WEBVTT - Microsoft’s History with Tablets

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<v Speaker 1>Brought to you by the reinvented two thousand twelve camera.

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<v Speaker 1>It's ready. Are you didn't touch with technology? With tech

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<v Speaker 1>Stuff from how stuff flix dot com. Hi, and welcome

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<v Speaker 1>again to tech stuff. My name is Chris Poulette and

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<v Speaker 1>I am an editor at how Stuff works dot com.

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<v Speaker 1>Sitting across from me, as he's usual, it's senior writer

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<v Speaker 1>Jonathan Strickland. Hey there, Chris, and guys. This is June

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<v Speaker 1>twenty two, which is a Friday. This is two thou twelve,

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<v Speaker 1>and the reason why I say the date is the

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<v Speaker 1>Monday of this week we heard an announcement from Microsoft

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<v Speaker 1>about an upcoming product that definitely made some waves in

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<v Speaker 1>the tech world. I saw some interest in places that

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<v Speaker 1>I didn't expect, uh, and it was the Microsoft Surface tablet. Yeah,

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<v Speaker 1>the the Microsoft Surface up until a few days ago,

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<v Speaker 1>was a big table top touch screen device, a very

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<v Speaker 1>cool tabletop touch screen device. I'm priced out of the

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<v Speaker 1>market for most of us. It was really meant for

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<v Speaker 1>commercial uses, not for consumer uses. Yeah. Actually, it kind

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<v Speaker 1>of reminded me in a way of Veneva Bush's uh Memex.

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<v Speaker 1>This was of course envisioned in the nineteen forties as

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<v Speaker 1>um uh basically a desktop workstation that would allow you

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<v Speaker 1>to uh photograph different documents and use them on microfilm. Um.

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<v Speaker 1>And of course the lot of the computer and internet

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<v Speaker 1>engineers since then has sort of taken that as a

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<v Speaker 1>It ended up being a semi self fulfilling prophecy just

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<v Speaker 1>because people like the idea and he said, well, yeah,

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<v Speaker 1>it would be nice to have this. Well, the surface

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<v Speaker 1>was actually a desk itself in a way, a table

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<v Speaker 1>with a big touch screen surface, and you could have

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<v Speaker 1>different things on the screen and interact with it. You could,

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<v Speaker 1>you know, if you were using it in a work setting,

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<v Speaker 1>which it's not really designed to do, but you could

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<v Speaker 1>have all your documents in your desk, you know, on

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<v Speaker 1>the desktop literally and move things around. Very neat, but

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<v Speaker 1>very expensive. And uh uh yeah. But they they repurposed

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<v Speaker 1>the name. Yes, they changed the name of that device.

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<v Speaker 1>Uh pixel s right, that's the new name for what

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<v Speaker 1>was the surface and now the surface is a tablet.

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<v Speaker 1>And I've heard some people talk about how Microsoft is

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<v Speaker 1>aping Apple, which I think is completely off base for

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<v Speaker 1>multiple reasons. But we'll get into those and in order

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<v Speaker 1>to really understand where I'm coming from about how Microsoft

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<v Speaker 1>is not aping Apple, you have to kind of look

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<v Speaker 1>at Microsoft's history with the tablet, which has not been

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<v Speaker 1>a very smooth one. No, but it has been a

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<v Speaker 1>fairly long one, especially in tech terms. Yes, back in

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<v Speaker 1>Microsoft released a version of Windows called Windows for pen Computing.

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<v Speaker 1>And pen Computing was essentially the idea of using some

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<v Speaker 1>sort of interface that would require a stylus to input

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<v Speaker 1>data into a display. So it didn't necessarily mean it

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<v Speaker 1>would have to be in a tablet form factor. It

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<v Speaker 1>could be a screen on a wall, it could be

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<v Speaker 1>your laptop screen or or desktop screen. But the idea

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<v Speaker 1>was that there needed to be some form of support

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<v Speaker 1>for a different interface than just the keyboard and mouse. Uh. Now,

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<v Speaker 1>that product didn't really take off, and in fact, the

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<v Speaker 1>form factors didn't really take off outside of some niche markets.

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<v Speaker 1>And part of the problem is that building uh software

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<v Speaker 1>that can recognize handwriting is really really tricky, and in fact,

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<v Speaker 1>Apple had already tried it, yeah, with the Newton, the

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<v Speaker 1>Apple Newton, which was a message pad, Yes, a message pad.

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<v Speaker 1>It was sort of a PDA right UM a personal

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<v Speaker 1>digital assistant right not public display of affection right. A

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<v Speaker 1>p D a UM is basically a small handheld device um,

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<v Speaker 1>that you would use the stylist to interact with it

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<v Speaker 1>had a hum, it didn't have a the same kind

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<v Speaker 1>of touch screen we use now, right, it didn't. It

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<v Speaker 1>didn't necessarily allow you to use your fingers. You had

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<v Speaker 1>to use the stylus, right, um. And and basically what

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<v Speaker 1>it would do is I mean it was really at

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<v Speaker 1>the time designed to be a business tool. Yeah, for

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<v Speaker 1>the enterprise market. You would keep your calendar in there

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<v Speaker 1>and your your phone contacts and things. So it's a

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<v Speaker 1>smartphone without the phone, yeah, sort of more or less so.

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<v Speaker 1>But but Microsoft was not looking at creating devices or

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<v Speaker 1>marketing for devices that were, uh, this this kind of

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<v Speaker 1>tier of electronics below computers, right, because you could think

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<v Speaker 1>of a smartphone is like and a sub brand of computer,

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<v Speaker 1>but it it doesn't have the full process and capability

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<v Speaker 1>and uh, it's not as robust as a full computer

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<v Speaker 1>would be. Right. So Microsoft view was that, no, we

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<v Speaker 1>want to support devices that are essentially computers, just computers

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<v Speaker 1>that are in a different form factor than your big

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<v Speaker 1>desktop tower and display and keyboard and mouse. But again,

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<v Speaker 1>developing the software to try and support that was very

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<v Speaker 1>tricky and and it didn't really take off in the

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<v Speaker 1>early nineties, it just nothing really happened, and for a

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<v Speaker 1>while Microsoft kind of just put it on the back burner,

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<v Speaker 1>although Bill Gates was still who was the head of

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<v Speaker 1>Microsoft at the time, still very much determined to find

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<v Speaker 1>a way to make this work because he saw that

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<v Speaker 1>as the future of computing. He said that, you know,

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<v Speaker 1>eventually that the tablet form factor would actually outstrip other

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<v Speaker 1>fact versions of computers like laptops and desktops. So in

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<v Speaker 1>nineties seven, Microsoft hires a fellow named Dick Brass, who

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<v Speaker 1>was a guy who was involved in designing electronic dictionaries

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<v Speaker 1>in the eighties, and they hired him to kind of

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<v Speaker 1>spearhead this approach of trying to think about pen based

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<v Speaker 1>computing and and what would it take to make that successful.

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<v Speaker 1>So what Brass ended up doing was he ended up

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<v Speaker 1>working with a carpenter of all things, to put together

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<v Speaker 1>a rough looking model of what a tablet could look like.

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<v Speaker 1>And um, it was a wooden model, had a flat

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<v Speaker 1>base and a keyboard and a flat screen, and uh,

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<v Speaker 1>the screen could be separated from the keyboard. So this

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<v Speaker 1>was still a device that when it was put together,

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<v Speaker 1>would resemble a computer in some sense. But then you

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<v Speaker 1>could detach the screen and have that as a separate device,

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<v Speaker 1>which sounds very familiar. We've seen a lot of devices

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<v Speaker 1>over the last few years that have some sort of

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<v Speaker 1>laptop tablet hybrid approach. Right, See, that'll come into play later. Uh.

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<v Speaker 1>The so in in November of two thousand, we're skipping

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<v Speaker 1>a ad a little bit at the Comdex event. Now

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<v Speaker 1>Comdex is no longer a thing, yes, but at the

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<v Speaker 1>time it was a big computer trade show. Yeah, it

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<v Speaker 1>was the largest computer trade show in the world at

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<v Speaker 1>the time. Now uh c E s UH formerly known

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<v Speaker 1>as the Consumer Electronic Show, Yes, and still that's what

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<v Speaker 1>it stands for, but they want to be called C

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<v Speaker 1>E s UM. That's basically UM TVs UH, portable music players,

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<v Speaker 1>car stereos, stuff that you and I are going to

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<v Speaker 1>buy for uh daily everyday stuff. Yeah, there's also some

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<v Speaker 1>tablets and some phones and things. But really that's not

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<v Speaker 1>a whole lot of computers. I mean laptops. You see

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<v Speaker 1>a lot of laptops, like especially this last CS two

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<v Speaker 1>thousand twelve, that was when the Ultra books were really launched.

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<v Speaker 1>But in general it is not a computer showcase. No, no,

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<v Speaker 1>and neither is is E three the Electronics Entertainment XPO.

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<v Speaker 1>That's a video game showcase right right. Sometimes a hardware

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<v Speaker 1>showcase as well, but those are very specialized kinds of hardware. Right.

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<v Speaker 1>You see computers there, but they're you know, specifically oriented

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<v Speaker 1>towards gaming purposes or showing off gaming stuff. You might

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<v Speaker 1>see video cards. You know, hey you got a new

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<v Speaker 1>graphics card. Uh. Was the boring part of computers? Well yeah,

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<v Speaker 1>kind of? I mean was It was really a geeky

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<v Speaker 1>year side of the industry, get right down to it,

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<v Speaker 1>and a lot of it was, you know, personal computers

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<v Speaker 1>meant for home business. I don't think personal computers for

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<v Speaker 1>all different applications. But really, I mean the the image

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<v Speaker 1>most people have as a bunch of a bunch of

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<v Speaker 1>guys wearing short sleeve button up shirts with ties, sitting

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<v Speaker 1>in a big auditorium and drooling over the latest specs

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<v Speaker 1>of the next next year's models of personal computers. Um,

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<v Speaker 1>which is an unfair characterization, but that's often what people

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<v Speaker 1>think about. So at the two thousand Condex event, which

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<v Speaker 1>took place in Lost Vegas, Bill Gates came out and

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<v Speaker 1>had a keynote speech. He actually said some really interesting

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<v Speaker 1>things in that speech some stuff that I think you

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<v Speaker 1>could almost say everything you said turned out to be wrong,

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<v Speaker 1>at least at least in the short term. Well, you know,

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<v Speaker 1>that's the trouble with being a visionary and and Bill

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<v Speaker 1>Gates and uh, you know many of his contemporaries are

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<v Speaker 1>and we're visionaries. Um, but you know, different people have

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<v Speaker 1>different visions, and that things in the market also has

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<v Speaker 1>a saying this of course, right, and sometimes the future

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<v Speaker 1>turns out differently than the way you expect. And he said,

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<v Speaker 1>for example, that the browser is dead. Yeah, he said,

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<v Speaker 1>the browser era is over in two thousand, which you know,

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<v Speaker 1>when you think about it kind of died for a while.

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<v Speaker 1>It did, it did, and that and that was just

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<v Speaker 1>before the dot com bubble bursts too, so there was

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<v Speaker 1>some there were danger on the horizon already, but that

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<v Speaker 1>was pre web two point out right. But the browser

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<v Speaker 1>obviously is not dead. He also thought that people would

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<v Speaker 1>not want this sort of shared computing experience, the idea

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<v Speaker 1>of having uh, your computer essentially be a dumb terminal

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<v Speaker 1>attached to some sort of smarter computer device that would

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<v Speaker 1>do processing and storage. Well, it turns out cloud computing

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<v Speaker 1>has really taken off and so that's essentially what he

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<v Speaker 1>was talking about was cloud computing. It was just before

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<v Speaker 1>people were referring to it as cloud computing. I think

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<v Speaker 1>of it more as the old time share. Well, yeah,

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<v Speaker 1>the timeshare model and the the the dumb terminals that

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<v Speaker 1>you would see in college campuses where you had a

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<v Speaker 1>mainframe and you would connect to the main frame. Uh,

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<v Speaker 1>people at the time did want desktop computers. You wanted

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<v Speaker 1>to be able to operate your computer where you were

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<v Speaker 1>in your house instead of having to go to a

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<v Speaker 1>computer lab and work on the mainframe. Right. So yeah,

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<v Speaker 1>and it's it's funny to say that because, um, now

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<v Speaker 1>in retrospect, it looks I mean, we're I feel like

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<v Speaker 1>we're kind of teasing Bill Gates, because a lot of

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<v Speaker 1>the things he said, you know, turned out to be

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<v Speaker 1>sort of semi false at the time. In the context,

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<v Speaker 1>what he said sort of came to pass, and then

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<v Speaker 1>it reinvented itself in a different way. And there were

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<v Speaker 1>a lot of limitations on on the world when Bill

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<v Speaker 1>Gates made these these predictions. For instance, we didn't have

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<v Speaker 1>the broadband connections that we have now, so so having

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<v Speaker 1>a cloud computing infrastructure back in two thousand was not

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<v Speaker 1>a reasonable expectation. It wasn't feasible because you couldn't be

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<v Speaker 1>You wouldn't be able to access the data you would

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<v Speaker 1>need in a timely manner. It would take so long

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<v Speaker 1>to transfer the data that it would negate the the

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<v Speaker 1>benefits of having off site storage and all that kind

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<v Speaker 1>of stuff. So at the time his predictions made perfect sense.

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<v Speaker 1>But he also predicted that the tablet PC was going

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<v Speaker 1>to be huge, that this was going to be the

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<v Speaker 1>next revolution in UH in in computers and UH. Microsoft

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<v Speaker 1>software architect Bert Keeley came out and he specifically talked

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<v Speaker 1>about the tablet PC at that event. UM Now, the

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<v Speaker 1>information he gave was that the device would weigh less

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<v Speaker 1>than three pounds, and that would run Windows based software applications,

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<v Speaker 1>and you would use the stylus to make notes on

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<v Speaker 1>images and office documents which would then get incorporated into

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<v Speaker 1>UH files. So that let's say that you're looking at

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<v Speaker 1>a picture of something. Let's say that you're working with

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<v Speaker 1>an advertiser, for example, on an AD, and the advertiser

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<v Speaker 1>sends you a mock up of what the ad is

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<v Speaker 1>going to look like. You can make digital notes on

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<v Speaker 1>the ad using this tablet device and send it back

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<v Speaker 1>and say like, all right, you know this the product

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<v Speaker 1>isn't featured prominently enough for whatever you know, or or

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<v Speaker 1>I don't like the color of this this background because

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<v Speaker 1>it's it's masking the product. That sort of stuff. Um,

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<v Speaker 1>that was kind of the idea. And beyond just those

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<v Speaker 1>those use cases as well. I mean pretty much anytime

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<v Speaker 1>you could think of needing to make a note on

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<v Speaker 1>a digital file, that's when it would come into play, right, Um,

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<v Speaker 1>But it was just an announcement and a demonstration of

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<v Speaker 1>the prototype. There was no product to show off yet.

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<v Speaker 1>In two thousand one at Comdex, Compact came out and

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<v Speaker 1>showed off a prototype tablet PC running Windows and at

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<v Speaker 1>that time Gates then predicted that within five years, tablets

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<v Speaker 1>would be the most popular form factor of computers sold

0:13:22.480 --> 0:13:26.920
<v Speaker 1>on the market. And here's where I'm gonna take a

0:13:26.920 --> 0:13:30.439
<v Speaker 1>little break here. So we've already talked about how Microsoft's

0:13:30.440 --> 0:13:33.040
<v Speaker 1>got a long history and tablets. That doesn't have anything

0:13:33.040 --> 0:13:36.280
<v Speaker 1>to do with the iPad. Right, here's where I am

0:13:36.360 --> 0:13:38.800
<v Speaker 1>going to mention the iPad, Because even though the iPad

0:13:38.800 --> 0:13:41.160
<v Speaker 1>doesn't come out for another nine years, you know, we

0:13:41.240 --> 0:13:47.960
<v Speaker 1>see the iPad unveiled in UM Steve Jobs decided to

0:13:48.000 --> 0:13:51.280
<v Speaker 1>approach the iPad in a fundamentally different way than the

0:13:51.280 --> 0:13:54.920
<v Speaker 1>way Gates was looking at the tablet PC, and that

0:13:55.080 --> 0:13:57.560
<v Speaker 1>Gates was looking at a way to create create a

0:13:57.600 --> 0:14:00.439
<v Speaker 1>computer that was in the form factor of a tablet.

0:14:01.240 --> 0:14:05.800
<v Speaker 1>Jobs was looking at building up a smartphone like device

0:14:05.960 --> 0:14:09.240
<v Speaker 1>or iPod like device into the tablet form factor. He

0:14:09.280 --> 0:14:13.680
<v Speaker 1>was looking at scaling up smartphones, not scaling down computers,

0:14:13.880 --> 0:14:16.400
<v Speaker 1>and in fact, that was jobs main point. He said

0:14:16.440 --> 0:14:19.640
<v Speaker 1>that his competitors were all trying to make computers into

0:14:19.720 --> 0:14:22.440
<v Speaker 1>tablets and that that was the wrong approach and that

0:14:22.520 --> 0:14:25.400
<v Speaker 1>it would not succeed. Well, this is kind of what

0:14:25.520 --> 0:14:29.040
<v Speaker 1>Jobs was talking about. Microsoft has a history of trying

0:14:29.080 --> 0:14:33.520
<v Speaker 1>to make computers fit into the tablet form factor, and

0:14:33.840 --> 0:14:37.400
<v Speaker 1>historically they have not met with very much success. And

0:14:37.440 --> 0:14:41.000
<v Speaker 1>this compact prototype was one of the first ones that

0:14:41.160 --> 0:14:44.880
<v Speaker 1>sort of showed off what a Windows based tablet would

0:14:44.880 --> 0:14:50.640
<v Speaker 1>be capable of doing. But it ultimately did not really

0:14:50.800 --> 0:14:56.920
<v Speaker 1>make a huge impact, and again Gates's prediction about tablets

0:14:56.920 --> 0:15:00.680
<v Speaker 1>being really popular would ultimately be true. It was from

0:15:00.720 --> 0:15:03.960
<v Speaker 1>a completely different approach than the one Microsoft was making.

0:15:04.520 --> 0:15:09.840
<v Speaker 1>So moving ahead, So November seven, two the tablet PC

0:15:10.240 --> 0:15:15.120
<v Speaker 1>gets unveiled by Gates, who says he has anticipated this

0:15:15.680 --> 0:15:19.160
<v Speaker 1>moment for many, many years. And uh, they talk about

0:15:19.200 --> 0:15:23.040
<v Speaker 1>how they're going to be seven different computer makers that

0:15:23.240 --> 0:15:26.720
<v Speaker 1>will create tablets that run Windows software. So this is

0:15:26.760 --> 0:15:32.480
<v Speaker 1>not a Microsoft machine. It's Microsoft supporting the tablet form

0:15:32.520 --> 0:15:37.520
<v Speaker 1>factor by building an operating system specifically designed for that. Yeah,

0:15:37.520 --> 0:15:42.160
<v Speaker 1>that was the Windows XP Tablet PC edition. That's exactly right. Um, yeah,

0:15:42.320 --> 0:15:47.000
<v Speaker 1>it's it's exactly the way that Apple doesn't do it. Um,

0:15:47.040 --> 0:15:50.840
<v Speaker 1>you know that people talk about that. Uh you know

0:15:50.880 --> 0:15:53.320
<v Speaker 1>how Apple is a closed system because it manufactures both

0:15:53.360 --> 0:15:57.000
<v Speaker 1>the hardware and writes the software for it. So uh,

0:15:57.040 --> 0:15:59.960
<v Speaker 1>you know they do both sides of that equation. Microsoft

0:16:00.000 --> 0:16:04.880
<v Speaker 1>offt um keeping ourselves in this timeframe. Microsoft doesn't make hardware.

0:16:05.040 --> 0:16:07.800
<v Speaker 1>They make software, lots of different software, and they work

0:16:07.880 --> 0:16:12.040
<v Speaker 1>with many, many different hardware partners to build the machines

0:16:12.360 --> 0:16:15.320
<v Speaker 1>that run the operating system. And as a matter of fact,

0:16:15.400 --> 0:16:19.360
<v Speaker 1>this uh Windows XP Tablet PC edition was only available

0:16:19.400 --> 0:16:23.240
<v Speaker 1>to O E. M's original equipment manufacturers. So if you

0:16:23.280 --> 0:16:26.760
<v Speaker 1>were Compact or HP or you know one of the

0:16:26.800 --> 0:16:30.720
<v Speaker 1>other manufacturers that was was working with them, you could

0:16:30.960 --> 0:16:34.120
<v Speaker 1>buy this software and preinstalled on the tablets. You wouldn't

0:16:34.160 --> 0:16:37.200
<v Speaker 1>be able to find it on the shelf at shelf

0:16:37.400 --> 0:16:40.240
<v Speaker 1>at your local computer store. Hey, they still had computer

0:16:40.280 --> 0:16:44.480
<v Speaker 1>stores back then. Yep, and and uh. There were some

0:16:44.520 --> 0:16:47.800
<v Speaker 1>other things that really set this apart from what the

0:16:47.960 --> 0:16:49.680
<v Speaker 1>you know, the tablets that would come down the line

0:16:49.720 --> 0:16:52.680
<v Speaker 1>several years later. One is that a lot of the

0:16:52.800 --> 0:16:56.520
<v Speaker 1>tablets quote unquote tablets that came out in two thousand

0:16:56.520 --> 0:16:59.040
<v Speaker 1>three was when they really started hitting store shelves. All

0:16:59.160 --> 0:17:02.880
<v Speaker 1>those tablets were really hybrids. They were laptop hybrids. So

0:17:02.920 --> 0:17:06.040
<v Speaker 1>you had the kind that would either have a screen

0:17:06.080 --> 0:17:09.120
<v Speaker 1>that would swivel and then fold back down over the keyboard,

0:17:09.440 --> 0:17:11.760
<v Speaker 1>so you would have a really thick tablet because there

0:17:11.760 --> 0:17:15.159
<v Speaker 1>would be a keyboard section folded underneath. It's basically, uh,

0:17:15.760 --> 0:17:20.280
<v Speaker 1>the same form factor as a laptop with a closed case.

0:17:20.920 --> 0:17:23.399
<v Speaker 1>You know, it's it's just got the screen flipped around

0:17:23.600 --> 0:17:26.920
<v Speaker 1>and closed exactly. Or you would have the other type

0:17:26.920 --> 0:17:29.600
<v Speaker 1>of hybrid where you could detach the screen from the

0:17:29.640 --> 0:17:32.600
<v Speaker 1>base of the keyboard and it would just become its

0:17:32.600 --> 0:17:36.080
<v Speaker 1>own little computing device with a touch screen interface, again

0:17:36.240 --> 0:17:42.720
<v Speaker 1>mostly using stylus, not necessarily using your fingers. Um Gates

0:17:42.800 --> 0:17:47.280
<v Speaker 1>was very uh optimistic about the chances of this in

0:17:47.320 --> 0:17:50.080
<v Speaker 1>the market. He thought that at least half a million

0:17:50.119 --> 0:17:54.520
<v Speaker 1>would sell in the first year, and they'd spent around

0:17:54.640 --> 0:17:58.280
<v Speaker 1>four hundred million dollars on the technology to develop the

0:17:58.320 --> 0:18:02.359
<v Speaker 1>tablet PC operating system and to support that form factor. Um.

0:18:02.640 --> 0:18:05.879
<v Speaker 1>The manufacturers that were included in that list of seven,

0:18:06.640 --> 0:18:11.040
<v Speaker 1>among them were HP, Samsung, Tshiba, and a ser But

0:18:11.080 --> 0:18:16.119
<v Speaker 1>there were a couple of notable missing persons on that list,

0:18:16.520 --> 0:18:22.400
<v Speaker 1>the two being really Dell and IBM, huge names and computers,

0:18:22.480 --> 0:18:28.119
<v Speaker 1>especially at this time in the early two thousand's personal computers. Yeah,

0:18:28.200 --> 0:18:31.159
<v Speaker 1>so back in the early two thousand's, these two companies

0:18:31.400 --> 0:18:36.119
<v Speaker 1>famous for making computers, we're kind of holding back in

0:18:36.240 --> 0:18:40.000
<v Speaker 1>order to see if the tablet form factor truly would succeed,

0:18:40.080 --> 0:18:43.240
<v Speaker 1>because there was a lot of skepticism in the market.

0:18:43.240 --> 0:18:45.159
<v Speaker 1>I mean, there's a lot of optimism on one side,

0:18:45.600 --> 0:18:47.720
<v Speaker 1>but there were some companies saying, you know, this is

0:18:47.760 --> 0:18:50.199
<v Speaker 1>really risky. Do we really want to pour millions of

0:18:50.200 --> 0:18:53.639
<v Speaker 1>dollars in research and development and production to build something

0:18:53.640 --> 0:18:56.840
<v Speaker 1>that we are not convinced people want yet, And so

0:18:56.880 --> 0:19:01.800
<v Speaker 1>they decided to wait. And also these devices they ranged

0:19:01.800 --> 0:19:06.600
<v Speaker 1>in price between around eighteen hundred dollars. They were computers exactly.

0:19:06.680 --> 0:19:09.800
<v Speaker 1>They were full price computers. They weren't a tablet in

0:19:09.880 --> 0:19:12.320
<v Speaker 1>the sense that we think of today, where they're running

0:19:12.400 --> 0:19:16.880
<v Speaker 1>on lower power processors and using specialized operating systems. These

0:19:16.920 --> 0:19:19.840
<v Speaker 1>were Windows computers in a form factor of a tablet.

0:19:20.720 --> 0:19:26.760
<v Speaker 1>So the tablets had problems. They their screen resolution wasn't

0:19:26.800 --> 0:19:29.720
<v Speaker 1>the best, they tended to have really short battery life,

0:19:30.400 --> 0:19:34.439
<v Speaker 1>and the handwriting software, recognition software had lots of problems.

0:19:34.480 --> 0:19:35.879
<v Speaker 1>In fact, they had a lot of problems during the

0:19:35.960 --> 0:19:41.560
<v Speaker 1>development phase. I read one story about how they back

0:19:41.640 --> 0:19:45.080
<v Speaker 1>at Microsoft, while they were developing the tablet pcos, they

0:19:45.240 --> 0:19:50.280
<v Speaker 1>had an entire team switch from laptops to tablet PCs

0:19:50.800 --> 0:19:52.840
<v Speaker 1>to really test them and see what's going on and

0:19:52.920 --> 0:19:54.359
<v Speaker 1>see if they could do their work on a day

0:19:54.400 --> 0:19:57.600
<v Speaker 1>to day basis using them. And they found that whenever

0:19:57.680 --> 0:20:00.439
<v Speaker 1>they were making notes on a digital file, if they

0:20:00.480 --> 0:20:04.159
<v Speaker 1>had to make multiple notes, often the tablet PC operating

0:20:04.160 --> 0:20:07.680
<v Speaker 1>system wasn't really sure where those notes should go and

0:20:07.840 --> 0:20:12.359
<v Speaker 1>sometimes would combine them to make nonsensical sentences. It was

0:20:12.440 --> 0:20:16.280
<v Speaker 1>combining different notes into a run on sentence that has

0:20:16.359 --> 0:20:18.600
<v Speaker 1>no real meaning, like a bunch of sentence fragments just

0:20:18.680 --> 0:20:24.280
<v Speaker 1>crammed together. So they actually removed that feature before shipping

0:20:24.320 --> 0:20:27.320
<v Speaker 1>it because they realized that that would do more harm

0:20:27.359 --> 0:20:30.000
<v Speaker 1>than good. In fact, Apple had seen very similar problems

0:20:30.040 --> 0:20:33.960
<v Speaker 1>when they developed the Newton a decade earlier, so it

0:20:34.160 --> 0:20:38.560
<v Speaker 1>wasn't unique to Microsoft to have these problems. Um. But

0:20:38.800 --> 0:20:42.560
<v Speaker 1>another problem was that the adaptation of the operating system

0:20:43.400 --> 0:20:47.720
<v Speaker 1>and more more importantly, the applications that rested on top

0:20:47.800 --> 0:20:51.880
<v Speaker 1>of the operating system, they didn't really work so well

0:20:52.040 --> 0:20:56.560
<v Speaker 1>with a touch screen user interface. They you know, it

0:20:56.680 --> 0:21:00.240
<v Speaker 1>was it was trying to put software that was meant

0:21:00.320 --> 0:21:02.600
<v Speaker 1>to be used with a keyboard and mouse and put

0:21:02.640 --> 0:21:04.880
<v Speaker 1>it into a different form factor with a different user

0:21:04.920 --> 0:21:09.280
<v Speaker 1>interface without allowing for that difference. So a lot of

0:21:09.359 --> 0:21:13.040
<v Speaker 1>the applications were not intuitive, some of them were downright

0:21:13.119 --> 0:21:17.879
<v Speaker 1>unusable because they just weren't designed for that kind of interface.

0:21:18.520 --> 0:21:21.840
<v Speaker 1>So you had a product that had a lot of

0:21:21.920 --> 0:21:25.280
<v Speaker 1>horsepower to it, especially compared to you know, the computers

0:21:25.320 --> 0:21:28.200
<v Speaker 1>of the day. It was fairly equivalent to them, but

0:21:28.359 --> 0:21:31.200
<v Speaker 1>it just the software couldn't match up to the hardware

0:21:31.280 --> 0:21:34.200
<v Speaker 1>because the user interface wasn't there. So you would have

0:21:34.680 --> 0:21:39.600
<v Speaker 1>a big, heavy, expensive piece of electronics that couldn't do

0:21:39.840 --> 0:21:42.040
<v Speaker 1>what you needed it to do. That seems like a

0:21:42.119 --> 0:21:45.240
<v Speaker 1>waste of money, It does seem like that. Around that

0:21:45.320 --> 0:21:48.520
<v Speaker 1>same time, Microsoft also partnered with Fujitsu and view Sonic

0:21:48.800 --> 0:21:52.440
<v Speaker 1>to create smart displays. These were displays that linked to

0:21:52.800 --> 0:21:56.320
<v Speaker 1>a PC through WiFi. So you would still have a

0:21:56.400 --> 0:21:59.680
<v Speaker 1>home base PC and this device would hook to it.

0:22:00.040 --> 0:22:02.680
<v Speaker 1>You would have a smart touch you know, display case

0:22:03.320 --> 0:22:05.840
<v Speaker 1>where you could use it as if it were a tablet,

0:22:06.640 --> 0:22:09.680
<v Speaker 1>the processing being handled by the computer that it's hooked

0:22:09.720 --> 0:22:12.600
<v Speaker 1>to through WiFi. But these were still pretty expensive, like

0:22:12.640 --> 0:22:16.399
<v Speaker 1>around a thousand dollars or more, and it didn't really succeed,

0:22:16.520 --> 0:22:19.200
<v Speaker 1>so Microsoft ended up killing that project within about a

0:22:19.280 --> 0:22:24.280
<v Speaker 1>year of its starting. Then there was a Project Origami, Yes,

0:22:24.400 --> 0:22:29.880
<v Speaker 1>Project Origami, Yeah, that was for handheld PCs and touch

0:22:29.960 --> 0:22:37.080
<v Speaker 1>screen interfaces. Yeah, exactly, Uh, including the ultramobile PCs. Do

0:22:37.160 --> 0:22:40.160
<v Speaker 1>you remember that term? Yes? I do. It's not one

0:22:40.200 --> 0:22:43.200
<v Speaker 1>you run into very much anymore, but yeah, ultramobile PCs

0:22:43.240 --> 0:22:45.400
<v Speaker 1>that that was sort of the predecessor to both tablets

0:22:45.400 --> 0:22:50.240
<v Speaker 1>and netbooks, um, but in a way also a predecessor

0:22:50.320 --> 0:22:54.159
<v Speaker 1>to ultra books. Uh. They still had a lot of problems,

0:22:54.440 --> 0:22:57.760
<v Speaker 1>mostly because again the operating system wasn't fully optimized for

0:22:57.840 --> 0:23:00.760
<v Speaker 1>a touch screen interface, and also they tended to have

0:23:00.880 --> 0:23:06.720
<v Speaker 1>really lousy battery life. UM, not not a great experience.

0:23:07.200 --> 0:23:11.600
<v Speaker 1>Now that's not to say that these devices didn't work

0:23:11.880 --> 0:23:15.040
<v Speaker 1>and that people didn't use them. Um. There were a

0:23:15.119 --> 0:23:21.920
<v Speaker 1>couple uh industries really that took to them medical industry medicular, Yes,

0:23:22.000 --> 0:23:26.400
<v Speaker 1>the medical industry, um followed their own advice and took

0:23:26.440 --> 0:23:31.560
<v Speaker 1>two tablets and called Microsoft in the morning. Yeah, no,

0:23:31.720 --> 0:23:34.159
<v Speaker 1>but they did. And I actually still see that at

0:23:34.200 --> 0:23:36.720
<v Speaker 1>some of the doctor's offices that I've been to in

0:23:36.800 --> 0:23:41.159
<v Speaker 1>the past few years, they're still using, um, the traditional

0:23:41.680 --> 0:23:45.399
<v Speaker 1>you know, Microsoft tablet design. I mean, it's very useful

0:23:45.440 --> 0:23:48.320
<v Speaker 1>for that kind of thing, especially because um they're using

0:23:48.400 --> 0:23:54.160
<v Speaker 1>the same software uh to register and track patient records

0:23:54.320 --> 0:23:57.200
<v Speaker 1>that they would use on a desktop computer or laptop

0:23:57.240 --> 0:24:01.520
<v Speaker 1>computer typically, So it's very compatible with that, and it

0:24:01.600 --> 0:24:03.760
<v Speaker 1>has been very efficient for that. And it's good because

0:24:03.800 --> 0:24:07.280
<v Speaker 1>they can carry this around in the tablet form factor,

0:24:07.680 --> 0:24:10.480
<v Speaker 1>so they can carry it under their arm, uh you know,

0:24:10.680 --> 0:24:12.359
<v Speaker 1>drop it down where they can make notes and they

0:24:12.400 --> 0:24:14.359
<v Speaker 1>can talk to you and and and take notes on

0:24:14.440 --> 0:24:17.520
<v Speaker 1>this on this tablet device, but UM they had a

0:24:17.560 --> 0:24:21.880
<v Speaker 1>specific need to have something like that, So I think

0:24:21.920 --> 0:24:25.120
<v Speaker 1>that's one of the reasons why it um it took

0:24:25.160 --> 0:24:28.640
<v Speaker 1>off in that particular market. Sure, yeah, and for home

0:24:28.760 --> 0:24:32.600
<v Speaker 1>users not not like that. That's one of the things

0:24:32.640 --> 0:24:35.200
<v Speaker 1>that Microsoft has always pushed is the idea that these

0:24:35.359 --> 0:24:38.639
<v Speaker 1>are devices that can run the applications you're used to

0:24:38.760 --> 0:24:42.399
<v Speaker 1>on your computer, things that that the other form of tablet,

0:24:42.440 --> 0:24:45.440
<v Speaker 1>Apple's version of tablet can't do because the upbrake system

0:24:45.480 --> 0:24:49.159
<v Speaker 1>isn't robust enough to support all the features and functions

0:24:49.359 --> 0:24:53.800
<v Speaker 1>of the software. So for example, they're specifically one note

0:24:54.520 --> 0:24:57.879
<v Speaker 1>which is part of the Microsoft Office Suite for Windows UM,

0:24:58.040 --> 0:25:01.200
<v Speaker 1>this Note taking software, which I like very much actually UM,

0:25:01.800 --> 0:25:04.240
<v Speaker 1>and they made sure that that was that in particular,

0:25:04.280 --> 0:25:09.359
<v Speaker 1>in addition to the Office applications or Office compatibility, they

0:25:09.400 --> 0:25:14.080
<v Speaker 1>made sure that was available for the tablets. So you

0:25:14.160 --> 0:25:16.480
<v Speaker 1>can see where Microsoft is coming from. It's just again

0:25:16.520 --> 0:25:19.119
<v Speaker 1>they've had this these difficulties, and some of it is

0:25:19.160 --> 0:25:22.960
<v Speaker 1>beyond their control because again there they're creating the software

0:25:23.359 --> 0:25:26.639
<v Speaker 1>and the hardware is being designed by other companies. That

0:25:26.760 --> 0:25:32.639
<v Speaker 1>doesn't excuse the problems with how the software isn't fully

0:25:32.680 --> 0:25:35.560
<v Speaker 1>optimized for touch screens. Obviously that's something that's very important.

0:25:35.680 --> 0:25:39.040
<v Speaker 1>And again Apple got that they designed their interface with

0:25:39.200 --> 0:25:42.040
<v Speaker 1>touch screen from the ground up. They didn't try and

0:25:42.119 --> 0:25:45.159
<v Speaker 1>scale something down and then adapted for touch screens. So

0:25:45.240 --> 0:25:48.480
<v Speaker 1>it's a different philosophy. That doesn't mean that Microsoft's approach

0:25:48.520 --> 0:25:53.160
<v Speaker 1>won't ultimately work. It's just that they've had a really long, hard,

0:25:53.880 --> 0:25:57.400
<v Speaker 1>uh journey and it's not over yet. Because we haven't

0:25:57.400 --> 0:26:01.080
<v Speaker 1>talked about the two things that came out in two

0:26:01.080 --> 0:26:03.280
<v Speaker 1>thousand eight. We mentioned one of them because we mentioned

0:26:03.320 --> 0:26:06.320
<v Speaker 1>Project Surface, which was the table top device you were

0:26:06.359 --> 0:26:11.000
<v Speaker 1>talking about. Surface used cameras inside the device pointed up

0:26:11.080 --> 0:26:13.960
<v Speaker 1>at the screen in order to detect where touches were

0:26:14.200 --> 0:26:18.320
<v Speaker 1>being placed upon the screen surface. It could do multiple

0:26:18.359 --> 0:26:21.200
<v Speaker 1>touches at once, so you could have um several people

0:26:21.280 --> 0:26:23.240
<v Speaker 1>all playing on a surface at the same time, and

0:26:23.320 --> 0:26:25.760
<v Speaker 1>it could track all those movements. It also meant that

0:26:25.800 --> 0:26:28.600
<v Speaker 1>you could do something like take a piece of paper

0:26:28.720 --> 0:26:31.560
<v Speaker 1>with something written on it, place it face down on

0:26:31.600 --> 0:26:35.119
<v Speaker 1>the surface, and copy it to the surface, so suddenly

0:26:35.119 --> 0:26:37.760
<v Speaker 1>you have a digital copy of the physical document you

0:26:37.840 --> 0:26:39.560
<v Speaker 1>had in your hands. And it's because there were these

0:26:39.640 --> 0:26:43.440
<v Speaker 1>cameras underneath that could look up and and see what

0:26:43.640 --> 0:26:49.719
<v Speaker 1>was being pressed against the surfaces. Surface would have been yep.

0:26:49.840 --> 0:26:52.280
<v Speaker 1>So I was pretty cool. But the other thing that

0:26:53.480 --> 0:26:56.679
<v Speaker 1>the other project that we became aware of in two

0:26:56.720 --> 0:26:59.600
<v Speaker 1>thousand and eight, really in two thousand nine was Project

0:26:59.720 --> 0:27:03.919
<v Speaker 1>Curve Ear. Yes, this was an internal project of Microsoft,

0:27:04.359 --> 0:27:07.080
<v Speaker 1>and it was led by a couple of different people,

0:27:07.160 --> 0:27:09.600
<v Speaker 1>one of whom was uh, someone who came from the

0:27:09.920 --> 0:27:13.720
<v Speaker 1>Xbox division of Microsoft, a division that did really really

0:27:13.800 --> 0:27:16.520
<v Speaker 1>well in the sense that it went into a uh

0:27:16.680 --> 0:27:20.520
<v Speaker 1>an industry that already had some dominating companies and it

0:27:20.680 --> 0:27:24.800
<v Speaker 1>mostly mainly Sony and Nintendo and created carved out of

0:27:24.920 --> 0:27:27.920
<v Speaker 1>space and was very successful in that space, at least

0:27:28.200 --> 0:27:31.919
<v Speaker 1>especially in the United States by creating the Xbox. If

0:27:31.960 --> 0:27:34.440
<v Speaker 1>you think about it, it's uh. It also provided a

0:27:34.520 --> 0:27:37.080
<v Speaker 1>valuable lesson for Microsoft. And I've never seen this written down.

0:27:37.160 --> 0:27:40.600
<v Speaker 1>It just occurred to me. Um. Up until this point,

0:27:40.680 --> 0:27:45.000
<v Speaker 1>Microsoft didn't make hardware, but the Xbox showed him that

0:27:45.160 --> 0:27:48.720
<v Speaker 1>they could, and it probably you know, again, again, I've

0:27:48.720 --> 0:27:50.879
<v Speaker 1>never seen anybody say this or hurt anybody say this,

0:27:51.040 --> 0:27:52.880
<v Speaker 1>but I would imagine that probably gave him a little

0:27:52.880 --> 0:27:55.679
<v Speaker 1>bit of confidence to say, hey, you know, we can

0:27:55.800 --> 0:27:58.159
<v Speaker 1>do this, we can be a hardware company too. And

0:27:58.240 --> 0:28:00.919
<v Speaker 1>also keep in mind the iPad had yet to debut.

0:28:01.560 --> 0:28:04.600
<v Speaker 1>The iPad doesn't debut till so at the same time

0:28:04.640 --> 0:28:06.480
<v Speaker 1>that we know Apple is working, or at least we

0:28:06.920 --> 0:28:10.119
<v Speaker 1>suspect Apples working on a tablet, we also hear about

0:28:10.240 --> 0:28:13.560
<v Speaker 1>this Microsoft project. And the thing that said the Courier

0:28:13.640 --> 0:28:16.639
<v Speaker 1>apart was that it was a two panel tablet. It

0:28:16.760 --> 0:28:20.440
<v Speaker 1>was hinged in the middle, and it had two displays,

0:28:20.720 --> 0:28:24.240
<v Speaker 1>so it's like a booklet or a bigger version of

0:28:24.359 --> 0:28:28.080
<v Speaker 1>the Nintendo DS form factor where you had two screens

0:28:28.119 --> 0:28:30.359
<v Speaker 1>when you open it up. And there were videos that

0:28:30.520 --> 0:28:34.760
<v Speaker 1>leaked on the web that had showed the Courier's concept

0:28:34.960 --> 0:28:37.800
<v Speaker 1>where you would be able to make notes and read

0:28:37.840 --> 0:28:40.920
<v Speaker 1>the information and create content, and so it was all

0:28:40.960 --> 0:28:45.600
<v Speaker 1>about content creation, not just content consumption. And it seemed

0:28:45.640 --> 0:28:49.560
<v Speaker 1>to have a customized operating system based upon the videos

0:28:50.000 --> 0:28:52.520
<v Speaker 1>that or at least it would have a customized operating

0:28:52.520 --> 0:28:55.360
<v Speaker 1>system because the videos were all pretty much prototype, concept

0:28:55.800 --> 0:29:00.640
<v Speaker 1>level stuff. It wasn't necessarily a working model, and so

0:29:00.880 --> 0:29:03.680
<v Speaker 1>there was a lot of interest in this among geek

0:29:03.760 --> 0:29:08.320
<v Speaker 1>circles anyway, but in Microsoft killed off that project and

0:29:08.440 --> 0:29:10.720
<v Speaker 1>part of that might have been that the approach to

0:29:10.800 --> 0:29:13.880
<v Speaker 1>the Courier was closer to what Apple was doing. It

0:29:14.040 --> 0:29:19.480
<v Speaker 1>was more about taking a simpler computing device and giving

0:29:19.560 --> 0:29:23.880
<v Speaker 1>it some interesting features and functions rather than trying to

0:29:24.080 --> 0:29:27.280
<v Speaker 1>take a computer and put it into a tablet form factor.

0:29:27.920 --> 0:29:32.160
<v Speaker 1>And ultimately, I think Microsoft decided that that the Courier

0:29:32.240 --> 0:29:35.800
<v Speaker 1>did not really reflect what Microsoft is as a company.

0:29:35.920 --> 0:29:42.800
<v Speaker 1>And it also didn't support two of Microsoft's flagship software

0:29:43.520 --> 0:29:49.120
<v Speaker 1>UH products being Windows and the Office Suite. So since,

0:29:49.680 --> 0:29:52.239
<v Speaker 1>you know, since it didn't do that, Microsoft like, why

0:29:52.280 --> 0:29:54.760
<v Speaker 1>would we produce a product that doesn't support our other

0:29:56.280 --> 0:29:59.600
<v Speaker 1>products that are the foundation of our company. And ultimately

0:29:59.680 --> 0:30:03.240
<v Speaker 1>the cur you'r died UH. And in two thousand nine,

0:30:03.280 --> 0:30:08.200
<v Speaker 1>Microsoft officially ended support for Windows for tablet PC. It's UM.

0:30:08.920 --> 0:30:10.960
<v Speaker 1>I think that actually this might be a good time

0:30:11.000 --> 0:30:13.320
<v Speaker 1>to mention UH something that we haven't before. And this

0:30:13.440 --> 0:30:18.360
<v Speaker 1>dates back again has its roots in in years before UM.

0:30:18.560 --> 0:30:22.480
<v Speaker 1>Microsoft did, however, make a an operating system for PDAs

0:30:22.760 --> 0:30:26.040
<v Speaker 1>called Pocket pc UM and it was a very successful

0:30:26.040 --> 0:30:30.000
<v Speaker 1>competitor to the Palm uh P d A s, which

0:30:30.040 --> 0:30:33.200
<v Speaker 1>were immensely popular with enterprise, but they were they were

0:30:33.440 --> 0:30:37.160
<v Speaker 1>both aimed at business customers and then you know, it

0:30:37.240 --> 0:30:41.320
<v Speaker 1>did the same kinds of things. But as the uh

0:30:41.920 --> 0:30:44.480
<v Speaker 1>first with the Trio and some of the other smartphones,

0:30:44.960 --> 0:30:49.560
<v Speaker 1>um Windows uh well Pocket PC became Windows Mobile, it

0:30:49.840 --> 0:30:52.800
<v Speaker 1>migrated over to smartphones and that was the operating system.

0:30:53.120 --> 0:30:56.480
<v Speaker 1>And of course we we now have Windows Mobile eight um.

0:30:56.760 --> 0:30:58.680
<v Speaker 1>But yeah, I mean they were they were starting to

0:30:58.800 --> 0:31:02.920
<v Speaker 1>use uh you touchscreen devices, making the software for other

0:31:03.000 --> 0:31:06.600
<v Speaker 1>companies to use on their phones, so that you know,

0:31:06.680 --> 0:31:09.640
<v Speaker 1>they are working on software that will do that will

0:31:09.680 --> 0:31:13.440
<v Speaker 1>operate a device like a tablet what we think of

0:31:13.600 --> 0:31:16.920
<v Speaker 1>now as a tablet, um, but it wasn't on what

0:31:17.120 --> 0:31:20.280
<v Speaker 1>they were creating as their tablet products. So the surface,

0:31:20.920 --> 0:31:23.400
<v Speaker 1>I mean, I'm sorry, the courier is probably using something

0:31:23.480 --> 0:31:26.600
<v Speaker 1>along more along lines and Windows Mobile as it's operating

0:31:26.680 --> 0:31:31.080
<v Speaker 1>system than it would be a more fully developed, fully functional,

0:31:31.520 --> 0:31:34.840
<v Speaker 1>went traditional Windows computer operating system. And part of the

0:31:34.920 --> 0:31:39.200
<v Speaker 1>reason for that is that going with the smartphone model,

0:31:39.440 --> 0:31:44.160
<v Speaker 1>smartphones and mobile devices tend to use lower power processors

0:31:44.760 --> 0:31:48.320
<v Speaker 1>than a computer does. They use like arm based processors,

0:31:48.600 --> 0:31:50.400
<v Speaker 1>and that's done for a couple of reasons. That they're

0:31:50.400 --> 0:31:52.920
<v Speaker 1>smaller and they are more energy efficient, so that means

0:31:53.000 --> 0:31:55.920
<v Speaker 1>you have a longer battery life, and they're cooler in

0:31:55.960 --> 0:31:58.719
<v Speaker 1>a lot of cases to um, which is important when

0:31:58.760 --> 0:32:00.400
<v Speaker 1>you have a device that doesn't necessary really have an

0:32:00.440 --> 0:32:02.760
<v Speaker 1>internal fan, Yes, especially if you're going to put it

0:32:02.760 --> 0:32:08.880
<v Speaker 1>in your pocket. So, uh, for the Microsoft, for Microsoft

0:32:08.960 --> 0:32:12.320
<v Speaker 1>Windows to run, it really needs a pretty beefy processor.

0:32:12.840 --> 0:32:15.440
<v Speaker 1>You know, it can't be it can't just it can't

0:32:15.480 --> 0:32:19.000
<v Speaker 1>just be you know, a little dinky process here. So

0:32:19.960 --> 0:32:22.080
<v Speaker 1>you know, there were some tough choices for Microsoft to

0:32:22.640 --> 0:32:25.400
<v Speaker 1>make in order to pursue this. So moving on in

0:32:26.160 --> 0:32:30.640
<v Speaker 1>Balmber was at CS and he showed off the Steve Balmer.

0:32:31.120 --> 0:32:34.160
<v Speaker 1>Uh sorry, I just I think of him as the

0:32:34.280 --> 0:32:38.040
<v Speaker 1>bomber Um. He showed off the HP Slate tablet at

0:32:38.080 --> 0:32:41.760
<v Speaker 1>Windows at CES it was running Windows seven, so again

0:32:42.400 --> 0:32:45.040
<v Speaker 1>you know, moving away from the Windows XP tablet PC

0:32:45.240 --> 0:32:49.160
<v Speaker 1>stuff into Windows seven. But another problem, Windows seven not

0:32:49.320 --> 0:32:53.560
<v Speaker 1>optimized for touch screens. So there were several tablets that

0:32:53.640 --> 0:32:55.720
<v Speaker 1>came out that ran on Windows seven. They did not

0:32:55.920 --> 0:32:58.040
<v Speaker 1>do very well because a lot of the reviews said,

0:32:59.280 --> 0:33:02.120
<v Speaker 1>this still is not a very satisfactory experience when you're

0:33:02.160 --> 0:33:04.720
<v Speaker 1>using a touch screen interface. It's just it wasn't made

0:33:04.840 --> 0:33:07.280
<v Speaker 1>for that. And there and it shows yeah, I mean

0:33:07.360 --> 0:33:12.000
<v Speaker 1>you you it has clarified. It has touch screen functionality,

0:33:12.600 --> 0:33:15.520
<v Speaker 1>but it wasn't optimized, right, It wasn't designed for a

0:33:15.600 --> 0:33:20.200
<v Speaker 1>touch screen. It was designed for a traditional computer. And

0:33:20.760 --> 0:33:23.640
<v Speaker 1>while it had elements of touch screen interface design in it,

0:33:23.800 --> 0:33:26.840
<v Speaker 1>it wasn't that wasn't the primary purpose. There were people

0:33:26.920 --> 0:33:30.520
<v Speaker 1>making touch screen PCs all in ones. I remember HP

0:33:30.720 --> 0:33:33.800
<v Speaker 1>had a line. It was very much the same style

0:33:33.920 --> 0:33:37.320
<v Speaker 1>of computer as uh the imax of now where you

0:33:37.440 --> 0:33:39.960
<v Speaker 1>have everything baked into a basically looks like a big

0:33:39.960 --> 0:33:44.200
<v Speaker 1>monitor with a keyboard. You know, no no side computer,

0:33:44.760 --> 0:33:47.320
<v Speaker 1>you know, our tower computer. It's all built into that.

0:33:47.400 --> 0:33:49.040
<v Speaker 1>And it said you know, hey, you can use this

0:33:49.120 --> 0:33:51.200
<v Speaker 1>as a touch screen, and yes you you could, but

0:33:51.360 --> 0:33:54.720
<v Speaker 1>it it didn't have things like the pinch to zoom

0:33:54.800 --> 0:33:57.960
<v Speaker 1>and the swiping and the the same kinds of effects.

0:33:58.520 --> 0:34:02.600
<v Speaker 1>So things that built in really intuitive little gesture commands

0:34:02.640 --> 0:34:04.560
<v Speaker 1>and things just weren't part of it. And that was

0:34:04.600 --> 0:34:09.279
<v Speaker 1>a problem. Well, now we're up to and Microsoft has

0:34:09.320 --> 0:34:13.120
<v Speaker 1>introduced the surface tablets, which are going to run two

0:34:13.160 --> 0:34:16.400
<v Speaker 1>different versions of Windows. There's two two main categories of

0:34:16.480 --> 0:34:20.360
<v Speaker 1>these tablets. There's the Windows r T version and Windows

0:34:20.480 --> 0:34:23.200
<v Speaker 1>RT is again an O E M version of Windows

0:34:23.320 --> 0:34:27.279
<v Speaker 1>just as tablet the tablet PC Windows XP was um,

0:34:27.440 --> 0:34:33.399
<v Speaker 1>it's optimized for more mobile processors. So again that now

0:34:33.480 --> 0:34:36.239
<v Speaker 1>we're looking more like the the Apple tablet in the

0:34:36.320 --> 0:34:39.520
<v Speaker 1>sense that it's going to be on ARM based processors,

0:34:39.560 --> 0:34:46.399
<v Speaker 1>so lower power, more efficient, cooler, but less um less

0:34:46.480 --> 0:34:52.239
<v Speaker 1>capable of running really chunky programs. Right, So that's one version.

0:34:52.280 --> 0:34:55.480
<v Speaker 1>It's the consumer model Windows are T version. Then you

0:34:55.560 --> 0:34:57.759
<v Speaker 1>have the Windows eight pro version, which will come out

0:34:57.840 --> 0:35:00.120
<v Speaker 1>about three months after the debut of the Windows our

0:35:00.160 --> 0:35:02.920
<v Speaker 1>T version. According to Microsoft, now this one is going

0:35:02.960 --> 0:35:08.160
<v Speaker 1>to be having It will have an Intel Core processor, uh,

0:35:08.239 --> 0:35:10.680
<v Speaker 1>and it will run Windows eight Pro on it, so

0:35:10.920 --> 0:35:14.560
<v Speaker 1>it will have a more fully fledged operating system. And

0:35:15.000 --> 0:35:19.480
<v Speaker 1>Windows eight was an operating system designed with touch screen

0:35:19.600 --> 0:35:23.080
<v Speaker 1>in mind, at least as far as the metro design

0:35:23.160 --> 0:35:26.520
<v Speaker 1>of Windows eight goes. Because there's there's different model modes

0:35:26.640 --> 0:35:30.000
<v Speaker 1>of Windows eight, but one of them was specifically designed

0:35:30.080 --> 0:35:33.120
<v Speaker 1>with touch screens in mind. And when it first premiered,

0:35:33.920 --> 0:35:35.920
<v Speaker 1>Microsoft didn't show it off on a tablet. They were

0:35:35.960 --> 0:35:38.200
<v Speaker 1>showing it off on computers, and people were thinking, well,

0:35:38.360 --> 0:35:40.600
<v Speaker 1>does this mean Microsoft working on a tablet or they're

0:35:40.600 --> 0:35:45.040
<v Speaker 1>working with other manufacturers for tablets, and as it turns out,

0:35:45.080 --> 0:35:47.719
<v Speaker 1>Microsoft was making a tablet. You might ask yourself, well,

0:35:47.719 --> 0:35:51.080
<v Speaker 1>why is Microsoft doing that now instead of partnering with

0:35:51.440 --> 0:35:55.600
<v Speaker 1>the manufacturers that does for computers and other devices, And

0:35:55.680 --> 0:35:58.719
<v Speaker 1>they're possible months of possible reasons. One of them might

0:35:58.760 --> 0:36:02.240
<v Speaker 1>be that Microsoft wants to make sure that a tablet

0:36:02.400 --> 0:36:06.360
<v Speaker 1>is made quote unquote the right way. Yes, Microsoft is

0:36:06.480 --> 0:36:09.399
<v Speaker 1>making a tablet. Why are they making a tablet? Thank

0:36:09.400 --> 0:36:12.840
<v Speaker 1>you Captain Kirk. The Captain Kirk is climbing the mountain

0:36:12.840 --> 0:36:16.880
<v Speaker 1>and look it up on YouTube. So the the the

0:36:17.040 --> 0:36:19.759
<v Speaker 1>question would be I think the answer here is that

0:36:19.840 --> 0:36:23.759
<v Speaker 1>Microsoft wants to design a tablet around that that really

0:36:23.800 --> 0:36:26.200
<v Speaker 1>takes advantage of this operating system. They know what the

0:36:26.280 --> 0:36:28.160
<v Speaker 1>operating system can do, They've got the people who can

0:36:28.200 --> 0:36:30.680
<v Speaker 1>build the tablet itself. They want to be able to

0:36:30.719 --> 0:36:33.759
<v Speaker 1>do this to show off the operating system, and it's

0:36:33.800 --> 0:36:37.400
<v Speaker 1>not necessarily going to be a line of products that

0:36:37.440 --> 0:36:40.680
<v Speaker 1>will continue forever into the future. It may even be

0:36:40.840 --> 0:36:43.880
<v Speaker 1>that these two models are the only two Microsoft ever produces,

0:36:43.960 --> 0:36:46.680
<v Speaker 1>and that they let everyone else build tablets from here

0:36:46.719 --> 0:36:49.000
<v Speaker 1>on out. I don't know that Microsoft wants to get

0:36:49.040 --> 0:36:54.000
<v Speaker 1>into the manufacturing business. That has been rumored. In fact, um,

0:36:54.440 --> 0:36:57.200
<v Speaker 1>some of that has been going along in the the

0:36:58.080 --> 0:37:01.279
<v Speaker 1>tech media in the past few days since the announcement

0:37:01.400 --> 0:37:04.120
<v Speaker 1>is that uh uh, that's one of the things is

0:37:04.200 --> 0:37:07.320
<v Speaker 1>that maybe Microsoft is doing this as a a proof

0:37:07.360 --> 0:37:10.200
<v Speaker 1>of concept and they will get in but not uh

0:37:10.640 --> 0:37:13.280
<v Speaker 1>jump into the market completely. And once they have proven

0:37:13.320 --> 0:37:15.600
<v Speaker 1>that this is a thing and then it will work,

0:37:16.000 --> 0:37:19.520
<v Speaker 1>they will let everyone else take the lead. Because, um,

0:37:20.440 --> 0:37:25.160
<v Speaker 1>as with Google's acquisition of Motor Motor Rolla Mobility, if

0:37:25.200 --> 0:37:28.080
<v Speaker 1>Google gets into the hardware business, everybody said, well, wait,

0:37:28.120 --> 0:37:32.279
<v Speaker 1>they're gonna be competing with all these other hardware manufacturers

0:37:32.320 --> 0:37:34.279
<v Speaker 1>that they have been working with. Well, Microsoft is going

0:37:34.320 --> 0:37:37.640
<v Speaker 1>to be in the same type of vote, competing with

0:37:37.719 --> 0:37:40.560
<v Speaker 1>their partners. So um, you know, there are people who

0:37:40.760 --> 0:37:43.880
<v Speaker 1>who really do believe that that is they're they're showing

0:37:43.960 --> 0:37:48.080
<v Speaker 1>it off. But of course, as Apple has proven uh

0:37:48.200 --> 0:37:51.240
<v Speaker 1>time and time again, Yes, a closed system is closed,

0:37:51.760 --> 0:37:56.880
<v Speaker 1>but the manufacturer has much more control over the environment

0:37:57.080 --> 0:37:59.200
<v Speaker 1>when the system is closed, because they can make it

0:37:59.280 --> 0:38:01.560
<v Speaker 1>work exact actually the way they think it should work,

0:38:01.600 --> 0:38:05.520
<v Speaker 1>and they don't necessarily include anything else that wasn't intended

0:38:05.640 --> 0:38:09.279
<v Speaker 1>for example, again with the Google Android platform, if you

0:38:09.360 --> 0:38:12.800
<v Speaker 1>buy a Google Android device with only a few exceptions,

0:38:12.840 --> 0:38:15.440
<v Speaker 1>you're going to get extra stuff that you do not

0:38:15.760 --> 0:38:19.960
<v Speaker 1>necessarily want or need. Uh. Some of those things don't

0:38:20.080 --> 0:38:22.719
<v Speaker 1>make sense if you catch my dress. Some of those

0:38:22.719 --> 0:38:27.720
<v Speaker 1>things are impossible to remove without without your rooting your device.

0:38:28.160 --> 0:38:31.120
<v Speaker 1>So you know, this is one way to get around

0:38:31.160 --> 0:38:33.640
<v Speaker 1>that as well. Now we don't know if it's going

0:38:33.680 --> 0:38:36.040
<v Speaker 1>to succeed, we'll have to wait. But still, really a

0:38:36.160 --> 0:38:39.239
<v Speaker 1>computer that's been put into the tablet form factor, it's

0:38:39.400 --> 0:38:42.840
<v Speaker 1>it's again that philosophy is building scaling down as opposed

0:38:42.840 --> 0:38:47.560
<v Speaker 1>to scaling up some other lower powered electronic device. Um.

0:38:47.880 --> 0:38:50.920
<v Speaker 1>The other big thing that I saw everyone going gaga

0:38:50.960 --> 0:38:54.200
<v Speaker 1>about is the cover for the surface. Ah. Yes, Now

0:38:54.280 --> 0:38:57.360
<v Speaker 1>it is very much like the smart cover introduced with

0:38:57.520 --> 0:39:01.480
<v Speaker 1>the iPad too, because it has a magnetic uh clasp

0:39:01.600 --> 0:39:05.680
<v Speaker 1>on it so that when you you cover your surface tablet,

0:39:05.760 --> 0:39:08.480
<v Speaker 1>it will the magnets will snap to the the case

0:39:08.560 --> 0:39:11.279
<v Speaker 1>of the device and it will hold it closed. Yeah.

0:39:11.360 --> 0:39:14.880
<v Speaker 1>But it also has a keyboard built into it, and

0:39:14.920 --> 0:39:16.680
<v Speaker 1>there are two different types of the keyboard. There's a

0:39:16.719 --> 0:39:20.400
<v Speaker 1>pressure sensitive keyboard where the keys are not raised or anything,

0:39:20.480 --> 0:39:23.920
<v Speaker 1>but you can you know, designated certain keys, and then

0:39:23.960 --> 0:39:26.719
<v Speaker 1>there's actually a click keyboard where they're the keys are

0:39:26.840 --> 0:39:29.799
<v Speaker 1>raised slightly so it's more like a touch keyboard. Um.

0:39:30.320 --> 0:39:35.400
<v Speaker 1>And also they work uh uh, they have a variety

0:39:35.440 --> 0:39:38.799
<v Speaker 1>of colors. They work on Bluetooth to connect to the device. Um,

0:39:40.000 --> 0:39:42.759
<v Speaker 1>it's kind of interesting. They also the surface itself has

0:39:42.880 --> 0:39:44.759
<v Speaker 1>a little kickstand in the back of it that you

0:39:44.840 --> 0:39:48.040
<v Speaker 1>can flip out so it stands up like a laptop

0:39:48.120 --> 0:39:49.960
<v Speaker 1>screen would. In fact, a lot of people have said

0:39:49.960 --> 0:39:53.120
<v Speaker 1>that this is really just another version of the laptop

0:39:53.200 --> 0:39:56.040
<v Speaker 1>tablet hybrid. It's just that this is one that is

0:39:56.400 --> 0:39:59.400
<v Speaker 1>closer to the tablet side than the laptop side. And

0:39:59.600 --> 0:40:01.920
<v Speaker 1>I don't that Microsoft would argue that because they really

0:40:02.000 --> 0:40:05.360
<v Speaker 1>want you to think of it as a PC. And

0:40:05.480 --> 0:40:09.080
<v Speaker 1>the Microsoft presentation where they unveiled this, they referred to

0:40:09.160 --> 0:40:13.560
<v Speaker 1>it as a PC repeatedly. Yeah, which is exactly in

0:40:13.680 --> 0:40:18.359
<v Speaker 1>line with their their previous tablet effort and exactly an

0:40:18.440 --> 0:40:22.000
<v Speaker 1>opposite alignment of Apple's approach, where Apple was jobs would

0:40:22.000 --> 0:40:23.880
<v Speaker 1>say this is not a PC, this is a this

0:40:24.000 --> 0:40:28.000
<v Speaker 1>is a tablet. It's for the post PC environment, right right,

0:40:28.080 --> 0:40:31.560
<v Speaker 1>where whereas uh, the iPad, and it has been criticized

0:40:32.360 --> 0:40:34.839
<v Speaker 1>more times than I can account, certainly by people who

0:40:34.880 --> 0:40:38.360
<v Speaker 1>say it's a consumption device. It is a consumption device

0:40:38.480 --> 0:40:41.960
<v Speaker 1>that people began writing productivity software for. It's sort of

0:40:42.000 --> 0:40:46.200
<v Speaker 1>one people's hearts and minds by being a consumption device

0:40:46.320 --> 0:40:50.480
<v Speaker 1>primarily at first, but it is shown also well, the

0:40:50.520 --> 0:40:53.080
<v Speaker 1>software developers have shown that you can use it for

0:40:53.760 --> 0:40:57.719
<v Speaker 1>productivity and creativity and creation as well. And and Microsoft

0:40:57.840 --> 0:41:00.400
<v Speaker 1>isn't approaching it as a h well, this is a

0:41:00.520 --> 0:41:03.920
<v Speaker 1>scaled down productivity device that you can also use to

0:41:04.080 --> 0:41:07.279
<v Speaker 1>consume with. So it's it's really I mean that both

0:41:07.360 --> 0:41:09.960
<v Speaker 1>devices will do both, but it's two different and different

0:41:10.000 --> 0:41:13.719
<v Speaker 1>approaches to the same converging point, right, because that's why

0:41:13.840 --> 0:41:15.719
<v Speaker 1>this is all about his convergence, because you know, you

0:41:15.800 --> 0:41:17.759
<v Speaker 1>can't go an entire episode without me saying the word.

0:41:18.160 --> 0:41:21.799
<v Speaker 1>So that's a that's a that's an example there. Yeah,

0:41:21.840 --> 0:41:24.120
<v Speaker 1>and and you know, just so you guys know, I mean,

0:41:24.160 --> 0:41:27.400
<v Speaker 1>there have been several tablets that have run on various

0:41:27.560 --> 0:41:30.680
<v Speaker 1>versions of Windows, Windows XP, Windows Vista, and Windows seven

0:41:30.800 --> 0:41:34.399
<v Speaker 1>all had tablets. Uh, it's just they didn't do so well.

0:41:34.680 --> 0:41:37.080
<v Speaker 1>And so you know, in terms of sales in terms

0:41:37.120 --> 0:41:41.200
<v Speaker 1>of sales. UM, So we'll see if the Surface could

0:41:41.360 --> 0:41:44.399
<v Speaker 1>perhaps buck the trend. You know what. I think we're

0:41:44.400 --> 0:41:48.400
<v Speaker 1>actually getting to the point where people are curious about this.

0:41:48.520 --> 0:41:51.000
<v Speaker 1>They really think, well, if Microsoft can make a truly

0:41:51.080 --> 0:41:56.120
<v Speaker 1>compelling product that can really run these rich applications that

0:41:56.200 --> 0:41:59.120
<v Speaker 1>are beyond the scope of something like an iPad or

0:41:59.160 --> 0:42:01.759
<v Speaker 1>an Android tablet, it perhaps there's a place for it.

0:42:02.200 --> 0:42:04.640
<v Speaker 1>And that might very well be instead of buying a laptop,

0:42:04.719 --> 0:42:07.080
<v Speaker 1>maybe I'd buy a surface next time because it has

0:42:07.160 --> 0:42:09.920
<v Speaker 1>all the capability of a laptop but has the portability

0:42:10.040 --> 0:42:13.560
<v Speaker 1>and other functions of a tablet. Why would why not

0:42:13.719 --> 0:42:16.520
<v Speaker 1>get that? UM? I think it's really going to depend

0:42:16.560 --> 0:42:19.279
<v Speaker 1>heavily upon the price of the surface. We don't know

0:42:19.400 --> 0:42:21.880
<v Speaker 1>what that's going to be yet. We don't know exactly

0:42:21.920 --> 0:42:24.040
<v Speaker 1>what processors they're going to put in it, right, Yeah,

0:42:24.080 --> 0:42:26.040
<v Speaker 1>we don't have the specific details. We do know that

0:42:26.280 --> 0:42:28.799
<v Speaker 1>the RT one will have an ARM based processor that's

0:42:28.800 --> 0:42:31.720
<v Speaker 1>what Windows RT was optimized for, and that the Windows

0:42:32.280 --> 0:42:34.560
<v Speaker 1>eight pro version will have some sort of x A

0:42:34.640 --> 0:42:38.200
<v Speaker 1>D six based processor, although and we don't know specifically

0:42:38.280 --> 0:42:41.600
<v Speaker 1>which one it will be. UM, we know that there's

0:42:41.600 --> 0:42:44.000
<v Speaker 1>going to be a couple of different flavors of each

0:42:44.040 --> 0:42:47.960
<v Speaker 1>of these. You know, there's certain bubery don't have the

0:42:48.239 --> 0:42:50.520
<v Speaker 1>different levels of storage space, you know, thirty two gig

0:42:50.640 --> 0:42:53.000
<v Speaker 1>versus sixty four gig versus twenty eight gig, that kind

0:42:53.000 --> 0:42:55.319
<v Speaker 1>of thing. But we don't really know what the price

0:42:55.440 --> 0:42:57.480
<v Speaker 1>ranges are going to be. It may very well be

0:42:57.640 --> 0:43:00.680
<v Speaker 1>that the Windows eight Pro one hundred twenty eight gig

0:43:00.880 --> 0:43:05.800
<v Speaker 1>version is that could that could happen. We don't know that.

0:43:06.040 --> 0:43:10.840
<v Speaker 1>That's the thing about a tablet, regardless of what system

0:43:11.000 --> 0:43:14.040
<v Speaker 1>it's running, you might say, is what you're giving up

0:43:14.400 --> 0:43:18.640
<v Speaker 1>to make it work and what price point you've got

0:43:18.800 --> 0:43:20.799
<v Speaker 1>to hit? So you know, you have to make sure

0:43:20.840 --> 0:43:22.799
<v Speaker 1>it's it's not going to run the battery down. You've

0:43:22.800 --> 0:43:24.279
<v Speaker 1>got to make sure that it's energy you know that

0:43:24.360 --> 0:43:27.200
<v Speaker 1>it's energy efficient, that it it looks nice even though

0:43:27.200 --> 0:43:29.719
<v Speaker 1>it has a nice screen on it, and it's functional.

0:43:30.480 --> 0:43:32.600
<v Speaker 1>But then you go, okay, well what software am I

0:43:32.600 --> 0:43:35.239
<v Speaker 1>gonna run? You know what, Obviously you're not going to

0:43:35.280 --> 0:43:38.799
<v Speaker 1>be able to run something like a Final Cut Pro

0:43:39.120 --> 0:43:44.480
<v Speaker 1>on an iOS device or Adobe full version of Adobe

0:43:44.560 --> 0:43:50.239
<v Speaker 1>Photoshop CS on a surface because there are certain things

0:43:50.320 --> 0:43:52.319
<v Speaker 1>you need the screen space, you need. So what are

0:43:52.360 --> 0:43:53.960
<v Speaker 1>you going to give up? What are you gonna take out?

0:43:54.000 --> 0:43:56.799
<v Speaker 1>What are you gonna put in? And that's that's really

0:43:56.880 --> 0:43:58.880
<v Speaker 1>what we're talking about when we're talking about the philosophy

0:43:58.960 --> 0:44:01.680
<v Speaker 1>that we're approaching it at Because, um, the forum factor

0:44:01.719 --> 0:44:05.080
<v Speaker 1>has been established as a success. You know, it's it's

0:44:05.120 --> 0:44:07.719
<v Speaker 1>a good These are good sizes for the device. Um.

0:44:07.960 --> 0:44:09.239
<v Speaker 1>As a matter of fact, you have the surface is

0:44:09.400 --> 0:44:13.360
<v Speaker 1>very similar in size to the iPads versus the the

0:44:13.800 --> 0:44:19.360
<v Speaker 1>Android tablets, which vary in size sixteen by nine screen size,

0:44:19.480 --> 0:44:21.920
<v Speaker 1>and you know they're smaller or bigger than you have

0:44:22.000 --> 0:44:27.280
<v Speaker 1>a tablets, the fablets, the fablets, the half phone half tablet.

0:44:27.400 --> 0:44:30.000
<v Speaker 1>I like saying that the Galaxy Note being one of

0:44:30.080 --> 0:44:33.120
<v Speaker 1>the first makes the term makes Jonathan squirms, So it's

0:44:33.200 --> 0:44:36.439
<v Speaker 1>not a big fan of the term fablet. I still

0:44:36.520 --> 0:44:38.560
<v Speaker 1>want a Galaxy Note, by the way, I don't own

0:44:38.600 --> 0:44:41.320
<v Speaker 1>one one, But I do think I do think that

0:44:41.440 --> 0:44:45.400
<v Speaker 1>Microsoft has uh it's on the right track, definitely, And

0:44:45.480 --> 0:44:48.160
<v Speaker 1>if anybody can do this, it's going to be Microsoft.

0:44:49.080 --> 0:44:51.440
<v Speaker 1>You know. Obviously Google and Apple have already proven that

0:44:51.560 --> 0:44:53.920
<v Speaker 1>they can do this. But I can't think of anybody

0:44:53.960 --> 0:44:57.279
<v Speaker 1>else getting into the field. Uh and just when I go,

0:44:57.719 --> 0:45:04.200
<v Speaker 1>there's Paul, these guys. That's right, they still have o s.

0:45:05.360 --> 0:45:08.160
<v Speaker 1>I don't know that we'll ever. I mean, technically it's

0:45:08.200 --> 0:45:11.879
<v Speaker 1>not dead dead yet. Uh. Now it will, I think

0:45:11.920 --> 0:45:14.960
<v Speaker 1>depend very heavily on the price, because people now have

0:45:15.080 --> 0:45:17.960
<v Speaker 1>an expectation of how much tablet should cost, not thinking

0:45:18.239 --> 0:45:20.480
<v Speaker 1>this is don't think of it as a tablet, think

0:45:20.480 --> 0:45:23.279
<v Speaker 1>of it as a PC. That's that's really hard because

0:45:23.320 --> 0:45:25.560
<v Speaker 1>now we've already established what a tablet is and what

0:45:25.719 --> 0:45:28.560
<v Speaker 1>it can do and what it cannot do. And perhaps

0:45:28.600 --> 0:45:30.160
<v Speaker 1>if you think of it, oh, well, this is a tablet,

0:45:30.239 --> 0:45:32.319
<v Speaker 1>it can just do more than this other tablets. Yeah,

0:45:32.320 --> 0:45:37.200
<v Speaker 1>but is more value. That's so I think it's really

0:45:37.239 --> 0:45:40.520
<v Speaker 1>gonna play down to how does Microsoft price it. Microsoft

0:45:40.640 --> 0:45:43.759
<v Speaker 1>could end up pricing it very very competitively, so that

0:45:43.840 --> 0:45:46.279
<v Speaker 1>they're essentially taking a loss in the hardware. But if

0:45:46.320 --> 0:45:49.200
<v Speaker 1>they do that, then they're shooting themselves in the foot

0:45:49.200 --> 0:45:51.480
<v Speaker 1>in another way, because they've set an expectation for all

0:45:51.560 --> 0:45:54.840
<v Speaker 1>their partners, and then if their partners are forced to

0:45:54.960 --> 0:45:56.759
<v Speaker 1>sell at it, you know, it doesn't make sense for

0:45:56.840 --> 0:45:59.040
<v Speaker 1>the partners to sell at a huge loss. If that

0:45:59.200 --> 0:46:01.240
<v Speaker 1>if that's how they may their money is through the hardware,

0:46:01.360 --> 0:46:04.040
<v Speaker 1>which is already a very low margin area to make

0:46:04.080 --> 0:46:08.000
<v Speaker 1>your money off of anyway. Um, so Microsoft has a

0:46:08.080 --> 0:46:10.640
<v Speaker 1>very delicate balancing act. They can't price it so competitively

0:46:10.760 --> 0:46:14.120
<v Speaker 1>that they have knocked all their partners out of the market,

0:46:14.440 --> 0:46:18.200
<v Speaker 1>and they can't go too far over the established price

0:46:18.239 --> 0:46:21.160
<v Speaker 1>of tablets because then everyone's gonna balk at the expense.

0:46:22.000 --> 0:46:25.200
<v Speaker 1>Plus uh. I think this is very important for Microsoft

0:46:25.320 --> 0:46:30.239
<v Speaker 1>to try for one very important reason. Um, there has

0:46:30.320 --> 0:46:35.560
<v Speaker 1>been a halo effect on Mac sales from the success

0:46:35.800 --> 0:46:38.120
<v Speaker 1>of the iPhone and the iPad. Now, of course you're

0:46:38.120 --> 0:46:41.759
<v Speaker 1>going to say that the Mac still trails Windows by

0:46:41.840 --> 0:46:45.719
<v Speaker 1>a huge margin. Yes, that's true, but there has been

0:46:45.760 --> 0:46:48.239
<v Speaker 1>an increase in Mac sales and they have been selling better.

0:46:48.640 --> 0:46:51.280
<v Speaker 1>Now there are rumors, of course that with the Chrome

0:46:51.640 --> 0:46:57.680
<v Speaker 1>operating system, that Google could be getting into the desktop

0:46:57.760 --> 0:47:01.239
<v Speaker 1>market and and it I think it is important to

0:47:01.800 --> 0:47:04.680
<v Speaker 1>for Microsoft to establish a beachhead in the tablet front

0:47:05.160 --> 0:47:08.160
<v Speaker 1>to keep people, to give them an option in to

0:47:08.360 --> 0:47:11.719
<v Speaker 1>keep everybody in the Windows ecosystem as it is. Well,

0:47:12.239 --> 0:47:14.360
<v Speaker 1>I have to say Windows eight Mobile, you can have

0:47:15.040 --> 0:47:18.560
<v Speaker 1>you know, the Windows RTU tablet and you can have

0:47:18.719 --> 0:47:21.319
<v Speaker 1>your Windows eight desktop. I have to say that I'm

0:47:21.320 --> 0:47:23.800
<v Speaker 1>not surprised about the Halo effect thing, because you know,

0:47:23.960 --> 0:47:26.360
<v Speaker 1>as we all know, Bungee used to develop games just

0:47:26.600 --> 0:47:28.800
<v Speaker 1>for the Mac and that was where Marathon came out of,

0:47:28.960 --> 0:47:31.480
<v Speaker 1>and the Halo games are sort of a spinoff of Marathon,

0:47:31.600 --> 0:47:34.880
<v Speaker 1>and those went over into not that Halo effect. The

0:47:34.960 --> 0:47:38.799
<v Speaker 1>Halo effect actually refers to, hey, I like this, and well,

0:47:39.000 --> 0:47:41.040
<v Speaker 1>you know what, that looks very much like this. I

0:47:41.080 --> 0:47:44.200
<v Speaker 1>think I'd be comfortable trying it out. And yes, people

0:47:44.200 --> 0:47:47.880
<v Speaker 1>who have been trying out uh, Macintosh computers, people who

0:47:47.960 --> 0:47:51.080
<v Speaker 1>didn't necessarily use them because they bought an iPhone or

0:47:51.080 --> 0:47:53.560
<v Speaker 1>an iPad and said, hey, you know, the operating system

0:47:53.560 --> 0:47:55.080
<v Speaker 1>looks pretty similar, I want to try it, and they

0:47:55.120 --> 0:47:57.719
<v Speaker 1>find out they worked very well together. Again, that's sort

0:47:57.760 --> 0:48:00.720
<v Speaker 1>of the benefit of the closed system. Just have a benefit,

0:48:01.280 --> 0:48:02.759
<v Speaker 1>have Halo on the mind because I get to play

0:48:02.800 --> 0:48:05.720
<v Speaker 1>Halo four in two weeks. Okay, all right, so I'm excited.

0:48:05.880 --> 0:48:09.799
<v Speaker 1>But well, that was the reason that Microsoft sold so well.

0:48:10.880 --> 0:48:13.919
<v Speaker 1>Office and Windows go so well together, and of course

0:48:14.000 --> 0:48:17.960
<v Speaker 1>Internet Explorer as the browser. Um, you know, that was

0:48:18.040 --> 0:48:21.759
<v Speaker 1>the focus of the whole antitrust thing is it part

0:48:21.800 --> 0:48:23.440
<v Speaker 1>of the operating system? Is it not part of the

0:48:23.480 --> 0:48:26.680
<v Speaker 1>operating system? Do people have a choice? But it makes

0:48:26.719 --> 0:48:29.759
<v Speaker 1>you wonder about the whole, like the any there's an

0:48:29.760 --> 0:48:33.360
<v Speaker 1>any trust thing brought up against Microsoft, but not brought

0:48:33.440 --> 0:48:38.920
<v Speaker 1>up against Apple and the iPad where Chess, Safari and anyway.

0:48:39.400 --> 0:48:42.480
<v Speaker 1>So these things I think are being redefined. Yeah they are.

0:48:42.920 --> 0:48:46.000
<v Speaker 1>I agree they are being redefined. So we're going to

0:48:46.160 --> 0:48:50.080
<v Speaker 1>wrap up this discussion on the history of Microsoft and

0:48:50.160 --> 0:48:52.799
<v Speaker 1>tablets and the discussion about the Surface, which I'm sure

0:48:52.840 --> 0:48:55.280
<v Speaker 1>we'll talk more about once it once it actually becomes

0:48:56.280 --> 0:48:59.920
<v Speaker 1>a real reality. It's a retail reality as opposed to

0:49:00.040 --> 0:49:02.160
<v Speaker 1>just the the versions that we've seen and where we

0:49:02.239 --> 0:49:04.640
<v Speaker 1>have more details and we can kind of I think

0:49:04.640 --> 0:49:06.440
<v Speaker 1>it will be fun to talk about it maybe a

0:49:06.560 --> 0:49:10.239
<v Speaker 1>year after the debut, to see what impact it had,

0:49:10.360 --> 0:49:13.040
<v Speaker 1>if any, on the industry as a whole. Well, that's

0:49:13.080 --> 0:49:15.400
<v Speaker 1>a that's a good point too, because as we know,

0:49:16.080 --> 0:49:22.480
<v Speaker 1>BlackBerry and Palms tablets lasted for a very very brief

0:49:22.560 --> 0:49:25.120
<v Speaker 1>period of time on store shelves. Yeah, I think the

0:49:25.239 --> 0:49:29.000
<v Speaker 1>Surface has a much better chance of making it long

0:49:29.160 --> 0:49:31.919
<v Speaker 1>term and being a real competitor to the iPad than

0:49:32.760 --> 0:49:36.640
<v Speaker 1>um those devices did, Yeah, I agree to. I think

0:49:36.640 --> 0:49:40.279
<v Speaker 1>they'll be around. Well, well, we'll see. I mean there

0:49:40.400 --> 0:49:43.080
<v Speaker 1>was a lot of initial excitement at the announcement at

0:49:43.080 --> 0:49:47.000
<v Speaker 1>any rate, so that hopefully will propel this. And competition

0:49:47.080 --> 0:49:49.439
<v Speaker 1>is always a good thing, So I want to see

0:49:49.480 --> 0:49:52.239
<v Speaker 1>this succeed, at least as far as it will make

0:49:52.480 --> 0:49:56.160
<v Speaker 1>other companies like Google and Apple and the various partners

0:49:56.360 --> 0:50:01.440
<v Speaker 1>really press to innovate and and continue to bring cool

0:50:01.600 --> 0:50:04.880
<v Speaker 1>features to consumers, so we'll all benefit in the end. Well,

0:50:04.920 --> 0:50:07.160
<v Speaker 1>that wraps up this discussion. Now. If you guys have

0:50:07.320 --> 0:50:10.200
<v Speaker 1>any suggestions for topics that we should cover in future

0:50:10.200 --> 0:50:12.440
<v Speaker 1>episodes of text Stuff, please let us know. You can

0:50:12.440 --> 0:50:15.319
<v Speaker 1>send us an email. Are and just tex stuff at

0:50:15.560 --> 0:50:18.279
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0:50:18.400 --> 0:50:21.040
<v Speaker 1>Are handled there is tech stuff hs W and Chris

0:50:21.120 --> 0:50:25.080
<v Speaker 1>and I will talk to you again really soon for

0:50:25.200 --> 0:50:27.520
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0:50:27.600 --> 0:50:33.680
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