've actually gone to a dining and meeting facility up in Portland, Oregon, and it's called the Edgefield.

Now, this is their Web site, or their prospective Web site.

As you can see as I scroll across, you can see the different areas in this facility, pubs, theater, winery, but we're interested in event spaces that we want to check out.

Obviously this is a very nice area, a lot of antique equipment, a place with a lot of history.

So that's a very nice room. Let's move on. Now we'll go on into the dining facility.

Now, you need a strong PC, something with the �high-end products like this Compaq with the 820 chipset and RDRAM to bring this immersive experience to a richer environment like this where you can actually see what's going on. In the past, a search like this would have required phone calls and a lot of times an actual drive where you have to bring people there and you have to walk through, and it's very, very time intensive. But in an area like this, it makes your search much more efficient. And in fact, as more and more companies begin to use this technology to advertise in this rich environment that needs this kind of power, it's going to be a real challenge for the industry to provide these systems with RDRAM and 820 chipset and the Pentium III processor to the consumer so they can enjoy this type of experience and improve their productivity.

VICTORIA: Plus they save a ton of money on travel.

BERT: Exactly.

Let me give you a brief update on the Intel 820 chipset. At the IDF in February I called this the tour de force platform for the year, and we're on track to deliver the 820 chipset in the very near future, the next generation of platform performance. Significant advancements throughout the platform. We're offering performance headroom for future applications, a balanced system by which we've increased the performance of the IO subsystem, the graphics, the front side bus of the processor, and the memory as well.

Maybe I can give you a brief demonstration of the AGP4x performance capabilities of the platform. Victoria.

VICTORIA: What we're going to do here is render a very graphical image.

PATRICK GELSINGER: Wow, that's impressive. Look at the light dancing off of the ceiling and the reflections, the multiple video screens. This is very impressive.

VICTORIA: There's texture showing on every single surface in the image. And this is an 820-based platform. And as you can see here, our frame rate is exceptionally high, 41.1 frames per second.

PATRICK GELSINGER: 41 frames per second. So we're stressing the AGP bandwidth of the system, also the processor capabilities of the system, and this is something like 30 percent faster --

VICTORIA: Right.

PATRICK GELSINGER: -- than AGP platforms before. . That's very impressive, Victoria.

VICTORIA: And remember that system we were trying to get you for the event? We've got an 800 MHz running this demo.

PATRICK GELSINGER: In this particular case, not to be outdone by Craig Barrett, we're running this on an 800 MHz, .18 micron system. And this is all standard production cooling, no fancy Freon or any cooling. A standard product like this with all standard cooling technologies that are shipping and available in the industry today. And we're pretty excited with the progress of the .18 micron processor technology that we'll be bringing forward in the fourth quarter of this year.

Also, we'll have frequencies including 667 MHz. a

So we're working very rapidly towards the launch and the ramp of this technology in the industry.

Not only does the Coppermine product include the .18 micron, but also microarchitectural enhancements as well. It's more than just a speedup of the processor. Microarchitectural enhancements that will further improve the performance of this processor family of products.

As we touched on the 820 chipset, we also touched on RDRAM. So how is our RDRAM ramp doing?

Immediately after my keynote speech, we'll be having a press conference where we'll be announcing the implementers forum with myself and the RDRAM, the senior executives from the RDRAM companies that are joining us in this, Hyundai, Infineon, Micron, NEC, Samsung, and Toshiba.

With that, back to you, Bert.

BERT: So, Terry, as you saw earlier in our search at the Edgefield, the facility is nice and we're going to probably use it for a Christmas function.

TERRY: Beautiful for that.

BERT: But for this particular event it's probably not going to be the perfect fit. And I heard you had some technology over here that helps us sift through a lot of incoming information.

TERRY: Yeah.

BERT: Is there a way you can help us out?

TERRY: I'm running Novell's Groupwise. You can imagine with this project I'm getting an enormous number of e-mail, and I know that information is in there.

I want to show you something that we have that will improve this productivity as well. This is called an intelligent folder. And what it does is it lets me organize this information based upon the content of those e-mails.

Let's go make one.

So I simply come over to the side here, I'm going to create a new folder over here. I'm going to call this folder "Q4 events".

Creating this folder is really easy. The next step is to train it. And by train it I mean I simply indicate e-mails that I want this folder to organize itself by. So let me select a couple of those. It takes five to train this system, and there's a couple of them collected, already. Let me try this one so we're up to four. We're going to need another one. That one looks like a good one right there. And now I indicate which folder this information is going to go into.

BERT: So this is kind of like the key words and rules that we're used to?

BERT: Looks like we found a fit. Definitely go check that place out.

Thank you very much, Terry.

And this is a step in the �right direction, a step toward a true knowledge management environment. One of the critical elements of our business computing vision of the future.

Jory: Bert, do you have time to look at some new market research data here.

BERT: I sure do.

THE WITNESS: I see you're logging on to the system.

BERT: Is that a Smart card?

Jory: Yes. We secured our database now and we've moved to Windows 2000 and we've got our database completely secured.

So secure, I can't even get into it.

BERT: Try one more time.

Jory: We'll try it again here. Okay. I need a little more training on this system, I think.

After I inserted the card, I also enter a personal identification number which gives us even further security here.

BERT: Okay.

Jory: It's taking its time this morning for us. What we're looking at, Bert, is our West Coast region data for sales, and we're using the Coronado animated interactive 3D visualization tool from Portola Dimensional Systems. Now, what we're seeing here represents thousands and thousands of Excel spreadsheet cells, but it allows us to quickly analyze our market trends and tightly control our inventories because we can look at this stuff interactively and graphically over time.

I think it might be time for you to organize one of your famous motivational sales speeches. Get down there and talk to them.

BERT: That looks pretty complicated. How do we keep it running?

Jory: This particular system we're running a 667 MHz next generation Intel microprocessor. We also have the 820 chipset which brings us RDRAM and 4x AGP.

BERT: Where do I buy one of these?

Jory: I have a connection over there at Intel and they've loaned us this system, given the intensive market research we're currently doing.

BERT: That's very cool. Thank you.

Some of the technologies that will be part of the trusted connected PC of '99 and 2000 are shown here. The 810 and 820 chipsets, they include a random number generator using a true source of random information, a thermal -- the thermal characteristics of the transistor, able to produce pure random numbers. Adding integrity to the platform, the boot integrity services, adding remote managed secure capabilities.

What I'd like to do now is turn our attention to the e-home of the future with a very simple message that the homes of the future are all becoming e-homes.

Let's start by giving you a quick tour of our e-home of the future. And what we have here, this is the den of our house. I don't know, my den is usually not quite this clean. Maybe yours is. I need more stacks of paper here. But in our den we have a concept PC here. This is a concept from Fiori, a concept design house. You can see the spoilers on the side here that can close it up and protect the PC. You can pull it back and have access to the CD-ROM, to memory upgradability, the USB capabilities of the platform.

Walking over here to the family room, we have a large display. This AST system is a legacy reduced system. We've removed serial port, parallel port, mouse port from it. An AST system that will be shipping later this year. It's based on the 810 chipset, and again an advanced .18 micron microprocessor in it, also a DVI connection in the monitor.

The final room of our household is the kids' room or the teen room, PCs with an attitude and the style associated with this. This is from Daewoo. This is their NeTeen platform. Again, this product will be shipping later this year. This is based on the 810. Also a legacy reduced platform.

All of these PCs built on 810 and 820 chipsets, all of them using our .18 micron processor technology, all of them networked, home network capable and broadband capable as well.

So I'll come back to my audio mining demonstration and we'll type in "fashion". And now what we'll do is go look to see what we said about fashion PCs or fashion show. And you might recall at the February IDF we held the first ever fashion show for the PC industry. So let's see what we had to say about fashion. We go to the first occurrence there.

"What I'd like to do now is the first ever IDF fashion show, and we're showing a set of concept designs."

"Twister. "

PATRICK GELSINGER: So what we launched there was a set of concept vehicles for the industry to make progress, to move us forward in the area of fashion and style, and we demonstrated 13-different concept PCs, and we said we were going to move the industry forward in this industry of easier to use PCs. Let's see what kind of progress we've made since IDF.

1999 will focus in the areas of legacy reduction, the out-of-box experience, and kicking off an entire industry of style.

Not to be outdone by our February IDF, we had many new concepts that Spring, and we have many again as well. And you saw Craig demonstrate a few of these over in our e-homes and showcase area. You can see many others. We have our Bean PC down here. We had our Fiori, Fior Attivo PC, and finally you saw Craig sit on our Ottoman PC here. So some new exciting concept PCs there.

I have two of those up here on stage with me that are products that are shipping this year. This is the E1, the e-machines all in one CRT legacy reduced design. Next to it here is the Hotwheels PC by Mattel and Patriot. If you haven't seen this one yet. We have Barbie in the showcase, but I brought Hotwheels on stage. I have three boys, 13, 11 and 9. I'm sure that one of them is going to want this for the Christmas gift this year, but the Hotwheels PC. And these are products that will be available and shipping this year. We're delivering on the promises we made at the February IDF. We'll be delivering products that are easier to use.

(Applause.)

PATRICK GELSINGER: But this is just the first award. Our incentive for the industry is let's have many more awards at the next IDF where we're able to give out several more way cool PC design awards.

With that I'd like to go back and now let's begin our e-homes demo scenario, and Bert and Victoria, if you guys could kick us off here.

VICTORIA: Hey, Dad. Welcome home from work.

BERT: Hi, Victoria. How was your day?

VICTORIA: It was good. Hey, is it okay if we watch that movie tonight the one I've been wanting to download? Bert But you know I was going to watch the Journey concert over the Internet.

VICTORIA: Isn't there something else we can watch we're both interested in?

BERT: Why don't you watch it with me. You've got to watch this. These guys are so cool.

VICTORIA: These guys are too old. Let's play a video game as soon as you're done.

BERT: Yes. All right.

PATRICK GELSINGER: Bert is slightly dating himself for showing a Journey concert, but this is a live concert being streamed over the live Internet. We have a Launch Live site where they actually are streaming this Journey concert to us.

We have it coming into our den PC, into our hub here, we have a T1 connection running at 1.5 megabits per second, the equivalent rate of full rate ADSL. At my home we have ADSL available, and that's what we use. And this PC is then acting as the hub that's delivering this over the home network so Bert is able to enjoy the Journey concert here and see a tremendous concert live over the Internet.

BERT: Well, looks like the concert is just about over. So what was this we were talking about, doing some kind of a game you're talking about?

VICTORIA: Let's play that new game we've got.

BERT: Okay. Are you ready to get beat?

VICTORIA: We'll see about that.

BERT: Okay. You want me to start it over here? All right. Here we go.

PATRICK GELSINGER: So what Bert and Victoria are going to do is show over our home network, they're going to do some head-to-head gaming, and we'll see Victoria's PC being shown on the screen to your left and Bert's PC being shown over here on the screen to your right, and we'll see they'll be able to demonstrate Revolt, a new game from Acclaim. We'll see special effects, the head-to-head gaming over the experience of the home network. And finally, you could do this over the Internet as well so you could have a whole set of people playing and competing.

BERT: Here we go. Are you ready?

PATRICK GELSINGER: In this case we're giving Bert, as an old man here with slightly inferior game skills, we're giving him an advantage. We gave him the faster PC to see if he could beat Victoria.

BERT: Oh, come on. Oh. I need a shortcut here. I need a shortcut.

VICTORIA: I'm beating you, dad. Where are you? You're way behind.

BERT: I'm just about ready to catch you here. I need a ramp, I need a ramp. Oh, well. I'm done.

VICTORIA: All right. I told you I'd beat you. Hey, now that we're done with this, after I won, let's make that video postcard for mom.

BERT: Yeah, that's a good idea. Let me get this unloaded here.

VICTORIA: So I set up that new Intel PC Camera Pro Pack, and it's really simple.

BERT: Okay. Why don't you sit down here and show me how it's done.

VICTORIA: All I had to do was hook up the camera into the USB port, and take the output from my camcorder straight into the back of the camera.

BERT: Okay. Goes right through into the PC. That's pretty cool.

VICTORIA: Yeah. So from the video that we shot this weekend at the park, let me go ahead and input the video into an e-mail postcard so that mom can know how much we miss her.

BERT: Yeah, really. So we can just go ahead and --

VICTORIA: Little slip coming up here.

BERT: Is anybody else listening to this?

(Laughter.)

BERT: There it is. So it can actually just, like, type a message to her and stuff like that?

VICTORIA: Right. And here we are. Hey, you got your fingers up behind my head. What was that?

BERT: No one said I couldn't. I kind of liked that part.

VICTORIA: All we have to do is drag and drop this video into an e-mail postcard and send it off to mom. She'll know how much we miss her.

BERT: Very cool.

PATRICK GELSINGER: What we're demonstrating is USB out of the box plug and play. In this case we're also using it as a way to accomplish legacy reduction. And in this case through the camera we're able to bring the analog, the traditional video feed into the PC through the USB port.

That seemed like a very daunting task at the time. But I'm very happy today to announce that the USB 2.0 working group has come back and well exceeded that.

(Applause.)

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