Steve Jobs on Apple's Future: Rhapsody and the Yellow Box

Ladies and gentlemen, please welcome Vice President Developer Relations David Krathwall. Good morning and welcome to the 1997 Worldwide Developers Conference. You don't know how truly delighted I am to see so many of you here today. It's just great. I want to do a little poll before we get started. And, uh, actually, we can do this with a show of hands. I can see people. Um, how many people have been to any WWDC before? Whoa. Okay, that's pretty nice. Now, I'm going to go out on a little limb.

Here. How many people have been to every single WWDC since we, uh, began having them in this facility? Since we started in San Jose Convention Center. So that was 18... uh, 1989. 1889? Yeah, a long time ago. 1989. Eight years, I believe. That's pretty impressive. Thank you particularly to those of you who have stuck with us all those years. That's really great. That's a show of faith. You can't buy that kind of commitment and I really appreciate it. You know, it's been one of those years for Apple. We've, uh, we've had a few, uh, shall we say, uncomfortable, uh, bits of news to pass along over the last year and, uh, I'm really pleased to be able to say that

we're about to change all that today and I think you'll agree at the end of the week that we really have, uh, given you some, some incredible new information. I don't want to preempt the, uh, presentations that are about to follow. Uh, but I do want to tell you that, uh, what you're going to see today is really, uh, solid code and it's solid information. You know, since the, uh, the next—the official acquisition date of Next by Apple, which was sometime in February, we've been kind of quiet. And, uh, I know that because people have told me that we've been kind of quiet. Um, true to form, developers have not been quiet. Um, but that's great. We like

that. And the reason we've been quiet is it's taken us some time to really work out some of the details and to make sure that what we have to present to you today is really solid. We've collected a long list of the things that you're interested in. You know, what are the APIs? How are we going to merge this—this thing with, uh, Apple and NeXT? How are we going to make sense of it? What hardware is it going to run on? Those kinds of questions. And it's just taken us a little time to work out those details and to test those assumptions. But what we're going to be doing today and in the week to come is helping you to move into the new era with Macintosh. And we know that in order for you to take that journey with us, you're going to want to know both the opportunities and the challenges that you

face. So here's what you're going to be able to expect from this week. We're going to give you a very realistic picture of the opportunities and of the technologies in the Macintosh platform both today and beyond. We're also going to review the hardware roadmap. So, you're going to see a lot of the detail of what we're coming out with in our new hardware. We're going to talk about our internet strategies and especially including the new opportunities that we're opening up with WebObjects. We're going to talk about our interactive media architecture, the QuickTime media layer. And, of course, we're going to talk about our operating system strategy for both Mac OS and Rhapsody. I think as you, uh, go through the sessions this week, you'll

find we've really tried to design these strategies to provide the maximum continuity for your codebase and for your customers. At the same time, we've tried to design in new opportunities for you to create best-of-breed applications, new opportunities for you to be creative across multiple platforms. I think you're going to see this week that there is a lot of strength and a long future in both branches of our OS strategy. We're going to provide practical help this week to get you started and we'll talk a little bit more of that at the, uh, at the end of the,

keynote session this morning. I want to stress that this week's information is not just one way. We really hope that you will give us your feedback. In fact, we know that you'll give us your feedback and that's a great thing about these conferences and we've scheduled some, uh, formal sessions, some feedback sessions to make sure that, uh, you have ample opportunity to do that. We also ask that you catch us in the hall and give us that feedback, uh, in the midst of the conference as well. So, at the end of the talk, I'm going to describe the conference, uh, a little bit more in detail. But before we do that, we need to kind of step back and get the big picture. And you're going to hear this morning from three people who are going to give you that big picture. First, we're going

to hear from our chairman and CEO, Gil Amelio, who's going to talk about the strategic overview of Apple's direction. Then, we're going to hear our, uh, Senior Vice President of hardware, John Rubenstein, who's going to tell you about our strategy to, uh, keep ahead of the pack in terms of our hardware. And finally, we're going to invite, uh, the head of our software engineering group, Senior Vice President Avie Tevanian to come to the podium and tell you about our future Mac OS and Rhapsody strategies with a particular emphasis on this Yellow Box thing that you've been hearing about, which is this wonderful new platform for development. So before we jump into the, uh, the details on the technology, let's

Set the context with Apple's business direction from our chief executive. Please welcome Dr. Gilbert Demilio. Thanks, David. Good morning. And, uh, well, let me add my welcome and thanks to all of you who joined us here in San Jose along with those, of course, who were logged on the web. A special welcome to the NeXT developers who join us for the first time at an Apple developer conference. Before anything else, I want to acknowledge your exceptional support through these difficult times. I thank

you for that. This year's Worldwide Developer Conference is a critical milestone on our path to restore Apple to health and regain momentum for the Macintosh platform. The fact that you're here today testifies to our mutual interest in seeing the Mac return to its traditional role of defining new possibilities for personal computing. I know that you're here looking and listening very carefully for the signs that 1997 won't be like 1996, excuse me, or 1995 for that matter. Uh, you have every reason to be skeptical. You want to see us take the

Macintosh forward. You want us to succeed and you want to be successful with us. But on the other hand, you're not going to sign up for another round until you get some answers. No fluff, no excuses, just clear and compelling reasons why developing for Mac OS and for Rhapsody can pay off for you and your customers. Everything you'll see at this conference is designed to give you those answers. The strategy we'll share with you is sound. The code it rests on is real. The opportunity it creates is exciting. You've taken a week out of

your business to meet with us. We'll honor that investment with a week of straight talk and solid information. We know how important this is for all of you and for the future of the Macintosh. This is not the occasion for a lengthy analysis of the causes of Apple's difficulties. But I want you to hear what we've done to put our house in order. I want you to know that we're on track to return this company to sustainable profitability and growth. Let me quickly review the steps we've taken. First, we've improved our cash position. Apple finished the second quarter with over $1.4 billion in cash and that was after the investment we

made to acquire NeXT. The company continues to manage its assets very well. We expect to see higher revenues and a much lower operating loss in the current quarter as the effects of our restructuring activities kick in. Our goal remains to return to profitability, sustainable profitability, in our next fiscal quarter ending in September. To that end, we've taken a number of measures to lower our break-even point, including the very painful step of downsizing the company. We have today a simpler organization with clear accountability and a laser-sharp focus on the core business:

Macintosh hardware, software, and supporting products. We've taken steps to address customer satisfaction issues. In the past year, we put in place an organization to address quality across all of our product lines. And as I promised at last year's developer conference, we now deliver products with enough dynamic RAM to be useful right out of the box. A year ago, I committed to shipping a minimum of 12 megabytes on every model. Today, no Macintosh ships with less than 16. As I also promised last year, we're simplifying our product line. That's one of the key assignments I've given to John Rubenstein and the hardware

engineering team. Reducing the number of models and separate design centers lowers our costs and yours. But even more important, it helps our customers to select the Mac that's right for them. As part of the simplification process, we've consolidated the entire desktop line under the Power Macintosh brand. I also promised that 1997 would be a year of great new products from Apple. We are delivering on that promise with the strongest lineup of products we've had for years. Since February, we've introduced the fastest notebook computer on the planet with clock speeds

up to 240 MHz, as well as the fastest home computer with clock speeds up to 300 MHz. We're redefining the classroom computer with the eMate 300, whose low cost makes it possible to put a computer into the hands of many more students. Our Mac OS 7.6 release is not only winning praise for improved performance and stability, it's also winning sales in record numbers. 7.6 is the fastest selling OS upgrade we have ever launched. The technical and market success of 7.6 demonstrates the vitality of the Mac OS,

but it's only a prelude to the invigorate advances we have in store for the coming years. And last week, we added the latest in our string of winning products. This is the PowerBook 2400 which we developed with IBM Japan. So now we not only have the fastest notebook on the planet but at 4.4 lb and a clock speed of 180 MHz, the fastest ultra-light notebook as well. Of course, there's much more product excitement in the pipeline

and, uh, I'm, I know you're looking forward to, uh, seeing some of those releases that we have planned for the summer and beyond. Excuse me. That, um, that excitement will continue with this summer's release of the Mac OS 8 and the developer release of Rhapsody. These upcoming operating systems reflect the most important set of decisions we've taken during the past year to ensure a strong future for the Macintosh. The decisions which shape our dual operating system strategy. But before I take you through an overview of this strategy, I want to address the fundamental strategic question about the future of the

Macintosh platform. It's the single most important question that we must answer. How can Macintosh succeed in a world dominated by the WinTel standard? I think from a background in science, I'm trained to approach questions empirically based on evidence. There's clear evidence that Apple can succeed in a world dominated by WinTel. Look at the areas where we have more than an undeniable success, where we lead the market. For example, we have strong market share in color pre-press, in multimedia CD-ROM authoring, and in professional web authoring, and in segments of engineering and scientific

Markets. We're number one in the K-12 education market with strong sales momentum. Let me cite just a few of our recent wins. Northshore School District near Seattle, Washington, purchased $4 million to increase internet and multimedia capabilities and improve computer-to-student ratio. Spring Branch Independent School District in Houston, Texas, purchased $1.6 million in high-end multimedia Apple equipment for use in high school science labs. And Broward County School District in Florida, the sixth largest school district in the country, just purchased

$1.5 million in new Apple products. So, let me rephrase the question slightly and then offer my answer. I'll break the question into two parts. First, how does Macintosh succeed in a world dominated by Windows? And second, what can we do to accelerate and expand our success? I want to take time to answer these questions clearly because they form the vision by which I am guiding this company. The answer to the first part is a balance of factors that make Mac a significantly better choice for our customers. First, in every market where

Macintosh is successful, our success is a direct result of your solutions. People buy our products to run your products. You know your markets. You have the product insight. You have the entrepreneurial energy to develop solutions. Because of that, one of our key strategies to strengthen the Mac is to provide a development platform that helps you write better applications and get them to market faster. When you watch the demos this morning and as you go through the session, look for the ways that our new development platform can shorten your development

cycle. Having great applications is the first factor that helps Macintosh succeed in a Windows-dominated world. The second is the way the Mac amplifies the power of your applications. In other words, just being on the Mac makes your applications work better for your customers. I've heard the claim that once you're inside an application, it doesn't matter what platform you're using, but frankly, that claim usually comes from people who haven't used a Mac. Mac users know better. They know that the Mac brings both quantitative and qualitative advantages to their work. We lead in both machine performance and human

productivity. Our high-end PowerPC-based systems consistently beat Pentium-based systems in the real-world applications that our customers rely on. Our production-based applications, such as rendering or video editing. The system with the greatest throughput is clearly the one that will yield a higher return on investments. And that's why our high-end customers will upgrade whenever we can provide them with a quantum advance in throughput. They quickly earn back the cost of their investment. When John Rubenstein comes up here, I've asked him to tell you specifically what we're doing to sharpen our performance edge in hardware

design. As the hardware advances, Rhapsody, with its support of symmetric multiprocessing, multi-threading, protected memory, and advanced I/O, will pull even higher performance from it. But at Apple, we've always held that even more important than machine performance is personal productivity. And that's achieved by a synthesis of performance and ease of use. Our aim has always been to create a delightful user experience. That's not simply a question of aesthetics, but of helping people work more efficiently. The Mac must continue to allow the user to focus on their work,

not on tending to the computer. It should be transparent and hassle-free. These qualitative and quantitative advantages together with your applications give the Mac environment a richness and depth unmatched anywhere. Let me give you two examples. Both the Mac and the Windows platforms have Adobe Photoshop, but the Mac not only runs it faster but also provides a greater breadth of commercial and shareware plugins to extend its functionality. Both platforms have QuarkXPress, but the Mac has AppleScript or Frontier to automate the placement of

text and images and to integrate page layout with database information and webpage design. But for all our success in our core markets today, today's differentiation is not winning us sufficient share in the broader market. So we come to the critical question. What can we do to accelerate and expand our success? The answer is that we must create a higher perceived differentiation, both qualitative and quantitative, between our platform and our competitors. The source of that differentiation lies in what we call

distinctly superior user values. That's where Apple is focused. These are a compelling user experience, outstanding performance, seamless connectivity, cross-platform compatibility, and breakthrough industrial design. These are the dimensions of excellence that have traditionally defined the Macintosh. And these are the areas where we must press our advantage. These are the qualities that create for our customers value they can't find anywhere else. They are our raison d'être. We have the most loyal and most

enthusiastic customers in the world with an 87% repurchase index. With these customers, we're not competing against the other guy. We're competing against the products we sold them five years ago. And this year we may have crossed the threshold. According to the autumn upgrade windfall research from DataQuest, customers who originally bought Macs in 1991 are due for upgrades. DataQuest expects sales in the Mac OS market to surge in the second half of the year. As they point out, the advance from the 030 and 040 systems of five years ago to today's leading PowerPC

systems provides a compelling reason for customers to upgrade. But it shouldn't take us six years to accumulate enough differentiation to trigger those upgrades. We need to accelerate our innovation all around. So if you ask me to sum up our business strategy in a single statement, it's this: To surpass the highest expectations of people who love and rely on the Mac. It sounds almost too simple, but it's an extremely powerful principle. It points us to a ready buyer and it reminds

us to meet them on both emotional and rational grounds. The phrase embodies the twin benefits I spoke of earlier, delight and human productivity gain. But if we're to succeed in a world dominated by the Windows standard, then we need to acknowledge the pervasiveness of that standard. Our customers want to embrace the special advantages of the Macintosh, but they also need to integrate seamlessly into the rest of the computing universe. And certainly as developers, you share that concern. You don't want your investment in our platform to cut

You off from other market opportunities. That's why I've stressed the importance of what I call bridgeware. Software standards that can unify different operating systems and platforms. The internet itself and the Java environment from Sun Microsystems are both bridgeware within Apple. Our most successful example of bridgeware is the QuickTime media layer. Originating on the Mac, QTML is now widely embraced by the Windows and Unix communities, and it's the dominant video format on the web. We can do it again with Rhapsody, our next-generation operating system. We have the

opportunity to deliver a complete, robust 21st-century development environment as bridgeware. The heart of our next-generation operating system is a development environment that we call the Yellow Box. And we're engineering it not as a Mac-only environment but as a powerful and flexible cross-platform environment. In a few moments, I will take you through the details of our operating system strategy and the technologies on which it's founded. I want to focus on what it brings to you: major new functionality, higher

performance, and rock-solid stability. Dramatic productivity boost to the development process, a powerful Java development implementation, and for the first time in Apple's history, a truly cross-platform development environment that lets you code once and deliver your application across multiple platforms. The Yellow Box derives from NeXT OpenStep technologies and key Apple APIs such as the QuickTime media layer. It also has a full 100% pure Java implementation for Mac users. Yellow Box applications deliver all the performance and stability benefits of a so-called

modern OS and all the performance advantages of Macintosh Power PC-based hardware. For developers, Yellow Box provides a pass to cross-platform development. When you code your application for the Yellow Box, you can deploy it not only to Mac customers but to Windows customers as well. In addition to Rhapsody, we're also releasing Yellow Box for Windows. This will allow your Yellow Box applications to run on both Windows 95 and Windows NT. We plan to make the Yellow Box libraries available to you as a runtime for

Windows that you can package with your applications. For those of you who have or seek substantial business on both the Mac and Windows platforms, this new development environment holds tremendous promise. With the Yellow Box, you can move your applications to a single codebase and with a simple recompilation, release them for both platforms. We'll also ship the Yellow Box in a version of Rhapsody for people with Intel-based computers. Rhapsody for Intel won't have the Mac

compatibility environment or the Blue Box, but it will deliver the advanced Mac look and feel to your Yellow Box applications. And we have another Yellow Box environment to announce, but I'd like to let Avi break that news to you when he comes up. The Yellow Box fully embraces Sun's 100% pure Java initiative, as I mentioned earlier, but it also expands on it. It enables developers to transcend the limitations of today's Java by exposing the entire Yellow Box call structure to the Java language, giving you direct access to robust and media-rich capabilities. In effect, we're turbocharging the

Java platform, extending it with enterprise-tested frameworks from NeXT, QuickTime media software from Apple, and industrial strength graphics, imaging, and printing technologies. As we announced back in January, a Power PC native Mac OS compatibility environment, what we've been calling the Blue Box, is a fundamental part of the Rhapsody architecture, ensuring that even as our customers adopt our new operating system, they will continue to retain full access to our Mac OS-based products. Now, at the same time that we, uh, develop Rhapsody, we're committed to a vigorous

program of continuing development for the Mac OS. Your codebase is on the Mac OS. Your customers are on the Mac OS. We're very clear that as we open a new path to Rhapsody and the Yellow Box environment, we must also ensure continuity for your investment in your code and your customers' investment in you. A year ago, many people were ready to write off Mac OS. This year, with our 7.6.1 release, we're not only getting respect, we're getting admiration, and you're getting rid of type 11 errors. Further, we're working on a rich

slate of additional features and performance improvements to make in the Mac OS for years to come, years to come. The work of delivering Mac OS 8 is on track. We hit beta on schedule, and we will show this, uh, to you a little later this morning. Comments from our beta testers are the most glowing we've seen for any unreleased product. Let me just quote one of them. It's, uh, from a gentleman named Ishar Bond from the Harvard Medical School. Quote, "The multi-threaded Finder, new interface features, and improved speed make my computer much more usable. I haven't

experienced a crash in ages. It's like a whole new machine," unquote. And we have a long list of further Mac OS enhancements that stretch beyond this summer's release and on through the years ahead, as we'll detail and demo later in the conference. Coming versions of Mac OS include major enhancements of the user experience, improved stability, and support for advanced multimedia options, including DVD. In short, for as far ahead as we can possibly make active plans, we're committed to a dual operating system strategy that maximizes your options and opportunities.

Now, with this dual operating system strategy, we're confident that all our customers, from high-end publishing professionals to mainstream customers, K-12 and small business customers, will find the operating system that best answers their needs and leverages their investment. Our customers in each of Apple's markets can migrate to Rhapsody at their own speed. Our high-end customers are asking for the kinds of advantages that Rhapsody will bring: gains in stability and performance, or more faithful screen imaging, and rapid developer innovation leading to breakthrough functionality. They'll require superior internet and intranet

support. They'll require state-of-the-art multimedia. They'll require ease of use. They'll require rapid prototyping and application development. They'll seek out a platform that will help them to move from static web publishing to dynamic interactive applications. And they'll seek out the breakthrough Yellow Box applications that answer their needs. But make no mistake, because of the dual OS strategy and the Blue Box inside of Rhapsody, the Mac OS and your existing, uh, applications will remain vital to our

Customers, your business, and our future. This is a winning strategy all around. You, the developer community, get an environment that enables best-of-breed applications completed in a shorter cycle time and deployable across multiple platforms. Our mutual customers and users get greater stability and performance, a superior imaging model, lower cost of ownership, a new generation of best-of-breed applications, and, of course, Apple gets to advance the Mac platform into the 21st century, regaining our position as the industry's leading innovator in

making powerful and complex technology simple and accessible. In the years since 1984, the Mac has attracted a community of leaders and innovators. Many of them are in this room today. Many more are spread across the globe. They have made the Macintosh a centerpiece of their creative, learning, and business activities. Together, we have, through the years, enriched their lives, brought them to light, and amplified their investments and achievements. They're waiting for us to do it again, and starting now, we're

ready. Thank you very (applause) much. Thank you. One of the things that gives me confidence in our strategy is, uh, the high caliber of the people leading it. They're top leaders, top engineers, and top system architects with proven track records. And for many of you, this will be the first time to meet them. To start with, it's my pleasure to introduce you to the person heading up our hardware engineering division, John Rubenstein. Take care, John. Thanks,

Gil. I know I'm the third person you've heard from this morning after David and Gil, but somehow I feel a little bit like a warm-up act. Clearly, the main focus this morning needs to be on our software plans. So I'll be very brief in talking about hardware and then bring Aby up here to fill in some of the details on the strategy that Gil just outlined for you. We'll be covering our hardware strategy in detail for you in the hardware track beginning with the hardware roadmap session tomorrow morning, so I want to see some of you there. While the distinction between hardware and software is obvious to all of us, one of the historic strengths of

the Macintosh has been to transcend that distinction and present a single unified experience to the user. One of the almost religious questions that swirls around Apple is whether we think we should think of ourselves as a hardware company or a software company. Of course, the answer is yes. We are, in fact, a systems company. Our strength is in our ability to unify and optimize hardware and software so that a user's attention can focus on the task and not the tool. And that will continue to be our strength even as we move into a world where key Apple software such as QTML and the Yellow Box are also appearing on

other platforms. We have the home court advantage in designing the very best hardware systems to run our software. As Gil said, the company is deeply committed to delivering a delightful user experience and a quantum jump in human productivity. That's one of the key reasons I was so eager to take this job leading Apple hardware engineering. My professional goal has always been to build the very best personal computers in the world. And I don't know of any other company that has that potential or that destiny. Looking at our current product lineup, it's clear that Apple hardware is already on a strong upswing. Phil has

mentioned this, but it bears repeating. We have the fastest home computer in the world, the fastest notebook, and, as of last week's introduction of the PowerBook 2400, the fastest lightweight notebook as well. At the high end, our systems consistently outperform top Intel systems. And according to both Macworld and MacUser magazines, we even beat the latest Intel processor, the Pentium 2. And that's with our current PowerPC systems. And I'm sure, as you all know, the systems in the pipeline are even faster than that. IBM and Motorola, our partners in the PowerPC consortium, have an aggressive roadmap for the next two generations,

and they are Mach 5 and Arthur. We have systems on the way that incorporate these processors. Hey, we're on a roll. No question about it. By the way, at our hardware roadmap session, we'll show you a head-to-head shootout of some of these upcoming systems against the Pentium 2, and we'll even get the right answers. (applause) (music) (applause) So, we're already at a good spot. But if I may borrow a phrase from Microsoft, and considering how much they borrow from us, why shouldn't (applause)

I? My organization is focused on opening an even wider gap between the Mac and the competition. And as Gil said, we need to step up the pace of innovation to surpass the highest expectations of people who love and rely on the Mac. We're hardcore about building the very best systems. We want to lead. I want to see Apple in the forefront of delivering performance and value to our customers. And we know who we're designing for. Our customers in education, in publishing, in multimedia and Internet development. Their specific needs can guide us to including a higher level of built-in functionality. That's the

objective. Now, let me outline some of the strategic principles that I believe will strengthen us as an organization and improve our overall effectiveness, and then I'll list some of the specific initiatives that meet the goal that Gil has articulated for us. And here's how we get there. First, we simplify. We don't want the most models. We want the best models. We're going to reduce the number of motherboards, enclosures, and so forth. As Gil said, this isn't just a matter of cost-saving, but it's a matter of clarifying the product line for our customers and making it easier for them to select the Mac that's right for them. We integrate. We can find

Important synergies across our various design centers, desktops, servers, and mobile systems. We're increasing our use of common designs across the product lines. Sharing a wealth of great ideas across our teams and using best practices is the most efficient way to increase performance and functionality while reducing cost and complexity. We focus— we strive to excel in those areas in which we can truly provide competitive differentiation and added value. These include system architectures, memory and IO performance, plug-and-play expansion, and industrial design. We continue to deliver a Macintosh

experience that is both powerful and delightful to use. We build on a more— we build a more potent base upon which you can innovate and succeed. We partner. It's very clear to us that Apple can't do it all. We have to get out of the way of the developers and our licenses. We need to give you clear opportunities to add value, to innovate, and differentiate. I feel very strongly about this, and judging from the feedback that I've gotten over the last couple of months, so do you. The strength of the platform requires strong licenses and strong hardware developers. We'll look for opportunities to work with you in creating specialized

solutions. Some recent examples: the Avid Cinema models that bring video editing to the whole market, our Bose sound subsystem, and the most recent example, our PowerBook 2400 co-developed with IBM in Japan. And finally, we execute. I started my career at Hewlett-Packard, so I have a very clear sense of what process and discipline can bring to an organization. Today's product lineup shows Apple moving in the right direction, but I believe there's much more we can do to improve quality and on-time delivery. Executing well drives our costs lower at every stage from design through manufacturing and then out into

the field and achieves higher quality as well. These are the key principles that my organization will follow to simplify, integrate, focus, partner, and execute. They are the principles that will amplify our strengths and deliver real value to our customers. So now, let me get specific and highlight some of the key product directions. I'm going to list a few initiatives. First, let's start with raw speed, our performance initiative. High-end customers have an insatiable demand for performance, and we've got some treats in store for them. It's not simply a matter of new processors, but of tuning all of our subsystems to take

advantage of processor performance. So, to match the new processors, we're working on new cache designs and new ASICs that effectively double the performance of the PCI bus. We are creating better balanced systems optimally tuned for these new high-performance PowerPC designs. And of course, with Rhapsody support of symmetric multiprocessing, we have the means to drive performance even higher. We'll start in the near term by making multiprocessing standard at the high end and then over time, we'll migrate multiprocessor designs across the full product range. And Rhapsody, with its file system and IO support, will also give us the opportunity to significantly improve

the performance of our server line. The multimedia initiative takes performance to an even higher plane by focusing on the specific needs of media authoring. We'll use media co-processors to accelerate QuickTime and QuickDraw 3D. All of your apps that are written to these APIs will immediately and automatically benefit from this acceleration. We'll also support new standards such as DVB, USB, and my personal favorite, FireWire, which is the high-speed interconnect developed at Apple and adopted as IEEE 1394. The communication initiative

focuses on helping customers work together. We'll bring 100Base Ethernet to the desktop, 10Base to more of our models in the PowerBook lines, together with new modems that leverage the best and the latest advances in telecom. Most importantly, we're making communications easier by simplifying the process of using systems in multiple locations. This is a great feature. And finally, the design initiative: form and function. As I mentioned earlier, we're going to consolidate the number of motherboards and enclosures we produce, and we're going to continue to rely on the award-winning Apple industrial design team to reinforce the strong

emotional impact that our products have on our customers. The Mac has always been an alternative platform. To attract users away from the dominant standard, we have to be seen not as simply different but better, extraordinarily better. We have to deliver on all of the key user values, especially outstanding ease of use, outstanding performance, and outstanding capability. We have not only the opportunity but the obligation to drive the Macintosh into new territory that radically expands the boundaries of personal computing. Our customers have always expected a great deal from

Macintosh. My organization has pledged to deliver on their expectations. Thank you. (music) And with that, I'd like to introduce Avi. He's got a great show for you, assuming that he's done his, uh, his rituals to the demo gods this morning. Avi, thanks. (music) John. Okay, I'm actually thrilled to be here this morning, hard as that may seem with this kind of a crowd. Um, but one of the reasons I'm thrilled to be here is because I was one of those crazy

people that back in 1984 actually went out and bought a Macintosh. I bought it in April of that year. I remember it really well. Um, at the time I was a, a, uh, grad student at Carnegie Mellon and, uh, of course, I had access to all kinds of computers. I mean, we had massive computers at Carnegie Mellon. I could use any of them that I wanted to. So, no problem with CPU time. Um, but I wanted something at home and personal computing wasn't quite at the stage where the universe was going to buy me one. In fact, I guess they wouldn't even today. So, I was like poking around the computer store, uh, and thinking about buying something. And I kept getting all these data sheets on these, these, uh, PC things, and I never bought one because I just couldn't figure it out. I had to

Learn these things like CGA and Hercules graphics and all this other stuff. And I was pretty savvy with computers, but I could not understand what all that stuff meant. So I just never bought anything. When the Macintosh came out, it was simple. And, in fact, uh, it was familiar in that having worked in the computer research community, I had actually spent time programming on the Xerox Alto. And I had actually written a couple of games for the Alto in microcode back in those days. That's how you did really cool games and really cool graphics. Um, and so what I saw in the Macintosh from my perspective was not a whole bunch of new technology because I had seen it all before. I had seen it in our labs at school. I had even worked

with it. But what I saw was a personal computer which had this technology that I was used to that I could now write to and I could give my applications to lots of other people and I could write applications that I just couldn't write before. It was really compelling. So I ran out and I bought one. Okay, so that having been said, here we are 13 years later and I'm now working at Apple Computer. Who would have thought? Um, so I've been on the job now for just over three months. Uh, only 3 months, although my badge says I've been an employee for over 9 years, that's because of the acquisition of NeXT. What I've been doing in the first three months, um, other than some of the normal management things like, you know, acquisitions and restructuring and stuff

like that is I've been focused on learning about Apple's business, learning about Apple's customers, learning about the developers, meeting with the developers. I have met a lot of you out there in the audience in these past three months and I have listened to what you have said and my hope is that the result of what we're talking about today is a positive and direct response to that. Now, we can't always do everything you want us to do, unfortunately, but we're going to try really hard. Now, there's sort of a scary part of listening to all you guys, which is that you're really tough. Uh, you have really big concerns, you have really good concerns, and you have very specific things that you want us to do. Um, add in the fact that, you know,

Apple has a certain situation that it's in right now, and, you know, I'm kind of worried about what's going on here with my job. Okay. And, you know, when Gil asked me to take this job a little over 3 months ago, I knew it was going to be a big deal. I knew it was going to be a big challenge, but I don't think I quite understood just how big or at least not in the, in the way that it's turned out to be. Now, that having been said, you know, yeah, there are some analogies here to Mission Impossible, that TV show where they would always start out with some kind of problem that needed to be solved. And it's like, how can anybody ever do this? But the good news is they always found a way. Okay, the end of every episode,

they had solved the crime, caught the criminal, done whatever needed to be done. And the way they did it is I think really important to understand because they did it through teamwork. They had the IMF, and in this case clearly Apple is a team working to solve these problems. But more importantly, you all as developers need to work with us so we can jointly be the IMF that's going to solve all these problems and actually allow us to all do things that are beyond the Windows monopoly. Because if we're forced to just live within the context of the Windows monopoly, eventually you will all be assimilated. We will all be assimilated. Now, I, I do have to give, uh,

I do have to say one little thing. I know there's probably people from Microsoft here, and I do have to say that we do have a good working relationship with Microsoft. There have been some Microsoft engineers in particular who have been very supportive of the Macintosh platform and have been doing some very wonderful things and I hope they continue to do that in the future. (music) Um, okay. So, you know, there is a monopoly out there that we need to compete against and it's very difficult and you all know this because you all have to compete against that in a certain way yourselves. That having been said, I am actually very optimistic and I have to tell you back at the end of last year, um, when

we were, I was at NeXT at the time and we were talking to Apple, um, at some point in time it had become very clear to Steve Jobs and I that there was going to be a deal and that the deal was going to be an acquisition. I'm not going to tell you exactly when that was, but there was a time when we just knew that. And through our minds, I mean, our minds started racing. We were just like on the phone or in a conference room, whatever, just talking about all the great things that we could now do while working at Apple and with Apple because we saw huge opportunities for Apple in the future. And we were really excited and I continue to be excited. So, I'm going to talk a little bit about what I see some of those opportunities to be that are

just industry trends. Another reason I'm optimistic is because Apple has started having some really good success. You know, you've heard about the hardware success. You see the great products on the market now. You know about the software success with Harmony coming out, uh, 7.6 coming out in January and even releases before that. You've heard about the success of Mac OS 8 being in beta now and very much on track for July. We are having success. Now there's another thing which you don't know about because you haven't seen it but, uh, again demo gods with us. You'll see some of it today, which is we are making great progress on our new technologies and we're going to get into that. But I'm very, I am very hopeful because it's one thing to be making

Great progress on these products, but to see an engineering team be able to do that while having to deal with an acquisition, while having to deal with the restructuring, while having to deal with all the other issues surrounding Apple is really nice from my perspective. And I really appreciate all the efforts that the engineers back at Apple have been putting in because they've been getting a lot done. And again, you're going to see that. Okay, so let's talk about some of those opportunities going on outside in the industry. As I mentioned, the first one is clear. It's the Internet. You know, this is probably one of the biggest things that's ever happened in our industry, uh, and will probably be the biggest thing for the next at least several years. Well, as it turns out,

Apple already has a whole bunch of strengths that really play well to this market. So, for example, there are lots of Mac users out there who surf the web every day. In fact, the numbers I've heard have said something like 25% of all the eyeballs on the net are coming from Macintoshes. That's a big difference from the single-digit market share numbers you hear because what it means is while Apple in total may have a single-digit market share when it comes to surfing the web, they have a very significant market share being on the web where the Macintosh is important. Next, as you know, Macintosh is very strong in the publishing arena and has been essentially forever. What this

has turned into is the fact that Apple is also very strong in content creation. So most of the content that you see when you surf the web comes from a Macintosh desktop. And of course, what is the — what is the web all about? It's about multimedia. And who has the best multimedia? Apple. Who has the only multimedia? Apple. There really is nothing else out there that comes close. And now we have another opportunity where Apple is already a leader, which is in the movement or in the move to dynamic web content creation. This isn't just about a static website with a bunch of files on it anymore or one that gets updated every hour or every day. This is about running applications on a server that dynamically generate a website on

the fly for the user as they're browsing it. Okay. So those are areas where the Internet is already a strength or Apple is already strong in the Internet. There are other areas that, you know, Apple I think still can take further advantage of. So for example, uh, in the Internet you have a platform-neutral market. Okay, a Mac and a Windows machine and everything else is for the most part equivalent because you're browsing HTML, you're running Java, you're doing things like that. Further, there's a new application paradigm developing which is web-based applications. So, if you're a developer and you build a web-based application, it'll run on a Mac. It'll run on Windows, it'll run anywhere. Now, not all applications can be done in this

paradigm, but the ones that are, they're already ready for the Mac. Excuse me, I have to find my secret water. And the next thing is because of the platform neutrality, because of the ability to have this new, uh, application paradigm, there's a renewed interest from corporations for having desktop systems that are lower cost, lower maintenance, all those kinds of things. They don't want to have to bear the burden of the cost of a PC and the upgrade costs and the maintenance costs and what happens when it, you know, when someone installs something that doesn't work right. And this again is a new opportunity for Apple and Macintosh in particular because as we

all know we're lower maintenance cost. Okay. Next, Java. This is probably the biggest opportunity for Apple, um, and I don't quite understand why. Again, I've only been at Apple for 3 months, but the one company that should have benefited most from Java should not have been Sun. It should have been Apple. The simple reason being an application written in Java runs on a Mac just as well as it runs anywhere else. We are going to take advantage of this big time and you'll see that coming up. Okay, I mentioned a little bit about this earlier. Let me just recap. I'm also optimistic because Apple's been having some successes lately. You know,

we've got products out 7.6, the update 7.6.1, Tempo is on schedule. Maybe more importantly, we, we've got clear plans now and we have a focused organization that's executing and you're going to see some of the progress we've made over these last couple of months. Further, there is a lot of new stuff that's coming out and, you know, frankly, I've heard a lot of criticism that a lot of the new stuff is actually old stuff. And guess what? I like that. Okay, I like that because it means we have a very high probability of successfully delivering it. Now, I want to go back to what I said about when I bought that 1984 Mac. I didn't buy it because it had a lot of new technology

in it. In fact, it didn't have any new technology. It had a bunch of technologies that existed in other places. What they did with that Mac was they got the right mixture of the right technologies and packaged them up in a way that made sense. And that's exactly what we have the opportunity to do here now. We have all the right pieces of the technology. We have to package them up right. We have to deliver them right. And then we have to get all of you in partnership with us to make it successful. Okay. Now you might think I'm just going to start immediately talking about Rap City, but I'm not. What I want to talk about first is Mac OS. And I want to talk about it first because Mac OS is so important to our b— our business moving forward. We have no plans to just replace Mac OS with

Rapsidity. Uh, and if Mac OS ever dies, it's not going to be anytime soon. It's probably 5, 10, who knows how many years out. Um, but even then, who knows? So, in January, we ship Mac OS 7.6. Very popular release. We are on the verge of shipping Mac OS 8. It is in beta now. We have plans in place and are continuing to refine those plans for a release roughly in the summer of next year, which is currently codenamed Allegro. And most importantly, the Mac OS efforts are fully staffed and resourced. We have a team dedicated to making Mac OS better and better and

better. That is their mission, and they love what they do. Okay, let's talk just briefly about Mac OS 8. I don't want to say a lot about it because we're going to get a demo. What I do want to say is we focused on making the user interface even better than it has been in the past. We focused on integrating in a full suite of internet services, and of course, we focused on performance enhancements. So rather than me going into lots of details about things, what I'd like to do is invite out Peter Low to do a demo for us. (applause) Hey Avi, how are you? Good. Well, as you touched upon, Avi, we are moving forward the Mac OS in some

significant ways with Mac OS 8. We're focusing on significantly enhancing the user experience and providing a really rich set of capabilities, internet capabilities for all types of users. So, for example, we're making sure the user is always in complete control of their system. They can navigate through their whole system hierarchy simply by dragging. They don't have to be constantly manipulating the mouse, manipulating windows, etc. Notice that the user interface provides lots of feedback to the user. When I'm going to do a copy, I get a little plus sign. When I want to make an alias with a key combination, I get a little arrow to indicate what's going to happen. And perhaps most importantly, when I start a copy, I can continue to use the computer the way I should be able to. And you know, we're putting commands

in the hands of our users. So, with a simple control-click, you get a contextual menu which gives you the exact commands you need, um, right where you need them. And in this case, I'm going to select Duplicate. And you'll see another copy starts, as you would expect. Throughout the user experience, we're providing progressive disclosure so that users have exactly the information they need about what's going on. In this case, I want to understand a little bit more detailed what's happening with the copy, or I can just get a simple summary. But you see with the fully PowerPC native, Finder copies happen pretty quickly. So I don't get a lot of time to watch them go on. Um, you know we also want to ensure that users always have the information that they need at their fingertips. So we're providing ways for them to access information they use on a regular basis

very easily. Any window in the Finder can be dragged to the bottom of the screen where it becomes a title bar. You click on that title bar and it pops up, which is why we call it popup windows. If you drag out, the window automatically closes to get out of your way and reduce desktop clutter. And if you drag on top of the—excuse me, drag on top of the title bar. Again, direct manipulation. The interface responds exactly the way the user would expect. Now, in the internet arena, we're providing a wide variety of services, but a couple I want to focus on is our internet, uh, is our Java integration. The Mac OS has Java integrated right into the operating system. So, not only can developers take advantage of Java within their applications, but users can run Java applications at the desktop just

like any other Mac OS application. In this case, I've launched the CNN headline picker across the internet without having to load my entire browser. And we know that many developers are looking at Java for the implementation of full-blown applications as is, as with this example of the entire Corel Office suite implemented completely in Java. This was downloaded off their website. We didn't do anything to Macintoshify it. It simply runs when you double-click on it. We also want our customers not just to be great clients of the internet, though. We want them to be participants in their intranet or internet environment. So, we're integrating personal web sharing into the operating system. With Mac OS 8, a user—all they have to do is select a folder of

information they want to publish on the internet or their intranet. They specify a default homepage if they have web formatted information and hit the start button. And that's it. My Mac OS computer is now a web server on our internet here at the show. And just to demonstrate that, uh, it's really happening, I'm going to use the new Connect To menu item, which is available from any application because it's in the Apple menu to connect to my local machine here. We're just going to go out onto the net and right back into the computer. And you'll see here's the website that I've just published on the internet. There's my, uh, my wife and son whose birthday was last weekend. Um, and, uh, we have our little, uh, lame website right

here ready to go. It's not so lame. Just really, really quickly, uh, to, to end up, we also are providing, uh, enhanced customization capabilities throughout the system as well. Um, obviously we're including a lot of new desktop patterns because that's always a popular part of the Mac OS. Um, but we want to go a little bit beyond desktop patterns. So now users can drag pictures into—oops, wrong panel. They can drag pictures into the new Desktop Pictures control panel and specify that any picture is their desktop image. Um, so again, a bit more customization for our users. So that highlights the user experience advances we're making, the internet integration. We're going to be showing more in the Mac OS overview session 100 and more of the internet

Integration in the 400 session. Great. Now, developers can get this to test right now, right? Absolutely. Do that. They can go to the Developer World website and they can download the latest build, Beta 3 of Mac OS 8, but also here at the show, they can go to the Mac OS 8 hands-on lab and not only try the software here, but go away with a CD with Beta 3 on it as well. Great. Thanks, Peter. Thanks, Bobby. Okay, we are literally on the verge of shipping Mac OS 8. So, you got to run out, get that beta, and test it and give us feedback quick or else it's going to be too late. Okay, so Mac OS, great stuff. Now, I'm still not going to talk about Rap City yet. What I'm first going to talk

about is what's important to you, which is why should you develop for this new system? What is your proposition? Well, we understand that you need volume, which means that there has to be a cross-platform story. And Gil talked about that a little bit this morning. But that's not sufficient because we could just do something, make it cross-platform. If it wasn't any good, it wouldn't matter because, again, we're competing against a monopoly. We have to do something that's better; that lets you lower your development costs; that lets you do something you couldn't otherwise do; and let you make money. So, let's talk a little bit about how we're going to do that. We're going to focus on the Yellow Box and the Yellow Box APIs. This is Apple's cross-platform development platform. Let me very quickly take you through the components of it because what I want to do is not talk a lot but

show you some stuff. Okay, first of all, it will fully support distributed computing using distributed object mechanisms like CORBA and IIOP. It will support very nice database access at the object-oriented layer through technologies that we call Enterprise Objects Framework. It will be a good window system when it's running on Windows, which means that it will have very good support for the technologies on Windows like OLE and COM. And it will have a very rich set of components, pre-built objects that you can use to do everything from controlling your UI to connecting up to services from other applications, handling scripting, memory management,

all those kinds of things. And the UI will—when you run an application using these toolkits, the UI will look as it should on the operating system you're running it on. So, if you're running it on a Mac, it will look like a Mac. If you're running it on Windows, it'll look like a Windows app. And when you run an app on Windows using the Yellow Box, the user will not be able to tell that it's a Yellow Box application, except that it'll probably be better than the Windows (applause) counterpart. The Yellow Box contains graphics with technologies like Display PostScript and ColorSync as well as others. And the Yellow Box has very rich multimedia features: QTML, uh, all the stuff you know about QuickTime, Quick

Draw 3D, and of course VR. And you can hear a lot more about these at the show. Let me talk about it a little bit though right here. QuickTime 3.0 is going to come out very soon, hopefully this summer. Um, as you know, QuickTime is actually Apple's first successful experiment, if you will, in going cross-platform. Um, in fact, I would say that it's very successful. Now, what is QuickTime? QuickTime is basically a universal container, which means that it can take any data and play it anywhere in very simple terms, of course. It's also been very widely accepted. It is the standard in the industry for digital media creation. Now, when 3.0 comes out this summer, you'll see a bunch of new features. Let

me just highlight a couple of them. And I'm not going to do do justice to these in this session because there's other sessions later on this week, which will go into far more detail. But there's going to be a bunch of new support for the professionals out there. Things like FireWire and DV support and lots of things with effects and transitions and, of course, new file formats. I think QuickTime probably supports almost everything you can ever think of and then even some things you can't think of. Um, and it's adding some nice new support in the in the area of internet content, in particular, low bit rate video and a bunch of stuff that supports things like web-based animations and interaction. Okay, let's get back to the Yellow Box now. Sorry for that little diversion. We're going to do that one or two other times. The next area where the

Yellow Box will be very strong is in the web and internet services area. So we will have strong support for services and APIs for security, messaging, all that kind of stuff. And we will take full advantage of the potential of WebObjects which I'm going to talk about right now. WebObjects is a set of APIs and technologies and tools that make it very easy for developers to dynamically publish information on the web. When you do this, you develop and deploy cross-platform. Your client can be any machine. Your server can be any machine. But the basic idea here is the application is running on the server. It's set up such that it can work with any data source by using the EOF technology, Enterprise Objects

Framework. Any database you want, you can just use it with EOF. And you can develop in Java today, which means you can write complete WebObjects applications in Java. And something that just came out in WebObjects 3.1 which was recently released is some very nice support for some features of Acrobat which again I'm not going to get into in detail today but there are other WebObjects sessions which will go over that. One of the most interesting things about WebObjects is there's lots of real customers doing lots of really interesting things with it. And my favorite, uh, is actually Dell, um, which is kind of an interesting one. Uh, Dell actually has a website that does sales of their computers over the net, uh, using WebObjects and they do about a million dollars per day in sales using that.

Software. Interesting. Their sales is using Apple software. Okay. The last piece I want to fill in the box with is Java. We will embrace and are embracing Java big time. We will support the Java VM. We will support the frameworks that run on it. We will support the ability to build 100% pure Java applications. And I am happy to say that today we are announcing with Javasoft, Netscape, and IBM that Apple will collaborate with those other three companies to make JFC a really good application framework for Java. Okay, so we've got all these objects and other technologies. We need to have ways to tie them all together in

a, you know, as components, and we support basically three primary ways, and these are in no particular order. First of all, there's the way that's built into the object model inherent inside of the Yellow Box, which is derived from the OpenStep object model, and this provides ways to put collections of objects together and like in Palettes and Interface Builder, which you'll see, and other ways like that. On Windows, we will support ActiveX as a way to have objects connect to one another. And of course, in the context of Java, we will support JavaBeans. Everything in the Yellow Box is completely accessible by Java. What does this mean? This means that you can write your code in Java and you can take full advantage of everything else underneath. And I know that's hard to visualize, but

we'll see that in a little while. But it's not limited to Java. If for some reason you can't use Java or don't want to use Java or have some other code that's not written in Java that you want to use, fine. Take your language, use it. No problem. Have half Java, half not Java, half all Java, all C, whatever you want. So I mentioned it's a little bit hard to visualize this or to talk about it. What I'd like to do is bring Scott Forstall up and have him show you a demo of what can be possible with this kind of a strategy. Thanks, Obby. So, we're actually going to show a couple different technologies in this demo. First, the QuickDraw 3D that you all know and love is up and running on the Yellow Box. Here it is. So, we can drag various textures and

stuff and it all just works. Uh, the second thing is this application is written completely in Java. Now, I know there's a bunch of Java heads in the audience saying that's not possible. The Java platform doesn't support native drag and drop and that's true, but the Yellow Box supports drag and drop and as I just said, we've opened up the entire Yellow Box to Java access, so this application written purely in Java gets all the native functionality of the Yellow Box. So we can drag out—oh, please, Scott loves that, you know—so we can drag out different shapes and everything and it all just works. But of course, the integration with our system doesn't end there. We also have complete

integration with our platform. So with the Finder, with our desktop. So we can drag out a different shape here and drag an image from the desktop onto our application. And there it goes. It's all working. So what do we have here? We have an application written entirely in Java using QuickDraw 3D and the rest of the Yellow Box. And this application will run everywhere the Yellow Box runs without recompilation with a single binary. Thanks, Scott. Um, can we put that screen back just for a moment? Can we put the screen back of the demo system? Some of you are probably

wondering what is this? It looks kind of like a Mac. It looks kind of like NeXTSTEP. This is a work in progress and this is part of what I was saying. We're making great progress. We are evolving the user interface of Rhapsody to look like a Mac. It's cut off a little bit at the top, but you see a Mac menu up there. You see a tempo, uh, title bar. You see scroll bars and all that kind of stuff. So, we're making good progress. That's what that is. Please don't write about this as a user interface for Rhapsody. This isn't it yet. This is just a work in progress. Okay. Can we, uh, get back to the slides? Great. Okay, now we talk a little bit about giving you these APIs so that you can do something that you otherwise couldn't

do. And I know that's hard to believe. I mean, it's like why not just use Win32, right? Well, there is a real world example of the worldwide web, which was invented on NeXTSTEP back in 1989 by Tim Berners-Lee. And he did this because he had powerful tools, powerful APIs, powerful networking that just worked. He, as a physicist, had an idea. He didn't have to get all bogged down in the grunginess of other platforms. He could just unleash his creative powers and he invented the worldwide web. So we have at least one existence proof. You guys now need to come up with the next one. Okay? We're not going to do that. That's your job. Okay? To show you some of the power of the tools and the APIs, I'd

like to invite John Linder up to take us through a quick demo of that stuff. So the first thing that you'll notice is this is not a Macintosh. Uh, in fact, we are running Windows and we are running a version of the Yellow Box on Windows. So what I'd like to do is show you some of the development tools that we have running on the develop in the, uh, Apple development platform code name Yellow Box. And, uh, here we have Interface Builder, which has a number of components that are stored on palettes, which I can just drag and drop into my application. So let's create a new application here. I'll resize the window a little bit. And, uh, I've got a bunch of widgets that I can drag and drop over. But, uh, we've actually got a QuickTime widget here. I

Can bring over, and I can just drag and drop that over. So let's build an application that has a QuickTime view in it, and we'll need, uh, some functionality added to it for maybe opening a movie and starting the movie and stopping the movie. So, we can label those buttons Open, Start, and Stop. And now I'll wire those buttons up to that view. And, uh, we'll have that one open the movie. And of course, this will start the movie. And this one will stop the movie. So now my application is actually done, and I can check it out by going and running the application. And, uh, that's basically it. And I didn't have to compile because we have this great thing called dynamic runtime binding. So here's the application running. I can

Open up a movie, go through the file system, and select a movie. There, it's loaded. And we'll start the movie. For anyone who's ever wondered what toys do when people aren't around — Toy Story — it's the story of. Okay, so that's it. And of course, now that I built this application on Windows, I could then simply recompile it and run it on Rhapsody. And now what we can also do is show some similar functionality in WebObjects. So what I'd like to do is actually build an application that accesses a local database stored on this machine, uh, full of movie clips. And to do that, we can run through the database wizard, which allows me to go through very quickly and select the database

that I have running on this machine, uh, and various information about that database, such as the table that it's in. And, uh, now what I'll do is actually select the layout that I'd like the wizard to generate for me. And I can go through lists or selected records. And I'll select a table, and we'd like to search within the database. And when I come back with results, we want to show the title, the rating, as well as the clip. And we'll just search on the title. So now when I hit Finish, it actually built that application for me with the wizard's assistance. And now what I'd like to do is actually connect the clip up so that it will show an embedded QuickTime movie. And to do that, I will select the clip field and go to more pallets. Uh, this one

contains a QuickTime view that I'll just drag and drop into my application. Now I'll select that and bring up the inspector and actually bind that to the clip that's stored in the database. And, uh, one more thing I need to do to get it to run. And that's it. We'll save it out. And now we'll go up and bring a web browser up. So, we're running the application and it just worked. And let's look for a movie called Mission Impossible and see if we have anything like that. In fact, we (music)

do. Looks good, John. That's it. Thanks. So John built not only a traditional app, but he also built an app that's basically a web application. And although he could have written his code in Java, he didn't even need to — he didn't even need to because he need to write any code at all. It just worked without any code. Okay. So what is all this supposed to give you? First of all, it gives you the ability to build best-of-breed apps. It will decrease your development cycle and thereby decrease your costs. It enables the full promise of Java. You can now use Java and do things like multimedia. You can now use Java and do things like

drag and drop. You can do basically anything you want with Java now. And as a result of all of this, you can build solutions that will run on any platform that you want. Okay, we understand that not all of you are ready to just throw away all your Mac code and start over. That's an unreasonable expectation. Hopefully, a few of you will be willing to do that, but many of you will not. For those of you who would like a gradual way to get existing Mac code over to the Yellow Box, we have been working with MetroWerks on a product that they call Latitude, which basically emulates some of the toolbox APIs and is there to help you to get your applications over. There'll be other sessions talking more about this. I urge you to attend them if this is an issue for you.

Okay, let's talk very quickly now about deployment of YellowBox. You talked about development and APIs and what they are. Well, Rhapsody, we finally got there. So, Rhapsody is the premier way to run YellowBox applications. It is integrated best. It will perform best. Uh, it will be the best way to develop and to deploy a YellowBox application. It'll run on Macintoshes based on the PowerPC CPU, and it will support the Blue Box, which will run Mac OS inside it and therefore your Mac OS applications and, of course, it will support the Mac look and feel. Rhapsody will come in both client and server versions. Again with the Internet, we have a new opportunity here to take advantage of high

performance servers as web servers, application servers, what have you. Rhapsody will meet that need. As Gil said, we will also have Rhapsody for Intel, which will be all the components of Rhapsody without the Blue Box running on Intel PCs. And again, that will also have client and server versions. We will also have the Yellow Box on Windows, and you saw that in John's demo, where it'll either be Windows 95 or NT as the core operating system with the Yellow Box on top. And in this case, it will look and feel like Windows. The applications that John ran look like Windows applications and we for you for

Developers will have no free license. I knew you'd like that. Now, I think you also might like this. We will put the Yellow Box on Mac OS. So, not only will you be able to run on Rhapsody and on Windows, but you will be able, as Mac OS continues to be successful and important, you will be able to write to the Yellow Box APIs and deploy those applications on Mac OS as well. Okay. Now, again, uh, demo gods with us. We will now demo Rhapsody.

Running on PowerPC. I'm actually going to do this one myself. Okay. Can we get this, uh, machine turned on? Here we go. This is it. It's actually working. Um, this is the current version of Rhapsody running on a Power Mac. Uh, again, it's that sort of hybrid look, Mac and NeXTSTEP. Um, and this is a text editing application you can see with the rich text and the international features. And, uh, we're running out of time, so I'm going to quickly go through this. But we have another application here. Um, this is actually an application created by a third party called Create. And this application ran

On the Intel platform. It was a simple recompile and it ran on PowerPC. No changes, but it's a, uh, kind of a graphics design type of program. We can, uh, change the colors of this. Uh, we can animate it. And again, this is all running on a PowerPC. Unfortunately, we can't give it to you today, but we will soon. Okay. What I'd like to do now is switch over to another machine. Um, and unfortunately, we didn't have time to get everything integrated to do this all in one machine. This is a little bit less interesting looking. Um, this is also a PowerPC machine. It's, uh, it's another Power Mac and it's also running but it's got all it has is one shell

Window on it. So this is essentially, uh, you know, a Unix shell. No hissing and booing please. But many of you have seen this before. That's not the demo. Um, the demo is this. If it works. This is the Blue Box. So, running on the mock core OS is Mac OS. And, uh, this is actually an interesting demo because we are running the latest Tempo beta on top of pre pre-alpha Blue Box on top of pre pre-alpha system

Software. We were thinking last night of bringing out some prototype hardware and trying to run it all, but, uh, we're probably pushing our luck. So this is Tempo. I mean it just works. And, uh, it's Tempo running in the Blue Box and, uh, you know we kind of we kind of figured, well, what if no one believes it? What if they think we just like rebooted the system or something? So what we did was created this thing right here which is five copies of SimpleText each with their, uh, memory sizes set up to about 50 megabytes. And so they're launching and I think it just finished. Let me bring up this About box. What you see

Here is, uh, about 200 megabytes worth of processes and it all works because it's running on a modern operating system underneath that has nice virtual memory features. Okay. So, oh, I need to mention that we will have a lab set up with copies of the Blue Box running so you can actually test your apps. Now, let's switch over to this last demo machine. Um, this is another machine which is just sitting here. This is actually an Intel machine. They didn't again have time to get all this running on PowerPC systems. Uh, but this is running a couple of QuickTime movies just for the fun of it in the background. And what I'm going to do now is launch an app that took under

A calendar two weeks to port to Rhapsody. And some of you are probably familiar with this. This is Quake. And it basically just works. And you can play Titan movies while we're playing the game as well. Full sound, uh, great graphics. Um, they haven't even started using some of the technologies we have for accelerating things like graphics yet. So, it's kind of scary how good it might really be. So now since that was the last demo and they all worked, I have to

Say I was warned that at WWDC demos never work. But I believe that the fact that all the demos worked is an indicator of Apple's future success as opposed to the past. Now, we'll all wait and (applause) see. Okay, we're really trying hard to stay on schedule and we're doing a pretty good job so far. So let me just wrap up very quickly before I turn it back to David. First of all, we talked about the Yellow Box. This is the focus. This is the cross-platform APIs. This is

The set of stuff that you can use to build great new applications and deploy it anywhere you want. Okay, this is the thing we're going to work on in partnership. We are going to let you deploy it on Rhapsody on PowerPC. We're going to let you deploy it on Rhapsody running on Intel. We're going to let you deploy it on Mac OS. And we're going to let you deploy it on Windows. So, this is it. This is where the partnership begins. It's now up to you. Let me, uh, hand it back to David. David, you back there? Thanks. Thank you, Robert. That's great. Was that cool or what? I, I'll

Tell you, it made my heart glad when I first saw that that system coming up with all those extensions across the bottom. It was just a wonderful thing. And that was yesterday when I first saw that. Uh, so we are running behind a little bit. Um, I, I'm going to take, uh, just a few moments to tell you a little bit about the conference that that, uh, we have before us and then we'll, uh, take a short break. Uh, I know that you've all figured out by now, let's let's get a slide up here. Uh, that we have five tracks at the conference. Uh, you have the, uh, the booklets. I won't belabor the point. Uh, we do have 120 hours of sessions. We have, uh, both technical sessions and breakout sessions. And, uh

We have a few repeats. So for some of the sessions that you want to make sure you don't miss, we have some repeat performances for those. I mentioned before the feedback forums. Please make sure that you attend the feedback forums, give us your feedback. That really is important. So, I want to encourage you to go to those as well. Um, we also have sponsored sessions. We have several sponsors this year who are going to be presenting their latest and greatest, and I know you'll want to attend those as well. We have several special events today. Actually, tonight we have the Heidi Awards, which are given each year for the best human interface design. This will be awarded this evening. On Thursday, we have Rules for Revolutionaries. I have no idea what

that means, but it's Guy Kawasaki and I'm sure I want to find out. So I'll be there. Um, we also have a fireside chat with Steve Jobs on Friday. I don't know how we're going to do the fire, but we'll work that one out. And the closing keynote Duca on Friday as well. We've changed things a little bit from previous years. For those of you who've been here before, you know we have a Tools Expo every year and we will have a Tools Expo this year as well. We have over 80 companies next door in this hall. In addition to the tools this year, we also have some solutions that are running that have been created based on OpenStep and

on WebObjects so that you can not only see the kinds of things people are doing but also talk to some of the programmers who have done those solutions and find out what their view on this stuff that we're presenting is all about. So I hope you'll take advantage of that as well. That starts on Wednesday, moves through Friday, and is in Hall 2. Now, there's a significant picture up here on the slides, which is our 20th anniversary Mac, and we're going to make a couple of those, count them, two, available this week as prizes to people who come and visit our hands-on labs. So this is the

way it works, to be legal in the state of California and all that. The way the rules have to work is that anybody who stops by one of the hands-on labs. We have hands-on labs for RAP City Blue Box for compatibility. We have RAP City Yellow Box hands-on labs. We have the Mac OS 8 hands-on compatibility lab and also the human interface design lab. So, if you stop by those labs and register to win, you'll be eligible for a drawing on Friday to win one of the two 20th anniversary Macs. So, all you have to really do is stop by, but we want you to actually use the labs. So, please do

that as well. That's the whole point. So, this has been sort of a marathon session. I appreciate your attention through the whole thing, and I really do want to thank you again for your continued commitment to the platform, to Macintosh, and for creating the really great solutions that make this whole thing work. Have a great week. Thanks. (music)