The CES 2008 Pre-Keynote Address by Bill Gates

Again, I apologize for this being a tad bit late. I unfortunately did not have any Internet access during the pre-keynote address so that’s why this is several hours late (plus I ended up at the Poker tables for some time too!).

As most of you probably know by now, this was Bill Gates final keynote address as Chairman of Microsoft thus lines for the speech were certainly long. We got in line right around 3pm - that’s a full 3.5 hours ahead of the actual speech itself. I actually fell asleep on the floor for a few hours while waiting for the doors to open to the auditorium.

They began letting us in right around 5:30 pm or so. The following are the notes from the pre-keynote speech as the presentation happened. Enjoy!!!

Time is now 5:40pm:

Holy smokes.. this room is pretty darn large. We waited in line for two plus hours just to be here today - to listen to Billy Boy speak in front of thousands of press and uber-geeks.

While we were waiting in line, we thought it would have been fun to have signs that read the following:

“Adama for President”
“Beauty and the Geek candidate”
“Is this for AVN?”
“Is this the line for the Wii?”
“Free SWAG HAG”

Time is now 6:18pm:

We’re still waiting for the show to start. In the meantime, I’ve had the opportunity to hear the people behind me talk about:

1. How to open up a Starbucks franchise

2. How someone almost got hit in traffic

3. How Sprint sucks

4. Boring work stuff *yawn*

Tick tock tick tock… (yes.. we’re getting a bit bored now)

Time is now 6:25pm:

Announcement comes booming over the speakers “We’ll be starting in five minutes – please take your seats”.

Time is now 6:28pm:

“The keynote will begin in two minutes – please take your seats”. YES finally!

Time is now 6:30pm:

The CES slides and background music kick in. Basically cool music with lots of pictures of CES past. Anyone know who sings the song they’re playing in the background?

Oh it’s Paulson and the song is called “Calling On You”

First presenter up is Gary Shapiro – President and CEO of CEA

Only interesting comment - the opening keynote tomorrow at 8:30 – unveiling the first time, the CES industry forecast for 2008. And now.. Gary introduces Bill Gates. First up though - some videos…

Bill Gates comes on stage.. wearing his wonderful blue sweatshirt

The pre-keynote is all about “The Next Digital Decade”.

Consider this folks - Bill Gate’s first keynote was back in1994. Back then - we were just about to deal with Windows 95 and broadband access was still pretty much non-existent. According to Gates, this was the start of the first digital decade.

So here are some of the highlights from the first digital decade:

Enormous PC growth, mobile phone growth, broadband access
Growth in online music and digital content
The first digital decade was fantastically successful.

Next up - Bill talks about how various Microsoft technologies have helped grow the industry. Examples including Microsoft Sync, Microsoft Windows Smartphones, etc.

Yes - the point is - the first decade has been an incredible success.

Gate’s point - “This is just the beginning – nothing is holding us back from us going faster and further in the second digital decade.”

But before we get into what will happen in the second digital decade, let’s remember that this is Bill’s last keynote speech AND remember that he plans on retiring as Chairman of Microsoft. So what will Bill do after he retires? A video of ideas from friends comes up on the screen:

Here’s what Bill’s last day will be like:

- Bill drives to work in a Ford focus

- Goes into the office and plays some toys..

- Bill sings “Bill pimpin”..

- Bill works out with none other than Matthew McConaughey:

- Bill plays GH3 and asks Bono for a place in the band..

- Steven Spielberg watching video clips of Bill auditioning for movie spots (clips include the Matrix, X-Men etc)

- George Clooney is asked to play the role of Bill Gates but he wants to defer the position to say.. Russell Crowe or Tom Hanks?

- Bill considers being a running mate for 2008.. so he calls up Hillary, Obama, and even Al Gore! (Obama asks which Bill is this? Bill Shatner or Bill Clinton?)

- Finally as his last day ends, Ballmer says goodbye to Bill and watches Bill drives off in a Ford Focus with shades on.

End of video – the entire crowd gives a huge ovation (though not a standing one mind you)

So now.. the second digital decade – what will that be?

It will be about connecting people - being more user centric.
Future applications will use the best of applications, and services out there in that “cloud” (internet)
Talking about “cloud” based approaches – combinations of applications and services into a new apps etc for users.

Three key elements:

High definition experiences everywhere – not just HDTV but high quality video, audio, displays, content, gaming etc

All rich devices will be surface connected. Users no longer have to bridge devices – things will just automatically work or connect. Information can be shared across devices and users. Devices will know your content and location (context)
Power of natural user interfaces. First decade driven by keyboard and mouse. Last few years we’ve seen other types of interfaces – touch (he does mention the iPhone), speech, etc. People are interested in simpler ways of navigation. Visual, audio, touch navigation. Gestures etc.

The software industry will help build this new platform and of course, Windows will still be around. Some interesting stats:

PC growth 13 percent this year
Vista launched a year ago. 100 million people using Vista.

Great partners with many new form factor PCs. Lots of portable devices etc. New ways to use PCs

Windows Live has 420 million people using the service

Windows Mobile will have 10 million new users this year – totaling 20 million now

It’s about Windows Vista, Windows Live, and Windows Mobile.

Bill takes a break and the Director of Windows product mgmt comes up to show off new features of Windows Vista and Windows Live applications (mostly Windows Live related apps)

Single Live ID makes everyone stay connected simply

Shows off Windows Live Calendar

Shows off Windows Live Events (which looks a lot like Evite). Since we’re logged in with Windows Live ID – address book is fully available online

Shows off Windows Live Photo Gallery (searching for a picture). Shows off stitching pictures together to create a panoramic picture.

Puts up picture on Windows Live Space (What.. MySpace? Facebook?)

Shows off Windows Live Video Search

When you’re on the go, Windows comes with you with Windows Mobile

Wait.. it’s not just about Windows Vista and Windows Live.

Bill comes back on stage and shows off a Surface table which helps him buy a customized snowboard. Bill puts some pictures and his signature on his own board.

He then puts a windows mobile phone on the surface and the surface interacts with the phone allowing you to upload the picture to Windows Live etc. We’ve heard this before - Microsoft claims the Surface could be a great retail tool.

Bill now talks about Microsoft Silverlight:

Silverlight is “seen as a runtime for new media experiences”

Big news here - Microsoft and NBC collaborate for 2008 Olympics:

Microsoft and NBC are partnering up for the 2008 Beijing Olympics. All events will be made live and on-demand on the Internet thanks to the use of Microsoft Silverlight. You can customize what you can see etc.

NBC will launch NBCOlympics.com on MSN. 3000 videos live and on demand from Beijing. Microsoft Silverlight will bring high quality video and experiences. This will be the ultimate digital destination

Now Robbie Bauch – President of Entertainment Devices Division comes on stage.

Robbie talks about “connected entertainment” – video music, gaming on any device etc.

Focus on Gaming

Windows Vista gaming doing wonderful
Xbox 360 -17.7 million consoles shipped to date!!

US sales of Xbox 360 related products - totals $3.5 billion dollars of business as of November – $1 billion more than Wii, $2 billion more than PS3. Spending on Xbox 360 games far more than Wii and PS 3 combined.

Xbox LIVE – passed 10 million member mark – six months faster than expected

Now for a big Xbox 360 announcement

ABC and Disney will be bringing their TV shows to Xbox Live including: Hannah Montana, Lost, and Grey’s Anatomy, Desperate Housewives

MGM will be bringing it’s library of films to Xbox Live – Rocky, Terminator, Silence of the Lambs etc.

Xbox Live will offer twice as much content than any other content provider

Windows Media Center News

Remember Windows Media Center? It continues to have success. The goal for this year is to increase Extender technology – “Extender for Windows Media Center” - a slight new name (instead of Windows Media Center Extender)

Now for some major new product announcements:

Samsung and HP will be introduce new Extender devices. HP will be first to develop extender into their MediaSmart TVs.

Now onto Microsoft Mediaroom

1 million TV screens on Mediaroom service. Number advancing rapidly

DVR Anywhere – record on mediaroom system and distribute around the house via network
Partnering with Showtime, TNT, CNN – building new applications with them via Mediaroom. With CNN – they’re building an app around the election.

British Telecom will be first to offer Xbox 360 as a set top box for TVs

Now onto the Zune

Zune doing very well in the second release - “We think we can differentiate ourselves”
In the Spring – Microsoft will be selling outside of the US for the first time
“We want to build on our social experience” and the new Zune Social is an example of it
Zune Social has 1.5 million people

Showing off Zune Social now through Molly (handle - “GrooveJasmine”) temporarily

Shows off personal Zune Card – personalized with Zune Tag, Zune pic and Zune picture

Zune Social tracks most listened to artists, songs, etc. Tracks music on Zune and PC and shows your friends interests
You can now post your Zune card on various sites like facebook, etc.
It’s about “People powered music discovery” – see your friends and what they’re listening to.
A little plug for “The Shins”. They created their own card for their band. Feels a bit like a Facebook app.

Microsoft Auto software

Molly leaves and Robbie talks a bit about Ford Sync – powered by Microsoft Auto software. Ford expects to ship 1 million cars next year with Microsoft Sync including cars from Lincoln, Ford, and Mercury.

Molly comes back on stage in a car enabled with Ford Sync. Robbie joins her in the car and voice activates a track stored on a Zune

Shows off how to use Sync (Playing Track “Cars”) by saying “Play Track Cars” – voice controlled navigation

911 Assist (AKA OnStar). Air bag goes off, 911 is called

Windows Mobile time..

Some stats:

Windows Mobile outsells Blackberry and iPhones – on pace to sell 20 million this year.
Windows Mobile Search – via Tellme service. A new service called “Say and See” is demoed by Molly

She launches Tellme in a phone and the phone knows that they’re in Vegas thanks to an integrated GPS unit. They can then say – “two tickets for Sweeney Todd” right into your phone. Tickets get purchased and then she talks into the phone to get a message sent to Robbie via text messaging

Robbie now looks at his phone and sees the txt message and then shows off a Cloverfield trailer
Microsoft is taking a very serious approach to mobile advertising which will total $11 billion

So to recap - the goals to deliver include Communities, services, and new advertising and business models

Bill comes back to show off a new research device..

Shows off a new image recognition device being developed by Microsoft Research. Bills points the device at things including the wall, Robbie, etc, and gets information about various objects based on data stored.

Basically a image recognition device which can then overlay items on top of recognized items. He points to this collage on the wall and the device brings up various things – such as ads, appointments, videos, stills, etc. It integrates information to recognized images.