Distinguished ladies and gentleman, guests both in Shanghai and where you might be watching on your computer screen. We are trying to do some different broadcasting presentation in computing in different languages simultaneously.
Let me tell you all about what the premise of ever since that I'd like to talk about today. Our world in using computers towards a universe of reaching 1 billion connected computers, computer that can share information, data and that can work and allow people in different part of the world, to work together, to operate as if we were rightness of each other with neighbors of each other that is the premise of our work and that premise on which the activity, the large part of computing industry base today.
The two major driving forces computing industry today are first the available of the low cost and high performance of computing and all elements of global network that we are talking about and of course the network itself. Our industry that is looking at Peking industry with huge volume has become a major industry. I think them are add the number of 1998, the industry world wide we have showed something 100 million units of computers that is larger number than television sets production in the world. It is industry that grows in China, distributes in China, emerging at Chinese magnificent feature as a deading force in supplying China fency market that's very interesting sight, the sign of how industry of Chinese society in hasing, the world of computing and also connected computing.
Our work in the business of supply, the fundamental basic block computing which is microprocessor as the units of computing evolved, the use of microprocessors evolved as well and we evolve the technology according to the fact changes but typically evolution to allow the world to are the microprocessor's architecture into addition of segment are the computer universe changes. That industry what I mean by it in more a bit detail.
This is evolutionary in the basic computing industry as you remember fashion computer started as a best sort of machine basically as a office for people to do individual work on and then as a world one market of basic computer segmentation in basic computers in general should be modified in adopting the different segments of computer market some of them are the desk sort in the course of service, some of them. They make small in reliable in both with computers and increasingly broaden the segmentation in terms of computers are the consumers business users use the computers as consumers use the computers and believe that both purposes both carry with the computers. In the last couple of years we have seen the substantial forward segmentation, finer segmentation of the computing market. We see a product introduced as a microprocessor reach higher into the more demanding computers into enterprise service and in high performance computers. We at same time see another evolution of standardizing high service and economic at feasing industry to one modified service and at same time modified the service from that used to be the service to service designed to be the serviced.
On the best the fragment of the segmentation in the market also you see work stations at emerging market for our microprocessors and computer microprocessors as major market hold or microprocessors and computer microprocessors and same time you see very basic computers developing on the microprocessors. In the consumer phenomena again we see the performance computers and basic computers is evolving as well our challenge as a designer and manufacturer of microprocessors in supplying and serving the fragmency segments of the market is quite bouncing we learned that to serve the segment in beneath the design increasingly different microprocessors for each of the segment of timizing the microprocessors of the segment while at the same time retaining the fundamental in architecture similarity up and down on that diagram. We do a lot of efforts in investing technology and manpower in the future and discuss a lot of efforts couple of months and we are going by a lengthy breath of easy change and find this market and we are investing a lot of money and hope the product of investment in the future. I am not sure the number for 1998 but our estimate of the product that 1998 will represent 8 billion US dollars.
The key element that we try to achieve as a server involving divergent segment is to use the same fundamental micro architecture of microprocessors to the entire this of spectrum of the application of segment that we call the P6 micro architecture. But keep in mind even the micro architecture is going to be the same up and down of segment the product themselves will be designed specifically at each of segment initially that optimize performance and cost performance at each of these.
The illusion of the product represents the supplementations of the products were at the segmentation of our brand. We have a successful in establishing the Pentium brand over the last several years as the major brand near all of our processors. As the single brand more than we can describe the multiple of the product family that we disper in establishing the fancy brand over the last year as a major brand the more than ordinary microprocessors so more important in that we will introduce or have introduced additional brands as Xeon(TM) brand processor represents the portion of product line that is designed for basic computing and the Pentium Ⅱ Xeon processors represents the portion of product line that goes to the higher level on the segment served to workstations and serve application.
Let me start by the area of basic computing, designing for basic computing again remain base on the same P6 microprocessor architecture on entire product line is based on. In addition the employ that we call smart integration that is using the increasing budget of more and more transistors on an economical and effective chip it achieve product effectiveness by combining different functions on the same flap of a chip. From the history being from time to time for example that way back from ten years ago when the availing processor architecture involved of the chip we discover that as the transistors budget increase as the functions that represented by separate chip on the same chip on that generation, the generation for the same degree. This function for the processor than forward from that to be present day beyond from Peking at product at same chip on which we do up on the micro pro revived. Put it as an example. The product information that we intend to employ collectively exhibits as it design for microprocessors called the basic computing segment.
In addition to that even the on cost effectiveness of the segment we are adopting a low cost packaging technology called this and are in order to illustrated this. Let me introduce what the main line microprocessor's central process looks like probably the Xeon has the feature of television but the package design for the Pentium Ⅱ microprocessor is like this, in this housing is a core which has a high connection it is meant to be a flexible design, and it is not an extra effective as one can do connection in one specifically design for the products for cost effectiveness.
In the case of Xeon processor which contain similar conduct of micro architecture to the pension to integration and multigration is one thing .We achieve cost effectiveness a sense package with which are like this is hard to be going deliver the product so by a basic a whole different design in microprocessor for the basic PC. That is and we have a road map for the extend for the next several years. What I told you on the road map is a evolution of Xeon processor from the introduction in the first period 1998 through and into the first 1999 what you see is the inclusion of inboard cash memory and what you are going to the first half of 1999 the frequency in an excess of 300 MHz going to 333MHz and future time beyond that.
The quality we are showing you for road map of each segment that what you see is in each of the segment we try to use silicon technology to more the microprocessors in the segment we are showing you forward at similarly but different fashion representing different design project as I mentioned a minute ago. We have been benefiting in working on the microprocessor family. It's a new thing a year ago we have more individual specific designing product for this basic PC segment today we have 800 engineers working this on the product family as I showed you previously. The basic PC important as they are only represent a part of product spectrum.
Both the market worldwide in the US, that particularly that I have more details they are the main audiences who buy and value performance as much as the value cost effectiveness. This data is very sensing data and that three quarters are the consumer by public which is the basic PC maybe appeared you have bit enthusiastic category to buy the medium technology made it in different features for the performance PC category. They made accordingly we continue to put a lot of efforts in the development of microprocessor or in the performance for this segment and in that you see. The segmentation to split into the several new categories. I would look noble planning and workstation .
So I want to talk to you about what we do in each of the segment.
The new development in the road map I mentioned you that introduction of is a new micro architecture modified micro architecture new instruction fashion in the first half of 1999. The walking mean we call mean in the product Katmai than the introduce of going to have a fashion brand new at which is hard to pronounce what is the product will be distinguished first by Katmai
product is going to have different instruction for each particular including performance at the desert that is going to we can see at present represents a lot of design effort and the top technology effort leads to higher and higher frequency achieving 500 MHz frequency on the best sort by the first half next year.
The theme for our seminar today is business computing and you might sit and ask particularly might but who need high performance for the desk sort and business desk sort it computer that have today perfectly sufficient to do what I need you to do at work and the fact of matter is it isn't sufficient today and it would become lack and lack sufficient as the work habit of computer users obviously for the evolve and would become more issues particularly the traint that is going to develop and is developing .
And computer user is the visible and sometime not visible, sometime invisible application multi application, sometime when the users open but opposite application is fully visible but often time particularly when this computer resize the network is being the computation of patch in the background that are not even visible to the users at same time require procession performance, procession a said draining performance for the desk sort. This combination of foreground and background computing at same time require procession performance in a subtle and visible fashion laid the performing at micro processor and desk sort in a substantial push run under that I show how they come about you see foreground application that one visible to you and on your screen you see the multi application that you are using among which you are exchange data and background application that are driven by the network by the server that are management by the users only visible to you in that compact the machine the very slow operation even though you had bouncing network that causing that to happen and application that I show you, you will be familiar with that by the characteristic of foreground and background computing is a visible and may be a not so simple browser because whenever you have browser open what you are doing is usually manipulate user is at foreground activity, at same time the browser interest to the server which is connected the obvious information interesting information and that is background operation so every time user one browser you are in beyond one application next it and for foreground and background competition operation. All of this is getting a little complicated. I think it is the proper place they are showing better that telling for back work on anyone else to demonstration of plan.
What we are doing of course in another group is setting the same performance that is represented by Pentium machine and bound to movable computing such as the modern employee who is rarely at easy back, contain that application then perform laid with then what we had here is a road map that is similar at somebody behind that performance of the road map against the introduction of Pentium II processor into a movable that capable of movable computer in the package looking this on the movable simply connected on the connection in which the same handage for wide even the back seminar to be included in the notebook both designed specific power more efficiently and are working on a quarter allow the high frequency operation of micro processors you call what you can expect to see in the first half 1999.
That sort in bind machine will be available in a notebook work pact back to operate this aspection on move application are here persperate that is seen the product by brand I mentioned Pentium II Xeon processor the road map is distinguished in suited action first of all for the introduction of Xeon processor in the second half this year. And secondly we will include the inboard memory, unboard cash memory side and of course lend the performance something in accept of another hood are hit the purpose of all these combination are the large cash and the seek forming rapid performance on that sort the illustrate hot filing through work of new tech is the demonstration of what processor than do rapid in that application. The kind of performance that you saw here and cost effectiveness performance from very angle part of industry to the visual they also appear in complete difference like mechanical design automation, electronically design automation and also as modeling their repeated representation of energy can gain information out of overworking among data. I can desert things much acute fashion out of visual representation that out of the seek data .
Let me want to the next segment with service and by way of motivation a project about image of the world of a billion connected computers by one of the things. A billion connected computers reguired can what we mean the service provide the art information that the computers want to act. The key principle here is PC economic the use of industry established (null class) either production we have name and provide very very major cost effectiveness in the users of Intel technology that easy effect of the cost effectiveness growly technology server under charge .
We show an industry sophisticated service and group of service altogether. The product compound that any group at server of people tone but it is made up to two categories intellectual service and other type of service, the intellectual service grows 38% while the other type of that grows 13% quite freely not only is serve population growing but economy should be serviced, standard high service and economic technology faster than the total. One of the challenge that we had over Pentium in the past we have new processors that would be dominant that application users processors of serve application. We did not shin on performance as we have much want to do compared the measurement of transaction for minute on which is commonly used service performance measure and on intellectual service which should be yellow the leading compound over sport machine which is the blue in order that the yellow has reached the richest for excute performance at part of compilation a processor and multiprocessor as well, the difference are not that large performance, are providing excellent performance that difference are large providing performance will be high value economically of feasing industry and we look at the cost performance and fly performance where grow line be economic service provide where more must be into cost performance. That the key challenge we have as we design product service is to acquire all of this quality that make the service as the key ability. The ability of what to ask one way to two way to four way and beyond service and we are making along the flow and we would like to call a mega themselves demonstration of the see ability looks like in a simulation of a real life honest have application.
The Pentium processor is pretty yield processor it is ready for a museum at this point given
the later development and in fact we are going flash the work station service product that mentioned earlier is Pentium Ⅱ Xeon processor. Let me tell you and let me illustrate to you how the Xeon processor is begun from the Pentium Ⅱ processor it is in the gemology the next number but it is substantial different in economic for design because in the third segment is was man for hidden the server at work, workshop application that the way that was in the taking off it put the sort we take out Pentium Pro chip and become to 200 MHz we include the frequency and we include the cash by and place brand new Pentium Ⅱ chip we include the section with it and put it on the two sides board into a brand new package scheme that allow the characteristic to reach the outside board and what we have a function to Pentium Ⅱ Xeon processor looking exactly like this and deboard it as the animation showed the Pentium Xeon processor is what is called full the flop full processor crop represents the characteristic it carry move data such as what the need of demonstration. That is the application the cost frequency of course is the segment in all segments more than double the mega frequency that is pullage up to twice as large the inboard cash memory can it match of both management feature will be good.
That are cost founding details map to show as introducing as Pentium II Xeon processor to increasing satisfied at frequency exceeding by the first half of 1999,500 MHz, all of these come in the same method technology as all other microprocessor and therefore their cost effectiveness to the manufacturer and user. Correspondingly as early as indicate to work station software acquire volume to Intel architecture. These are supplemental application all of them higher than former supplemental application has been committed to more the introduction of micro processors in the servers area making up a substantial product so do the number grow everyday.
Beyond this we would begin at very significant mean architecture into 64 implementation what we call IA-64 line. The IA-64 line will be embodied in the first processor decoding at set and but if wanted first in a family that development will go on for many decades (null class) application such as that show the performance of the product Pentium about substantial hardware committed for the variety had about putting them working on the board that is worthy enough. We have on the company that a good number of those before this commitment have perceived a proprietary and rich architecture are special today in the line and move of them are abandoning that total together. Others are incorporating the IA-64 line ,in the line at the same time all of all that they need (null class) and win back a large number of superworld company and superyard product that had been forcing their product the intention to you push you optimizing their product to IA-64 has grown as IA-64 continue to grow similarly to the wrapper of a hard company what is important to realize.
However, we are not watching from the 32 line to 64 line. We are starting a new branch of proper serve in that would provide by the blue line into the IA-64 before higher performance and probably anticipate a high laid increasing performance in the years to come and continue in the extension of 32 bit processor line. Xeon processor as well as the product that are today in development that extend 32 bit line.
Beyond that would comprehend covering the entire feature of computing from the basic and interfecture in the enterprise shade application the truck is pushing to become a unifying architecture of computing. I describe to you the full driving forces at motivate a new one that core optimize at cost post one which is the low cost high performance computing and might ask that is the low cost high performance computing and segment of computing in addition to that connected computing is the second driving force as the development.
I solid presentation by mentioning expectation might target the cash memory to keep in mind the development is world a billion connected computers. As to said to ask what is today want to look like are the worldwide number of interconnected computers we are assuming a number worldwide reaching 150 million connected computers the wondering that some 60% theoretical project number another looked at 150 million equal or organization can exchange information with each other. Interesting enough in the just in the last year to hand rapid development Internet interconnected
Computer in China the operating computer with range full quite range beginning to our million connected computers in China alone . It is important to understand the connect year, begin that year by data were the computing.
Now today data network is achieved by fashion design data network for example the data network illustrated by the net experiment connecting quite similarly at server called the data network we have back the place presentation on the wall as we mentioned earlier, but a large portion of borrowing fashion the world network that design long before anybody for it, for data network and data communication and connected computers that people want the function of sufficient connection between one to another and borrow that complete the network but the picture lists were the portion tat visible above water level. It is the portion that is net work on the telephone network. The last bit were designed be a network the backbone network such as any organizations and companies that once mention like Xeon are data network to handle package communication. And that all the world up to 10% of world work trying that would be replaced by dedicate data network also that you have the limitation for network that you have designed. For that you borrow for data users.
Why is you important why is the internet in connected computers so important for business computing than is a very significant emerging trend which is the business is getting transacted increasingly computing screen to computing string and usual connection between the computing screen internet.
It is a very dynamic phenomena some indicate that 1996 a mount the trade that conducting connected computers made up implement borrow sufficient by that by the early next century 300 billion dollars of commerce representing a very rapid annual trade that I like (null class) demonstration to you is similarly that way.
Electronic commerce business connected string to string on internet connected computers were connected small companies along the world and become as much medium for commerce as fate work processor simple fiction has become the world medium of surprising the medium accounting.
Freely the point available that the first year of late 90's a strategy inflection point for the major change in the conditions of conduct business for all types of businesses and the recognition for the increasing spending by business on information technology the charge for holding information technology standing.
The last 3 years are for this is increasing spending business on information technology different countries in the world and let me call you attention to it let free borrow represent from U.S. and percentage of grow the most product the total numbers of 3/4 percentage of center product and each year the percentage is larger than before. Many companies arriving an independent decision in concentrate the significant abasement and development the percentage is larger than before computers on their own business property, computers would go to the significant to the lower percentage level than some of the developed countries particularly in the U.S. that is a concerned development that we can go back econatriangle live birth if that is a burnt a worldwide set of organ dangers than economy that isolate then the fashion.
My single form is the interconnected PC will become for business of all types over the next decade and that in the world at a billion connected computers in that thing information technology is not a luxury, it is strategic necessity.
Thank you very much for your attention!