Intel Developer Forum, Spring 2003

Craig R. Barrett Keynote
Chief Executive Officer, Intel Corporation
San Jose, CA
Feb. 18, 2003

CRAIG BARRETT: I want to welcome everyone to IDF here in San Jose. As Pat Gelsinger was mentioning in his kickoff, this is really about convergence, it's really about computing, communications coming together. It's about providing solutions to the end user. I think we've all learned one thing in the last couple of years after the heydays of the 1998, 1999, 2000 time frame, when people would buy just about anything, we've learned that they want to buy solutions, they want to buy something that either, as a consumer, they can use, or, as a business, increases efficiency and productivity and cost effectiveness of employees.

What I'll try to do today is very simply talk about convergence. I'll try to talk about it in the frame of what Intel helps to bring to you to provide solutions to the end user. We're basically a silicon company. So I'll talk a little bit about silicon technology. Talk a little bit about the mileage left in the technology that we have, some of the exciting things that are coming forward. Tell you why I'm still optimistic about the future. And we'll show you a few demos along the way.

What I'd like you to keep in mind during this presentation and during the rest of the week is the whole concept of moving forward in technology, moving forward in solutions, trying to take the world to the next generation of technology, the next generation of solution.

I will spend just a few minutes talking about the big digital picture, what's going on in the world, whether we ought to be optimistic or pessimistic. Then we'll talk a little bit about what's happening in the silicon world and what new capability is being brought into the marketplace and what opportunities that gives you to work with companies like Intel to bring new solutions in the marketplace. Then we'll show some examples of those solutions, some examples of the excitement, I think, that's coming into the marketplace.

If you look at the industry as a whole, our collective industry, the IT industry, is about a trillion dollar industry today. Put that in perspective, the U.S. GDP is about US$10-$11 trillion. So the total IT marketplace in the world is about equivalent to 10 percent of the U.S. GDP or about one percent of the world's GDP. So there's a lot of growth opportunity left here.

We're still seeing the after effects of the dot com meltdown in 2001. We're still seeing the after effects of probably an over investment in the telecommunication marketplace in the late '90s. We're still seeing the impact of those things.

But, in fact, despite the negative nature of the current economy, I think there's still reason to be optimistic about the future.

Clearly, every recession ends. Clearly, there is an opportunity when you come out of recession. Clearly, that opportunity comes to those people who have invested in research and development, new products, new technology. That's what we've been trying to do at Intel. I know that's what many of your companies have been trying to do on your home turf, to invest for the future.

So if you look at this trend chart in terms of growth of our economy, or growth of the IT economy, we can see it's forecasted to continue to grow beyond its current downturn in the '01/'02 time frame and grow up into the 1.2 trillion time frame by 2005 or 2006.

If you look at a little bit of the detail of the forecasted growth rates and I'm not subscribing to any of these numbers from Gartner, IDC, Aberdeen, or others -- they're all forecasting the growth rate of the IT industry to be something in the range of four to seven percent this year, which is a welcome relief from where we've been in the last couple of years.

Again, this growth, if it comes from anything, it will grow from the investment that we make into new solutions. It'll grow from investments we make to create innovations. It'll grow from the investments we make to bring new capability into the marketplace.

To make myself feel reasonably good every once in a while, I think of how many old PCs there are in the marketplace. By old, I mean PCs that are greater than three years old, probably running Windows 95 or Windows 98, both of which will not be supported any longer by Microsoft at the end of this year.

But if you look at that 160, 180 million of old PCs, they have to be replaced sometime, in addition to the new PC users coming in the marketplace.

So there is a pent up demand out there. But what is necessary to ignite that demand for new hardware, new software, new solutions, will be innovation. And that innovation has to come from us.

So it's not just enough that we have an aging base of computers in the marketplace or an aging base of telecommunication equipment in the marketplace. There has to be new capability, new solutions brought forward.

Now, sometimes I flip flop. Sometimes I get up in the morning and I'm optimistic, sometimes I'm pessimistic; sometimes the glass is half full, sometimes it's half empty. But usually I wake up and feel that I'm optimistic. And the reason I'm optimistic is a whole variety of metrics. If you look around the marketplace, you can see.

We're still looking at about a billion users of the Internet by 2005 or 2006. And that billion users will have about 2 billion connected devices. And corporations like mine, like yours, will probably be doing in the range of $10 trillion of e Commerce by the '05, '06 time frame.

All those numbers are substantially above where we are today, and that ought to give us rise to be optimistic.

If you look at the great digital switch taking place, switching to digital technology, whether it's video, music, whatever it is, digital TV, all this digitization of the content in the world means there's new opportunity for the devices we make.

Probably if I couple that digitization of content with the fact that all those folks out there who are under 20 years of age and think that the PC has always been here or that digital music always came downloaded over the Internet or that digital movies will be downloaded over the Internet in the future, that digital youth content out there I think is impressive, and I think is a real benefit that our industry has.

Those people have an insatiable demand for the sort of solutions that we bring forth in the marketplace.

The growth of broadband is happening. The U.S. Federal Communications Commission is supposed to make a decision later this week whether they're going to unbundle the local loop or the new investment for that last mile of broadband in the United States. But you don't have to sit here in the United States to see that broadband is going to be big.

I was in Japan last week, and you look at the competition there to provide high quality DSL to the consumer. For US$15 to US$20 a month, you can get 5 to 10 meg DSL delivered to your home. For slightly more than that you can get fiber delivered to your home with 100 meg bandwidth.

The United States will wake up eventually to the fact that this is a competitive threat to our economy, and we'll do something about it. But that build out is happening around the world and it leads to a lot of excitement, a lot of opportunities for us to go forward in the marketplace.

Intel's CTO, Pat Gelsinger, talked about the convergence of computing and communication. That convergence is happening on a number of fronts. It's clearly happening in the wireless front as we start to see wireless WAN and wireless LAN implementations around the world.

WiFi or 802.11a, b, g, x -- you pick your protocol -- gets most of the publicity, but if you go around the world you start to see the build out of a wireless wide area network as well as a build out of local area network. Whether GPRS or GSM, we're starting to get the concept of anytime, anyplace for the digital world for computing to combine with communications.

So all of these things I find are terribly exciting about the industry. They give rise to optimism for the future. And especially coming from a silicon background where we are starting to see the equivalent integration of capability from computing and communications in the silicon world as we go forward, I find it doubly exciting because those basic building blocks that we create can be used as the fundamental building blocks for interesting solutions going forward.

Now, if you look around the world and see what's happening, and I visit about 30 countries a year, you see lots of excitement in places you might not necessarily expect it. If you've been to the United Arab Emirates recently or Dubai, Dubai City, you see the build out of a high tech infrastructure. If you happened to visit the Dubai Women's College in Dubai City, you find they have a nice 802.11 wireless build out. I mention that because a number of universities in the United States haven't embarked on this yet but are starting to, albeit slowly.

If you look around the world in terms of the broadband build out as I mentioned earlier, in Japan, Korea, many of the Asian countries, China, we're starting to see this broadband build out really as almost a green field build out.

Taking fiber to every home in Japan is a goal of NTT. Equivalently, the goal of Yahoo! Japan is to take DSL to every home in Japan. Not just DSL, but associated with DSL is an 802.11 access point associated with the DSL so many so every home will have a wireless infrastructure as well as a reasonably good broadband connection to the outside world.

If you go to Internet cafes around the world, you see the build out. If you go into Russia and talk to the people in charge of the Russian railway system, something of an antiquated industry, when I was talking to the leader of that organization and casually asked her how many line items there were in inventory for the Russian railway system, she calmly mentioned a billion. And you think of the database that has to be put in place.

If you go to the Middle East and you look at oil exploration or oil recovery and you see how much money can be saved or how much efficiency can be gained by a little bit better placement for the well head or the recovery dynamics associated with an oil reservoir, you'll see that you can save US$50-US$100 million very easily by having a more accurate database, more scientific research into the oil reservoir and the geophysics of the recovery situation.

Everywhere you look you see this excitement, this use of the technology we create. What I try to do when we visit these countries is collect testimonials from people, and I want to show you a short video of about 15 of the countries we visited last year, and you get an idea from the people there, their excitement.

(Video plays and ends.)

CRAIG BARRETT: If we just go through that little montage of clips you get, I think, one common message. Everyone around the world is excited about technology.

You really only have to go to a place like Aman, Jordan, to sense that. I think Aman does hold the record for the most number of Internet cafes in one city block. And you don't normally think of Jordan as being a high tech capital, but clearly Jordan and Dubai are trying to be the entry point for high tech into the 300 million or so Arab speaking citizens in that part of the world.

So it's not just what happens here in the United States. It's what happens around the world and the excitement about the technology around the world.

As you speak around the world, and if you look at the amount of Internet traffic that continues to flow, surprisingly, we're still seeing an exponential growth in that traffic on an annual basis. That is, despite all the bad news about the telecom infrastructure companies, despite the fall off in CAPEX spending, despite the bad P & L results, despite WorldCom going bankrupt, et cetera, we still see the backbone carries more traffic every day, every month, every year. That's because more people are involved in the Internet, more and more excitement, more and more digital information that's flowing, there's more and more people who are dependent on the Internet for their corporate livelihood or for their education or communications ability or information access capability. So still strong growth in the Internet, the very backbone of what we do.

Now, I have to conclude that the desire for technology is alive and well. Everywhere around the world that I go, you see this concept. You talk to business leaders, government leaders, education leaders, they all say the same thing.

Perhaps the press that is most down on the technology right now happens to be right here in the United States. Sometimes it's described as a mature technology. Sometimes we have the carryover or the hangover from the dot com implosion, the excess in capital spending, the telecom industry. But worldwide, there's a sense of excitement about technology going forward.

We're in the midst of that excitement, and what we need to do is work together to bring the new technology of the marketplace in a user friendly solutions format. That's what will continue to drive the worldwide digital revolution, if we can do that.

If you look at the digital revolution, it comes in a variety of formats. Maybe the simplest way to think of that revolution is, in fact, looking at the very fundamental building blocks that have occurred which have created the Internet.

I've tried to show three of them here. One of the first planar transistors created back in the Fairchild days in the 1960s by Bob Noyce, Gordon Moore and team.

The growth of that planar transistor into memory and microprocessor chips created the first IBM PC, which is shown in the center. And the growth of that PC and then the connectivity of that PC and U.S. government investments in ARPANET and the Worldwide Web or Net gave rise to Netscape Version 1, the first commercial Web page, Yahoo! Web page on the Internet.

This, I think, is clearly a revolutionary approach to life. The integrated circuit was revolutionary. The PC was revolutionary, had lots of unpredicted aspects, the Internet and all the commerce aspect associated with the Internet.

None of us had any way of predicting this would happen. Certainly the people who invented the integrated circuit didn't predict the PC would happen, certainly the people who invented the PC didn't predict the Internet would happen. But these followed one another in an unpredictable but moving the technology forward fashion.

There are equivalent evolutionary changes that take place, and those evolutionary changes are perhaps typified by what's happened to the cell phone or the telephone. I shouldn't call it the cell phone.

The telephone has gone from a wired situation where you're frozen in place to today's wireless situation where, in fact, the cell phone probably is as revolutionary as the PC was. Cell phones today allow you to talk, they allow you to access information, they allow you to take photographs and transmit those photographs, they allow you to access the Internet, they allow you to download music, they allow you to download video, they allow you to do all sorts of things that you couldn't imagine just a few years ago.

Fundamental to all of this is, in fact, the industry that Intel belongs to which is the integrated circuit, which brings more and more functionality, brings more and more capability on an annual basis that you can do something with, that you can create exciting solutions, exciting technology around to bring to the end user.

If we look at what this integrated circuit industry has done, it's come from rather humble beginnings, that first planar transistor I showed new the first slide, circa early 1960s, to where we are today.

Gordon Moore, past chairman and founder of Intel, gave a talk at ISSCC last week, and he talked about Moore's Law and what's going on, and using Moore's Law as a guide for what will drive innovation, what will drive creativity in our industry. Gordon, in his understated fashion, basically said Moore's Law is not dead. Nothing that's exponential goes on exponentially forever. But you can delay forever for another decade or two decades or so.

In his presentation, Gordon showed his first two predictions, the 1965 data shown here in green when he predicted that we seem to be doubling the number of transistors every 12 months or so, and then he, in the mid 1970s, he made another prediction which was "I don't think we can continue at that rate. Maybe it's going to be every 18 or 24 months," and so he forecasted performance for the next decade, or so.

What's interesting to put on here are some recent data for both memory and microprocessors, which pretty much have tracked Gordon's projections over the last 30 years.

As you might expect, memories always have a few more transistors crammed into them, because they have nice periodic arrays, and memory cells get smaller and smaller, and random logic has lagged behind memory density in terms of transistor count over the years because those random logic circuits are not quite as densely packed as the nice memory arrays.

Increasingly, as we put more and more static RAM cache on board the microprocessors, bigger and bigger hunk of the microprocessor chip is, in fact, memory today, so in fact we find that the microprocessors are growing a little bit faster in density to the memory chips for the last three or four years.

And they're pretty much in the same spot as they are right now in terms of memory density or transistor density.

The interesting thing here is what happens next. Gordon said last week that he can see easily that we will continue this trend for another 10 years or so. I think when asked what happens beyond that, he said, "I can only forecast for the next 10 years."

There are thousands of smart engineers who are figuring out how to extend Moore's Law. There are thousands of smart engineers who are figuring out how to integrate different kinds of technology into integrated circuits. There are thousands of smart engineers who are going to create the next revolutionary and evolutionary advances in our industry here, the basic building blocks of which the IT industry is built on.

So looking forward, the new benefits we are going to see here are clear.

New capabilities, like wireless. New forms of integration, whether we integrate radios onto integrated circuits or whether we put multiple processors on a single chip, essentially, dual or tri, or quad processors onto a microprocessor. Whether we create new businesses, new businesses such as digital media, which is clearly in its formative stages today. And whether it's content creation or just the distribution of digital media. Whether it's Web services.

Whatever the business model might be, the fundamental building blocks they are going to be built around are these integrated circuits.

Whether it's increasing functionality, performance, form factor, processing power, memory density, whatever you want, this is essentially what Moore's Law provides us. It provides us with the ability to do more and more on an annual basis to shrink and to reduce the cost of the functionality we had last year.

The volume economics is also important. The semiconductor industry today is about US$150 billion industry around the world. The one thing it does is it's anti inflationary, it provides more functions at less cost each year.

Now, silicon technology is kind of interesting. Pat Gelsinger, again, back to his introductory comments, mentioned that the theme of this conference is convergence, computing, and communications.

One of the exciting things we see going forward is these technologies coming together. As they come together, you get all the good benefits that each one separately brings: performance, cost, economies of scale, power consumption, form factor, all of these things that we've grown to love about the microelectronics revolution.

We recently introduced, just last week, an integrated technology chip for the cell phone marketplace that combines flash memory, logic and a baseband DSP solution all on the same chip, single chip solution.

This is the sort of advancement that microelectronics brings, that capability to put all of those three functions together in a single chip to improve performance, lower cost, give a better form factor.

Now, there's a lot more to bringing communications and computing together than to just put those three functions on a single chip to go on a cell phone.

I think one of the most exciting things is what happens as we bring optical technology together with silicon technology. We're all familiar with gallium arsenide lasers and glass fibers. You tend to think that's not the domain of silicon and CMOS transistors. But I think some very exciting things are happening in this area. And what I want to do is bring out Mario Paniccia, who's the director of optical technology development at Intel.

Mario is going to give us a little bit of a demonstration and update on what's happening in the technology space as we try to bring logic and communications technology together. Welcome, Mario.

(Demo on silicon photonics research begins and ends.)

CRAIG BARRETT: So just as we talk about convergence and go through this week, think not just wireless and logic capability coexisting in a single chip or single bit of technology, but think of the whole spectrum of communications capability and computing capability integrated into some basic building blocks.

I wanted to spend a minute to amplify on Moore's Law and what's going on in the background as we speak. Today's volume production, I think you're all aware, is 0.13 microns or 130 nanometer technology. Actually, when you have 130 nanometer technologies, we've referred to it, the actual nodes or transistors that are crafted are usually something in the range of half that size, so they're about 70 nanometers across.

If you look at what's forecasted to go into production later this year, the 90 nanometer transistor structures, followed by the 65 nanometer structures in 2005, followed by 45 nanometers in 2007, and 32 nanometers in 2009. These are the technologies that are under development as we speak today. And I've tried to show a very simple transmission electron microscopy sections of them up behind so you can see they are really things. They behave as real transistors. They have real transistor capability, and they can be used in memory and logic devices and communication devices moving forward.

One of the interesting challenges as you make these things smaller and smaller is to see them. The technologists go to great lengths to try to print these dimensions. We went way past electron microscopes to see these things in the past. But one of the real challenges is to see what you've printed. Once you've created a circuit of these fine dimensions, to try to do something with it, to try to debug it.

We want to show you a very simple demonstrations of Moore's Law going forward and what some of the clever technology you have to apply to Moore's Law going forward looks like in terms of just seeing what you're printing and making sure is works and debugging it occasionally.

I'd like to have Horst Haussecker, who is the manager of computational nanovision research, great title "computational nanovision research." What does that mean? It means we're going to make some stuff really small. We want to see what it looks like, right, Horst?

(Demo starts and ends.)

CRAIG BARRETT: So all the press in the front row, when you asked me what we need all those compute cycles for, it's just to be able to look and see what we're making.

(Laughter.)

CRAIG BARRETT: If you haven't seen one of these field ion beams work, they are very clever. Basically they allow you to go in and cut metal lines and then create new metal lines, kind of a Band Aid approach to debug circuits.

The challenge, though, is to see what you're doing through six or seven layers of metal when the dimensions are smaller than a hundred nanometers.

I'm comfortable with the technology that we have going forward, that we have many, many generations left in front of us, and that, in fact, the technologists who are working on the future generations will be successful.

I've showed you cross sections of four of the next generation transistors beyond the 130 nanometer that we're currently putting in volume production. There's a lot of excitement going on in this space, not just to create those next generation transistors, but as I said, to combine computing and communications technology.

If you look at what's happening there, I think a whole variety of thoughts come to mind. One is what happens on the macro scale. The macro scale is what happens to the technology in society and how we interact with technology. This will be part of the discussion you'll have this week at IDF.

At the micro level you look at integrating the technology into silicon, combining the compute capability with the communications capability, whether it's optical technology, the type that Mario was showing you, or wireless technology that you'll hear about tomorrow, we talk about mobile computing.

But you'll hear constant discussion of this integration of technologies as we go forward.

Clearly, one area that is clear to all of us is digital content and content creation and the movement of digital content around the Internet and around our home.

We'll also talk this week about the digital media in the home, the combination of consumer electronics and the personal computer and broadband into the home. What are the protocols that we have? What are the security measures that we have? What are the anti piracy measures that we have?

All of these are hot topics going forward, but all of these are really associated with the convergence of computing and communication.

Now, we could talk about this or we can see some examples. And the examples that we need to look at are not always silicon examples but solutions. That's what we're collectively here to talk about. How do we bring solutions into the marketplace, whether they're business solutions or consumer solutions?

How do we integrate digital architecture with the silicon, with the software, with the applications and the system design to bring something in the marketplace that actually works, that has a good user interface, that the customer finds important, the customer is willing to pay their money for.

What I want to do is show you three simple examples of this really starting at the PC level. And what we want to do is look at concept platforms of the future, what the next generation PC looks like.

First of all, we'll look for the knowledge worker, and then we will come back and look for the consumer. And we'll look at both desktop and laptop capabilities.

The first thing I want to show you is the next generation desktop for the knowledge worker, codenamed Newport.

Mark is going to come out, do a little demo of that. This is going to be, first of all, a mobile version.

(Demo starts and ends.)

CRAIG BARRETT: Knowledge worker, mobile technology. Let's look at the next generation knowledge worker with desktop technology, and a system code named Marble Falls. David, come out and show us what you can do here. Let's look at a concept platform that focuses on digital media and the consumer. This is a next generation consumer platform, code named, Powersville.

(Demo starts and ends.)

CRAIG BARRETT: Key to all these demos, really, is creating content applications. And I think despite some of the hype we have in our industry, people are pretty much settled on the fact that there are three different types of devices going forward. And I like to categorize them into three screen sizes.

There's the big screen, which is the couch potato entertainment screen, the TV screen. There's the interactive screen, which is the PC screen. And then there's the small screen, which is the handheld device.

Now, increasingly, as we bring entertainment, communications, computing capability all together, we have those three screens to deal with. When you start to look at solutions, the obvious question is, well, are you going to write applications or solutions separately for the three screens? If you go back a few years to the late 1990s, the cell phones were in competition with the PCs, and they were in competition with the interactive TV.

I think increasingly people will realize that the three screens are not in competition. They really complement one another, much as David showed in that last little example. The personal media player, handheld device, small screened, can coexist, can complement, can supplement the content that's created on the PC, which can also be shown on the big screen, the TV.

So as we write applications, we have to write applications for those three screens in mind. Increasingly, we want to write once and run anywhere, this nirvana of the industry.

But increasingly, I think these three screens will be what we have going forward. And what we need to do is not to recreate the content, but be able to have the content run on any one of those three.

Basically, what you want to do is create the content and then use that content. Create it, produce it, and use it to play on any size screen anytime, anywhere.

To me, that is as equivalent a definition of the convergence of computing and communication as wireless PCs or any other device you might think of. It's the ability to have those three different screen sizes interact in a seamless fashion and to move content, to resize it, depending on the screen size, the resolution, the capability that you have.

What you'll hear in the conference this week is in fact the software environment, development tools, platform capability, primitives that you need, the software design kits that you need to make that happen.

Increasingly, I think this is going to be a challenge that our industry faces going forward. There are clearly other challenges as well. The whole concept of convergence is anytime, anywhere, any device, regardless of the screen size we're talking about. Equivalent challenge is security and content protection. This is one that gets perhaps the most vocal press. Hollywood against the consumer electronics companies against the computer companies.

Increasingly, though, I think these companies have to work together to maintain copyright protection, to maintain the ability of the user for fair use rights to time shift and space shift the content, but to do it in a fair use fashion, not in a pirated fashion.

We have occasionally connected concepts. The business user would like to be connected all the time, but will not always be able to be connected.

Therefore, applications can't just run on some server in the sky. They have to be able to run on the occasionally connected client.

If you're a business user and you have customer relationship management software and capability and databases, you need to be able to partition those databases between the home server and the client that the salesman uses when he goes in and faces the customer.

Seamless software I mentioned. That is right at once have it run across any screen. Simplicity and ease of use. Perhaps this is always the biggest challenge, which is the user interface, the complexity of the devices we manufacture.

Paradoxically, it's kind of interesting, is you bring forward more and more capability. One of the ways to make that complexity more seamless, friendlier to the end user is to use the basic technology that you have at your disposal. That is, to partition transistors, bits and bytes, to make that transition seamless to the end user, whether it's going from a wireless LAN to a wireless WAN, infrastructure in a seamless fashion, having the computer snoop to see what the best connection is. Whether it's in fact going from a handheld device to a PC or to an interactive TV.

So these are some of the challenges that we face going forward. Collectively, that's why we're here, to work out those challenges and bring those solutions to the end user.

Now, the conference, in a nutshell, is shown on this slide behind me. It's really designing for ease of use, designing for functionality, designing for solutions over the succeeding generations of technology we are going to bring forward.

Whether that's at the enterprise level and the high performance computing level, the digital home environment, the unwired computer environment, where we get real convergence of computing and communication, wherever you are, including the communication infrastructure.

All of these are exciting areas. All of them are ripe for innovation. They're ripe for technological advance.

These are the sessions you'll be hearing about this week. Whether it's in mobility, better battery life, wireless connectivity, higher performance, the communication infrastructure, whether it's advanced TCA or some standard based communication infrastructure capability, whether it's the digital home, the extended wireless PC where we have a desktop PC but with wireless capability to interact with the consumer electronic devices in the home, transfer rich content back and forth, manipulate it, store it, create it, play it.

Or whether it's a high performance computing environment where increasingly, as we look at DNA analysis and genomics research, trying to figure out what you can do with the vast amount of data that are available, how you can turn data into information into cures. How you can use computing to make that happen.

All these are exciting topics. What I want to do is finish up with three quick examples of these. And what we want to do is look first at what high performance computing can do for you.

By high performance computing, I'm talking about really the third iteration of the Itanium processor family, codenamed the Madison chip that is due out middle of this year but is already functional and being used not only as a demonstration vehicle but as a demonstration proof for high performance computing.

Drew and Diane are going to come out and we're going to do a very simple example of what high performance computing can do really in the life sciences research area.

(Demo starts and ends.)

CRAIG BARRETT: We want to show you one more demo, and this is really mixed technologies in the cell communication, cell phone area. A product that we just announced rather unofficially last week which is mixed technology from Flash memory, compute, and DSP capability.

(Demo and video starts and ends.)

CRAIG BARRETT: I wanted to show you that for two reasons. One, Matrix is one of my favorite movies, and I am looking forward to the two sequels. The second reason is, it's all done on Intel Architecture, surprisingly.

Everything from the rendering to the special effects creation from you can imagine what it's going to be like to play that on a three gigahertz CPU with Hyper-Threading Technology when it comes out in May.

I want to express appreciation to Shiny Entertainment, Atari, Warner Brothers, and others for letting us show that clip in advance of the release.

Again, it's going to be part of this convergence, this is the home entertainment part of the convergence, which is, in fact, the game, which will be the transition point between Matrix 2 and Matrix 3.

What I'm trying to do today is just give you a brief glimpse of what we're going to be talking about this week about convergence, about new technology coming forward, both revolutionary and evolutionary technology coming forward to create solutions which our customers are excited about around the world. We all create demand by innovation. Innovation are us. That's why we come to things like the developers forum here. We have to work together to make this. It doesn't happen just from silicon. It doesn't happen just from systems. It happens from putting silicon and systems with operating systems, with applications, software stacks, and a good user interface. This is what makes technology exciting in the marketplace.

We're excited going forward because we think there's a lot and a lot of mileage left in the basic technology, 10, 20 years left, at least, in the basic technology. We're exciting about working with you to bring that technology forward such that you can then put your expertise on top of it and create solutions just like we saw in perhaps the Matrix game or some of the other demos we showed you today.

So interact this week, press all the Intel folks and our fellow travelers who are giving presentations. Really, the future belongs to us if we want to take advantage of it. And that's what we need to do. We need to work together, we need to bring exciting technology in the marketplace. And we need you, and hopefully you need us. Thank you for your time today.

(Applause.)