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CTIA Wireless World 2001 Craig Barrett TOM WHEELER: Make three sounds: dong, dong, dong. Now you see that's why I wasn't a music major, also. But if I were to make those three tones, everybody knows exactly what corporate image comes to mind and the phrase that goes with it, "Intel Inside." The folks that have built the silicon microprocessors that power the kinds of things we've been talking about today. We've got with us today the man who is the man inside "Intel Inside," the CEO of Intel, Craig Barrett. (Applause.) CRAIG BARRETT: There are four notes, not three notes. TOM WHEELER: See, I told you I wasn't a music major. The ?? Should we start this all over again? We could ?? I'm sorry about that, but I ?? I guess that, then, leads to the same kind of question that I asked Michael. Okay, Mr. Four Notes, what are you doing here? CRAIG BARRETT: Well, I heard you guys were going to talk about the Internet, and then I came and I listened to your opening spiel, and you're talking about the Internet and the wireless Internet, so I figured I better come out on stage and set you straight. You know, there is one Internet. Nobody is going to re-do it. There's scalable content. There will be multiple access points to it. But I just wanted to come out and assure the audience that the 400 million users on the Internet today are not going to throw away what they have. Content providers are not going to create special content necessarily for wireless. There will be scalable content, but there's one Internet. And we all want mobile access to it. We want that global communication capability. But it's really going to be "the" Internet. So every time you draw one of these "X" curves, you know, where you guys cross us land-locked, land-wired guys and you put a competitive spirit into this, I think you've kind of got it wrong. There's more value to both of us if there are multiple access points to the Internet and good, scalable content on the Internet. And what I want to do is not just talk about that. I want to show you a simple demo of what we're talking about. And in our simple demo, we'll view a real business experience. And we'll deal with scalable content from a high-performance desktop all the way down to the tiniest little mobile access device that you have. TOM WHEELER: Great. CRAIG BARRETT: Let's go over here and we'll join Katherine who is going to be with us -- TOM WHEELER: Hello, Katherine. KATHERINE: Hello. CRAIG BARRETT: -- and do the demo. And why don't you just give us an idea of what we've got going on here. KATHERINE: As you said, what we're doing is we're showing multimedia across a whole range of devices, down from a Pentium 4 all the way down through PDAs, down to the latest cell phones. And what I want to show you is how we have to scale multimedia to reach this range of devices. CRAIG BARRETT: All right. So we'll go off something like a 1.7 GHz desktop PC down to a 1 GHz laptop PC, and then we'll just go on down in processing power. KATHERINE: That's correct. Now, let me show you what we have here on my desktop. What we're doing right now is finishing up our latest ad campaign for the Pentium 4 processor. I just received a final audio soundtrack, and what I want to do is sync it up with the video one using the software here. So let me play it, and let's see what we think about it. (Audio playing.) "The Intel Pentium 4 processor: The center of your digital world." TOM WHEELER: Jeez, there's four tones, isn't there? (Laughter.) CRAIG BARRETT: You listened more carefully this time. Wireless or wired, there's still four. Now, the cool thing about this, you saw all the rich content. Everything in here. There's the audio file, video file, great imagery, real time. What we're going to do now is just take that content and scale it down to different access points. KATHERINE: Now, what I'm showing right here on my desktop is that we're actually using a peer-to-peer software called Magi {sp?} by Endeavor technology, and the great thing about it is that it shows me everybody I work with and the type of device that they use to receive their content. So it enables me to scale down the technology to be appropriate for the device to which I'm sending it. The first thing I want to show you is that I've created the content on the Pentium 4. Now what I want to do is send it to a bunch of people in a department and within my building. Now, we're the production company. We've got people all over the world that need to make advice or approval of the commercial. So first our entire building is connected through wireless networking. So what I'll do is first send it to my colleague over here who has a 1 GHz Dell platform. And because it's a high-speed platform, I can send a rich multimedia file to her desktop. Let me just give you a quick show what that looks like. (Audio playing.) KATHERINE: Again, there are other people in our building who are also connected wirelessly using items such as the Compaq iPAQ connected using the PC card for wireless LAN. Now, this is an Intel StrongARM processor in it running at 206 MHz. And the great thing about it, even though it's a really small device, you get an extraordinary multimedia experience on it. (Audio playing.) KATHERINE: So that's just within the building, in our local building, that we're sending on the wireless LAN. The next thing we want to do is actually send the information wirelessly around the world, and there's multiple devices that people are using for this. Now, this device is called the PC E?Phone. Just turn it on. We're sending this to our press relations team, and they need to approve some publicity stills. I'll get this lined up so people can see. This is a combination PDA/CDMA cell phone. So what I can do is send things like JPEGs down to their machine just so they can ?? down to the PC E?Phone--edit them on the fly and send them back to us. And it's just simple. If they're looking at it and they make comments, like make notes on it, and send it back to me and say, "Okay, we need to lighten this area," et cetera. CRAIG BARRETT: We're really getting to scalable content. We've gone from full, rich audio/video even to the iPAQ now to just sending separate images down. But the separate images still give the same feel, the same look of what we're trying to get approved here. KATHERINE: Right. And this one is really optimized for the cellular connection that we have there. CRAIG BARRETT: All right. Let's take it down to the next level and see where we go. KATHERINE: Okay. This is for our people in France. This is called the Trium Mondo {sp?}, and it's a GSM GPRS PDA/cell phone. Let me just hook up the sound. Now, this one is great. It's a black-and-white screen but has, actually, extraordinary sound. (Audio playing.) CRAIG BARRETT: All right. We can still get the look and feel of what we're trying to approve for this ad campaign. KATHERINE: Right. CRAIG BARRETT: Let's take it down another level and see where we can go. KATHERINE: Okay. Now, our director is in Japan, and he wanted to see what the final soundtrack sounded like once we were done with it, so I sent him an MP3 burned off of this copy over here, and he would like to listen to it. And what he can use to do that is his cell phone. So this is an MP3 cell phone. Let me just plug this in. (Audio playing.) KATHERINE: So you can see here. Again, you can get a rich multimedia experience just being received on his cell phone. CRAIG BARRETT: And the last example is going to be? KATHERINE: And the last example, this is a great new phone. This is from Motorola. It's actually a tri-band phone, and it is also a GPRS-enabled phone. Now, if you look at it closely, there actually seems to be a message on it. Now, we can send information down to this one, such as SMS messaging, along those lines, so they can, say, give information when you need rapid feedback. And, Craig, seems to be a message for you on this one, if you can read that. CRAIG BARRETT: Pam Pollace happens to be our vice president of marketing at Intel responsible for these Pentium 4 advertising campaigns, so it sounds like she wants to talk to me. So I guess we can use wireless to talk to people, can we? TOM WHEELER: It's old?fashioned, but yes. CRAIG BARRETT: Okay. (Laughter.) KATHERINE: Okay. So there you go. CRAIG BARRETT: All right. So I just need to punch in a number here. KATHERINE: Yep. TOM WHEELER: We'll see if this works. PAM: Hello? CRAIG BARRETT: Pam. PAM: This is Pam. Hi. CRAIG BARRETT: This is Craig. PAM: Hi, Craig. CRAIG BARRETT: I'm in Vegas with a couple thousand of your close friends previewing your next ad campaign. PAM: Oh, dear. And what do you think of it? CRAIG BARRETT: Well, I like the ad campaign. I just don't want you to spend too much money. (Laughter.) PAM: Well, I'm glad we got the approval to go, and I'm working on the dollars part of it. CRAIG BARRETT: All right. And I'm glad to see you're only keeping three of those blue men even for the Pentium 4 campaign. PAM: Okay, good. This is good having your input feedback. Thanks. CRAIG BARRETT: All right. Good to talk with you. PAM: Thanks. TOM WHEELER: That's great. CRAIG BARRETT: Scalable content, all the way. And I think that that's what the Internet is all about, which is why we've got 400 million users who like what they have. They want to go mobile. They want scalable content, they want you guys to get your act together and get bandwidth and all that good stuff so we can have richer scalable content. But I don't think we ought to be talking about competition. I think we ought to be talking about collaboration; how to get the two sides working closer together to give the end user the benefit of what we can both bring. TOM WHEELER: So how do we collaborate? Okay. There's the challenge that you set up. How do we work with Intel to deliver on that? CRAIG BARRETT: Well, one of the ways is the demo we gave over there. Every one of those devices happens to have an Intel processor in it. And we're very interested in this whole issue of the Personal Internet Client. In fact, we have an architecture called the Personal Internet Client Architecture or Intel PCA. And it is really patterned off of what our experience has been in the computer world, which is the way you innovate rapidly, the way you bring creativity in the marketplace, is you open up the system, you open up the standards, and you let the whole industry innovate around some common interfaces. This is what has made the computer industry so successful. Steve Ballmer will be out here in a minute from Microsoft, and you've got APIs from Microsoft and anybody in the industry can write applications to knows APIs. That's how you get hundreds of thousands of applications targeted towards the PC. What's going to make these mobile devices successful is access to the Internet, scalable access to the Internet, and exciting applications. And you want the whole industry to create those applications. So you want the industry to be able to target towards some specific open platform standards. And what we're trying to do is help provide those standards, and in one sense, provide the APIs to write to, if you will, hardware/software standards, and bring that PC experience into the wireless world. TOM WHEELER: Now, do you agree with Michael Dell that the experience is different on the phone than it is on a laptop? And, therefore ?? because you got that ?? you're talking about separating the hardware stack from the COMs engine. That exists in a PC today ?? CRAIG BARRETT: Sure. TOM WHEELER: ?? but not in a phone. CRAIG BARRETT: Well, it exists in the PC today, not in the phone. You want to separate the compute stack from the COM stack such that people can innovate on each of them separately and you don't have to write applications all the way down to the COM stack. I absolutely agree with Michael that is what you're seeing on the PC today ?? We had a 1.7 GHz PC over there today, you were talking about your little horse races up here with bandwidth. You know, in the corporate environment, we're not talking about 300K. We're talking about 10 megabits going to 100 going to 1 gig going to 10 gig Ethernet. You're going to have 10 gigabit Ethernet with OC 192. Those two are going to collapse to a common 10 gigabit standard in the long haul in the metro in the enterprise. So we're interested in immense bandwidth and an immense user experience associated with processing power and that bandwidth. And after that, it's going to be scalable. You're not going to get the same user interface, same user experience, in my mind, with a three by five or a five by seven, five by ten little LCD screen. But with good horsepower and with decent bandwidth, you can do the sort of things we were showing there. You can get the essence of the content; it's scalable, but you get the essence of the content. TOM WHEELER: So adaptability, the speed with which you can develop new applications, depends on the capacity. And the capacity depends, in the phone level, at least, in divorcing these two components, the COM engine and the software; right? CRAIG BARRETT: Well, I think if you're going to talk about thousands and thousands or tens of thousands of potential applications written for these handheld devices, you're not going to want to qualify every one of those applications all the way through the COM stack in this device. You're going to want to do it on the compute stack and you're going to want to have the compute stack be a standard with open interfaces such that, in fact, you write to those open interfaces, you're assured it's going to work there, and you don't have to go through type approval for every application in every handheld device through Mr. Powell and his group. TOM WHEELER: And what's the reception been? You sat down here after we did the demo and you said, "Okay, we've got to work together." Do you think we're working together right now? CRAIG BARRETT: Well, I think the reception is starting. I mean, if you go to Japan and we look at i-Mode and the 18 or 20 million i-Mode users, not all of them are teenage girls, I understand. I understand only about 10 percent of them or so are under 16. There are even some people my age that subscribe to i-Mode in Japan, a bunch over 40. But if you look at i-Mode, if you look at Access, which is the microbrowser supplier, if you look at Cybird which is the biggest aggregator of applications for DoKoMo i-Mode phones, they're both endorsing this PCA concept. If you look in the U.S. at Info Space, AT&T in wireless and Sprint, they're endorsing this. If you look at the multimedia providers, application providers ?? Beatnik, and I can't even remember the name of our media supplier, I will admit it ?? they're excited about this. If you look at the announcement we're just making today with IBM in terms of taking their software middleware layer that, in fact, allows you to write applications to it, allows you to write communication protocols to it, the whole Websphere, anyplace, anywhere type of middleware stack, they're endorsing PCA. So we're getting a lot of traction on this. But obviously, what we need to do is to get more traction, more applications, more bandwidth going into this space. And I guess I'm more optimistic about the carriers and the handset providers and the application writers accepting this than I am, perhaps, on the industry as a whole getting aligned between 2.5 G or 3 G and ruling that out. I'm one of these skeptics who ?? TOM WHEELER: What's that? CRAIG BARRETT: Oh, I guess I've been wishing for bandwidth for ten years, and it hasn't really happened yet. I look at the capital infrastructure that has to go in place to put 3 G in place. I relate that to the capital structure that's necessary to put DSL in place. You made a comment before that us folks are satisfied with our less?than?50K baud rate connection. I don't think you can be farther from the truth. Nobody who downloads at 50K or has the option to download at 300K or a megabit or 10 megabits is satisfied. It's the hassle of dealing with the service providers in that space. (Applause.). CRAIG BARRETT: You know, let me give you an example. Truth in advertising. I was on the board of U.S. West, I'm on the board of Qwest and I live in Phoenix, Arizona. I wanted to get DSL to my house, and I talked to the chief operation guy at U.S. West a few years ago and he told me move my house closer to the central office. (Laughter.) (Applause.) CRAIG BARRETT: So I said, you know, "I don't think that's acceptable, Greg. There must be another solution to this." And so, finally, not for me but for the area that I live in, they ran fiber out to within a mile of my house, and I now have a VDSL service. I get 22 megabits coming in. But unfortunately, it took three wagonloads of about a dozen technicians three days to rewire my house to make the system work. But I get all my entertainment, my fast Internet access and my telephony services over that. TOM WHEELER: But, you know ?? the point you were making about the point I was making, and I understand and respect that, but let's go to your point about a common set of information that is accessed by all kinds of different pathways through all kinds of different devices. CRAIG BARRETT: Yes. TOM WHEELER: Some of those pathways are going to be 10, 20 ?? I mean, gazillions of bits of data. CRAIG BARRETT: Right. TOM WHEELER: And there is going to be a market for those. There's going to be a market for it at T1, there's going to be a market for it at DSL speeds. The interesting thing is that there is also a very substantive market at lower speeds, 56Kb or below, and that's the message I would hope that would come out of all of our discussions is your point, which is a load of information centrally stored, accessed in the way that you find most convenient to meet your needs. And, indeed, wireless access at some of these speeds is going to be one of those ways, just like the higher speed. CRAIG BARRETT: Right. Well, if you look at all the handheld devices and the most successful models, whether it's a Palm Pilot, whether it's a Compaq iPAQ or many others, Handspring, what have you, you look at their utility. Is their utility as a standalone device or is it an adjunct to the PC? And, clearly, the majority of the utility is as an adjunct to the PC. It's complementary to the PC and the Internet as we know it. The iPAQ device is great; interfaces with your PC. You can download the applications you have on your PC. You can sync your e-mail. You can sync your calendar. You can sync your life with it. And none of us want to have asynchronous lifestyles. We don't want to have a wireless world and a wired world. We want them absolutely coupled together. It's the one plus one equals more than two deal. And the two industries either work together and we get complementary nature of what we have, common methods, common interfaces, common databases, scalable depending on bandwidth, scalable depending on screen size. And then we just go to town with that. That's the opportunity we all have facing us. I was personally a little bit dismayed over the last year or two that the press, they're all sitting way over there in the corner, that's kind of where they belong, but -- (Laughter.) CRAIG BARRETT: -- you know, they got hyped into this is it going to be a wireless Internet or wired Internet. And that's got to be dead wrong. The real issue is there is an Internet and there are multiple access points and there's scalable content. But the 400 million, soon to be a billion, wired users are not going to give up that capability. The content is not going to be recreated twice. It's going to be scalable, and they're going to have to be complementary. TOM WHEELER: You know, but the interesting thing is there is going to be a day, and it will happen, I predict, Craig, three years from now we'll be sitting on this stage talking about wireless penetration being greater than 100 percent of the population. And people are going to say how can that happen? Well, the answer is because you're going to choose multiple wireless pathways to be adjuncts to your multiple wired pathways all to get to the same pot of information. CRAIG BARRETT: Well, I won't argue with that at all. One of the things that continually amazes me, you'll be able to ask Steve Ballmer this question when he comes out, is how many PCs does Microsoft have per employee? I know how many Intel has per employee, and it's way more than one. You know, it took me a while to figure out how that happened, but ?? (Laughter.) CRAIG BARRETT: You know, we run somewhere in the 1.3, 1.5 PCs per employee. And we all carry ?? and I took off my little Blackberry messaging device before I came out here, but I have that. The reason I have that is it's absolutely tied into my Outlook e?mail system; ties my office to me when I'm roaming or mobile. So I buy exactly what you're saying. I just hope in three years when we reconvene, we're talking about high bandwidth wireless and not this kind of slow stuff we have today. TOM WHEELER: Boy, I hope we can get the spectrum to do that. Did you talk to Michael Powell when you were back there about what we can do about that spectrum? One of the things that Jerry Yang and I talked about was the education issue, education of the consumers. I know that you're also very concerned about another aspect, another educational aspect. Tell us about that. CRAIG BARRETT: Well, our one extracurricular activity happens to be education, and it's K through 12 or K through 20, if you will, and how you get more young people excited about math, science, technology; how you get more young people excited about computer science or electrical engineering or computer engineering or material science, whatever it may be. And we look with dismay at what's happened around the U.S. Both high-tech community, our community, your community, has really led the economic boom that we've had over the last decade. And during that period, the number of engineering graduates has decreased about 20 percent in the U.S. You'd think that would be opposite. You'd think that, in fact, you'd drive more people into the space if it's the hot technology for the hot economy. I think the best example is there are more people who graduate today in parks and recreation management than in electrical engineering. That makes a lot of sense, but -- (Laughter.) CRAIG BARRETT: The real problem is if kids don't get excited about math and science by about the sixth grade, they're kind of lost out of the system. And if you look at what happens in the K through 12 system in the United States, our fourth graders do pretty well on an international basis if you compare them to the 20 or 30 top industrialized nations around the world. By the eighth grade, they're substantially below average. By the 12th grade, they're about the bottom of the top 20 industrialized countries. So the longer the kids stay in the education system, the worse they do. (Laughter.) CRAIG BARRETT: If you want an indictment of a system, that's probably it, folks. Get a hold of your local school board and do something about it. But our activity, and we spend about 150 million a year on this, is, in fact, to how do you improve that situation? How do you train teachers to use technology? How do you get young kids, regardless of their economic environment, interested in technology? And then how do you further research at the university level? So we're kind of interested in education from top to bottom. Mainly because if we don't continue to drive the value-add in the sort of things that your companies do and your association with our companies do, then you don't have value-add, you don't have standard of living increase, and then the U.S. just kind of retrogresses, retrogrades backward. It's not something we want to see. TOM WHEELER: You come out of an educational background, right? CRAIG BARRETT: Yeah. 27 years ago; a long time. But I had a great time at Stanford for ten years. We produced folks like Jerry Yang, good basketball teams. TOM WHEELER: Both. One of the things, I've been involved in is a group called Tech Corps, which is kind of a day after Net Day, and what we've been shocked to discover is that there is no infrastructure there to support once the technology is delivered to the classroom. I mean, how do I do upgrades? How do I train the teachers? How do I -- Simple things. How do I get power to it? I've got the cable coming to it but how do I get power to it? How do we address that? CRAIG BARRETT: Well, I'm not sure anybody addresses all of those topics. I happened to participate in something called the Glen Commission, which was a presidential commission looking at teaching math and science in the K through 12 system. It has a series of recommendations, and they really center about some pretty obvious things that all of us take for granted in our industry. One of them is that you want to have well?trained teachers. And if you look at 25 percent of the teachers in the U.S. to teach math and science really have no accreditation and maybe only one course in math and science in their college education. You go into underserved or relatively poor economic areas, that overall number goes up to about 50 percent of the math and science teachers in inner city schools are not qualified to teach. We run a program with companies like Microsoft and Hewlett?Packard and others where we're trying to train 400,000 teachers over a couple?year period in how to use technology. But it's that teacher training, get more young people excited and interested in teaching, and, heaven forbid, pay for performance, which is really something which has not happened in the school system. Most union contracts with state boards of education states expressly prohibit merit-based pay. You can imagine how any of our companies would operate in a situation where you didn't have meritocracy and you didn't pay people for performance. That's precisely what we're giving our kids today. So there's a huge opportunity here for training, for changing the basic infrastructure, getting people involved who are interested. And corporations like ours and many of those represented here today can play an active role in that by getting involved locally, funding things, targeting volunteer time by their employees to help the system. But most of all, getting involved probably in local school districts, making sure that parents are aware of how their children are doing. Every school, every class in the U.S. ought to be graded on an absolute scale. I totally agree with President Bush on this basis that you test and you assess. The results I mentioned earlier about the longer our kids stay in the system, the worse they get, I mean, none of us would accept that in our companies, yet that's what the public school system does. TOM WHEELER: Well, Craig Barrett, you've challenged us on several fronts today. Thank you very much for coming to lay down the challenge in bringing things together and recognizing "the" Internet, and, also, for the work you're doing in this other crucially important area. CRAIG BARRETT: Don't forget the four notes, okay? (Laughter.) TOM WHEELER: Thanks, Craig. (Applause.) * Other names and brands may be claimed as the property of others. |
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