Fisher is vice president, software and solutions group and general manager of SSG’s Systems Software Division.

For more information, expert advice and answers, and the latest Xeon series blogs and videos, check out www.intel.com/server.

Tags: Steve Herrod, Intel, Doug Fisher, VMworld2008, VMware, Intel, Xeon 7400, virtualization, Dunnington, microprocessor, datacenter

“We’ve put in features such as Turbo Boost Technology, our integrated power gate, an integrated memory controller, and Hyper-Threading,” he says. The effort took about five years and required thousands of engineers.

“Building this microprocessor brings a lot of people together, like architects, micro architects, the design teams,” commented Rani Borkar, vice president of Intel’s Digital Enterprise Group. “As you get into the development phases, working with the process technology, it’s a mind-boggling effort that requires a lot of teamwork across the board.”

This video takes you into Intel’s labs to meet some of the researchers behind the Core i7.

Tags: Core i7, microprocessor, Intel, Nehalem, microarchitecture, Ronak Singhal, chip design, Turbo Boost Technology, Hyper-Threading, Rani Borkar, energy efficiency, Energy Smart, Francois Piednoel, Regina Wu, gaming

The speed of change in the software world is daunting. In his own keynote, SVP and General Manager of the Ultra Mobility Group at Intel, Anand Chandrasekher, noted that everyone is trying to “unleash the Internet, unwire it, and make it go mobile.” Again, the words sound almost obvious, like common sense. They’re not.

It’s true that Intel specializes in bringing incredible advancements to technology on a tick-tock product development schedule that allows industries to grow and thrive. You can see in the matter of weeks and months that Intel’s efforts go from being rumor to being confirmed technological advances (like the recent Dunnington news) that the world is watching itself change in real time. It’s true that a lot of time at IDF in Shanghai was devoted to presentations on specific technologies, platforms and products.

We heard a lot more about Nehalem, about visual computing, about multithreaded CPUs (And just for fun, compare this detailed look at Intel’s sometimes-inscrutable codenames with a detailed look at those same codenames, from a slightly different perspective). Keynotes from Gelsinger and Chandrasekher, along with Software and Solutions Group General Manager and Intel Vice President Renee James and Intel’s Andrew Chien helped to clarify just how much more mobile our technology will allow us to be.

But always in the backdrop was Shanghai. In this video podcast, Jason Lopez connects the dots between Intel’s efforts to push technology past its limits and Shanghai’s amazing journey to pass its own.

Tags: IDF, Shanghai, Intel developers, Pat Gelsinger, architecture for life, Anand Chandrasekher, unleash the Internet, Dunnington, Nehalem, visual computing, multithreaded CPUs, Renee James, Andrew Chien, Jason Lopez, IDF2008, Silverthorne, Intel Atom, mobile Internet device, Nehalem, Dunnington, Multithreading, virtualization, high performance computing, wireless technology, Centrino, WiMax, 45nm, 32nm

PodTech spoke with Warner Crocker, of GottaBeMobile.com, who posted his own report on the sixth iteration of Samsung’s Q1 Ultra Premium UMPC, (which features Intel technology), as well as Kevin C. Tofel, of jkontherun.com, which also covered Intel’s MID display in a post from the CES show floor.

Tags: Intel, microprocessors, server arrays, Mobile Internet Devices, MIDs, Menlow, 45-nanometer, Silverthorn, chipset, Poulsbo, Warner Crocker, Kevin C. Tofel

Tags: microprocessors, OEMs, ultra mobile devices, Pankaj Kedia

Tags: Moore’s Law, 45nm, Penryn, microprocessor, new recipe, Hafnium, metal gate, eco-unfriendly, wasteful electricity leaks

Morris Chang helped create the fabless chip industry. And in doing so, he created a massive innovation platform by enabling small bands of chip designers to buy production time as they needed it. Chip companies no longer needed to own and maintain hugely expensive chip fabs.

John Hennessy helped develop the RISC microprocessor, whose features are found in all modern microprocessors. As president of Stanford University, he has made huge contributions to education, and the creation of a student body that has gone on to found many of Silicon Valley’s largest companies. And his work has helped generate huge licensing revenue for the university.

David Patterson made important contributions to microprocessor design and RAID data storage technologies. As head of Computer Science at the University of California at Berkeley, he has helped educate generations of computer engineers.

Charles Thacker helped create the personal computer. His work at Xerox Palo Alto Research Center led to the Alto, the machine that inspired Apple Computer and featured a windows graphical user interface. He co-developed Ethernet and also the laser printer.

Tags: Morris Chang, John Hennessy, David A. Patterson, Charles Thacker, John Hennessy, David Patterson, Charles Thacker

Intel has brought out new technology every two years for the last 14 years, putting Intel co-founder Gordon Moore’s “Moore’s Law” into practice. From 45 nanometer technology, Intel has its sights set on 32 nanometer microprocessors for 2009.

Otellini also talked about platforms — the unique combination of microprocessors and chipsets, “tailored for the task at hand.” In the immediate future is Penryn, 45 nanometer dual-core products, the first of which are launching on November 12. Next year, Intel plans to launch Nehalem, a scaleable, multi-core system — 8 cores, each with 2 threads. (Specifics on the launch aren’t available yet — Dean Takahashi reports from IDF that it’ll be released “as soon as it’s ready.”

While discussing the multi-core Larrabee effort, Otellini may have revealed a little more than he intended by indicating it amounted to a move into discrete graphics (he later clarified, according to The Register’s Ashlee Vance: “I said that among the applications for Larrabee one of them is high-end graphics.” Other sources provide a play-by-play of the proceedings.

In addition to adding more cores, Intel is also improving the performance of individual cores, and of power efficiency.

What does the future hold for Intel? The long list of efforts includes pushes in extreme mobility, including ultra-mobile devices with integrated WiMax/Wifi; entertainment — with talk about extreme performance, graphics capability energy efficiency for extreme gaming; problem-solving geared for Enterprise innovations; performance and energy efficiency initiatives including the Climate Savers Initiative & compliance with EPA Energy Star rating program; and creating and reaching new markets, with initiatives to get the 3rd million people connected, through programs like “Intel Teach.”

Tags: Paul Otellini, Intel, silicon technology, Intel architecture, Gordon Moore, Moore’s Law, 45 nanometer, 32 nanometer microprocessors, microprocessors, chipsets, Penryn, Nehalem, IDF, Larrabee, discrete graphics, ultra-mobile devices, WiMax, Wifi, extreme performance, extreme gaming, Climate Savers Initiative, Energy Star rating, Intel Teach

Tags: Mario Paniccia, Intel, Intel Developer Forum, IDF, Photonics Technology, Jerry Bautista, Microprocessor Technology Labs, multi-core

Tags: Sun Microsystems, UltraSPARC, Nathan Brookwood, Insight64, Clay Ryder, Sageza Group

Aron Pruiett reports on the Social Media Experience, a panel discussion and the question of online diversity; Larry Magid takes a quick look at Apple’s latest hardware and software.

Tags: Sun Microsystems, Nathan Brookwood, Insight64, Aron Pruiett, Social Media, Larry Magid, Apple

Here is Part 2 of Sun’s presentation. Part 3 and Q&A with press and partners coming soon.

Aron Pruiett reports on the vaporization of capital from mainstream media the result of amateurs; Larry Magid takes a quick look at Apple’s latest hardware and software.

Tags: Sun Microsystems, Nathan Brookwood, Insight64, Aron Pruiett, Larry Magid, Apple

Here is Part 1 of Sun’s presentation. Part 2 and Q&A with press and partners coming soon.

- Robert Scoble visits Tom Rolander, a former colleague of Gary Kildall of Digital Research and finds out what happened when IBM tried to license Digital Research’s DR-DOS for its PC. How did Gary Kildall miss out on such a great opportunity?

- Larry Magid finds a solution to recharging mobile devices using an innovative fuel cell power pack from Medis Technologies.

Tags: Sun Microsystems, Nathan Brookwood, Insight64, Robert Scoble, Tom Rolander, Gary Kildall, Digital Research, IBM, DR-DOS, Medis

For more information:
www.intel.com/museum/online/hist_micro/hof/

www.gpracing.net192.com/cars.cfm

www.f1-grandprix.com/history6.html

Intel Gives Gamers Max Power at CES

Intel Working With BMW to Bring Hands-On F1 Experience to People

Tags: Formula One, racing, Intel, Goodyear, Karl Kempf, BMW, Sauber

Pat Gelsinger, who helped shepherd Tera-scale research, offered insights into the Penryn microprocessor and the products it will power after its release later this year. He also talked about highly parallel, IA programmable architecture codename “Larrabee.” Also in the keynote podcast, Gelsinger unveils QuickAssist Technology to optimize the use of accelerators in servers, and Tolapai to integrate the memory controller, I/O controller hubs and an Intel QuickAssist Technology accelerator into a single processor.

Tags: Intel Developer Forum, Justin Rattner, Pat Gelsinger, Penryn, Larrabee, QuickAssist, Tolapai, Intel

Here’s an interesting video produced by Intel at their research facility in Hillsboro, Oregon featuring engineers who are working on 80-core technology.

Related Stories: IntelMooresLaw

More Information:
Intel Tera-Scale Research (80-Core animation
available on this site)
Intel Pressroom
Technolgy @ Intel Magazine
Intel Technology Journal

Transcript:

Host: Jason Lopez – PodTech

Jason Lopez – PodTech
What’s better than a teraflop computer in a room? Obviously, a teraflop computer on a chip. What this is a production prototype of the world’s first teraflop on a chip die. Each of these dies has 80 simple floating-point cores on them with stacked SRAM. There are over 80 die on this wafer. Each 80-core die is capable of a teraflop performance with the ability to transfer terabytes -per-second of data between the cores and the stacked SRAM. Now it’s a prototype, but we think that the capability embodied by this prototype chip is going to be commercially available in a five-year window and that allows us to do some very amazing things.

This kind of performance gives us, the first time capability to imaging things like real-time video search or real-time speech translation from one language to another. Now, at the most fundamental level, the thing that makes all this work, the thing that makes this come alive is the transistor. And a lot has changed in the world of computing, but there’s been one constant, and that’s Moore’s Law.

Video plays — We hear a lot about Moore’s Law, but I don’t think that most people are aware of what doubling every two years really means.

(Music)

Mark Bohr - Intel
When I first joined Intel, the smallest transistor dimensions were about 3 microns. Today the smallest dimensions are around 30 nanometers, a 100 times smaller. Over the years, our process technology has changed dramatically. Our wafer sizes have grown from a 3-inch diameter in 1978 to today’s 12-inch diameter, and we have switched from bipolar to NMOS to CMOS technology, and more recent innovations have been “locate dielectrics”, copper interconnects, and strained silicon transistors.

In each case, the goal was to improve performance and to reduce power. So, while the concept of Performance-per-watt is somewhat new to the industry, power considerations have been a focus for Intel all along.

Yan Borodovsky – Intel
Lithography is how we reproduce, the design patterns on the chip. Of all the manufacturing steps, it is the most complex and most expensive. Patterns created by a chip designer are first etched into the mask then transferred by shining light through the mask onto the wafer. The process requires the most advanced lenses known to mankind. At the Intel we have a huge advantage over our competitors because we design and make our masks in-house. Our mask teams collaborate closely with our patterning teams to develop resolution, enhanced capability, to deliver higher-density patterning, earlier and with lower cost.

Mark Bohr - Intel
Moore’s Law isn’t like a natural law. It doesn’t just happen. We began working on 65-nanometer over five years ago. And are now working on processes for use five years or more from now. Gordon Moore formulated a law. Now it’s up to us to keep him honest.

Copyright ©2006 PodTech.net. All rights reserved. Privacy policy

Tags: Intel, microprocessor, Teraflop, Integrated Solid State Circuits Conference, artificial intelligence, Jason Lopez, Justin Rattner, IntelMooresLaw

Tags: Nintendo, Wii, Intel, Penryn, 45 nanometer, microprocessor, Robert Scoble, IBM

Intel announced that it will begin making 45 nanometer chips, code-named Penryn, in the second half of the year. The new microprocessors are the culmination of years of R&D using new materials to improve the efficiency and performance of silicon-based semiconductors.

The company says the new chip technology maintains Moore’s Law, the observation made by Intel co-founder Gordon Moore in the late 1960s that the number of transistors doubles on chips every two years. Intel scientists say that transistors are now so small that more than 300 can fit on a human red blood cell.

In a recent earnings announcement, Intel officials said they expect to rebuild a lead in the computer chip market through innovation and manufacturing efficiency. Intel’s current line of microprocessors includes the Core2Duo, Core2Extreme, and Core2Quad.

In this video podcast, PodTech’s Jason Lopez visits Intel’s Hillsboro, Oregon research facility and fab.

Related Stories: IntelMooresLaw

Transcript:
Host: Jason Lopez – PodTech
Guests: Intel Spokesperson
Guest: Kelin Kuhn - Intel

Jason Lopez – PodTech
Transistors are the miniature machines of the heart of computers. The first transistors built on silicon in the 1960’s were relatively large compared to those of today. But in the last few years, scientists have sensed The End of Moore’s Law as the quest to double a number of transistors on a chip every two years has pushed the limits of physics.

This test wafer is used to measure the reliability of billions of H transistor and interconnect features, the blue prints for making microprocessors. For nearly 40 years, transistors have been made from a polysilicon gate and silicon gate oxide, the materials used to create the switch inside that turns it on and off. But with 65 nanometer technology currently in production, those materials have been pushed to their physical limits. To go smaller at 45 nanometers scientists said Intel chose new materials a Metal gate and High-K gate oxide based on the element hafnium. These materials have enabled yet again the doubling of the density of transistors within a two-year timeframe.

Intel code names its new family of 45 nanometer chips ‘Penryn’ which deliver a significant improvement in power efficiency and performance.

Speaker
This is a really tremendous accomplishment to get all the way down to 45 nanometer dimensions. When I joined Intel five micron dimensions were common. 45 nanometers is more than a 100 times smaller than that. So, quite remarkable.

Kelin Kuhn - Intel
If you think about it, if you look at the Intel 45 nanometer device technology, we can fit 400 transistors on something about the size of the human blood cell.

Speaker
So, it allows us to continue scaling and maintain this Moore’s Law type of evolutionary built up we’ve seen.

Speaker
Well, developing smaller transistors or technologies with smaller feature size is very key, because it allows you to pack more transistors on a chip which means you can do more things with that chip, that also means that these transistors when they’re smaller can use less energy when you switch them on and off. So, you have better power efficiency, you can get certain computational functions done using less energy, less power.

Jason Lopez - PodTech
Intel’s drive to adhere to Moore’s Law is as much an economic decision as it is a scientific one. It’s one thing to make the Metal gate and High-K gate oxide technologies work. It’s another to make 45 nanometer chips enlarged volumes to satisfy the market. Intel’s lead in the chip industry is based on its ability to deliver cheaper and faster microprocessors.

Speaker
Well, one of the key things that Intel does very well is what’s called Design for Manufacturability and the key there is to make sure that the product design and the process manufacturing technology are able to work together and produce high yielding, high quality products and because we’re an integrated device manufacturer, we do the design in-house, we do the process development in-house, we’re able to do a really good job at Design for Manufacturability up front and produce these chips in high volume.

Jason Lopez - PodTech
Metal gate and High-K gate oxide only atoms thick are more electrically efficient helping to reduce heat and power lost from leakage and improving transistor performance by 20%. The idea to use new materials has been around for more than a decade, but the technologies to deploy them were developed by hundreds of engineers over the past few years.

Kelin Kuhn - Intel
Okay so, if you think about how we build gate oxides, historically, we’ve used very simple silicon dioxide materials basically glass, and as we’ve developed our technology expertise over the years we started doing very elegant things to this glass to make ever better oxides basically the gate of the transistor.

When we introduced the Intel 45 nanometer process we moved a hafnium-based material as a radically different way of resolving our gate leakage issues and so it’s a very novel material system that’s intrinsic to the type of leakage improvements we see. Chip design was simple once and we don’t do that anymore. It’s complicated now because we already did the simple stuff that’s my humorous answer, but I think in today’s world if you look at a modern microprocessor. We’re talking hundreds of millions of transistors and it’s incomprehensible that humans can build this to be honest.

Every time we have a success in the fab. I sit back and look at this and we’re looking at devices that are one-tenth the wavelength of light. Little tinnie winnie devices and humans can build these very complicated things and if you think about it, a yielding dye in our process technology means every single transistor worked. Every single one of those 100 million transistors worked and that’s when we sell them. Can you believe it? Humans can actually make something where every single one of a hundred million plus devices worked, it’s remarkable, and we don’t do it as individuals, we do it as an international team.

Speaker
We had the fly of the wafers to Arizona, get them assembled and then fly them back to Folsom, California in order to actually test them.

Jason Lopez - PodTech
So, what was the feeling of the team when you booted up that first OS?

Speaker
I would say one word it was ‘Euphoria’. The team was just tremendously excited. When you considered a number of people involved in the two–and-a-half years that culminated in this boolean of major Operating System with Penryn, it was an awesome feeling.

Jason Lopez - PodTech
Is that simply because it worked or is it because a number of things work?

Speaker
Yeah, it really represents the fact that a number of things worked. Coming out of reset is not so monumentous as say (Inaudible) up to boot Windows XP, or Windows Vista or Linux because there is a lot of functionality that has to be working to reach that level of capability. So, the team was obviously excited for that. All this happened around. I believe we booted around 3:30 in the morning and there was just a lot of adrenalin in the lab at that time and this is a lot of excitement.

Jason Lopez - PodTech
It’s like a moon shot only you didn’t have the big screen looking.

Speaker
Yeah, you could say that. Maybe on a smaller scale, but yeah, that’s equivalent to us on the engineering team as our moon shot.

Copyright ©2006 PodTech.net. All rights reserved. Privacy policy

Tags: Intel, 45 nanometer, Penryn, microprocessors, semiconductors, Moore’s Law, Gordon Moore, Intel, Core2Duo, Core2Extreme, Core2Quad, Jason Lopez, IntelMooresLaw

Transcript:
Host: John Furrier - PodTech
Guest: Bill Watkins - Seagate

John Furrier - PodTech
We are here with Bill Watkins, the CEO of Seagate for the quarterly earnings. Congratulations, I guess some big numbers. Tell us a little bit some of the things that went on, came off CES, great launch there, new consumer brand. Last quarter numbers were different, we talked about that. Tell us, what happened this quarter?

Bill Watkins – Seagate
Well, again I think it really was an outstanding quarter and outstanding in all levels of the company. As we looked at the quarter, I think from our introduction of new products, yield improvement in cost savings, the ending or finishing up, if you will, of the Maxtor integration on that merger that got completed. I think that in certain parts of desktop market pricing was a little bit better than we thought, but net-net it was just across the board, company wide people executing little a bit better than planned. So, we end up beating the guy in this place - that’s for sure.

John Furrier - PodTech
So, you beat the guys. Let’s talk numbers. What were the numbers?

Bill Watkins – Seagate
Well, we came in $3 billion of revenue, which is the first time…

John Furrier - PodTech
Huge.

Bill Watkins – Seagate
For the first time, we’ve ever done $3 billion as a storage company and again you think about that stuff. That’s probably 30-40% on an annual basis up. So, again very, very great attraction of the products as you saw on CES, where the new products come out the consumer retailed it almost 200 million in the retail, 180 and 190 retails. So, again I think it was across the Board, it was just a great quarter. We obviously had in the gaming section a big quarter in gaming for the Christmas rush. So, again it was three billion of revenue.

John Furrier - PodTech
So, the Maxtor thing is complete.

Bill Watkins – Seagate
Yeah, we’ve really finished the whole integration of Maxtor. We currently have approximately 200,000 drivers left to sell, but all the manufacturing is done, all the restructuring, the layouts are pretty much finished and what will remain will trick out this quarter.

John Furrier - PodTech
So, we were at Seagate booth at CES we had the Bloghaus, with all the bloggers, which is great, a lot of fun, but those all the new products were out there. Talk about the new stuff that’s coming out.

Bill Watkins – Seagate
Well, again I think what’s excited about being Seagate and being as a part of any storage company today, is this onslaught of video applications content we moved around and what we saw at CES, was Seagate’s newest product rollout, is really to take advantage of all this content being moved electronically around. So, we opened up with the whole new backup that drives that. That not only backup, your data allows you to accessing your world, it allows you to synchronizing with all your devices, so immediately if you backup of song, video, it goes to your devices, whether it’s a video iPod et cetera, or whatever. It allows you access those backup data.

We also launched a whole group of products that are mobile products, which give you same functionality, but allow you to take it into your hand and go and so you can download onto one of your mobile external devices all your settings, your PC, your favorite IP sections, et cetera, take that with you and go. Wherever you’ve got a keyboard and screen, you’ve got an instant computer, with all your personal settings. So, again it’s all about giving you mobility, giving you security, giving you ways of backing up and accessing that data and then synchronizing that data through all these multiple devices that you use.

John Furrier - PodTech
The consumer finds it sexier too. I mean, they were really nice designed products. At the Bloghaus, everyone was talking about it the lights and it looks cool. Talk about like the new products that are coming. Any new cooler drives…

Bill Watkins – Seagate
Well, again we think — we’re going to see a whole list of products. We started with a launch — I think we’re going to talk about — we’ve new external drives that are going to be wireless that allow you access these handheld devices phones, our storage capabilities allow you to back and load more data in a handheld device. We’re going to have a whole new rollout of our Maxtor brand coming out, that is really based on reliability and backup, but again we’re going to launch some new products. We’ve gone to kind of new concept here, where we’re bringing in a frog designed it actually did the same, we’re bringing in people who we think have expertise in consumer designs and they’re helping us design.

At Seagate, we’re very focused on the technology and we much more looking at industrial applications, so again sort of creative ideas and things like that. We’ve reached out to those people that do a great job and Frog (Inaudible) has done some stuff for us, but again it’s really bringing in a whole new sort of coolness to hard drives. Again, like I said this before John, we’ve always been kind of like in Wizard of Oz, the man behind the curtain. No one knew about us and it didn’t matter, we weren’t cool.

Today, we’re not brought in then forefront, you see them out there, they’re utilized, they’re enabling you to move this content without storage device you cannot move this content electronically. So, it’s really changed, the face of company is changed, where we going as direction and is really made this (Inaudible) exciting place to be.

John Furrier - PodTech
They’re all just fundamental, almost like a microprocessor was in original PC, you had to have it and now people are embedding in their lives. Just quick back on the revenue, three billion that’s huge number. You said storage company has never done that before. You blew away earnings; talk about the outlook from a numbers perspective, also Maxtor is fully integrated perhaps just coming out at CES we’re seeing that. What’s the outlook for next quarter and the quarter after?

Bill Watkins - Seagate
Well can — we are doing something kind of usual, usually coming off in December quarter, our business is somewhat cyclical and ideally at Christmas — there is so much storage bought for Christmas whether it is in gaming, DVR, set-top boxes et cetera, PCs, notebooks. And so, historically you tend to have a 10% down quarter coming off of December in the March quarter. We had actually given a forecast for the March quarter very different than that, what we are saying is revenue will be flat at three billion. We’ll improve gross margins and earnings will be in the $0.55 or $0.60 range, which would be a tremendous again, over and proven again.

So, the reason for this is, that the Maxtor products are behind us and so this would be the first quarter where we actually 100% manufacturing, if you will, the Seagate product lines. We’ve got new 1.8 inch drives that now we’ve announced and now launching, we are in fact qualifying, we’ll start to see revenue and earnings this quarter from those programs.

We have a very new two-and-a-half inch 10,000 RPM, and 15,000 RPM, which in fact is the fastest drive in the world for the enterprise market that we are getting tremendous acceptance on so. Again, we are announcing really, actually we’re saying, “We’ve got a whole revenue of three billion in our March quarter,” which is probably 10-15% above what historically would be. And we are going to grow earnings to that $0.55 to $0.60 range. Again, in a down quarter, but again a lot of the things in work that the teams have been doing are really show down and show up.

John Furrier - PodTech
That’s great. Actually storage is growing like crazy in everyone’s life, you guys have great traction. Talk about the leadership from Seagate, in terms of in the marketplace, obviously have the technology leadership, talk about that and then talk about how you guys are going to be competing in the consumer area?

Bill Watkins - Seagate
Well, again as we think about, what’s critical to us at Seagate, it’s has really taken this technology leadership and transferring that into product leadership and in cost leadership. We think that — I think historically a lot of companies tried to be a technology leader, they tried to be a product leader or tried to be a cost leader. What we think is critical for our business, is really fitting all three things take your technology, but, it’s not enough, just to not to be a technology, you’ve got to turn into product leadership, and it’s just not enough to just be the product leader, you’ve got to have cost leadership there.

So, we think with our vertical integration strategies, our tremendous investments and how we platform those investments that allows us to really access technology, and bring it to market to cheaper than anybody else, just this tremendous advantage. And again that’s how — I think right now, over the t third of every drive in the world, the Seagate drive, and we obviously intend to improve on it.

John Furrier - PodTech
Tell, about the Seagate brand, changing — you mentioned some the changes, leadership is obviously there, how do you want people to know the Seagate brand in the market?

Bill Watkins - Seagate
Well, I think — obviously we think about it from a consumer application and again I think to some extent it’s a same principle to OEM or Dell. You want to trust us, I mean as we think about — it’s one thing to put your data on a hard drive or your spreadsheet and that implies a certain amount of confidence or liability et cetera, but when you put your pictures, your files, your music, your video, your home pictures, I mean these are priceless things, and I think what’s important for us, that not only we developed the products and the services for you, we have to deliver a product from a reliability that you trust us, you are trusting us or myself, well trusting is the most important things in life.

So, as we start looking at consumer branding, we are going after that sort of attitude that and making maybe real life how important is that back it up, put it on reliable person or reliable company that’s going to value that and take care of that data, to that data is not $5 or $10 or $9.99 that’s you and your life and your most important things.

John Furrier - PodTech
How about the macro market conditions out there for your growth and leadership out there, what are the key things that you think about?

Bill Watkins - Seagate
Well again, as we think about it, we think is about getting content electronic distributed. And again we — anytime we move a song, a video or anything electronically, it creates an ecosystem that you need to have a storage at the enterprise level, where that content is held, and it’s delivered to your home. You need a storage device at your home to receive it, and then you move it your hand where you’re going to need a storage device, and then normally you’re going to move it to your car. And then everywhere along that cycle you need to back it up.

So, just the idea, or the behavior of moving content electronically, create six are seven drives or storage systems force. Sometimes, it’s going to be a flash in the hand, but again most that is going to be a hard drive, and so we get the benefit. More content is moved, whether it’s through the Internet, through your PCs et cetera. It created tremendous ecosystem, where we get to play it all every areas of those markets.

John Furrier - PodTech
We are here with Bill Watkins, the CEO of Seagate. Sum up for me the quarter that you just did and then the next quarter coming forward in your words.

Bill Watkins - Seagate
Well, again I think it’s very easy, to kind of excited about a quarter or whatever, I think that what — if I was to look at this, this quarter, next quarter, what you see is the opportunity. And it’s not of whatever we satisfied with $0.58 in March, or satisfy the fact we hit three billion. It’s the opportunity set is out there. And if we execute as a company, we can be in a dominating position in this industry. We can’t be a very large storage company; point-billion, those type of numbers are not impossible for us. The opportunity sets out there, we need to continue our execution.

John Furrier - PodTech
Storage of the center of the universe and people’s lives, great opportunity, you’ve blown away the number three billion in a quarter, blown away estimates, lot of leaderships, congratulations and thanks for the Podcast.

Bill Watkins - Seagate
Yeah, still more to come. Thanks.

Copyright ©2006 PodTech.net. All rights reserved. Privacy policy

Tags: John Furrier, Seagate, Bill Watkins, Maxtor

Transcript:
Guest: Jonathan Schwartz - Sun
Guest: Paul Otellini - Intel

Jonathan Schwartz - Sun
Well, good morning everybody. I think we’ve got a pretty interesting day ahead of us. What I’d like to do is, first of all, welcome Paul and the Intel team. As somebody earlier remarked, it was interesting to see those two logos side by side up there, with no spontaneous creation of energy around them. We think today really changes the marketplace for Sun, it certainly opens up a new era in our future. We are really looking forward to talking through what it is that we’re all about.

So, what I’d like to do, and maybe give Paul an opportunity to take a little rest here, is actually talk back to a meeting, and I don’t know if you remember this Paul, but when I was announced as the CEO of Sun, that was back in April of last year, I made a series of phone calls, and probably first on the list was a call to Paul to say, surely, there’s more that we could do together. I mean we are really fundamentally engineering companies, we’re both really focused on innovation and opportunity. We then had dinner in a San Francisco restaurant, which Paul enjoyed a great deal, he came to my neighborhood, which I was happy about. We really got to talking about the marketplace, and it really struck me at that point, the more we talked, the more similarly we viewed the market, the more similarly we viewed the market opportunity.

A slide that can give you a little picture of that is really quite simple. The more folks come online, the more services they want to get access to. You want to get access to your Gmail account, you want to get access to your work, you want to get access to the new entertainment services. The more folks we could bring online, the more opportunity on the network, the more opportunity that would drive in the world’s data centers and network operation centers to fuel that demand. This is a very simple idea, but really the volume on the front end of this is what defines our markets. The accessibility, the affordability, and the innovation that really captivates consumers brings people online and creates economic opportunity, and certainly for Sun and Intel back in the world’s data centers.

So, what I thought I could do is just give you a little bit of a perspective on, not only our business model and the way we see the marketplace, but put our relationship today in the context of the business that we’re ultimately building, and then I will turn it over to Paul to talk about some of the things that we’re going to be doing together.

So, if you spend anytime around Sun, you’ll hear us talk about the four S’s. We’re basically in four businesses, and those businesses are Software, Server, Services and Storage. Now, for us those businesses are a Venn diagram, because there is a considerable amount of overlap between them. Customers really don’t want to have to make four entirely distinct and separate and disparate decisions, and similarly as an R&D company, we don’t want to have to do completely independent R&D to go pursue these marketplaces.

So, we want to leverage to the extent that we can the core innovations we have at Sun, the core systems engineering expertise, software expertise, and market expertise. To the extent that we can, that creates a very efficient model for R&D as well as a very efficient mechanism to go pursue the marketplace, but importantly for Sun, we cannot be just about our own intellectual property. We cannot simply attempt to lock piece A to piece B and piece C, that’s not how customers buy as we see in the marketplace, that’s not what ultimately we believe the market actually wants.

So, if you look at how we go pursue the marketplace, we tend to meet customers where they are today. Our servers at this point run both the SPARC as well as AMD, and going forward, the Intel servers we build are not just about running Solaris, they’re about running Windows, they’re about running Linux, they’re about running Red Hat.

The software we ship, and I’ll give you a graphic to really make this point in a moment, dominantly runs off of Sun hardware. The majority of the software that Sun builds is running on Nokia hardware or on Intel hardware or on — certainly non-Sun hardware, HP, Dell laptops and notebooks along with those systems and servers up in the network.

Our storage business tends to be very, very cross platform. A very significant portion of the storage we build in the marketplace, whether it’s archive systems or enterprise storage, attaches to an IBM mainframe or to an HP server, or to a Windows server.

Then finally our services business, customers don’t want to just go to a company they can support only its own products, they need those products in deployment attached to a world of other innovations and opportunities. So, really this is our view of the marketplace. We meet customers at the edges of this Venn diagram and then we do our best to bring them toward the centre, knowing full well, there’s only one customer in the world who only buys from Sun and that’s our Chief Information Officer and we don’t expect to clone him anytime soon.

So, fundamentally behind this is a very simple concept that I know — also, Paul and I spoke about, which is a belief that volume drives value. So, what you see up in front of you here is a chart showing since we announced the open sourcing of Solaris, announcing that Solaris would be cross platform, would run on anybody’s hardware, what happened when we left those downloads free onto the networks? So, you’ll see back in March of 2005, when we began this program, we have come close to, if not, I don’t have the exact numbers in front of me right now, around 7 million licenses total distributed out into the marketplaces, 7 million licenses. What’s truly interesting about those download figures is how significant a proportion of those downloads are actually running on Intel and x86 hardware out in the marketplace, nearly 70%.

So, 7/10 downloads, 7/10 of those licenses of Solaris into the marketplace were not running on Sun hardware, they were running on Intel innovation. They were running on systems built by HP and DELL and IBM, and clearly if there is going to be an indication of opportunity for us to work together, it looked an awful lot like, here is a great motivation. It’s evident that customers wanted us to work together, and so clearly we wanted to do exactly that.

So, I think you’ve seen some of the news come out this morning, but as we were discussing with the media this morning, you’ve seen one out of three elements of this relationship. To just walk you through what in fact is going on. We are announcing today a relationship in which Intel will endorse Solaris, will support it across a broad range of Xeon platforms, will agree to OEM Solaris out into the marketplace, and to ensure that the market gets the support it needs in running and optimizing Solaris on Xeon platforms. This is a market changing event. This totally changes the perspective that a customer has on how they can do business with Sun, and similarly how they can do business with Intel.

So, Intel has agreed to really promote Solaris, to help us collectively go off and build the marketplace and the ecosystem around that, and reciprocally Sun is announcing today that we are going to be building a complete line of Xeon servers as well as workstations, complementing and augmenting a very rapidly growing server business that we have at Sun. You’ve probably seen the double digit growth we’ve posted now for consecutive quarters. This just opens yet more opportunity creates more choice for consumers, and again, not just running Solaris, but running Windows as well as Linux that’s out there.

Lastly, and I think what’s most interesting to me is — in fact our teams had a dinner back in December to help prep them for working together on getting this agreement struck, and it was evident, we had all of the heads of our product businesses there, and similarly Paul had some of his leading products folks there as well. We’re both engineering companies, we’re both companies focused on technology, focused on the advancement of our own technologies, using process, using wisdom about the marketplace to create new innovations that really capture and captivate consumers.

So, we’re also announcing today that we’re going to be collaborating on the next generation of our software leveraging Intel software expertise, the next generation of systems leveraging Intel microprocessors as well as Sun Systems engineering capabilities. What does that hold for the future? Time will tell, we’re pretty certain you all will be paying attention to that, and certainly we think there is just a world of opportunity out in front of us. So, this is really a comprehensive relationship. This is not simply a buy-sell arrangement. This is a mechanism that brings the two of us together and creates new market opportunities and new options as well as new value for both of us.

So, the substance of our collaboration, why don’t I just quickly walk you through this, I think you can read this on your own. Again, from the Intel side, Solaris will now be a Tier 1 operating system in the Intel definition, which again confers upon Sun and the ecosystem built up around Solaris in the OpenSolaris Community, a great opportunity to go drive after the volume leading microprocessors in the marketplace. This really brings Intel’s involvement in not just the product evolution, but also the community evolution around the Open Source Java platform, NetBeans, as well as Solaris. Then importantly, Intel is going to help make sure that we know how to optimize Solaris well for Intel microprocessors, so we end up with a better total solution for customers.

On the Sun side, we’re certainly looking forward to building out uniprocessor Dual and Quad Core processor systems. I think we’ve also suggested that we’re not just going to end there, this is — again, we see the marketplace is growing, both in requirements as well as the need for scale. We’re going to be building out things that are greater than four way, and I don’t think it takes a lot of creativity to figure out what’s greater than four way, but it sounds an awful lot like an eight way. As we go — yeah, six way, probably not. Again, this is a mechanism for both of us to get together to do the engineering, to do the hard work, to invent things that really capture and captivate consumers.

So, with that I’d like to pass the pickle to — actually you have your own pickle. Paul Otellini, Chief Executive Officer in Intel. Thank you very much.

Paul Otellini - Intel
Thank you, gentleman. As Jonathan said at one level the very highest level, this is about Intel endorsing and embracing Solaris and this about Sun endorsing and embracing Xeon, but I think there is a lot more behind that story and to give you some of our perspective on that. I thought it has been just a couple of seconds talking about how we at Intel view the enterprise environment today. At the highest level, the biggest single thing that’s happening is it all data centers regardless of their size are now focusing on evolving to a service oriented architecture and what that means we’ve think about the data center providing the critical services for a company, large or small. It means you start worrying about the cost of that echoes of that environment. They overall ecosystem built out in a particular how you use your equipment.

Thinks like utilization rights of servers are becoming very, very critical particularly in the era of rising energy cause. So, you want to able to use them more, but also have them costless in terms of the overall construct at the data center. As this happens, we look at things that are important to CIO’s and data center managers today. One of the things that’s popped up to us is that Solaris is evolving as a mainstream operating system, as you saw some other rate on the downloads, but it also it’s mainstream and enough itself and just to the equipment the Sun ships.

Now we’ve the opportunity to have Intel Inside many of those boxes, but it is becoming as the slide as the Mission-critical UNIX for Xeon. What is that mean? It means that we can collaborate together to make sure that the feature sets that people are — who buyers are focused on that is availability, reliability, Demand Base Switching, virtualization those kinds of features can be unleashed from the microprocessor through the operating system into the hardware the people buy, this lowers are in customers cost and increases the utilization rights. It’s all very, very good.

All the customers are demanding more, more flexibility, interoperability that also a strong argument for us to work together Sun is in a unique position, rather unique position or being the operating system vendor and the supplier of the hardware. That means, we can collaborate to be able to take advantage of a lot of these deep features been in a microprocessors and surrounding architectures. Then the third point is the Intel architecture is expanding.

It’s expanding upwards into the high end of the data centers and downwards into mobile devices, but if you’re independent software developer, thinking about Solaris now, being able to think about Solaris and conjunction with Xeon, which is the volume leader in the marketplace. It’s really important to you as a software developer. You can now take advance of the install base of the Intel hardware that’s out there from Sun and other vendors, but also focus your efforts on Solaris. In terms on Solaris on Xeon in terms of being able to find new markets for your software. In terms of Intel in the enterprise, the driving feature in the enterprise is Moore’s law. It’s been sold for almost 13 years now and Moore’s law gives us more, more transistors.

Up until very recently, the more transistors met simply higher clock speeds. That’s changed it changed in the last year and it’s going to change. I think systemically going forward to where we’ll deliver more performance, but we do it through delivering multiple cores more and more cores of microprocessors on a single chip. That leads to overall lower power requirements, lower cost but gives people more performance. That transistor budget though the Moore’s law gives us, also gives us the ability think but it is the template to put new features on to the chips. You’re seeing Intel developed things like I/O virtualization.

Virtualization of the kernel capabilities to build or run multiple operating system environments on a single microprocessor, which is been true in mainframes for long time and now is coming down to volume-based servers. Intel — from our perspective has done a good job in the last year, meeting all of our commitments in terms of new products coming into the marketplace. We’ve been at or ahead of schedule on every new server chip we’ve developed and we now have industry leading performance on 28th of the top 29 industry benchmarks for servers in terms of performance or energy efficiency of those kinds of metrics. We were the first to market with quad Core. We started shipping quad Core in the third quarter and ramp that volume up in the fourth quarter.

Now you see our quad Core products setting performance metric records out in the industry. We’re stopping Jonathan talked about a deep collaboration. That collaboration goes beyond today’s products and we’re excited about working with Sun or what we can do tomorrow, not just 2007 but beyond. We have a lot of new and exciting products coming out on the next generation Silicon Technology, which is 45 nanometers. This technology is extremely healthy at our conference call last week. We talked about Intel now, microprocessors built on this technology, booting four operating systems and for those members of the press that are interested we’re going to have a deep breathing on 45 nanometers up in Oregon next Monday.

You can talk to our PR people. If you’re interested in attending that that would be one we can actually see what a construct of this technology is like, look the fab look at the products that have been built on it. I think it will be very exciting for you. We have three fabs coming up on this technology in 2008, but I think I talked enough about the technology maybe I think it would be best now to turn a back over to Jonathan and he can tell you about why he was interested in Intel.

Jonathan Schwartz - Sun
I offered earlier in the day to allow Paul to walk you through this slide. I am, so, thinking about this. This is actually as a very natural collaboration and I want to try to convey to you how we think about our business and how you should look about the some of the strategic moves you’re going to continue to see from Sun as we go drive forward. Every business we built at Sun is independent of the others. They are related to one another, but they cannot be exclusively dependent upon one another. If all we do is built software for our own microprocessors or our own systems. We’ll by definition not be able to go after – majority of the marketplace. The same applies for our storage business.

We cannot simply attach to Sun servers or to the Sun software that obviously misses the majority of the marketplace. By definition, we’re a minority of the marketplace and we’re looking forward to go participate in as broad a market as possible. So, you can dismiss the fact that one looking at our software business, there is a very natural relationship with the volume microprocessor leader in the marketplace. Again if you look at the numbers that are out there, if you look at where people built applications. They’re building them on Intel microprocessors they’re building them on laptops and notebooks, PCs as well as servers.

So, for us, this is an enormous expansion of the market potential, because we can leverage Intel’s brand, Intel’s reach, Intel’s momentum in the marketplace that gives to our consumers to developers as well as the enterprises, more choice and more options that creates more value for Sun. In the fact that we can reach a much, much broader marketplace.

So, frankly along with the technical expertise the fact that when we hurdle together, we end up having engineering interchanges, which create value for both companies. One of the most exciting things here and I think one of the things that is, is really the story underlying all of this. Is the fact that Intel and Sun getting together around the promotion and the endorsement of Solaris changes the game in the marketplace; what was, potentially in question two or three years ago, which is what happens to Solaris. Does it suffer the same fate as some of the other UNIX is in the marketplace that issue is now off the table.

We clearly have volume, we clearly can work together with Intel to amplify that volume and not just – go look at the market as it currently is and sharing a vision of where the market is headed next to what Paul just said? The fact that we can excitedly sit down with Intel and say tell us the features you’d like us to expose through the operating system. We’re already talking about I/O virtualization as well as the next generation of network optimization of application performance. These are the kinds of things we can do working together and again that creates market opportunity for Sun, creates adoption, and momentum behind Solaris, and if there is a better leading indicator for the future of Sun’s fortune, I can’t think of it than the adoption and the proliferation of Solaris.

So, tell us this is a very natural relationship, we’re very appreciative of the work that the Sun and Intel teams have been doing over the past 6 months as we tried to figure out or how is it we worked together. I think we have had a bit of an ebb and flow in our relationship and I think we’ve only been detecting flow in the past 6 months and I think we want to continue seeing that go forwards, so again this is to us, this is a historic moment. This definitively changes the game in the operating system landscape, changes the market opportunity for Sun gives developers that want to use technologies from Sun as well as from Intel new choices, new opportunities, new performance, new economics. The fact that we can give more choice to customers that ISV’s have a higher volume platform now to plan. There is just a tremendous opportunity both for the Intel side as well as for the Sun side.

So, we can do what we do best and in concert with Intel’s obvious strength and volume, and brand out in the marketplace. We can combine forces to really go after a next ways of opportunity. So, again, I don’t think we could be happy with the relationship, more expectant of the benefits. This is going to bring to us and to bring to customers ultimately at the end of the day. It’s all about them any ways. So, with that why not I turn it over to Russ and maybe we’ll field some questions.

Russ
So, we’ve got some folks moving around the room here with some microphones. So, in just a moment, we’ll start, but I’ll do have to ask you or we’re going to be online on the web, so I need to identify yourself and the company you’re with, so that people listening in and can also get that information and with that it also if you like to direct your questions to either of these two, just let us — let me know. So, with that I think we’ll start.

Tom
Hi, Tom Sanders (Inaudible) where will the Intel processor sit next to the AMD line?

Jonathan Schwartz - Sun
Right next to it; different boards.

Paul Otellini - Intel
Yeah, probably different boards; haven’t got on that level of collaboration yet.

Tom
I mean is it going to be — can I choose between a Intel skew and an AMD skew for the identical system or what is it going to look like?

Jonathan Schwartz - Sun
So, I guess two things, one, I’d refer you to John Fallow (ph) and he can talk about specifics of the segments we’re going after. The end of the day, customer will define that. The customer will determine what they want to buy from Sun and what the underlying infrastructure needs to look like? That applies by the way to software as well as hardware because we do an awful lot of business out in the marketplace now, satisfying Window’s demand as much as Linux’s demand.

So, that’s not so much a grand strategic plan about how we carve up the market that’s really a – let’s look at the marketplace let’s go figure out where Intel innovation really creates new opportunity, let’s go after that.

Ian Kinfer - Bloomberg News
Ian Kinfer; Bloomberg News. Jonathan. you mentioned number of facts is one into your decision, but all other the things you said about Intel is pretty much always been true of the Intel in terms of scale, size, power in the marketplace, so why now would be the question place.

Jonathan Schwartz - Sun
Well I think a few things, number one the fact that Solaris was growing as rapidly as that has not always been true. I mean go look at the chart is just been a rocket ride up into the right that changes again. Secondly our server business has been growing double digits and that’s over the past four consecutive quarters on the spot side, triple digits on the x64 side. Frankly I think we’re different company in were obviously coming at this relationship in a very different way.

Thirdly, I think there has been a change in our view of the marketplace and how we want to go after it, maybe leaving some of the rhetoric of the past behind us. Again, one of the first calls I made having gotten my shiny new job was to call Paul and say, “what can we do together?” because clear — of course, we’re going to compete we’re both very large companies. We compete with almost everybody in the marketplace, but where can we go collaborate to create value for both companies, so again this is an either/or relationship for Sun. This is very much in an relationship. I think it is also a reflection on time and place, but maybe I’d also ask Paul to respond to that.

Paul Otellini - Intel
Sure. From our perspective, this is not just a chip deal, that’s certainly is what we’re all about and is important to us from both the credibility standpoint and the commercial aspects of the relationship, but it is not insignificant for us to commit to endorsing Solaris. This means we’ll put deep engineering on it, we’ll put field resources on it and that is from our perspective not just because I like Jonathan, but I think it’s a really good commercial opportunity for us. The install basis Solaris in a lot of places where Intel is not in some cases. Financial services and telecommunication are two markets where Solaris is very strong there being able to offer an optimize environment on Solaris, on Xeon into those marketplaces, make sense for us and it goes beyond the traditional chip sales aspect of the collaboration.

Speaker
The questions (ph) seem to be very quick.

Merv Adrian - Forrester Research
Merv Adrian from Forrester. Can you give us a little color as to when you think you’ll start to ship systems. You said this year, but can you be anymore specific; you think it’s year end, you think it is going to come any quicker on that?

Paul Otellini – Sun
We’re shipping right now; Solaris running on Xeon - go to Sun.com/solaris, get it downloaded, run it. It runs well; it will only run better. And for the specifics of when we start shipping Intel systems, I guess I’d defer to John, late in the first half of 07. Can’t you do better than that John?

Stephen Shankland – CNetNews.com
Stephen Shankland from CNetNews.com. In the past, you guys have been concerned about keeping a cap on your R&D budget; clearly this increases the amount of R&D. You’ll have to do engineering; you’ll to do hardware and software qualifications and certification. I wonder if you can comment on how much of a difference this is going to mean to Sun’s business also in terms of – would just take some supply chain — are you - presumably you think it is going to be justified, but how important is that factor and are you going to be getting any help in those activities from Intel?

Jonathan Schwartz – Sun
Yeah and in fact just to the beginning part; this, is in our view, actually lowers the expense because now we’ve a collaborator who is willing to work with us to court and cultivate and invest in the success of the ecosystem. So, this is a way of making R&D much, much more efficient. We can do what we do best and really now work with Intel to make sure that they can bring all that Intel has to bear against ensuring the success of Solaris. I think the way we look at R&D, we’re not interested in – nor is Paul for that matter in capping R&D. We are interested in the return on R&D.

And so long as we can get a return, we are interested in amplifying that to the extent certainly possible. And I think this is a way of ensuring, we get a better return for the R&D we are doing. Again, Solaris just running on Sun — on SPARC Systems or just running on AMD systems misses the majority of the marketplace. We want to go after the majority of the marketplace. Sun simply delivering SPARC Systems or simply shipping AMD systems misses the Intel opportunity. We want to make sure we can participate in both equally. I think one of the unspoken assets that Intel has is, they got a big software team.

They know an awful lot about software; and the fact that we can get together to optimize Java, we can optimize Net means that we can optimize Solaris; makes their systems look better, makes our operating system look better, makes the overall customer set happier — that’s all goodness as far as I am concerned. And again, I don’t know if you want to add to that.

Michael Singer – InformationWeek
Michael Singer with InformationWeek. Talk about your — you might have alluded to it before, but what were the previous barriers, because both of you had guiders before you took your posts that had a different relationship than you two have today. What was it that broke down those barriers and for you Jonathan and then for Paul? Was it just that you had a new opportunity with Sun that allowed you to take that choice to make this decision today or can you kind of, give us some call on that?

Paul Otellini - Intel
I think it was a bottle of Barolo at Delfina; I think that really - really good bottle.

Jonathan Schwartz – Sun
You know leave history aside, we think — and I think what motivates both of us is, we think there is opportunity – let’s get busy - let’s get after the opportunity. And what do you got, what have we got, how do we put it together in ways that goes off and creates value. So I think, we’re both looking forward and looking at customers — and by the way, just talk to any customer out there; no one could possibly think that this is anything other than a brilliant partnership; all these does is create options and choice for them.

Paul Otellini - Intel
One of the things I think is interesting to observe is that we are coming together at a time when both companies had very positive momentum both in the market and in our products; a momentum behind Solaris, we had a momentum behind the double-digit growth in servers, momentum behind Intel’s new product lines and so forth. And I have always thought that momentum breeds momentum; and the idea that we could get — the two of us working together, could only multiply as what we could have done independently and that was the principal reason for me to really want to do this.

Audience Member
So Jonathan, you’re going to start releasing Dual Processors, Xeon Systems in the first half, which is pretty soon. How long have you actually been developing these systems and also can you comment on when you expect the 4P and uniprocessor systems to come; but basically when did you start working it? How long has this been under cover?

Jonathan Schwartz – Sun
We – and again just so you think about — we don’t take the team that’s working on these systems and have them completely segregated and isolated from every other team at Sun. We have really deep systems engineering expertise; and frankly, the fact that they were only working on SPARC - you know, microprocessors, under-leveraged the talent they had that could enable us to get into new markets. So we have a unified systems team at Sun that builds all the systems we