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Inside Microsoft's Windows CE strategy (continued)
You really have to focus on that. Otherwise you find yourself saying "Gosh, you could connect to that lamp over there! You can connect to this…" It's technically very possible. And people go, "Why would I want to do that? What's the benefit of that?" So, I think in the future people are going to be more and more connected and, of course, the challenge is to make that meaningful and useful to us.
DG: That's makes a lot of sense. That's a great place to wrap up the interview portion of this thing. I have to say that coming into this new publication, I've learned a lot in this interview that I didn't know before, which is great. Is there anything else that you specifically want to say?
JR: There's a lot of stuff going on in this space. It's kind of in the forefront of my mind, having just done the Bill G. review and thinking through all the elements of this business. There are things like Universal Plug-and-Play and home networking and how all these devices confederate. We're doing announcements connecting back to wireless services. We're using a micro-browser that is not even Windows CE based because we realize that we have to have a solution for 16 and 8-bit processors and we're not an appropriate OS on those devices. Yet we want those to connect to the broader appliance framework. Our appliance strategy goes beyond Windows CE. It goes to Universal Plug-and-Play, it has a micro-browser, it connects to services. It's in an infrastructure that we're trying to build. And I want to encourage you to not just think of it as purely Windows CE. You really need to think of it as the appliance strategy that encompasses a range of technologies and one sort of development environment to make this possible. That's sort of one side. Our strategy is broader than that.
When we're talking about "we're in the appliance business", I think what that is and what people will do with it is very ill-defined. It's an emerging nascent sort of category. An interesting way to frame it is that there will be about seven billion processors sold this year according to Frost & Sullivan, who tracks that kind of stuff. In three years, there are going to be fourteen billion processors sold.
And what that means is that these processors are going into devices, right? Devices are becoming increasingly intelligent. The question is, "Will these devices that have this ever-emerging intelligence work together in any logical way?" Or will they just be a bunch of isolated devices, things in a car controlling brake controllers and stuff like that. What percentage of them will want to connect to other devices or services or existing computing infrastructure and what will people do with that? Those are sort of the fundamental questions.
And out of that, emerges this whole new space called "appliances". We spend a lot of time, as do other companies, thinking through "What is an appliance, an intelligent appliance? What does that mean? What will people do with it? How will it fit with the rest of what they're doing?" I essentially have a group dedicated to running those scenarios and thinking that through. And then, of course, being a bunch of technologists, we roll back into the bits and bytes and figure out how to extend Internet standards, etc. to make these scenarios realizable. The thing that I find interesting about this space is that because it's ill-defined, it's just a fascinating space to be in.
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