Steve Jobs on Xserve: Apple Enters the Server Market

Good morning. I am Steve Jobs, and I would like to thank you all for coming. We have planned a very interesting morning event, because we will introduce our first real server and we would like to invite you to try it. We will give several presentations. I will give a general overview. There will be a presentation about remote control and remote management devices. There will be a presentation about sales and service support. We will also present several partners and customers. Then we will have a Q&A session. We have three hours to discuss this event. I hope we only need about two hours. So, I will leave here after 11 o'clock. We will prepare some things in the piano bar across the classroom here, where you can try some of these things yourself. So, let's get started.

This year, Apple has introduced a series of innovations. Since January, we have introduced a new iMac that is very popular with us. The sales are very good, and in my opinion, this is one of the best products we have ever made. We also introduced a desktop for our customers, iMac C. And this product was received very well by our customers. Sales have just entered the first quarter, and we hope sales will be very good this quarter. The reaction so far is also very strong from our customers. We also introduced a PowerBook that is upgraded with a much better look and the first DVI connector in the industry on a portable device. So, you can connect it to a new projector that has a DVI connector, but you can also connect it to our screen.

This PowerBook can run a HDBioscope screen, and has all the graphics and video memory inside it to do that. And you can double the pixels when you bring it to the table and plug in one connector digitally. And last week, we introduced a new product that is amazing, or we refer to it as a new amazing product, Mac OS X Jaguar, the next release of Mac OS X. We are hosting our most successful development conference last year in company history, which means a lot considering travel restrictions and budget this year. As you know, the number of registered Apple developers has doubled in the last 12 months. And all the new developers are basically Unix and Java developers. And we are very happy to have people coming to our development conference who will not even talk to us before Mac OS X is based on our Unix.

Jaguar, which we are looking forward to, which will be available at the end of this hot season, has a lot of new features in it. Some major improvements to the email, a brand new address book, Inkwell, which may be the best handwritten introduction there is. Which comes from, you know, universal access, so we don't leave anyone behind. A new discovery, something amazing called Quartz Extreme, which takes all of our Quartz graphics and puts it into our hardware. So it's really amazing what you can do now, or what you can do with Quartz Extreme, a technology called Rendezvous, which allows some computers and devices, say at home or in a business, to automatically find each other.

This is a dynamic discovery through an IP network without configuration. This is really cool and we like the development. The two biggest things we introduce are QuickTime 6, which is a fully new version of QuickTime based on Mac 4. This is the best video streaming solution for Mac 4 and will be bundled in the next Mac OS X release, which will be released at the end of this hot season. And Instant Messages will be present in Match, integrated directly into the operating system in an application called iHeart. This is fully compatible with the Instant IEM OL network, and this is the first time OL has officially allowed other companies to enter the tent. And all of this, of course, runs on Mac OS X, which is the real Unix behind the scenes.

And the fact is, we are now the largest Unix provider in the world. Isn't that amazing? I will say it again, Apple is now the largest Unix provider in the world. It's hard to believe. And that's why all Unix developers now use Apple and Mac OS X. That's Jaguar. So, we have seen, we have just entered the fifth month, we have seen an amazing trend of innovation so far this year, continuing what we have done for the last 18 months to try to innovate through this economic period. So, we will add another innovation today from Apple, namely the server, and we call it Xserve. Xserve is a new server from Apple. Now, when you think of a server, you think of a company, don't you?

And when you think of a company at Apple, you tend to think more about this than anything else. But that's not entirely true. Although we are not on every desktop, in every Fortune 500 company, we are in most Fortune 500 companies, and they have departments that use MOX, AOL, Time Warner, use a lot of MEDS. Their magazines are broadcast every week on MAJ. Companies like Disney, companies like in the field of biotechnology, like Genentech, usually half or more of their computers are Mac. So, there are a lot of Macs in a lot of Fortune 500 companies. However, Xserve is really designed not only for business, but also for education, because we also have a large presence there. So, if there's one word I can say to describe our entry into the server market, it's compassion.

We know we have to learn a lot, and this is our first offer. We have listened to our customers a lot, and we think we have a pretty good product. But we know that for everything we know, there are 10 things we don't know. So, we approach this with great compassion. So, what is Xserve? This is a 1U server solution designed from the bottom up. This is pushed by customers. And our customers have told us that they want to do the following things. They want to do file and print services, of course. They want to do web and email services. They want to create database on their server. They want to do QuickTime streaming. This is a way to do streaming, you know, hundreds of streaming. Boom!

And they want to do computing services. For example, our customers in the field of biotechnology want to run perhaps the most popular program in the field of biotechnology, which they run dozens of times a day, called BLAST. And they want one or a group of servers to run this very quickly. So, what do they want to see on the server? Well, the first thing they want from Apple is a special server platform. They don't want to use Power Mac GamePod as a server. They want a special server platform. They want it installed on a rack. That's the most efficient way to do it. That's how they do it now. And they want to see it from Apple. They want a lot of storage flexibility. Some customers need a little storage. Some customers need a lot of storage. They want flexibility to design the storage they need. They want ease of service.

They know that these things have to be very reliable. But sometimes they need to be serviced. And they want great ease of service. And of course, they have to be able to manage these things from a distance. So they want great remote management. So, I'm going to discuss all this and tell you what we've done with Xserve as a start. Xserve is a special server platform. So, allow me to explain the architecture. First, we start with the G41GHz processor. It has an internal level 2 cache of 205.6 KB. It runs at processor speed. This is a chip that is very, very fast. It's faster than most of the chips installed on servers today. And for this, we add an external 2 MB cache, which is DDRS RAM.

A very, very fast cache. 4 GB per second throughput to the processor. So, it has an internal level 2 cache and an external level 3 cache. For that, we add a second processor mirror with its own cache. So, we have two G41GHz, each with its own level 2 cache, each with a large level 3 cache. Okay. For that, we add a system controller. Now, this system controller is a special ASIC that we have made and provides an amazing throughput. Far more than most other things on the market. And it has Gigabit Ethernet and Firewire installed. And as we will see, there are many other things that are installed directly in it in one chip.

Next, we add up to 2 GB of DDRS RAM. This is the first time that DDRS RAM is used in a 1U server that we know of. The first time is 266 MHz, twice the speed of memory on every other server that we can find. This is also the first DDRS RAM system from Apple that we will send. Then, we add a PCI slot with a second Gigabit Ethernet to it. So, this server will come with two standard Gigabit Ethernet ports. This is a port of size 10, 100, and automatically detects full Gigabit Ethernet. Next, we add an I0 channel from the system controller, and we add a drive quad ATA100.

All are on the independent controller. All have independent channels through the system controller. CDROM. And two PCIe 64-bit 66 MHz slots for expansion. We also have 3 Firewire ports, 2 USB ports, and a console port. and all other things. Now, this will be the first main server that uses drive ATA. Most others use drive SCSI. We use drive ATA because it turns out that the speed is the same as drive SCSI now and offers some real benefits in terms of larger capacity. This is the fastest MAT architecture we've ever made. Once again, equipped with dual GeForce GHz, DDRSD RAM 266 MHz, strong independent ATA drive, dual Gigabit Ethernet ports, and two PCIe 64-bit 66 MHz ports.

So, this is a special server platform, the fastest architecture we've ever made. Next, installed on the rack. This is a survey. This is what it looks like. Let me show you. Actually, I have one here. There are several here. Actually, this is an excerpt. There are five of them. This is one of them. This is the back of the product. This is the top. Let me slide it out. This is what it looks like. We have four ATA100 drives on the front. We have a CD-ROM. We have a fan here.

One power supply. Dual GeForce GHz processor, two Gigabit DDRSD RAM, and three PCIe slots, one for the second Gigabit Ethernet, and two for expansion. So, that's what the inside looks like. Now, you put it on the rack. Of course, and you just have to stack it on the rack. And if you fill this rack, what you will get is 84 processors, storage up to 20 in the 42U rack. So, you put it on the rack. Yes. Storage flexibility. We send ATA 160 Gigabit and 120 Gigabit drives.

Now, we support four drive slots. So, if you put 120 Gigabit on each drive, you will get 480 Gigabit on one UU rack server. So, up to 480 Gigabit online, with 100 drives, that means a throughput of 400 megabytes per second from a very large drive. This is also very important when you do file services, when you do QuickTime streaming on SBA. Your bandwidth disk is very, very important. We have striping and mirroring. We have smart drive monitoring. We really monitor this drive to see the level of error, to see all the statistics about the drive, so we can make a failure prediction on the drive, which we will discuss in a moment.

And we have CDROM for, of course, installation and repair of software devices. This drive can be plugged in when it's hot. We have designed a very good train where you can unplug it. So, you know, boom, boom, boom, boom. Very easy. Take out one. That's it. Very simple. And everything can be plugged in when it's hot. That's it. So, 480 Gigabit storage can be plugged in when it's hot, four drives. We feel that we have provided storage flexibility. Next, ease of service. You can service XSERVE in seconds. Of course, you can service the drive as we just saw, but in the case of the unit itself, the drive can really be moved out.

There is no additional cost to be paid. The rack installation guide is provided as part of XSERVE. There is no top part that must be removed. So, you can really move some or all of it out. There is no need to remove it to reach the inside and service almost every component in seconds. So, we also have a hardware monitoring device where we try to tell you what needs to be serviced in some previous cases. So, what do we monitor with the hardware, drive status, and failure, which is part of the smart chakram technology. We monitor the processor temperature and its cover. We monitor whether the fan is working and what is its RPM. We monitor the voltage of the power supply. And we monitor the network connection so that it is connected.

You will see more about this later. It is really impressive what we can do with this. We also have a safety lock because it is very easy to open. We have a safety lock that prevents it from being opened. We have an intake warning that tells you if it has been opened. And we have a software lock so that you can lock the firewire, USB, and CD-ROM so that no one can enter. So, we try to think of the type of safety that people want on a modern server. So, this is EXCERPT. You can fix anything in seconds. We think we have built a sophisticated hardware monitoring and safety and have a very strong story of easy service.

So, price and availability. The price of EXCERPT starts from Rp. 29,999. There are two standard models. One is equipped with a G4 1GHz processor. The other is equipped with a G4 2GHz processor. One is 1.4 GB DDR memory. The other is 1.5 GB DDR memory. Both come with a 60 GB drive as standard. One is priced at Rp. 29,999. The other is priced at Rp. 39,999. However, most people will not buy this standard configuration. They will configure one exactly as they want. You can visit our website and do it. Select the server page. Select one of our standard models or adjust it to the way you want.

Thousands and thousands of configurations. Now, how is this compared to competitors? What does it look like out there? Well, we chose several different things to compare. This is EXCERPT. We will take a dual-processor model. We will take our competitor and configure it as close as possible to EXCERPT. So, this is Dell PowerEdge 1650 with a dual-processor configuration. The price is around Rp. 4,277. IBM eServer X 3300 priced at Rp. 51,886. And the sun. This is the closest sun we can get. The lower class sun is not competitive. And the price is almost Rp. 20,000. So, three of them are 1U servers. The sun is a 4U server.

1U server. And as I mentioned, they have a dual-processor inside. G4, 1GHz dual in EXCERPT. The other two are the two in the middle using Pentium 3S. They can't install Pentium 4 because they can't release heat on the 1U server. So they use Pentium 3S at 1.43Hz. And the sun uses UltraSpark 3S at 900MHz. Now, if we look at the levels, all of them have a built-in level 2 cache. If we look at the level 3 cache, which can really speed up the performance, EXCERPT again has a level 3 cache of 4MB, 2MB on each processor, and the sun has a level 3 cache of 8MB. But Dell and IBM don't have a level 3 cache and it's not even possible to add it.

So, this affects the performance. In terms of memory, we have powered Dell and IBM up to 512MB. Sun, the lowest capacity you can buy is 2GB, which is very good. However, if you pay attention, EXCERPT is the only one using DDR266MHz memory. The rest use SD133P3MHz RAM and that makes a difference in performance, doubling the bandwidth to memory. In the drive disk, we have powered it as much as possible to bring EXCERPT closer to 60GB. We have 73GB in the middle and almost the same in Sun. If you look again, everyone uses SCSI drives. We think there is an absolute trend for ATA drives now, because they have become as fast as SCSI drives and cheaper, and their capacity is larger.

But if you look at the total capacity of each of these servers, we have 4 rooms in EXCERPT for 480GB storage. But look at the 2 rooms in the middle, a maximum of 219GB in Dell with 3 rooms and 144GB in IBM and Sun. So these 3 servers have much less storage capacity and better flexibility than XSR. Ethernet, EXCERPT and Dell come with Ethernet Gigabit GANDA as standard. We have equipped IBM. You can't get Dual Gigabit Ethernet in Sun, but we have ordered Single Gigabit Ethernet Optional included in the price. So once again, the price for all this, as I have mentioned, but this price is for Linux in 2 servers in the middle, Mac OS X server in EXCERPT, of course, Linux in 2 servers in the middle, and Solaris of course in Sun.

But what if you want to run Windows in 2 servers in the middle? You will be surprised because to buy a Windows license in 2 servers in the middle only for 5 users, which is not very useful in the company, plus $799, most people have to buy a license for 25 users. which costs Rp. 3,295, which costs Rp. 3,295 from Dell or IBM. And when you add that price, as you can see, Xserve and Zone are present with unlimited user licenses that are bundled. If you add it to the price, see what you get. Look at the hidden cost of running this as a Windows server with only 25 user licenses at the same time.

See how much it costs compared to Xserve with unlimited user licenses for Rp. 39,999. So, once again, two standard models, single and dual processor, and you can configure it as you wish on the website. We accept orders starting today. So after this meeting, you can all order your server and we will send it next month. So, we almost sent your Xserve. Now, let's discuss again what our customers asked for, a special server platform. We give them the best. We think, of course, the storage flexibility installed in the rack with 480 GB.

You can fix it in seconds with the reminder of the intake and monitoring of hardware and remote management. For remote management, I will go back to our agenda here. We will discuss the second topic in our agenda, software and remote management, and I will hand it over to Phil Schiller. But before I do that, I forgot to do one thing that I want to do, which is to pull one of these so you can see how easy it is. That's all you need to do to access every part of the server. So, take a look at one of these after the presentation, and see for yourself how easy it is. Bill. Thank you, Steve. Good morning, everyone. What else do I want to say?

That's a bunch of really cool technology. But what I want to talk about is the software. We have built Xserve because our customers asked for it. And because the Mac OS X server with its Unix foundation requires a great hardware to run. We have a great operating system now, and customers have said they want to run the Mac OS X server on some special hardware servers, and all of our software sales for servers have turned in the last year to be exclusive to all Mac OS X servers. So, the server has transitioned in the last year to be fully based on Mac OS X. The main reason this happened is because you know this is based on Unix, and we have an amazing Unix foundation and a server.

I don't think we would do this if this was a Mac OS 7, 8, or even 9 server. With Mac OS X and Unix foundation, there are a lot of companies, a lot of customers, who think this suits their plans for their network. This is not something different. These are the things they want to apply in their company. Now, there are a lot of things that you know that Mac OS X on the desktop has the same meaning and even more so on the server. So, for example, having a protected memory and multitasking as well as multi-trading becomes more important on the server that you want to run every time. You want a great symmetric multiprocessor on a multi-processor server for various types of applications, databases, and web applications that you will run inside it.

You certainly want a sophisticated network that matches the type of network and all the technologies that you have in the company. And you want an important software add-on on the server such as great R8 support and all this is on Mac OS X and as a server it means more than that. Now, what do people do with the server? So you know the number one reason for companies to buy servers now, first and foremost, file and print services. And we have great file and print services installed on the Mac OS X server. If you want to provide file and print services, it's best for that. What many customers are starting to realize is that we also have great Windows client support installed on the Mac OS X server. You can turn the Mac OS X server into a Windows server and your client doesn't even know it's not a Windows server.

It's the Mac OS X server now. It can become the X server that provides that capability. Of course, because this is Unix, we also have great support for Unix and Linux clients. And if you have someone who comes for the Internet, of course, Unix is the latest standard to become a great file and print server for the Internet. And all of this works with match file and standard Windows and Unix. Of course, another reason people buy servers is to become an Intra or great Internet and a web server. Once again, Unix foundation from Mac OS X makes this product a great Internet server. Of course, you can run a great version of Mac OS X and now you can build an Apache web server using Mac OS X and XServe.

Of course, streaming is becoming more popular. Look at our education accounts, ISP accounts, the use of more developed streaming media and QuickTime streaming is already installed and fully included as Steve said when we switched to QuickTime 6. We have a great technology to build a web-based application. Our own Apple store produces a lot of business. Billions of dollars per year run on Object Web is now run on services installed on Apple's rack. Of course, every company runs an email service and we can send industry-standard emails in all main formats that are available to you.

You don't have to spend an hour to discuss it. But for example, WebDev, an industry-standard web-based file service, SSL for security, WebCaching, are all connected to Unix standard on server Mac OS 10. You may also want a server for SLP all connected to industry-standard tools. And this is the core of Unix, but also the ease of using Mac. You will soon see how easy it is.

No one else provides a real Unix tool for your company and you can use Xserve to manage all of your Mac 7 and 8 clients with Mac Manager and your Mac OS 10 clients with NetInfo. You can connect to LDAP directories and you have a secure and simple way to manage your Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7 and 8 clients with Mac 7

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and 8 clients with Mac 7 and 8 clients with Mac with They wrote in a long configuration text, and we did it through a beautiful aqua face, and it is already in the administration of the Mac OS 10 system, which is now very reasonable in this product. The really new software that we added is called Monitor Server, and this is how you manage all the hardwares and all the great data that comes from the hardwares that Steve talked about. But rather than explaining it, the easiest way for me to talk about it is by showing you these two softwares. So, I have a powerbook here, a beautiful Titanium GamePod powerbook administrator tool, and we have created a service network here in this building. There are some in the piano area that you can see later, there are some in some other rooms, and if I want to manage some of them, yes, first of all, if I want to manage the service, I just launch the admin server. And I can go to one of them, I will go to one of the servers, and this is the user interface to manage the server. So, for example, simple things like I want server info, I want to know what software is running, what is the serial number, I just click it, and there is a possibility that I want to manage the client.

I say client management is one of the most important things people do when buying a server. The ease of use of Apple is very simple, adding users, replicating them on many servers. I have a technical group here, let me open it, maybe I want to add some people to my technical group, add Alex to it, I just drag them. Now he's in that group, save. I'm done. I have added users and groups to my server. The ease of use of Apple, try it on the Linux server. You will play with configuration files for days. Let's go back to the file and print. We have discussed the services we provide as server files. Say I want to activate it on the server I'm talking to now. I want to activate the Windows file service. This is very complicated. I go to my Windows file service, start. Now this is the Windows file server. That's all you need to do.

It will appear in the network environment on the Windows client machine, and looks like a Windows server. The client doesn't need to know anything different. Want to go in there and configure it in detail? You can go in, manage the environment, how you want to display it as a WS server, no problem. We have all the right tools to go through and do whatever you want. That's the ease of use of Apple. Let's discuss the internet side. Talking about Apache, have any of you ever had the opportunity to prepare an Apache server? You know, although it is the most popular server in the world, it is not the easiest server to prepare an administrator. Most people spend a lot of time every day, really 2-3 days, preparing it, configuring it, memorizing the default configuration file, trying to make it right, making sure they make it safe, and turn off all the right ports they need to worry about. With Apple, it's very complicated.

We click start web service. This will blink for a few seconds when we prepare our Apache web server, and then everything will be ready for you. And that's it. That's the easiest Apache web server in the world. Of course, there are a lot of details there. We can go in and configure the server. There's a lot of information you can put in. For example, I have a website running on this server. Let's go inside it. Maybe I want to activate security, add SSL security to my website. Just a checkbox. I have now activated website security with SSL on the Apache web server. Anyone who shows an Apache server demo to log in and add a website and activate SSL, there won't be enough time in a day to finish something like that. Close it. So this is very simple. Here are some of the network services I'm talking about.

If I want to activate the firewall IP, just click the button, add DHCP server, click the button, and you can configure it as you like. So managing the server and all the services you support in your company is very easy. But it's all based on Unix. That's what we mean by Unix's strength, ease of use, and application on the server. Now let's take a step further than the other software I told you about the monitor server. So this is our new software to manage the Xserve hardware. So from a distance, without ever connecting the monitor to any server, I can run it and manage it anywhere in the world using a software with all the right levels of security that can only be done by the right people. I have a lot of servers. I can support hundreds of services on this interface, and all of them can be scrolled.

They give you a name, IP server address, and a glance at all these big green dots that we're going to talk about in a moment. Instant appearance on so much important information that comes from the server. So the way it works is very similar to iTunes. If I want to focus on several servers, piano bars, I just have to start typing and the application will filter what I'm working on at that time. I can do everything or some of them, and once again, I can manage hundreds of them. Okay, let's look at some of the information. Let me click this first server. What you will see at the top is a green button that refers to various hardware and statuses at the moment. The color tells you that everything is fine. So, for example, I can click the green button or tab that fits at the bottom.

Both of these methods work well. So, the first one, you see there is a drive icon and the number 1, 2, 3, and 4. That's according to the four hard drives on each server. Everything is green. Everything looks good. I can click one of them, like this first server. Let's click drive 3. It tells me the drive model, brand drive, what bus is used, its capacity, how many bytes have been written and read from it. As soon as I get the data that tells me about the health and status of this drive, Steve tells you that he follows smart monitoring services. So, this drive can predict failure before it happens and sends data to us through the server monitor here. And anywhere in the world, I can get predictive information if there is a problem with the drive that appears. The second status indicator is power. It tracks data in real time from the power supply of all these servers.

I can click it. I can get information at a glance about its performance. I also get graphics based on voltages, about what comes out of the power supply and how good its performance is. Imagine your administrator starting to see a power outage here in California. You want to see what happens to the power supply of the server. You can come in here and see all the data in a flash. The next is the Ethernet connection. We track not only two that are already installed, but also those that you add to the PCIe slot. So, you see each one has an internal gigabit interface. I can click one of them. The Ethernet address will be displayed. The status will be displayed. The one that is not running and is connected to the network. The other one is running. I can see it being negotiated automatically as a full duplex gigabit interface. I see it all here. Once again, I can track data such as how many packets per second come in and out of it, and see how it develops, what kind of traffic I have on my server.

So, all of this at a glance. Next is the fan. I have two fans here. You see one fan running now at 4272 RPM. The other one is running at 4090 RPM. This is a smart fan in the system. If one of the fans is dead, the other fan can take some of the load until you can manage it. And these things can be changed when needed. I can open the drive unit, say the fan is dead in 20 seconds, replace the fan without a screw to replace it, put it back in without turning it off. So, if I get a warning, I can do something about it without disturbing my customer's service. A very, very simple ability. Oh, the last icon is the key. The icon tells me that the server is locked and there is no incoming warning. There is a sensor in the unit. If it is opened, I will see an incoming warning.

Someone opened it and got a notification on the device. Now, all of this happens dynamically and all at real time. To make it more fun, let me show you how difficult it is to add another server to it. I will add another server that we have in the piano section. Let me go inside it and ask the server to talk to it. And of course it is followed by a name. So I go down. Wow, do you see this blinking red? I have a red status indicator and I also have a yellow warning on the unit. Now I can see it this way, but there are some flexibilities here. I can say I know what these icons mean. I just need simple basic information. I don't need all the details. Or I can click and say, don't just show good things. Just show things that have a warning.

So I can arrange it in any way I want it to work. Let me go back to the full screen. So whatever happens, let's click this red one. Now I can tell you that the server is actually fine. But we have influenced it manually. So it will give us this warning for this demo purpose. Hmm, surprise. So, hmm, the red warning tells us that fan number one has stopped working. You can see it doesn't rotate at all. So now we know the fan is dead. Now try to guess what the yellow warning is. The yellow warning indicates that the processor module is hot because the fan is dead. This is not critical. But I have time to do something before it becomes critical. Now you might be wondering, but how do I know if I have to sit here and watch this all day? No, you don't have to do it. I can take one of these servers and run it together or individually.

I can set notifications. With notifications, I can set who is warned about what through email or page. So I can set people's hierarchy. I can say, Duke is arranged in such a way that if there is an error on one of these physical devices, it is in the lowest order in the priority list. He will get the first call. He will get the first page, first email, and bug. I can put myself at a higher level on some or all of these elements and say, if it hasn't been fixed after a certain time, it will bother me because Duke hasn't built and fixed it. So I can set the hierarchy level of some people. I can ask someone to get a warning if there is a power outage because he is an expert in the field of electricity. Or I can ask someone to take care of everything and I can do it based on the server or the entire server group. So, the advanced default notification feature is our new server monitor.

If you are a Mac OS X administrator, you use Excel directly. is an easy-to-use tool that, in my opinion, makes it very sophisticated to manage everything and provide you with a lot of data. This shows the integration of hardware and software that we can provide here at Apple, which works with the Mac OS X and XServe servers. Now we have talked a little about things that people can do with all these great Unix foundations. Obviously, people will buy, our customers will buy XService to use it as a former server and a print server. I think there's a lot of amazing technology out there, so you'll start to see it as an internet server, a web server, and of course as an email server for all companies. Workgroup management is an area that develops with all client management that you can do with Mac OS X and features that are included with Netboot.

The ability to even boot a net server means you can prepare an entire internet server where everyone is booting each other. So you start to see it as very popular and an area that is not so well-known to Apple. You will start to see us grow with many interesting solutions that are driven by data bases and also web applications. And we have some interesting information that will be available soon. However, we will see more and more solutions in that area. And of course our streaming media is well-known, and I can't tell you how many QuickTime streaming customers ask us to be able to install the QuickTime Dirac streaming server. I think it will be an amazing advantage for our customers. Last but not least, in the field of higher education and our SCI SciTech customers, you will start to see computational clusters built where I can run a number of applications on various servers as if they were all one virtual machine.

And this is really the future of servers. All large server software companies are now moving in this direction, i.e. using affordable once-in-a-lifetime servers that are arranged in large arrangements that run computational solutions dynamically. So, once again, allow me to show you some examples of this kind of solution that customers can use to start using the new XServe. The first is a data-based solution. Something you usually don't think of as an Apple product, as a web-based server. You have seen the announcement over the past few months from Chai Aceh on the Mac OS X platform. Their place now has an active and running software on the Mac OS X server. And with XServe, it makes a lot of sense. This is the actual data base.

This is the NBA data base that they provide on the web. They have a relationship with the NBA and provide their data base. We have brought all the data bases into XServe. I can run it from one XServe. We have also placed it between the faces of the web objects. So, there is no running web server here. Everything can be fully accessed through the web using the web object and features directly to the web and the side-based data base that is connected to it. It all runs on one XServe. So, I can browse the data base through the internet. For example, this is the real data. Look at the playoff player. Look at who is leading in the match point. Then press the search button. The search will be done on the web object. The search will be done on the side-based data base. Show information and provide it directly to my client. So, a real web-based application. I will browse deeper. You may notice number 9 in the playoff point.

Shaquille O'Neal. There he is. We can browse deeper. I chose Shaq because I think many of you know that he is a great iPod user. And he convinced the entire Lakers team that they all have to own an iPod. So, we really appreciate that. So, that is the example of a web-based site using a web object. All the solutions now run on the Mac OS X server, which all run on XServe hardware and see a lot of customers starting to build this kind of capability in their company. The second solution, in my opinion, is very amazing to see. That is the ability to run BLAST software which is talked about by Steve, which is very important in genetic research. Where you compare the genetic sequence data base with the genetic code that is known to try to find a match.

This is a very intensive computational solution and we can run it not only on XServe, but also on the XServe cluster. So, in the back, this demo runs quite fast. Okay, let me start it for you. I will launch it. This will launch the terminal script. Then, in the front, there is a Java application called TurboBLAST for the client side, for my side, which is now sending a set of sequences to a bank containing 8 XServe. The XServe has a BLST software developed by Apple, Stanford, and Gnet. It's called AGBLAST. Very fast. This application runs 5 to 50 times faster, depending on the length of the word, compared to a Pentium-based BLAST solution. Now, we are sending more than 1,200 individual comparisons that we want to do to the sequence.

We have another sequence here and we will compare it with two human chromosomes. We will compare it with chromosome 1 at the top and chromosome X. I think many of us know that chromosome 1 is actually the largest chromosome, so the comparison is quite large. The yellow one is the language sequence that has been sent. The green one is the one that has started again from the server and the blue one is when it is compiled into a table and a final report. So, it's actually out doing 1,200 comparisons and it's done. It's done. I think the team will tell you that it's very fast. Very fast. And in the end, the final report will appear. For those of you who are geneticists and remember biochemistry, you will recognize the language pair and the comparison.

We are all made up of four language pairs. We are a 2-bit computing machine and that's all. What's amazing here is that this is a clustered computing solution. Right now, we are in Apple talking to a server bank that runs a software that is relied on by the business every day. And we are arranging scientific computational examples that are real cluster-based computations. It's very interesting that this machine is very affordable and can be scaled to do serious work like that. Okay, a few more demos. Let's continue to the example of our customers. We have several very large companies. So, you mentioned several Disney and others, Hallmark, and many more that are cluster-based.

And actually, I challenge you to find a Fortune 500 company that does not have a cluster organization in it. And this is one of our cluster developers that makes a software on the Kanto server. Their cluster product is a data-based product for a cloud company. So, I will enter this data base. This one now has an ex-server that runs a data base and an Apache web server to make this front-end. I will enter and say, let's say I want a picture from a Paris race. And it has done a query on a data base containing 150,000 pictures as soon as that. And I can find a pair that matches my query for DAR. And there are the pictures. Let's say I want to order one. Let's look for some information about it first. I click it, go deeper and show information about the photo.

Availability, copyright information. I can decide to use it or not. So, the solution that is already there, which is run by the current server is very reasonable with our new ex-server product and the Mac OS X server. Okay, I have one last example, maybe my favorite, the most fun. I will do a quick-time streaming demo of an ex-serve and what we will do is provide some quality streaming DSL and spin it, then use a box called Web Avalanche. For those who know, this is able to pull a lot of streaming at the same time from the server to test its workload. So we will start quick-time streaming here. Once again, this is the beginning. This is DSL streaming from a music video.

It will be connected to the server, start spinning it. And now we are spinning DSL quality streaming with a bandwidth of more than half a megabit per second. Now I will launch my browser again and I will go to the QuickTime server management page and start watching this streaming. And what we do is this Web Avalanche starts running the script. It sees one flow that we want to get out of it. Then the web will start sending other users there and we will simulate the movement. The movement takes a few seconds to take it, moving more than one stream from this one server. So once again, we will give it about 30 seconds to start.

Here it is. So now it's connected to 16 users, 67 users, all pulling data actually from the X server. More than 100 users now, the DSL quality video comes from this one excerpt. More than 200 server flows come from this one server. Now more than 300. When will this stop? 400. You can see the throughput. Now we have more than 200 megabits per second coming from one server.

Keep going up. We're almost done. We have prepared a script to simulate 500 actual streams coming from this server. So we have one excerpt that sends 500 plus, one of mine here. 501 streams all come from one excerpt and all run DSL quality video. And that's amazing. Yeah. Terima kasih. Terima kasih. Jadi, itulah bagian saya hari ini untuk menunjukkan kepada... that macOS 10 is an amazing Unix platform that has a real Unix foundation for everything that companies are doing on their network.

This is not a strange solution, this is exactly what they are applying right now. This is only done with Apple hardware, Apple software, and the ease of use of unique Apple software. This is as strong as Unix and easy to use as Macintosh to do all these great things. I will hand it back to Steve. So now, thank you Phil. Now we have arrived at how we will serve, support, and sell this server. And you may think, Apple has never done this before. Apple has never done anything like this before. But you may be wrong. So what will tell us about it is Tim Cook. Tim is our Executive Vice President who runs operations, sales, and support. How are we going to serve, support, and sell all this?

Thank you, Steve. Good morning. So, I want to talk about support and sales. You have heard a lot about product features. First of all, I want to say that we fully realize that server support is very difficult. So, as Steve said before, we have taken this very seriously. We found two things when we started to see why this was so difficult. The first is that applications that run on a server are usually missionaries. Those are the things that have to happen. So, for me, it's like receiving a message. Hopefully, a lot of them will fill out the message, send the message, and charge the customer.

Things that you can't stop. In addition, there is a lack of basic integration among most of the solutions on the market today. And this has very bad consequences for customers. That is, they have more problems. And maybe even worse, when they have a problem, there is no precise response on time. So, with a background like that, we go out and ask our customers, What do you want? And when we ask that question, we get seven simple things that may not be easy to convey, but are easy to understand. The first is that they really don't want support. They want the product to function.

Now, this is something that may be easy to understand, but we see how we provide it. And it turns out, for you who are using MaxArt now, you may not know, but you have seen the results of a very strong quality assurance process at Apple. And that's because we control all the solutions. Our reliability tests are usually very large before we bring the product to the market. And maybe more importantly, our customers who operate in mixed environments tell us that MaxArt is better. And that's the main test. The second thing they say to us is that they want really professional technical support.

Really professional. When they have a problem, they don't want to talk on the phone with someone who has just been trained for three weeks. This is not what they want. So we look and find out how we can solve it. There is a survey conducted by Consumer Reports, a very inconspicuous survey. This survey is about consumers, but in my opinion, this survey shows a culture centered around customers in companies. So let's take a look at this. The first company in the list, IBM, is in 61st place. Compaq is in the next position, in 62nd place. Not bad. Maybe this is because the combination of HP and Compaq is very logical.

Both are in 62nd place. Gateway, materially, is better by being in 71st place. Pretty good. And our biggest competitor in Texas, its market share has increased, is in 72nd place. Now this is very good, but look, who is number one? Apple. 73rd. And look at the graphics together. Not only good, but also the best in the support staff, better than others, and the best in waiting. This is quite extraordinary. So, we feel like we have a good foundation to build. The next thing our customers say is that they want the problem to be solved, not to blame a lot.

Well, the industry that I have been in for almost 20 years, and most of you, has become a customer for a long time, I have seen more cartoons in this field, than other fields in our entire industry. I may be able to mention those three people, and you can also mention their names. But what happened? You contacted a hardware company, and what did the hardware company say? Go to the OS company. So you turn around, you contact the OS company. What did they say? Go to the hardware company. And you immediately feel like a rat in the labyrinth, bouncing to the wall. You never really find your way to the end of the labyrinth. Well, at Apple, we are basically different in this matter, because we provide a solution.

Coincidentally, this solution has a software and a hardware inside. This solution is designed as a solution to do something. So, we feel quite good in this field too. The fourth thing they say to us is, they want to access us. Not from 8 to 5, not working hours, but every minute, every day, throughout the year. Well, it turns out, we are doing this today, at Apple, for some of our customers. We have a select group of customers, who really demand this today. So once again, we have experience here. The next thing they say to us is, a group of them want to be independent.

Especially in the hardware field. So what have we done? Look at this. Steve showed this before. Pull it out, put it back. Very simple, very fast. You can do it in seconds. I have been involved in the manufacturing field for a long time. I have never seen anything as good as this before. I mean, you can really train someone, with very limited knowledge, to do this in seconds. So, we feel very good in this field too. Now a group of them says, you know it's good, but I want support in place. I don't want to touch anything. And as you may know, we are also doing this today, for a group of our customers.

So once again, we feel pretty good about this. The next thing they say to us is, that they want speed. Very, very fast. In fact, a group that does not want to touch anything, wants support in place for 4 hours. We don't do it today. We really focus on learning how to do it, for the last few months. And I'm happy to tell you, that today we are ready to do it. Now also, for customers who want to do this, but want to do it themselves, so that they can spend 4 hours to 4 seconds, we provide a spare kit, so that they can enter, and make this easy change themselves.

So, if you look at this list, 7 things, we have to really feel the last, but we feel, we have a good foundation, to build here. So, once again, when we step back from this, there is one thing, among those lists, that they shout, louder than the others. Do you know which one? That's what happened. They are really fed up with this. I mean, they are almost fed up with this. And we feel this is better than that, we can do it better than anyone, because we are one of the last companies, that can provide all the solutions. So, today, I am very happy to announce, 3 separate offers in this area.

Premium Service Support Package, which is a 3-year package, that includes hardware and software, service provider equipment, that I mentioned before, and professional service offers, will make a special package, for our larger customers, who want something unique, and all of this is available today. We anticipate two, the first one, has a very high level of commitment, to the server that we sell. So, that's the support. Now, I want to move on to sales. How do we sell it? You may be wondering, which target market, that we might target? Well, there are several target markets, among those present here today, I am happy to say, and the first one, among those present here, is education.

We have the largest client base, from any company in the world, in the field of education. We are very proud of that. We continue to focus on this market. We feel there is a great opportunity, We have tens of thousands of institutions in this area. The second is creative. Apple continues to be a platform of choice in this environment. We feel there is a great opportunity for us in this target. Biotechnology. You will hear from one of these customers next. You have seen several demos from Phil in the BLAST application and in the form of a video. This is a very interesting vertical for us, where our platform in this market grew to almost 50% last year.

And with our push to Final Cut Pro and the increased application area there, our momentum increased in this market. So, we will focus on these four markets, the channels that we will target here. If you look at how other people sell services today, there are basically two ways. In the direct space, you have direct sales and e-commerce. In the indirect space, you have orders through mail and the warehouse specialist is the additional value tracker, the indirect tracker. Well, if we look at the direct area, there is the king. And the king is the people in Texas. They do it very, very well. They sell a lot of servers directly. And that doesn't mean no one else sells directly.

In fact, many companies are trying hard to sell more and more directly. However, if we look at the indirect area, these people are the kings in the indirect area. There are mobile and e-commerce companies that are just established in this area. So, what are we going to do? Which one will we choose? Well, it turns out we're going to do all this. And there's actually a reason for this. It's not just because we don't want to be everywhere. It's because we may have the largest sales force in the United States in education. Everything will be very focused on this. We have a great online shop that has built significant momentum in the last four years. We will receive orders there today in the mail order space.

And this is one of the things you may not know. Apple is really starting this network. This was born with Apple. And those partners have been the key for Apple for years. They will continue to be the key. This area, the order area through this post, you may not know it. They sell more than three servers that are sold through direct lines in the United States. More than three. They are people who have been in contact with us for a long time. And the VR specialist area is also very important to us because there are some markets that we think the best way to attack this market is through VR. Video is a good example of this. We doubled the number of our videos in the last quarter of the previous quarter.

So we are committed to selling through all these channels because our customers are happy to do business with all these channels. So today we receive orders. As Steve said before, I will be in the back of the room to receive orders. If you don't want to put it on the Internet, I will note it on paper for you. You can configure it in any way you want. Whatever you want. You can't be the first. However, as you will hear in a few minutes, we have received the first order. But you can claim to order on the first day. So with that, thank you very much. I will hand it back to Steve who will talk about partners and customers.

Thank you, Tim. So let's talk about partners and customers. There are some partners here today that we ask to come and talk about how they will help us with XRV. We haven't shown XRV to many of them, but the reaction we show is very, very strong. So the first partner I want to invite is from Oracle. I want to invite Mike Roa, Vice President of Senior Technology Platform. Mike, thank you for joining us today. Thank you. Thank you, Steve. In general, you don't consider Apple and Oracle to work together very closely. I think you usually consider CEOs to talk quite often, but not both companies. However, for the past few years, we have worked together very closely.

The fact is, a few years ago, we certified our client application for the Luna client application for Apple. And at that time, you know, we are an e-business company. We attract everyone who enters our website, everything we do in marketing, everything we do in sales and support. That year, the number one hit on our website for marketing programs was actually learning about how Oracle supports Macintosh, right? How do we work with Apple to provide client support for our application, right? This is a customer, as Steve said, who is generally a Unix customer looking for ease of use. And they have a different environment in their environment. So they are very interested in the work we do together.

So from that basis, we started looking for what we could do around Unix infrastructure. And we started looking at Mac OS X. And we started looking at Unix infrastructure around Mac OS X to provide data-based support. You know Oracle 9i, so we are happy to announce support for Oracle 9i on Mac OS X. And we are very happy with this platform because Oracle is really about low-cost clusters. Low-cost clusters, we see high availability computations through clusters. By placing your Oracle 9i on a platform that can be grouped together. Based on your data that can be grouped together on those boxes, you get instant support for the Oracle application.

But more importantly, you get instant and high availability. So if one of these boxes is dead, your data is not lost. So we are very happy with the work we do with Apple. We will announce that we will have early release availability, followed by full production. And more importantly, and I think what is more important in Unix is what Apple talks about Unix support, right? We use Unix infrastructure to support applications. So we do this the right way, right? It means that when our customers use Apple as a platform, they can be sure that they will get a release that comes synchronously.

So they can launch the platform in their entire environment in a heterogeneous way, right? So let me explain it for a moment. When we use the original Unix support, the original fire that is optimized for this hardware platform, we can suddenly synchronize our release so that our customers have an integrated database in their entire environment. They don't need to have a different database version on Apple, Sun, or HP. They have one version of the database that supports all those applications. So when they launch the Oracle application to run on this platform, their database is now integrated.

Their database can be grouped to get low availability and costs. So we think this is a very interesting job that we do together. We think this is useful for our large and small customers, our educational customers, and our commercial customers. Because this is the type of platform they are looking for. They are looking for high availability at the lowest price. And they are looking for the ability to launch their application infrastructure in their entire environment. So we are very happy with this. We hope to continue working with Apple. Thank you, Mike. Thank you, Steve. We are very happy with this.

Now, as Phil said, we have built the infrastructure that is needed in the Mac OS X server. So when a large company buys a few excerpts, they can directly install it into their heterogeneous management infrastructure that manages all the servers in their company. And one of the most successful products is from Wheelet Packard. I am very happy to welcome Ross Daniels from HP. Thank you. Good morning. I am very happy to be here. Today, Apple announced something very interesting. We are very happy to be a strategic partner in this new effort.

Allow me to explain a little about OpenView. OpenView is the leading service management solution in the industry. OpenView provides experience and business quality. OpenView allows you to ensure this ability. The way we do it is by monitoring important data management, analyzing it, and providing it to you. So, our customers have told us that OpenView is very important to achieve the highest level of efficiency and availability. So, we are very happy to be here.

OpenView is a multi-platform and multi-vendor technology that uses open standards. You have heard a lot about how this platform utilizes open standards, which allows us to deliver it very quickly. Actually, mobile phones have become quite a lot of news lately. There is a slight problem with mergers. And... A lot of controversy in mergers is what will make us lose our mobile phones. So, when we launch a new mobile phone, we are really focused on being able to articulate company values in the future.

So, there are four of them that we show. That is, desire for customers, trust and respect, teamwork, speed, and agility. Speed and agility is one thing that may not be associated with all people with mobile phones. But we think it's important to keep moving forward. So, two of them are very important in this context. The first is the desire for customers. We think it's amazing that we will be able to provide the ability for OpenView customers to manage these things smoothly when they introduce it to the data center. We think that is a very important ability. It is very important for our existing customers. We also certainly have a desire for new customers. Not too surprising.

So, many of the verticals that Phil talked about earlier, we are very excited to be able to present the technology and values that we offer to our new customers. So, we can't wait to do it with Apple. So, the other thing is speed and agility. And once again, because of the open standard that we use in this approach, we can bring the ability of OpenView's core management to this platform very quickly. Our management console runs on this server without any modifications. And just by making a little change in the configuration, it really presents the appearance and the match nuance that we think Apple customers expect. So, that's a very good thing. And because of the tendencies, you think it's difficult. Actually, it's easy.

That means we can start moving forward and give more value to our customers. It's really interesting to think about adding the ability of QuickTime streaming as one of the important business applications that we can manage. Now, we manage many important business applications right now. You just heard about one of them. Oracle 9E is very important. So, we think this is great. We think this is good for Apple. We really think this is good for OpenView. Of course, the most important thing is that we think this is very good for our customers and partners in the future. So, thank you very much, Steve. Thank you, Rus. We have more partners than we have today.

So, I want to continue by talking about some customers. We invited two customers to come today. We have reviewed the excerpt and we asked them to give their reactions. So, the first one is Clear Channel. Clear Channel is one of the biggest media companies in the world. They use a lot of matches and I'm happy to introduce Bobby Harris from Clear Channel. Welcome, Bobby. Thank you. Becoming an Apple customer today is an amazing thing. Every time we turn on the web or flip the page, we finally find that we will run our business better and a little more stylish than others. We are lucky enough to be able to see the excerpt before anyone else, and I think you will see in the Pearce broadcast that we are really charmed.

I at Clear Channel have done an amazing job. Currently, we have about 3,000 maximum distributed throughout the United States and internationally. And I have three people in charge of everything. This server provides us with more capabilities to do our job better and serve our customers better, namely our internal clients, and we are very happy. We can take advantage of so many other things that we can't do right now with just a desktop platform. I think we will spend more time at home. Basically, we talk about content creation with television and non-linear radio production, pre-printed graphics houses, digital imaging facilities, which are spread out in many places that I can see and will be very amazing if we can click the button and everything appears right in front of us.

We have made a commitment to make 40 of them since the beginning. I can't wait to use it right away. I think the potential will be amazing after we use it. Other TI organizations will see us. They always admire us. They will admire us more now. Thank God there is a security key and an alarm there because I plan to make full use of it. But this is an amazing time to be in this industry and be an Apple partner, and thank you for the opportunity. Thank you, Bobby. For those who don't know how much Clear Channel's income is, technically I shouldn't say anything, but I think the income is about 40 billion. About 40 billion, but I don't say it. But it's amazing. Next, one of our partners, Janentech.

I am very happy to welcome Guy Cranes from Janentech to tell us what they will do. Thank you, Steve. Welcome. Great. Maybe some of you know me from previous events. I will mention that 1000 iMacs that we bought for a certain period of time were launched quite smoothly in our OS X internal launch. So, we are happy with the project we have done with Apple. So, we not only have the opportunity to see these boxes, but also use them shortly before this official launch. So, we have some observations, three points for you. One about technique, two about performance. First, about technique. I know you believe it based on what you hear from Apple, but I will tell you the same thing. This is not a desktop box with a wrapped earpiece.

Whether you look at the internal design of the physical box, the ability to hotswap, or the ability to remotely monitor a system. This is a data center box. People like me who work in a data center with a lot of different tools fully accept that box and are very comfortable with it. So, it is quite clear that the box is like that. The box is really designed correctly. Everything, from the ability to manage cables, shows that there is a lot of reflection and a lot of interaction with customers to ensure that this is done correctly. Second point, performance. People need to understand that the G4 itself is an amazing processor, especially in many things that we do quite often. People may not know this, but the same ability, such as the Velocity Engine that allows you to render a Photoshop page quickly, can also be used to compare two DNA cells very quickly.

This is not clear to many people. We are very happy with the investment made by Apple's advanced computing group to really make it happen. People have been observing the problem for a long time. So, the actual situation with me, of course, will not say that everything is done in bioinformatics very quickly. But the most common single application is BLAST. And to have a system that utilizes vectorization in detail and also utilizes the ability to run parallel massively. Yes, I can't say we are massive at this point, we are parallel. So, yes, the group of these things is very well distributed throughout the network. So I think that's the root of our initial observation of why you will have performance. Okay, I won't give any numbers today regarding some of the tests we've run.

However, with the help of Dr. Colin Watnabi in my department and the help of the bioinformatics group led by Dr. William Wood, we have done a number of tests that are reasonable on various realistic problems. Once again, if I give three warnings in one number, I know what will be published, so I won't do it. However, let's just say this is not a matter of measured improvement, but an improvement that means in our ability to complete the work we have to do. Thank you, Steve. Thank you, guys. So, we have heard from several partners, we have heard from several customers. Hopefully, we will soon hear from more customers. However, before we start the Q&A session, I have one more little thing I want to talk to you about.

So, you've just heard all the excerpts. So, you've just heard all the excerpts. And what we want to do is to give you a little insight into the technology of something that we will launch around the end of this year, which is a supporting product called Excerfrate. So, this is Excerf, and Excerfrate is an amazing supporting storage product that looks like this. And I would like to invite Alex Gimen from Apple to give us an excerpt of Excerfrate. Alex, thank you, Steve. Okay? All right. Allow me to give you a chance. Thank you, Steve.

I appreciate it. All right. All right. I appreciate it. Allow me to give you a chance. And the rack storage that is optimized is the perfect equipment for the server. And what we have done is we have developed a rack storage device that is optimized with a very high density as high as 3U which has a base of 14 drives. And with that density, we can place 14 120 GB hard drives on the same Apple operator that we use on the server and provide storage as large as 1.68 TB. And it's very big. However, to get that storage to the server, we have to choose a high-speed interconnection.

And we choose what we consider the best, which is the 2 GB network. However, we took a step further and installed a dual 2 GB network on the system. It gives us a throughput storage of 400 megabits per second. I mean, it's amazing. And it's the latest and greatest network out there. However, the R8 system is all about data protection. And to achieve data protection, we installed a dual R8 controller in the system and we placed all the important components as redundant components. In fact, the drive, power, and cooling are redundant in the system and can be replaced when it's hot. And the way we achieve it is through the truly new Apple design architecture. And allow me to explain it quickly.

The architecture has 14 independent hard drives. And each R8 controller is connected to these 7 hard drives. The hard drive has an independent ATA controller that is connected to the heart of the system. And the heart of the system is the R8 processor. The R8 processor is very fast and powerful. We have added a 128 megabit cache processor for better performance. At the top of the diagram, there is a small blue icon. Maybe it's not too familiar to all of you, but it's an icon for the 2 gigabit network. So, our 2 gigabit network controller actually has a PCI boost, especially for the R8 processor. And it gives us substantial throughput.

I mean, very, very high throughput. This thing is designed for maximum throughput. Next to it, you will see what we call the R8 environment manager. And it's a tool. It's actually a built-in co-processor that gives us the ability to manage this R8 system from a distance. So we can manage it, we can manage it, and we can monitor it. Very similar to what we do with Xserve. If we combine everything and look at the entire diagram, you will see that on each side we have excess power. So we have a power balance for redundant loads. And in the middle, we have redundant cooling. And like Xserve, the cooling is smart. So if one of the cooling systems fails, the other will take over the speed.

You will also see the small green above, which is the redundant cache drive. So actually, we store processor memory. And overall, it makes a very tolerant system for errors with very high throughput. Xserve R.I.D. will be available, as Steve said, at the end of the year. So let me summarize it for you quickly. 14 drives, 3U cover with very high density, large online storage of 1.68 terabits, and a 2GB network, that's Xserve R.I.D. And this is just a preview of the technology. We will announce it later this year.

Thank you, Steve. Good. Good job. So, in general, we have a remote device, remote management, sales, service, and support, partners, and customers. Xserve R.I.D. bonus technology, which brings us to the Q&A session. So I want to invite Phil and Tim back on stage. I also want to invite John Rubenstein, who leads our hardware team that has developed these products, and Abhi Tavanian is also among them. If we have questions about LUNA, Ob leads the team on the Mac OS X server. So, why don't we take a few chairs and come here, and we will try to answer any questions you have. Thank you.

So, what do you think? Yes, sir. Can Xserve run on OS X? I mean, not the server version or OS 9. No, Xserve runs on the Mac OS X server package. So you don't have to pay extra for that. That's included. The number of users is not limited. That's the point. They are designed like hands and gloves. Sir. Yes. So, are you planning to do a comparison with this? And if you do, what size will you run? Phil. Yes, we are working hard. As you know, this is, or if I don't say it, this is a pre-production unit that runs several LUNA data devices.

So, we are not ready to publish our results, but we are working hard on all the standard tests that are compared to most people today. Webbench. Netbench. So far, the ATO drive disk utility shows the network drive bandwidth, a number of tests, and we also have several special industry tests such as BLAST and others. So, we are working on all the tests and hope to have the numbers to be published and shared when the product is available. The initial number looks good. We want to do it right. Yes. I have two questions for anyone who wants to answer. First, you said that you will be one of the places where you will sell new services.

Is there an initiative or new program that is underway? Or how will you help people to increase it? And also, what is the percentage of Apple sales through BAR if you have that number? We will do a lot of training now after we announce it before shipping, so that our network will be very ready to sell and provide consultations on the server. We are really anticipating this, so this is not a problem. We feel that now we have to find a new network to do this. As I said in my brief presentation, we are actually in the video BAR space as an example of development from zero about a year ago to 150 all over the world now.

And we have done it in several parts of certain networks that we feel really need more advocacy. So we really feel that we have the right network. I don't want to quote us, usually I don't quote certain sales that come from certain networks, but I will only say that the networks that I present are all very important to us and we think all this gives us a great mechanism to move the server. Another thing I would like to add is, as I said, Apple's interest since we launched Mac OS X is that the Unix-based operating system from the Unix community is very strong, stronger than we ever expected. People are talking, people are contacting us now who don't even want to talk to us when we contacted them before Mac OS X.

And we hope the server will push it even more. So I think you will see... Sir! Oh! Where? Just a brief question about the Unix theme you mentioned. Are you planning to support Java, Java development tools, things like that, or are you planning for the future? Obi, do you want to answer it? Java is already installed on the server. And we are working on an optimized version for the server that we will launch in the future. And we found that in general, things that are running in Java are running very well on our Java version, including on the server. So, is everything there today? Sir! Hi! Um, two questions. One that is very specific, and one that is more general.

The specific one, is the web object that was previously included or is it a separate purchase? And if so, maybe you can explain a little about the license because there were some confusion or debates about it in the past. The more general question, you describe this as the first, in my opinion, for Apple, but some of us, in the last 15 years, remember a lot of server initiatives that vary from Apple, AUX, and various versions when the AIX version opens various hardware which for the most part only lasts 1 or 2 years. When I talk to IT people, they say that they really appreciate stability and Apple does not provide it, especially for the back office. Do you think all that has passed and they do not know about it?

Or we will forgive you and forget it and see Apple in a new way? Or do you have to overcome such a picture that a company may have? If so, how will you do it? Allow me to answer the last question. I will give the first question to Phil. As you know, we are now talking to many corporate customers. Some of them talk to CIOs. Some of them talk to the art department. However, we have a lot of Fortune 500 accounts and I think we have been able to gain a lot of credibility. The management team representing Apple has been able to gain a lot of credibility in the last 4 or 5 years from what we say we will do. So, hopefully it will happen now? I'm not here when Apple did a lot of things before.

I think there is only one server exploration that they do. You know, I see it as a dream when Apple is in a coma. So... Phil, do you want to take the first one? I don't have a clear analogy. Object Web has two parts for a solution like Object Web, which is the development part and then the server distribution part. Obviously, the server distribution part is what makes sense in Xserve. And it is included with the Mac OS X server. The implementation of Object Web is already planted in it. For client development, there are tools that can be purchased, and there are usually two ways to get it from Apple.

One of them, which I highly recommend, is to join our development program. And as part of that, you get a tool for developing Object Web. The second way is by buying it from the Apple Store, and the tool is also available for client development. But the implementation of the server you need on the Xserve is already included. Next question, raise your hand if you have a question, sir. I have a few questions. First of all, during your keynote at WWDC last week, you offered some quite tempting appearances about Jaguar Server. If I am a customer who will issue Rp. 3,000 or Rp. 4,000 in June, will I consider an increase in payment to Jaguar Server at the end of the hot season, or an increase in the Lunak Server device? Already included in the package, you will buy Jaguar Server when it is released at the end of the hot season, right?

If I buy a unit with one drive and do not fill the other three spaces, will they provide a carrier there so that I can install it? Will you provide a carrier as a separate unit that is not filled? No, we will not provide it. And when will Pixar announce that they will prepare all this as a server, as a render farm? You have to ask them. But they really like it. And everything is unique. Any other questions? Sir, just a short specific question. What is the status of JDK 1.4 on Apple? Obi?

That will be included in the category of future products that we do not discuss. However, I will say that it is something that we are considering, and of course you expect us to provide it at some point in the near future. Sir, you mentioned that spare parts will be available in the service package, replacement spare parts, outside the service package for the server, where you will buy other replacement spare parts. Will you buy it through Apple? Through Apple or through the network? Okay. Thank you. For example, Oracle has said that the group solution will be available on the platform, they do it themselves, so a lot is done by the application provider.

First of all, I want to say that the box is amazing. Thank you for doing it. Thank you. And also, I want to know if you will push the web object. Now, after you have a very good hardware to run it, will we push the web? Yes? To push it to the market, because right now it doesn't seem to work, and I think you also have a very good software platform, and I think it is in line with what we think we do too. And that is one of the reasons we combine it in the macOS 10 server, because we want everyone who gets the server to get a free web object distribution license. And we do have a few sessions at the web object development conference, but I think there are a few. And in terms of advertising marketing, or you know, the market for the web object is probably not the best market available through mass market advertising.

Yes, I don't know. So, a few more at the back. What is the significance of the income source you expect from the server for Apple? Yes, we don't estimate the income, but we will tell you, and we hope it's bigger than we thought, but we just started it, and like I said, you know, when we approached retail when we entered it, a few years ago, we approached this with a very low heart. We have to learn a lot, and this is our first step, and we think our first product is very credible, and we will interact with many customers and learn more about hardware and software. However, I think there is one main thing that we all discuss, but I think the team has the most to offer.

At the moment, up to Xserve, there is only one main vendor-server that provides all the solutions, which is Sun. You contact the company and talk to people who make hardware and people who make software. So you don't get this, and we are the second, and we provide all the solutions here, and we have to learn a lot. However, I think we will learn quickly, and we will learn by working with some great customers, and this is our first big step, and we hope to take many steps. A few more questions, then I think we will discuss PianoBar and show it to you directly. Sir. So, you have now expanded your network from 4 boxes to 5.

Can we expect a home server product? 6 if you include iPod, okay? 7 if you include MX. We will discuss Xserve again today, and we are very happy about it, so the product will be available in the future. Good. Thank you very much for being here today. We really appreciate the time you spent with us, and we are ready to answer questions and show you practice. Thank you.