ANNOUNCER: Ladies and gentlemen, Welcome to Microsoft COMPUTEX 2011. We’re ready to begin our presentation. Let’s welcome Mr. Steven Guggenheimer.

STEVE GUGGENHEIMER: Thank you. Thank you. How about a big hand for DJ Noodles who brought us in today, taking full advantage of all the innovation you guys have? (Applause.) We’ll bring her back out at the end of the show?

Well, welcome, everybody. Thank you for joining us today. On behalf of my colleagues at Microsoft and our partners in the industry, we want to thank you for spending some time with us this afternoon. We have an opportunity to highlight some of the phenomenal innovation going on in the industry, work that’s occurred in the last year since we were here, and some of the things that we’ll see in the coming year.

Today, I’m going to focus on the current generation of what we have to offer as an industry in terms of the phone ecosystem, PC, embedded, servers, cloud experiences and more.

Tomorrow, we’ll have a special preview event here in Taipei for partners and members of the press to talk about the next generation of Windows. So, today we’re going to focus on the current year and the coming year, and tomorrow we’ll talk a little bit in this private session around the future of Windows and where we’re going.

And I think that strikes the right balance because there’s so much innovation in our industry that’s occurring right now and things that will be here for the holiday that we want to make sure we keep track of all of the things that our customers will have an opportunity to take advantage of in the coming year.

So, let’s get started. As we think about this year and where we’re at, you know, our industry is one of the most interesting in the world. The amount of change that occurs over and over and over again is incredible. We started with PCs and apps; we still have, obviously, a lot of PCs and applications today. Over the course of time, we added servers into that discussion so developers could write client-server applications, enrich, and sort of embellish the things that people could do with the devices that they have.

Then the Internet came along and it further enriched the experiences that customers, consumers, and our users could take advantage of. Now you have client, servers, Internet, so much richness.

We have the cloud in there where we can actually use the Internet and our server technology to provide services and experiences that further enrich what our users can take advantage of. And as we look forward, we’re entering a very interesting timeframe where if you look across the various ecosystems represented in this room, the embedded ecosystem, the phone ecosystem, PCs, servers, and clouds, we’re starting to get to a point where those siloed ecosystems are going to start to connect, and that is a phenomenal opportunity both for our collective customers as well as this particular industry because now we can take things that didn’t interoperate before and create experiences that bridge all of the devices and bring a new richness to our users.

That’s a very interesting proposition in a time of tremendous change. From the content providers to the network operators to the partners represented in this room on software and hardware to the distributors, everyone is involved in this transformation, and our ability to work together continues to be the cornerstone for how we bring this to life and how we sort of make a future that we can all be very proud of and that enriches the lives of all the people around us.

At Microsoft, we’re very proud to participate in this industry and in this ecosystem. The ecosystem is a very important part of what we do. It’s the size, the breadth, the richness of the ecosystem, and now multiple ecosystems, that enables all this. For our part, we want to continue to invest our R&D dollars and our research to support the partners in this room and around the world to really create a set of seamless experiences that combine the magic of software with the Internet across a world of devices, all right? All of the different devices here on stage and in the booth and around the conference, all of those have the opportunity to be part of a much, much richer user experience.

The way we approach this is to make investments at three levels. We continue to invest in platform software across all of the various ecosystems supported in this industry: phones, PCs, servers, embedded devices, the cloud, et cetera. We build device software that many, many, many partners here in the room and around Taiwan help innovate on and drive and grow, and we continue and will continue to invest in that area.

The next thing is building that layer or that bridge to the cloud. You’ll see several demonstrations today of Internet Explorer 9, right? Using the Internet Explorer work that we’re doing, we’re trying to bring the richness of all of the hardware or platforms that are there to the developer community so they can write Web-based applications that not only connect through the cloud, but take advantage of the underlying hardware. For years and years, we’ve all written applications directly to the platforms we build; creating a layer that allows Web-based applications to take advantage of that richness in a similar way to native applications is a phenomenal way to help bridge those ecosystems and those experiences.

And the last thing we do is we take the set of immersive experiences that we invest in, whether it’s Xbox with Xbox LIVE or Office or search, and we continue to extend those experiences through the cloud and through services to make them both richer, help us figure out how to build a better platform, and to provide end users and our partners more opportunities to build on top of the entire platform or extend the entire platform. So, three levels of investment.

In our conversation today, we’re going to focus on all three levels. We’ll spend time on the devices and sort of the applications and devices working together, the bridge both on the server side and the browser side, and then my colleague Ryan is going to come out at the end and show how these immersive experiences start to cut across all of the areas.

So, with that, let’s get started, so to speak. We’re going to cover devices, browsers, servers, some of the experiences. But before we go there, I wanted to actually start on the manufacturing advances; the importance or the power of this ecosystem is how all the players in this room and outside work together to advance and build innovative technologies and innovations in different areas that each part, when added together, continues to drive us forward.

And it actually starts at the manufacturing level, and we’re very fortunate here in Taiwan to have a phenomenal set of partners that are continuing to innovate in this space. So, what I wanted to do is take a couple minutes and just go to what I’ll say is a set of parts. We’re fortunate, some of our great ODM partners, Compal, Foxconn, Pegatron, Quanta, Quanta, Wistron and others, as well as all of the IHVs associated, have lent us a few pieces. So, I’m going to come over to this table. One of the things that happens is before we ever get to a PC, we see innovation in the various components.

So, simple things or not-so-simple things like using reusable materials. I have some material here from Pegatron that’s made from recycled material, so we’re starting to see green, whether it’s bamboo, recycled materials, or other types of materials being used to help make our industry more green; that’s a great and important starting point. So, that’s a small piece.

Another thing, for example, is on the display side of technology. Now, there’s a company, Corning, that’s done something called Gorilla Glass, providing us with much, much tougher surfaces that we can use as the front end for PCs and phones. And they’re starting to innovate, for example, with curved surfaces. So, I have the ability now to build phones or other devices taking advantage of the Gorilla Glass, but with curved surfaces.

In addition, because this glass is hardened and it is glass, we can start to use it as covers on PCs. So, this is a piece of Gorilla Glass, and you could imagine this on the back of a laptop cover, right, so that lighting coming through the back can create a very cool effect for a laptop. And I have a couple of them here, so this is the type of innovation where, over time, the beauty of this industry is the amount of differentiation or the amount of customization available for people to work with. And this is one of the nice advances, I think, will help us sort of move forward in terms of something that on the one hand looks simple, but on the other hand is a lot of differentiation.

Another area in glass, for example, is moving to edge-to-edge displays. So, taking what was a 12- or a 13-inch screen and removing all of the borders and the bezels so it actually feels like a bigger screen than traditionally you get today. So, another piece of sort of technology that’s helping us move forward.

On the component side, we’ve seen phenomenal change in terms of the internal parts to the PC. So, going from a hard drive a couple of years ago to a smaller hard drive today and a little bit in the future, to here’s 128-gig SSD. And so you can see how memory has moved forward and is helping us make smaller, lighter, more powerful PCs.

We say the same thing with chips. Here’s a graphics card and a processor from a few years ago, and here’s a Llano chip from AMD that has sort of taken all of this capability and put it onto a single die. And we see these advancements, we see AMD here; Intel has a phenomenal set of advances in their Core line as well. We see the same thing in the ARM ecosystem with the partners that are working there. So, these advances in the internals of the PC as well as the externals of the PC are a starting point for us to build on before we ever get to a finished device like this; we rely on the innovation that the industry brings forward. So, we’re very thankful for that innovation, we’re very sort of proud of how this, again, ecosystem works together to start at the component level and work our way up. And so that’s sort of an important part of where we start.

Now, another piece of the puzzle is how we interact with the devices. One of the things that we spend a reasonable amount of our energy on at Microsoft, and with our partners, is how do you interact with a device? Obviously, we’re all very familiar with keyboards and mice. But when you step back and look at some of the other advances that have been going on, there’s work being done in speech, there’s work being done in touch, there’s work being done in handwriting and handwriting recognition, there’s work being done in gestures, et cetera.

So, let me just spend a couple of minutes going through some of those because these are, again, building blocks that sort of we all take advantage of.

So, I’m going to start on the auto side. We’ve been working on Windows Embedded for automotive for many years. And we have many partners now in this area. But when you step back and look at cars today and the combination of voice and touch, it’s one of the stepping stones or one of the demonstrations of a very real-world example, taking our industry and PC technology and applying it in a way that fits to that specific scenario.

So, why don’t we go ahead and run a short video, sort of highlight some of the work going on there?

(Video segment.)

STEVE GUGGENHEIMER: So that’s a fairly standard scenario today. You know, 10 years ago, we wouldn’t have thought about it, but that’s sort of one step in the puzzle. There’s many advances, though. This is a second-generation Surface table. We showed this at CES earlier this year.

Now, if you recall, Surface has been sort of a large coffee-table-type device. It had cameras underneath that were used to detect the surface. So, if you put your fingers on there, it would see them. And as you can see my fingers here. If you were to put a card on it or something else, it would read them. So, for example, if I put this document up here, it can read it.

The difference here now is that each pixel in this screen is actually a camera, something called Pixel Sense technology. So, work that we’ve done along with Samsung has allowed what was about a three-foot-high table with cameras to become a couple of inches thick now, or thin, surface that is a built-in camera. And so when you think about touch capabilities going forward, it’s not just about touching; this can actually see what’s going on. So, if you set a device on it, it can figure out what device it is, maybe give you information. It could give you sort of tags and be able to read those. It could take your business card and read it.

And so when we think about sort of moving from what was sort of a great technology and used in many places, but a little bit hard and large in terms of the way you work with it, as we get these thinner and thinner, you can think of very large panels that are interactive. So, this is a good piece of research that will help us as we bring touch forward into the next generation.

Now, along with touch, another area that’s been advanced for a long time is handwriting recognition. I’m going to grab this PC over here and I’m going to just flip it around so we can use it. You know, handwriting recognition is one of those things that — I have lost my character. There we go.

So, one of the things about handwriting recognition is, you know, writing is a natural interface. And, in fact, we’re going to do a scenario a little later around a student using handwriting because it makes a lot of sense.

There are many places where, you know, taking advantage of being able to use the pen makes a lot of sense. I can do character recognition. Here I’m going to — I didn’t do a very good job there, let me try this again. And you can see I’m starting to write. And you can see how my Chinese is, there we go, that’s the one I was after. So, I’m not sure exactly what I wrote, but I’m working on my character recognition. And if it says anything bad, I’ll apologize, I know that one is Chinese, but some of the others, I’m not so sure on.

You know, in languages where you have many, many hundreds or thousands of characters, obviously, taking advantage of the pen makes a lot more sense because a keyboard for that character set would be rather cumbersome, to say the least. And so here’s a good example of another interface type that can be used with a device that makes a lot of sense in certain scenarios. So, I’m going to go ahead and set this back down.

So, that’s another interface technology. Now, one of the things we introduced at holiday this year was something called the Kinect sensor. That’s a sensor that takes advantage of voice, but it also takes advantage of being able to notice your gestures. It’s a sensor that can see your fingers and your arms and your body and you can become the interface or the controller, in this case for the Xbox console, but over time, for many different areas.

So, I’m going to show a short video. I think some folks have seen some of the Xbox Kinect before, but Kinect ended up being one of the — or the number-one selling device over holidays. It’s the fastest-selling consumer electronics device in history, selling about 8 million units in 60 days; we’re at about 10 million units now. So, when you look at sort of the interest in new interface technology and new ways to work with devices and you combine that with just the right scenario, in this case gaming, you can create phenomenal traction. Let’s go ahead and run that video.

(Video segment.)

STEVE GUGGENHEIMER: And of course you see a very sort of rich experience there between the phone and the Xbox console, but that Kinect sensor, yet another interface technology. So, handwriting, voice, right, touch, gestures, the entire body as interface. It’s becoming a much sort of richer platform or much better set of capabilities to work with as we build a broader array of devices for a broader array of scenarios.

So, that’s another building block that we can all use. We have components, we have interface technology, and now we can start to work our way up to devices. And when we think about devices, we have several different categories and several different ecosystems, in some way, to think about.

So, let’s start on the embedded side. Embedded is a phenomenal ecosystem in and of itself. There are over a billion processors sold into this market each year. And as the processors get more powerful and they get sort of more ability, then we’re seeing more and more of these devices be connected, being able to be both remotely managed and provide data.

And so now we’re getting a new generation of machine-generated data that can be used to provide information back in terms of what people are doing at the gas pump or at the soda machine or in manufacturing or in medical, and at the same time be managed. And we see more and more companies working hard to manage these devices in the same way they might manage their PC network.

And so the ecosystem around this particular area continues to get richer in this connected state, right, and the ability to manage these devices and get information from them provides a very broad set of capabilities as we start to connect scenarios. And, in fact, in our booth, which I encourage many people to go visit, we’ve taken a medical scenario, which is one of the vertical areas that embedded is very deep in, and it shows how these devices can be used for things like medicine distribution, for working with patients, for doctors, and in many other areas. So, you take a very real-world scenario, you add embedded devices to it, connect those into the PC world as well, and you can provide a very rich capability to sort of move, in this case, a hospital forward in terms of the care it can provide, in terms of the way it works with its patients, and also in terms of the way it manages its own costs. So, that’s one area, and we’ll go look at that in a second.

The other, of course, very interesting area and very rich ecosystem on its own is the phone. Last Friday, we announced the next generation or the next release of the Windows 7 phone, code-named “Mango.” And “Mango” really takes the focus we’ve had on putting the user at the center and making the user first and building rich experiences around the user for communications and gaming and photos and others, and extends those with more than 500 new features.

So, whether it’s in the communications area, which is one of the main things people do with phones, whether it’s around apps, we have more than 16,000 applications in the store now and tens of thousands of more in development. Or whether it’s bringing the Internet and making it richer in that way, we’re continuing to invest both in the platform capabilities and the experiences capability on the phone ecosystem.

And you’ll see how, as we go forward, how the phone ecosystem and the PC ecosystem continue to start to connect more and more.

So, with that, let’s take a couple minutes. Let’s start on the embedded side, and I’ll pick — one of the things that happens in embedded is you get these very sort of rich and deep vertical areas. So, for example, these are a couple of different scanners that you can find for bar code scanning, and I’m going to take one out here.

In the U.S., about seven out of ten of the bar code scanners that are used are built on Windows and Windows Embedded. And you can see here, if I hold this up, I can scan a tag, and this one is built for speed. Somebody’s got to work pretty fast. You’ll notice if I just hold the button down, I can do about 100 scans in 3.6 seconds. So, if you have a very efficient and fast worker, he can never blame the technology for holding him or her back. So, this one is sort of built for speed.

Let me put this back up. Now, this one from Getac. You know, here’s an example of taking the same type of technology, but focusing it for different usage. This is built for outdoor, rugged use. And, in fact, it’s got a lot of benefits, including being waterproof. So, for example, if I accidentally dropped it into my fish tank — oops, you know, I’ll pull it back out and it’s still running just fine. And, in fact, for fun, I’m just going to leave it in there over the course of the demo today, and so we’ll let that thing sit and soak and see how it does.

So, there is an example of taking the technology, combination of hardware and software, and putting it for a very specific purpose, right? And that’s the beauty of the embedded platform. Here we see a device that’s being built — I talked about medical before. This is a new one under development. You can see it has the X-ray screen on it, it has a scanner built in so you can see the red on my hands. So, if you had a patient with a tag on their wrist or you wanted to look at the medicine or the records, you’d have the ability to scan and get information there. These are the type of devices that can be cleaned with alcohol. So, it’s a very specific-purpose embedded device.

Here’s a point of sale system. We see very high utilization of point-of-sales. I didn’t bring digital signage, but when you go to a concert hall or an athletic stadium or you’re looking at sort of a fast food restaurant in some of the countries like a McDonald’s, all those signs, many of them are built on embedded. In fact, nine out of 10 in the U.S. are using Windows Embedded or Windows PCs to run those digital signage solutions. So, another good example of a vertical industry that is built around our ecosystem.

Now, of course, there’s research and fun things you can do. This is more of an edutainment kind of device, and you can see — and you’ll notice he’s asking questions. You can hold cards up, I’m not sure if he’ll recognize this in the light here. But what I’m going to do is I’m going to press the button here, and you’ll notice a camera — not a camera, but a screen comes out. So, you can actually interact. You can use the cards and he’ll sing and he’ll tell jokes. Once he brings this out, you’ll see a projection down here where you can play an interactive game with him.

So, in terms of sort of, I think of these as fun, unique devices. The embedded platform allows for a whole world of creativity along with, I’ll say, traditional productivity, and we’ll leave the circus running here.

So, these are just a small sample of what can be done with embedded software. When you think about a billion processors and you think about where — I’m going to go ahead and put this away or he’ll sing the whole time I’m up on stage. If you think about where our industry is going, this is a very rich and broad ecosystem, and that’s something that’s going to connect into all of these other devices as we go forward.

Now, let’s switch gears. We talked a little bit about “Mango.” I want to focus on a couple things. One is we know the Internet and services are becoming the backbone of many, many rich experiences. With Windows Phone 7 and the “Mango” release we’re going to bring the IE9 capability that people have seen on the PC before, we’re going to bring that to the phone.

So, here I have an iPhone 4, and I’m going to pull up the browser, and I’m going to restart this fish tank app, one that you guys hopefully have seen. And I’m going to go to Internet Explorer here, and I’m going to restart the fish app.

What’s going to happen is you’re going to see the speed of the fish in terms of swimming around between the IE9 version on the phone and the version on the Apple device.

One of the things that’s happening is we take advantage of the underlying hardware and hardware acceleration, whether it’s a PC or a phone, and use that to really enrich what people can do with HTML5 and JavaScript.

So, for application developers we’re sort of creating a platform and that bridge to the cloud that scales across a range of devices.

Now, there’s many other features in “Mango.” So, something else that’s interesting, if we go to search — I’m going to walk over here to this machine — one of the great things about phones is they come with a phenomenal number of sensors. They have cameras, they have speakers, they have microphones. We can take advantage of those when we think about some of the scenarios. For example, with search here you’ll notice there’s a music bar, there’s an eyeball and a microphone.

Now, one of the things with music is I can start music playing on my device here, and I can hit the music button on search here, and it’s going to listen.

(Music plays.)

Oh, no matching songs. Somebody has changed my song on me. I’ll try it one more time. Sometimes the acoustics don’t work so well in this room.

There we go, “Beyond the Sea.” So, now it’s recognized the song. So, I can click on this, and it’s not just about recognizing the song but it integrates, I can go and buy the music. It goes all the way through the experience.

I can do the same thing with the camera button on search if I go back. I could use the camera to take a picture of a book or a magazine, and it would give me the information on that book. I can go and purchase it or potentially download it and read it. So, the use of sensors in the phone really enriches that capability.

I’m going to stop this from playing or I’ll be hearing that all day.

Let’s take one more scenario. You know, another area that I talked about was communications. And if I go into the People Hub, you’ll notice that we have, for example, here, friends. I can group people together now in groups. So, here’s a set of friends. I could choose to send everyone a text. If I go back to the home page, I can go do that from instant messaging.

So, here I’m going to start typing — I’ll start a new thread. I’m going to start typing friends, and it recognizes it right off the bat, which is good.

Now, I’m on stage here, and I’m a little nervous about my typing. So, one of the things I’m going to do is I’m going to use the speech button here. So, I’m going to go to the voice piece, and I’m going to click this, and I’m going to say, “Let’s meet after the show.” Click go, and it says, “Let’s meet after the show,” so having that voice recognition now and being able to turn that into an SMS message.

I have a 14-year-old. He has a phone. He doesn’t ever use it for voice. He won’t pick it up. It’s only SMS. So, that ability to use in this case a simpler scenario for interacting, taking advantage of voice, which we talked about earlier, is a really nice integration scenario on the phone.

There’s many other things I could show you: connecting my email boxes together so if I have a Live Mail account, an Outlook account, and a Yahoo! account, I could connect all of those; having the ability to see all the information about all of my contacts in terms of my communication, instant messaging, text, if I saw a Facebook update, being able to look at DRM’d mail.

So, this is a very, very rich release coming out later this year, and it again starts to bring together some of the capabilities of the hardware, taking advantage of sensors, connecting those into the experiences — communication, search, people, et cetera — and then building a bridge for developers with IE9. And a little bit later on when we get to scenarios we’ll start to connect the phone into some of the other scenarios.

So, let’s go ahead and head back up to the slides.

Oh, one thing I wanted to say before I go forward, the other thing I’d like to highlight — if this will go back; there we go — is continuing to see more partners joining us on the phone side of the ecosystem and the journey, so Acer joining us with Windows Phone 7 “Mango,” ZTE from China, Fujitsu in Japan, along with Samsung, HTC, Nokia, and LG, who are obviously very, very large players in this space, and have been great partners from the beginning. So, we start to see that ecosystem expand and provide more capability.

Now, let’s switch gears and talk about the large set of devices here in the Windows 7 ecosystem.

We’ve had phenomenal partnerships starting at the component level, going through interface, going through developers, with ODMs, with OEMs, and having just a tremendous amount of innovation in this particular area.

There are over 1.2 billion users of PCs today, and with Windows 7 we’re at 350 million users in about 18 months. It’s about 20 percent to 25 percent of the Internet users today are on Windows 7.

The good news is it’s grown phenomenally fast. That is the fastest-growing ecosystem of any of the smart devices from any vendor or any sort of ecosystem out there, which is tremendous.

The good news is there’s still about 75 percent of the people who are still on older PCs who have yet to take advantage of all the technology being built in this room. So, there’s a lot of upside, not just in the coming year but in the coming many years to go forward.

This release, based on the great work of everybody down in this room, has been the highest-rated product release of any release we’ve done at Microsoft. So, customer satisfaction is as high as it’s ever been, and that is again a testament.

And last but not least, this is an area where because there’s business here, because it’s a very, very rich ecosystem, it continues to grow. For every dollar of Windows software sold, there’s about $8 of revenue made across services, software partners, hardware partners, et cetera.

So, together we continue to fuel an engine that helps drive us forward, which ultimately pays for and supports additional research and investments from many of the people in this room and around the world.

Now, I wanted to take a few minutes and sort of spend some time on some of the great work that’s been done in the last year. So, I’m going to go ahead and pop into the PC lineup. So, we’ll switch over.

Now, I’m going to start on the left and we’re going to work our way down to the right. There’s been a lot of conversation about slates, tablets, convertibles, you know, pick your name. Last year, when we were here, we showed several different samples. A year later, there’s just been a tremendous amount of progress in this area.

Now, the interesting thing about this category is in a lot of ways it’s an extension of the PC category that’s been around for a long time. There are a set of convertibles, right, like the tablet I showed earlier, that give you the full power of a PC but can convert into a slate or a tablet mode, and I used that earlier for the handwriting recognition.

In addition, there’s a set of industrial-specific type of devices that have been in the market for many years. This is a type of device similar to the one I showed earlier that’s full Windows. It’s used in a retail point-of-sale system. It has a scanner on it, a handle, a pen. I can walk around the store, I can scan a tag, I can have the customers swipe their credit card, I can have them sign for their bill; you can do all the things you need on a single device.

And here is sort of a very ruggedized version, and another ruggedized version. So, there’s a number of the devices that are out there.

At the same time, we continue to see innovation. There’s innovation in the hinge technology, for example in this Dell device. There’s innovation in sort of screens. This is a dual-screen device from the partners at Acer that’s beautiful in terms of both its usability and the way it looks.

And then there’s some more innovation continuing to go on. This is the new Acer W500, and if I pull this up, you’ll notice it’s got full touch capability. But the nice thing is I can undock it, right, from its keyboard, and at the same time, if I walk, I can simply dock it back in there. So, I have the best of both worlds.

The devices are getting more powerful. This one is MSI, again another local partner, based on the Brazos chipset from AMD. You can see that I have capability to run very full-function-capable games.

So, it’s an interesting discussion right now at the show. People are thinking about a whole range of devices in this area, but the truth is there’s a phenomenal set of capability that’s out there today and continues to grow. There’s an ASUS Eee Pad over there, which we’ll show later in the scenario. It gives you the best of everything: full-functioning PC, all the application hardware compatibility, ink input, so anything you could possibly want in a PC and in a slate form factor. And we’ll see more designs coming in that area.

Now, let’s switch gears and talk about the progress in PCs, true traditional laptops in the last year. One of the things that’s happened is if you take all the innovation and materials in the chip technology, the work from all of our partners, you can start to see that we’re getting to the very latest in thin and light design. I mean, this is the beautiful new ASUS UX21 that they talked about yesterday. Johnny was kind enough to lend us one.

You can see how beautifully thin it is. This goes up to a Core i7 chip. So, it’s extremely powerful. There’s been a lot of work done on sort of power management, so you can put this to sleep and it will stay powered for over 10 days.

And so here is sort of a no-compromise solution. I can get all the functionality of a very, very rich PC in an extremely light, portable form factor. It allows me to do all the things I would want.

Here I have another one. This is a Samsung 9 series, again super thin and light, another Core design from Intel. This is duraluminum, this is aluminum. This has a backlit keyboard. These devices are more powerful, they’re brighter, they’re more functional than any other device from any other ecosystem. So, these are really the no-compromise solutions in this space.

Now, the beauty of the Windows ecosystem is I have choice. These are some AMD powered model systems — oh, excuse me, these are the Brazos systems. These systems give me great capability, but I also have sort of beautiful designs at price points that are even more affordable.

So, choice is one of the things that our ecosystem collectively brings, and that’s value and performance, and I can go in all different directions.

Now, there’s a variety of systems here: Toshiba, Lenovo, Dell, many different systems that are out. These are all professional. Here’s one that got left off. So, I’m going to go ahead and turn it on. I’m not sure why it got left off.

But one of the things that in this case Lenovo has been working on is that marriage of hardware and software. This is a machine that was at cold boot, so it wasn’t sleeping, it wasn’t hibernating, was completely off. And Lenovo has done some work to optimize the boot time in this case, so it’s about 15 seconds from cold boot to complete turn-on.

And here’s an area where Lenovo is willing to work with corporate customers to tune their images so they can get that same fast boot performance from a machine that is tailored for an individual customer or user.

Now, as we slide along here, you’ll see the HP machines. They’ve done phenomenal work on sound, taking advantage of these technologies. They do some good work on customization.

These platforms as we get into the gaming machines provide a much richer set of scenarios. I’ve got a nice MSI machine here. I know the Alienware, the Acer, the ASUS, all phenomenal sound.

This one is rather interesting. You’ll notice as I step closer to it, it recognizes my eyes. There’s two cameras in the top of this. This is a Toshiba normal-looking laptop, not released yet. But what it does is it recognizes my eyes. And then if I pull up this application, this is a 3-D application but it’s glasses-free. So, it’s looking at my eyes, and using that to create, where I’m standing now I see a very deep, rich 3-D image. For you, you wouldn’t see anything, it would look like 3-D without glasses, but for me, because of where I’m standing and because it’s using my eyes, I get this very rich, cool image.

So, here’s a platform for innovation: 3-D, glasses-free 3-D, sort of first-generation, still under development, but being built on the Windows ecosystem or the Windows platform.

A lot of phenomenal PCs. I’m going to move over to the all-in-ones. I’m going to switch over. All-in-ones have seen phenomenal growth in the last year. The innovation around glass, touch, the things that are going on with Blu-ray drives, TV and applications, et cetera, you can see a lot of capability.

Here’s a History Channel app or a history app. I’m going to click on a city, and what this does is it takes Bing Maps, along with sort of the richness of the platform, and allows you to drill in and plan a trip. So, if I click on an icon here, I can go to street view. And what it’s going to do is it’s going to bring up the street view. Of course, I can pan around, go look around where I want to go. If I want to get more information, I can do that or I can go back to the map view and plan a trip.

Now, the nice thing here is full touch, an application that makes sense, but in this case Sony has taken the space around the edge and done some innovation on the hardware. So, if I actually click on the hardware up in the corner here, it’s going to shut that application down, right? So, now not only is the monitor itself alive and touch-friendly, but also the entire border has different things that it will do as I touch on it. So, as I reach around, it does more. Good, good extension.

I wanted to come down here. This is the first 27-inch all-capacitive-touch machine that was introduced. This is the new ASUS machine.

I’m going to bring up that same fish demo that we saw earlier. You know, when you get up to the PC level — dock it on the side here — we can go up — I’m going to pick some fish here. I’m going to go up to about let’s say 500 fish, and what we can see here relative to a competitive browser, what happens when you do 500 fish in IE versus 500 fish in alternative platforms, obviously the performance is just outstanding. That’s that connection between the underlying engine, the hardware, in this case DirectX and the Graphics Processing Unit, and making it available to developers.

Now, the cool thing here is I’m going to go ahead and shut these down. I’m going to bring up another version of IE. And recently, we demonstrated IE10 at the MIX conference. So, this is a platform preview of IE10. I can sort of pan around the room here, I can drill in on a particular picture. So, we get all the richness of this particular app, and this is obviously something that takes advantage of IE, the developer’s capability here. It’s running that same 60 frames per second.

Now, the interesting thing here is this is a platform preview of IE10, all the performance of IE9. At MIX we showed this version of the browser running on next-generation Windows on the ARM processor. So, here not only have we extended IE earlier onto the phone, but you’re going to see IE extend onto other processing capability in the next generation of Windows. So, now we’re starting to bring that connection to the cloud and services across a broader and broader array of devices and technologies. That’s that bridge, that’s the bridge between the devices and the cloud and experiences we’re going to talk about later, and we are continuing to invest very heavily in that particular area.

I’m not going to spend a lot of time on TV today. Obviously, you can take all these capabilities and connect to a TV through a variety of devices. This is a very small PC as an example through other PC form factors or other connectors.

I’ve brought along several servers, a Home Server, Small Business Server. I won’t spend as much time on them today, but that’s a rich part of the ecosystem.

I did want to talk upfront here, and one of the things that I feel very fortunate about collectively in the industry is that we have a set of very enthusiastic customers and partners. This is actually a home-built device by an end user who wanted to sort of build something very cool, and is interested in “Tron.” Can we bring up the machine? Obviously this is a very high-end system. You’ve seen us demo. Sort of I can blow this guy away if I want to.

And one of the nice things that’s happening with the technology sort of between DirectX and the hardware is you’ll notice he’s three-dimensional. As he sort of gets blown away, for lack of a better term, you can see all the way down to the skeleton, and he’ll start to regenerate.

So, not only can we create very rich graphics, you can create very rich 3-D graphics now, and in this case taking advantage of the NVIDIA technology, but many of our partners out there are building again that graphics processing capability.

Honestly, we can show these demos, but I just wanted to show the coolness of this hardware, right? This is the sort of power and passion of our industry and the innovation, and you don’t get to devices like this too often.

Last but not least, that ASUS slate that I talked about earlier, that was powering this entire DJ station earlier. This is the DJ. There’s an application called Traktor, which is a very popular DJ app. There’s a company called Emulator that’s built a very touch-friendly UI on top of that, and this projector system, so the DJ can now sit up here, as you saw earlier — she does a much better job than I do — and run the DJ system, play the music, and have a cool experience for the people in the audience to see and participate in, you can see through. So, a pretty cool example of how again passionate people in our industry and ecosystem can build a business thinking of a very creative idea and then taking advantage of the power of the hardware.

So, with that, I think we did a pretty good tour of all the PCs here. I’ve got to figure out where I left my mic. I want to thank our partners who always share with us and lend us a phenomenal amount of hardware for the show.

Now, let’s start bridging. I talked about sort of the devices in Internet Explorer 9. On the back end of experiences in the cloud is the server platform, right? The server platforms that we provide allow us to go from a Home Server to a Small Business Server to enterprise class and high-performance computing.

What’s happening with the servers is they’re building part of the other side of the bridge to the cloud. So, if you’re a company today, and you wanted to — a large organization — build your own private cloud, we have the server capability to do that, right? If you’re a corporate customer and you wanted to take advantage of a public cloud, we’ve taken our server infrastructure and all the learning from running Bing and MSN and our other services, and created a public cloud infrastructure that developers can build on. If you’re a small business and you’re not sure, we’ve taken our Small Business Server product and created links and connections to Office 365 and other cloud-based services.

So, while IE provides the bridge on the device side, our server platform, both on-premise and off-premise, provides the platform for corporations, hosters, developers and others to both build and take advantage of the back-end infrastructure necessary to support cloud-based services.

And so when we work on that, we have all of our server technology powering it, and then we’ve taken all of our experiences, both consumer experiences, things like Live and Bing and Zune that I talked about earlier, and commercial experiences, whether it’s Office or CRM or things like Lync or other sort of commercial-based applications, we’ve made those available or extended through the cloud. So, now we have the bridge with IE, we have the sever infrastructure, and then we’ve taken our experiences and built on that.

So, what I wanted to do was switch gears. I’m going to focus on the consumer side, and just take three samples. On the entertainment and gaming side, right, we can take the experiences like Zune or Windows Live, and take photos as an example, and make those experiences work across all of the different devices.

So, for example, I can take a photo on my phone, I can do face detection on that photo. I can post it to Windows Live. I can get it immediately on my PC. I could use DLNA to project it from the PC to the TV. So, I can get the richness of the experience and the photo scenario across all the devices. We can do similar things with music, right, with gaming. So, there’s a lot of work going on to take the core experiences and then bridge across multiple devices.

I can do the same thing on productivity. Office is a really, really good example. With Office, we have a very rich, deep capability that comes on a computer today. Whether it’s doing PowerPoint presentation for a student in school, whether it’s an Excel spreadsheet for a business user, there’s a very rich client with very rich capability. But through Office Web Apps, if I don’t have the client on my computer, I can still access that content or those capabilities from a browser, from the Office Web Apps on any machine. And, in fact, I can extend that to the phone so I can get access to Office from a phone. So, that gives me the client side.

There’s a set of rich capabilities on the server side that power that. For example, Exchange for hosting my e-mail; or SharePoint for shared sites; or Lync for voice over IP. As a large organization, I may buy those servers and host that. But for a small business, or a medium-sized business, they may not want to purchase that infrastructure. So, we’ve taken those capabilities and offer them now as a service called Office 365. So, now as a small business, I can sign up and have a Hosted Exchange, hosted SharePoint, hosted Lync, and have all the capabilities of a large organization, but offer it as a service.

So, now we’ve taken the entire Office family. We have on-device and on-premise capabilities. We have cloud-based capabilities both for browser-based access and for services-based delivery of very, very rich office solutions or scenarios for a variety of users, which allows us to, again, extend that capability through the cloud.

Last, but not least, another example of the core communications, search, and social capabilities. With Windows Live, we take a very rich set of consumer scenarios for photos, for movies, for instant messaging, and we allow people to take advantage of those capabilities, again, extended through the cloud, a very simple scenario. Maybe I’m using OneNote from the Office package that I showed before. And if I take OneNotes on my PC, I can actually save those to SkyDrive, and I’ll immediately have access to them on my phone. So, we can use that storage in the cloud, and that synchronization capability to get seamless access to my notes across multiple devices.

I could do the same thing. I talked about photos before. There’s also sync capability. So, using mesh, I can actually take all of the photos or content on one PC, and have it automatically synchronize with another PC, or multiple PCs. If you’ve ever tried to sort of keep your photographs in sync across multiple PCs by taking a thumb drive, copying all the photos to one, going to another machine, or going over the network, having some type of automatically synchronized system is a huge benefit. So, these are very simple scenarios, but how, again, we extend the experiences across devices through the cloud.

Bing has become a very rich decision engine. And recently we announced not only does it help you search, which we’ve done for a while, you saw how we’re taking advantage of sensors and the platform to do much richer types of searches, much richer types of capabilities. We’re also connecting to all the social networks. So, for example, with Facebook and LinkedIn, now, for example, when I do a search, and maybe I want to find a restaurant in Taiwan, not only will it give me the information on restaurants in Taiwan, but I can look for recommendations from my friends and see who liked which types of restaurants, or which restaurant in Taiwan.

So, we mixed the information and interaction from the social side with the traditional sort of Web-crawling search side to provide a much richer set of information. So, Bing really is becoming a decision engine that allows me to do more with the hardware, and the platforms, and get better and richer information as an end user.

Now, what I want to do is help bring these to life through some demonstrations. I’m going to have my colleague Ryan Asdourian come out and walk us through four different scenarios, a consumer, a small-business user, a student, and a teacher. And in that way, we can sort of build from the components, the user interface, the devices, to some very rich experiences that weave it all together. And when we think about sort of that connection or that convergence of ecosystems, a couple of these demonstrations start to really highlight both where we are, and where we’re going.

With that, Ryan, good to see you.

RYAN ASDOURIAN: Thanks.

STEVE GUGGENHEIMER: It’s all yours. Take over.

RYAN ASDOURIAN: All right. Thanks, Steve.

So, you’ve seen the case of the future from the parts inside the machine that Guggs showed to the finished product. And you’re building the devices that people really just love. And I’m going to show you those scenarios that Guggs talked about that kind of brings that software and hardware together, and it demonstrates why Windows is still the most innovative platform, and where we will succeed together.

So, let me go ahead and get started. I’m going to start with the PC. And this right here is a Lenovo U260, lightweight, stylish design, and exquisite attention to detail. There’s leather palm rests here, and they’ve even innovated the way the air flows through the keyboard to keep it nice and cool. Now, even when I’m away from home, Windows keeps me feeling close to the people in my life.

And so one of the ways they do that is with the free Windows Live Essentials suite.

Now, it offers everything. It’s got HD video chat, advanced photo tools, and it’s got social media integrated throughout. But, what I love, and what I want to show you today, is how with a little bit of extra hardware, I’m able to power some very cool and very new scenarios.

Now, behind me over here is the Acer RevoCenter Home Server. Now, it’s powered by Windows Home Server 2011, and it does everything you’d expect from something with the name “server” in it. It can back up my PCs. It connects to all the media in my house. But, let me show you the new interface here. So, right now I’ve accessed this through a website, which means I can access it on any computer from anywhere that I’m traveling. So, what I want to show, here I’ve got my shared folders, and I also have my media library.

So, I come over here and browse music, go ahead and click this, and it’s going to connect to my music server, or to all my music files. I can go ahead, hit play, and it’s going to start streaming those right from my living room. It’s got this nice music interface that not only is it going to start streaming the music, but it’s going to go ahead and I can click into some of these. I can get some metadata about the different tracks. And search and find that nice and quickly.

So, I’ve got that for music. Now, over here Guggs showed the Tron Lifecycle PC. Well, what he didn’t know was last Halloween actually a couple of my friends and I we decided to dress up as Tron. We made some costumes. So, I figured I’d pull those from the server, and I’d show off some of these photos. You get this nice view to kind of look at the photos, have a little bit of fun with it.

Now, it’s not only photos and music, but it also connects to my videos. I’ve got my media center at home. So, I go into record a TV, and we set up some content here so that we can kind of come in and see what this looks like. It’s going to buffer this over the website. It will transcode it and it will actually play it streaming to wherever I am. So, take a second to go ahead and load that up and this will start buffering. Now, you see it going and as it does this, I get my local content right there.

Now, if I’m not at a computer, what I also have, I’ve got my Windows Phone 7. So, what I have here is actually an app that allows me to connect to my music, my photos, and my videos, and this is tied to the home server that’s right behind me, as well. So, I click on videos, I see some of the videos on there, I go ahead and click one, and as I click that, again, it’s going to start transcoding it, it’s going to bring it down to my phone. It’s going to take a little bit of time to buffer that, and then it will start playing. You see it right there, very quickly, and it should start playing in just a second.

So, bringing the content down to me. I mean everything is just at my fingertips. Literally, no matter where I am, there you see it playing, and literally no matter where I am in the world my home server machine, it just makes me feel like I’m in my living room, which is just great.

So, when I am traveling, like right now, I can’t always spend all my time watching all the content that I’m recording at home, because I’m running a small business at the same time. Now, when you’re in a small business, you don’t want to spend time managing IT. What you want to spend time doing is running your business. So, with Windows and Office what I can just show you is how it just works. It’s the tight integration between the PC, the phone, and the cloud. So, now I’m going to show you a bit of how simple and efficient you can run your business with Windows underneath the hood.

I’m going to come over here. I’m going to grab a PC for my small business. This right here, this is the new Dell Latitude E6220. This PC, it’s tough, performance, durability, all in a beautiful, lightweight design. Now, one of the great things that I love about this PC is that it has the same docking station that my old Dell machine had.

So, it’s very easy for me to get a new PC without having to buy a new docking station, and it also has new features, like a backlit keyboard, which I absolutely love. So, I combine the power of Windows with the hardware inside the PC that I have, like a TPM chip, and really there is no safer environment to run my business on.

So, I save money, and I’ve got an amazing brand-new PC. Now, what I don’t have is the knowledge to run my back-end infrastructure. The good news is I don’t need it. We talked about the cloud a lot. You heard Guggs was talking about the cloud. Let me show you how with the cloud it does all the legwork to make sure my business is secure, it’s accessible, and it’s always backed up.

Enter Office 365. So, Office 365 is one of those magical pieces of software that once you use it you’re going to wonder how you ever worked without it. If you work in a large enterprise, a lot of these features may seem very similar to you, and you’ve taken them for granted in the past. If you’ve worked in small businesses before, this is going to transform the way you work.

Now, as part of Office 365, you get Web hosting. So, I’ve got my website right here, and this is all hosted in Office 365. Now, I’ve clicked over to the second tab and this right here is my administrator home page. From here, I can do anything. Now, at the bottom of the screens you see a couple of familiar icons. And the reason they look familiar is because they are. There’s nothing new to learn here with Office 365.

Now, I can go ahead, click this Outlook tab right here, and this is going to bring up the Web version of what looks like the full Outlook application. I get it right here in the cloud. I see I can look through my e-mail, I see a comment to review the PowerPoint deck that I’ve hosted for the SharePoint. So, this is from Hank. And let’s say I’m not actually at my PC, right. I’m traveling and as always I have my Windows Phone 7 with me.

Now, my phone is actually tied to Office 365. I go ahead, I click into Office right here and this is able to pull down all the documents that I’ve got on my Office 365 site. So, I see Hank’s 2012. I’m going to go ahead and open that up. As I open that up, I see the PowerPoint, and I can go ahead, I can click through, I can view it here. But, what I can also do on my phone, which is great, is I can actually also edit my presentation right from my phone.

So, I see it says from Handsome Hank’s 2012, and I don’t know if that’s the most professional thing. So, I click in that text box, I’m going to go ahead and I’ll remove the word “handsome,” a little more professional, click checked. And then, right from here I’m going to click save, and as I do this it’s actually saving this PowerPoint that I edited on my phone, straight to the Office 365 team site that I’ve got my company working on. Now, let me show you what that looks like when I come over to the computer.

Come back over here. Remember I removed the word “handsome.” I come, I click on Team Site, this is part of Office 365 still, and this is a SharePoint site, if you’re familiar with SharePoint. I have this document library over here, I go ahead, click in, and I see the Hank’s 2012 file. Now, when I open it it’s going to open the file in the browser. Now, I still have rich functionality, you see right here, it’s removed the word “handsome,” and very seamlessly that change that I made on the phone is already made there on the PC when I open the file.

And so, I can edit it still from here. I click edit in browser and I get rich functionality in the cloud, but I’m not trapped there. What I’m able to do is I just click over here, and I can open the same file in the full version of PowerPoint 2010. Now, from there I go ahead, I can click here, I can add some rich transitions, so I can see what that looks like. And then what I can also do is I click SideShow, and I go to broadcast, I can broadcast my presentation.

Now, I absolutely love the broadcast feature and let me tell you why. If you’ve ever been in a meeting where you have your slides printed out, or you have to send the PowerPoint file ahead of time, people can go ahead and flip through, and look ahead of you. With broadcasting my presentation, there’s no skipping ahead. They see exactly what I want them to see, when I want them to see it. I don’t have to transfer big files and I don’t have to leave my presentation behind either.

So, all this that I’m showing here, I mean it really transforms the way people, especially small businesses, work. And they do it with the hardware that you build, on the software running on top of Windows. We make the software. It just works. It integrates. It works, because it’s compatible, it’s familiar, and it’s secure. Now, if you want your business to run on more than just the cloud, I’ve got the solution for that, as well.

Guggs pointed out the Small Business Server behind me. The Small Business Server still allows you to not need the IT expertise to run your small business, but it means you have a server, so you can have local  you can have your PCs backed up very easily, you can have all of your large files right at your fingertips, and you can do a lot of the stuff faster, right. Small businesses, they need us. And together, they’ll choose us, because the software and the features that I just showed you, they power all these features on top of the hardware that you build.

Now, I’m going to go ahead and switch gears for a second. I’m going to take you back to, you know, I kind of wish sometimes I could go back to college. I think I would do things a little bit differently. And so, I want to show you some of the things I’d do differently. The first thing, if I had to go back, I wouldn’t have to take all my notes on paper any more. Let me show you what I can do here with my ASUS. So, I come here and this is OneNote that I’ve got up, and Guggs talked about this a little bit. Now, what’s cool about this is, as I’m taking notes, I was over at the Microsoft booth this morning, and I was taking some notes while I was there, and if you haven’t seen it, as Guggs said, it’s amazing. You’ve got to go check out all the hardware and get your hands on it, play with it, a lot of fun. And as I was taking notes, one of the cool things here is, I come in, and as I use my pen, I notice a little play button over here. Now, I can record video at the same time. So, when I do that, it actually ties the video back to the notes of what I was taking. You see it highlights what I was taking at the time. And I can jump into any part of this, and it will take me to the part of the video where I was recording.

Now, if I’m recording my professor, I can have a little more fun with this, right? Imagine I’m sitting in class, and I’ve got my professor teaching, I’m taking my notes, and I want a video recording of what he’s doing. Well, I’m also a little bit bored in class, so I had a little bit of fun here. I used some of the effects with Windows Live, and messed with his head a little bit; or if I get a little bit bored, I can kind of play with some stuff. I can go ahead, I can put a hat on him, and have a little bit of fun while I’m in class.

So, that’s the way I use my pen to take notes. It’s the way that I’m used to it. And the PC really takes taking notes to that next level. Now, while I was taking notes, sometimes in school I had to solve problems. Well, if I went to school today, I wish more than anything I had this software that I’m going to show you. This right here, this is called Microsoft Mathematics. And we just released this for free, and it would transform the way I was able to do some of my math stuff. This does calculus, trig, geometry, everything you’d expect. So, I will show you right here what I can do. So, I’m going to go ahead, and I’ll write  my handwriting is pretty bad, but it recognizes it. So, I go ahead and write out an equation, and I’ll finish writing this out. It recognizes it as I’m doing it, and there you go.

Now, I’ve written out the equation. I’ll go ahead, I’ll hit enter, and like that it solves it for me. Pretty neat. But not only that, it will actually teach me how to do it. Watch this, I go ahead, and I click on solution steps right here, and as I do that, it’s actually showing me what I can do  how I can learn what I’m doing right there. And I can solve for Z, I can solve for Y.

One of the other cool things I can do is, I can actually plot this equation in 3-D, so I can see what a graph of this looks like. I can go ahead and move that around in a very cool interactive way. So, a neat way to kind of bring technology and help out students, right? We’re solving problems, we’re making learning easier.

But, while we’re helping students, we didn’t forget about the teachers, because we love them, too. So, over here in the corner, on this top shelf right here, I’ve got something called Windows MultiPoint Server. Now, let me tell you why this product is awesome. It’s the one on the top shelf, that thin box right there, and today budgets are tight. Schools can’t afford to buy every student a separate PC for classroom use. And even if they did have those PCs, if you think back to school, how would the teachers really control what all those students were doing. I know that I liked to goof around a little bit in school. I know that it was tough on the teachers to always know what’s going on in the room. So, we’re working on that at the same time.

And with this Windows MultiPoint Server, and with this product, you’re able to take one PC, and you’re able to connect 25 terminals up to it, so that it will really scale. Now, the four monitors next to it are all powered off of that PC. And I’ve set it up kind of like a classroom where I’ve got those PCs there, and I’ve got that there, but over here what I have is my administrator console. So, I can kind of see what is going on.

Now, I’ve got this whole set up, I just kind of need a student. So, Guggs, if you’re still back there, if you want to come out and kind of help me out.

STEVE GUGGENHEIMER: Sure, I’ll be a student.

RYAN ASDOURIAN: Thank you. Thank you.

STEVE GUGGENHEIMER: Always happy to learn.

RYAN ASDOURIAN: You can have any PC you want, just start using that. I’ve got some things set up there, and what you’re seeing on my screen is the administrator console. Now, I’m able to kind of look around and see what’s going on. One of the things that I can look around and see is that  sorry, one second, let me go ahead and fix this. There we go. So, I can go ahead and I can see on my administrator console that he’s kind of going to what I would call a questionable website. So, what I’ve done is, I’ve blocked the screen, and I can write a custom message right up on his screen. Pretty cool.

STEVE GUGGENHEIMER: Come on now.

RYAN ASDOURIAN: Now, I’m going to go ahead and unblock it. So, it will go ahead and unblock it, and let him do his thing. I’m able to also kill an application remotely from this.

Now, on another screen, what I’ve got is, I notice that one of the students is watching kind of an educational YouTube video. So, I realize I want the whole class to be able to experience this. Now, watch this. I see it up here, and I see this right here, it says, “project selected stations to all other stations.” So, let’s project selected stations. With one click, I’m going to bring that to everyone. So, watch this. I go ahead, I hit click, and all of them transform to that instantly. A very cool way to kind of bring that multimedia into the classroom.

So, new interactive ways to teach to bring that multimedia content into the classroom, and with Windows MultiPoint Server, it really brings this affordable computing into the classroom, and the tools to keep teachers on top of their students. Simply stated, it’s a better teaching solution with PCs and Windows MultiPoint Server.

Thank you.

STEVE GUGGENHEIMER: How about a big hand for Ryan? (Applause.) That’s a lot of traction to cover.

I think, again, we covered a lot of ground in terms of the demos, and obviously show and tell is the way to go. But the scenarios, you know, between the phone and the PC and the server and the cloud, an extreme amount of richness where we really are starting to see what was very siloed ecosystems and capabilities coming together more and more. And I think in many ways this is just the tip of the iceberg. There’s so much more opportunity here.

And that’s an area where I love coming to Taiwan, I love talking to our partners, because we have such an opportunity together to continue to grow this ecosystem, and the multiple ecosystems that we all work on. There are some things that really make this happen, though.

The first off is scale. With 1.2 billion users of PCs, that’s immediate scale. You know when Windows 7 ships and you get 350 million users in the first 18 months, that is phenomenal scale for any hardware manufacturer, any ISV, any component manufacturer. You start to weave in the phone ecosystem, servers, embedded devices, that opportunity continues to grow and be there. And so, it’s a very sort of strong self-feeding system.

The compatibility that this ecosystem provides gives us the widest array of software and devices. End users know that. They also know the familiarity. That DJ system that we’re going to end on today, the DJ has never seen this system or worked with it until she got here two days ago. And yet, immediately, because it’s a Windows-based system, she was able to get it up and running. She was able to take her music files, import them, and get to the point where she could basically run the show because of the familiarity with this type of device and the system. And again, that’s what a strong ecosystem brings is that familiarity.

Last, but not least is peace of mind, right, security that comes from the investment that we all collectively make to make it a secure environment for end users, for corporations, and out of all this comes phenomenal opportunity and value for all of us. And while there’s a lot of other things going on in the industry and a lot of noise out there, the truth is, we know collectively that opportunity and the opportunity is around the Windows ecosystem. And it’s continued to provide sort of stimulus for our industry. We see it continuing to grow and go forward, and in fact, the ability to do more across more devices only provides more opportunity for this particular focus and for all things that we do to together.

In terms of our commitment, we’re committed to continuing to invest. We talked about components earlier, which is the work that everyone in this room does. We will continue to invest with partners in the user interface technologies, speech, pen and ink, gestures, all the different things, keyboards, mice, touch, all those things we will continue to invest on as another piece of the underlying platform.

Then all of the platform capabilities for desktops, all-in-ones, laptops, slates, readers, smartphones, TVs, extenders, that’s another area of continued investment. Bridge that with Internet Explorer as a way to provide developers a true sort of way to get access to that hardware and build best-in-class services, and applications, based on the most modern developer capabilities, whether it’s HTML 5, or JavaScript, or other technologies that are out there. And last but not least, we’re committed to taking our experiences, right, Office, Windows Live, Bing, Zune, Xbox LIVE, and extending those through the cloud to start to connect the capabilities for the end users, and work to both improve the platform and get more of our partners both something to build on, and something to complement with the things that they build.

So, I want to say a hearty thank you to everyone that’s here. We’ve had a phenomenal year. Collectively as an industry we’ve seen tremendous growth. And we appreciate deeply all of the hard work by our partners that are here in Taiwan and around the world, and the ability to continue to work as we go forward. We spend a lot of time on sort of the current generation of products. I hope that everybody will go and visit the booth so you can see more of this.

The good news here is that the innovation continues to move forward. We have a phenomenal year ahead of us, all the innovations that are going on, things that you see here and others will be available this holiday and beyond. On top of that tomorrow, again, we have a session for press members and our partners, where we’ll continue the conversation from CES about the next generation of Windows, and continue that dialogue again. So, we have the ability to both innovate in today for the holiday for next year, and tomorrow we’ll continue the conversation about how we continue to invest in innovation for the future.

With that, I’d like to ask you all if you get a chance to stop by the booth so you can go through this in detail. Again, I want to thank our partners for all the help they give, and I want to thank you for your time today. I hope this was useful. Thank you very much. (Applause.)

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