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>> schmidt: thank you very much. thank you.i want to thank--thank you, alexander. congratulations on this. this has become the place to be forall of us in the computer industry. for those of you who have worked so hard to build thenetworks and the things that we care about, it's an honor to be here. and it's an honorto say that mobile, mobile computing, and mobile data networks have really arrived aroundthe world. this is a place in barcelona where the phones work even in the elevators. forevery single plug in the wall has a mobile charger in it. and we're proud to be partof that tribe. when i think about this, i think about the fact that you have a wholeterminal devoted to the app planet. you have that--literally that level of commitment tothis new platform that's being built. many
of you already know that the scale of smartphoneis growing more than 30% year over year. and in three years, if not sooner, will--smartphoneswill pass global pc sales. this is a remarkable achievement by everybody here in the room.you may not know or you may also suspect that mobile web adoption is proceeding at eighttimes faster than the equivalent point 10 years ago for the desktop. that's how muchfaster this is happening because of everything that we have done. half the new internet connectionsare from mobile devices. that's probably not so surprising. but from a google perspective,there are more google searches on mobile than on desktop in emerging countries like indonesiaand south africa, pretty exciting. maybe the best testament to what you all, we all havedone, is the way in which we have affected
ordinary people's lives. and there is no betterattest of that than somebody in trouble. a famous story from a few weeks ago that somebodyused an iphone application to diagnose his wounds, sitting in a rubble, in haiti or ateenage girl who updated her facebook status, sitting in a rubble, to send rescuers to comerescue her. it must make you proud to have built something so fundamental to human existence,if you work in those companies or you're part of this ecosystem that made all that possible.so, i take this audience as understanding this as given. i take us as all part of thesame view that's information is so fundamental. i take our joint view that mobile is it, andthat's what i want to talk about. so to me, the question is "what's next," right? we'vehad a good ride, right? it's working. what's
next? i suggest that there are three historicalcomponents for what we're seeing. now the first is computing. and it's interesting thatthe next is one, which everybody here knows about, is kind of a gigahertz processor. twenty-fiveyears ago when i was at sun, we sold a thousand sun workstations, roughly the equivalent ofcomputer desk, at tens of millions of dollars for six months of work to get a computer companyactually using them. i sit there now and say, "why didn't i just wait 25 years and i'd haveit in the palm of my hand?" and imagine 25 years from now at the rate at which moore'slaw is working what people will be saying about "what we're doing today versus whatwe do 25 years from now." the low-power high-performance chips that are on the burner, that everyonehere is either working on or will be using
in the next few years, have all of the wonderfulproperties that we've seen in the traditional personal computer industry. and the rate ofinnovation is not slowing down. the multi-core revolution and so forth is really taking off.the second tremendous wave is one of that connectivity. the internet now connects 700million public servers roughly. we don't really know. it's hard to know how big the internetis, but we know it's humongous. i was looking for interesting applications. perhaps, themost interesting one is the us embassy in beijing uses twitter to update the statusof the air every hour, and literally does it tweet so everybody can see what they thinkis important. this notion of publishing and microblogging and so forth information thatyou think is generally interesting is an explosion
that will drive networks further into everythingwe use in every way. think of it as an opportunity to instrument the world that these networksare now so pervasive, we can liberally know everything if we want to. what people aredoing, what people care about, information that's monitored, we can literally know itif we want to and if people want us to know it. now, you sit there and you go, "well,what are the limits to this connectivity?" the second phase that i was talking about.well, maybe we'll run out of ip addresses? well, the number of ip of these six addressesis 2-to-the-128th plus or minus. for those of you who know, 2-to-128th is a lot biggerthan a number like 2-to-the-64th. and in fact, there are so many that the estimates of roughlythe number of electrons, protons, and so forth
in the earth are roughly in those orders ofmagnitude. so, my important--my point here is we're not going to run out of devices thatwe can address if we can imagine what they--what we want to do with them. the important thinghere is that in conjunction with that, the work that people here are doing around bandwidthis also getting significantly more, more powerful. here as you walk around the show as i've donetoday and as all of you have, the story is lte and the technologies that underlie lte.and i was shocked to discover that the united states might actually deploy lte soon. allright, historically, if you live in the united states, you're always behind. you're alwaysbehind the europeans with respect to mobile networks. but maybe this time, the us andeurope can actually rise at the same rate,
asia, of course, catching up very, very quickly.and with lte, the game changes again. now all of a sudden, there are other ubiquities.one megabit data connection that we all take for granted in modern wireless networks. maybewe'll get to 5 or 10 on a common place in measured way with peak performances much higherthan that. this has a lot of implications for the kinds of applications that peopleare going to develop, and i'm going to talk about that. so if you take a look the fasterdownload speeds, the faster upload speeds, people take it for granted. you forgot whenyou didn't have a megabit or 10 megabits, but i remember. think back to 5 years agoor 10 years ago when you were striving so hard for that--those level of performancethat you could do. and now, of course, we
have a whole generation of young people whohave no notion of history, which i guess was true of my generation. we were young as well.they don't call it a mobile phone. they just call it a phone. that's a win. that's a victoryfor everyone here. now the third and final wave of computing that has come together isaround cloud computing. and you've heard a lot about cloud computing. the simplest wayto think about cloud computing is the information does not--doesn't have to be stored in thesim anymore, right? that the sim card, which never had that much capacity anyway, can nowbe used as an identifier to keep very, very sophisticated amounts of data in the cloud.so literally, when, you know, a person loses their phone or misplaces something or wantsit, they can literally get exactly the same
way. people always say, "well, i want a copyfrom here to there." that's the wrong terminology. the right terminology is to replicate, right?that i have as many different client devices and i can have multiple copies of everything.and one of the key insights of that applications in this new generation of applications, andit really is an application story, has highlighted by your whole apps hall over here. these applicationsare sharing intensive that the generation of applications developers that built beforecloud computing was popular thought in terms of local copies and so forth whereas withapplications now in the cloud, it's all about sharing replication. and by doing that, youcan build very, very powerful interlink systems, things that are simple like calendar systems,or very complex monitoring systems that everybody
cares a lot about. so all of the companiesthat are now leading this sort of cloud computing revolution, think of amazon, ebay, facebook,salesforce, spotify, and so forth, are all demonstrating this sort of principle of cloudcomputing. and cloud computing is more than here to stay to, becomes the basis for theback-end of everything that everybody here in this room does. now over time, if you goback--and i've been in this industry long enough to know this over, say, 30 or 40 years,each of these waves: the computing wave, the telecommunications wave, and the need forservers, which is what cloud computing is today, they intersect at a particular--a proceduralpoint. for many years, it was in the mainframe context. more recently, it's been in a personalcomputer context. and i'm pleased to say now
that it's in the context of these powerfulphones. it is the phone that is the meeting point. and let me say it in a stronger way.let me suggest that if you don't get the three waves right, you won't win in this new space.a device that's not connected is not interesting. it's literally lonely, right? there's nothingto do with it. what's the first thing you do when you get a new device? you see if youcan connect it into the internet, right? you do that without even thinking these days.an application that does not leverage the power of the cloud is not going to "wow" anybody.it's going to be too narrowly defined. and a super fast network that's slow, that's pairedwith a slow and a heavy device won't succeed either. so you see the interdependency isnow abruptly obvious for all of us who participate
in this amazing ecosystem that surround us.why the mobile phone, because it's the high-volume endpoint. i mean, it's not because we're nicepeople or something. although, i hope that we are. it's actually because there's a pointof volume and growth, and so forth. and when these points occur in an industry, they becomethe defining or iconic products in that space. and that time is upon us right now, righthere, for this year, and for at least the next many years. it's like magic. all of asudden, there are things that you can do that it never even occurred to you that are possiblebecause of this convergence point. there's an implication of this which i think is notbeen expressed here or in the industry as a whole. it has to do with what i'm goingto call mobile first. it's a principle of
mobile first. and i see it at google becausenow our programmers are doing work on mobile first. and that is in fact the change. inevery product announcement we've done recently, and i just sort of noticed that. of course,we'll have a desktop version, a high-quality web browser version. we love those things,and our customers love them as well. but we'll also have one on a high-performance mobilephone on all the browsers that are available. all of which are coming together is--whichis the good news. and those are better applications. and now the top programmers want to work onthose applications. why? because there is something on those phones that they can'tget on a desktop. it's more specific. it's more human. it's more location-aware. it'smore interactive. it's more dynamic. it's
more personal. it's more satisfying to them.now, there are lots of examples of this. let me give you a voice input example. >> schmidt: now, there're lots of examplesof this. let me give you a voice input example. the speech recognition is really a data problem.and all of the first versions of this were done with speech sync recognitions that willrun in the phone. well, the problem is you don't have that much processing power althoughyou certainly have a lot. and you don't have that much memory although you have a lot,which you have a lot more in the cloud. so the new ones, the ones that actually workuse these large sets of databases that are sitting on servers, and they talk to eachother and the networks are fast enough that
you can get an answer very quickly. all ofa sudden, voice recognition, which never really worked before, now works really, really remarkablywell. so you send the voice files to the--into the cloud and they're processed, in our case,by hundreds of thousands of computers in parallel to look at intersections and so forth, thencome up with--they essentially vote to come up with the better answer, and they give ityou. it's remarkably accurate. so, you sit there and you go, "hmmm, now what could ido with this? well, i've got voice recognition. i've got google translations. i can translatefrom a hundred languages into a hundred languages. so why can't i just talk on the phone to somebodywho doesn't speak my language?" well, we're not quite there. but it's coming. and it'scoming because of the unique intersection
of computing and communications in cloud andcloud-based data storage, and the development of algorithms that were only ideas on whiteboards over the last few years. there's an interesting application that i found thatwill run--it actually tries to diagnose your cough by listening to you on your phone. now,this is very useful, you know. are you dying or are you okay? you know, very, very important.another example, cameras. so, here i am, and i've not been to barcelona before. and there'sa beautiful building out right--literally right outside this hall, so vic and i arewalking around, and we take a picture of the building, and using google goggles, it saysit's the arts museum. furthermore, it tells us what's in the art museum, and is it open,and when can i go see it while i'm here in
town. that's a good example of how somethingwhat seems fairly simple just using my camera. all of a sudden, it becomes something incrediblyinteresting to me. so here when i walk around, and i walk around the town, my phone saysit knows who i am, and it knows where i am, and it knows where i'm physically walking,why doesn't it give me a history of all the things going on and the extraordinary creativityof gaudi and so forth and so on. it's all right in my pocket, literally, in my hand.now, the ability to do this is not limited to simple examples like the where am i, butthere are some other implications of this which are sort of interesting and maybe alittle worrisome, we'll see. since the phones all know where they are and people tend tofollow in the same pattern, you could imagine
applications which not only know where i ambut predict where i'm going. most people pretty much saying it. and again, that applicationmight make sense as long as people get the choice to turn it on or off, right? or lieabout where they are or whatever they want to do. but the important point here is whenyou have all that data, you could begin to use the computational characteristics thatmodern computer science offers to do some really phenomenal things. one of the peoplewho invented this area for us is a fellow named hartmut neven who's--the person who'sessentially brought you all of the face recognition and other services. and i'd like hartmut tojoin us. maybe you can show us a couple of the things that you are about to announce.hartmut?
>> neven: thank you, eric and buenas tardes.so in light of eric's remarks, i want to show you two new ways how you can search google,and both nicely illustrate this point what can happen if you have a sensor-rich deviceconnected to computing in the cloud. so one is search by voice and the other is searchby image. so about a year ago, we introduced voice search in english. let me show thisto you first.so here, you see the little microphone button that should--[indistinct]--voice search icon.spanish restaurants in los angeles, okay. hello. okay. so here you have, basically,the results that you get. when you would have done a text search, here's a guide to spanishrestaurants and a few good choices. >> schmidt: everybody heard--used to this.it doesn't--no one says like a "wow." that's
pretty impressive.>> neven: yeah, that's disappointing. okay. >> schmidt: how do you--you need to tell mehow you do this, by the way. >> neven: yeah. actually--since you asked.basically, what is happening in here is you record the audio then stream it in real timeto our data centers, and as the audio recognition engine's come in, extract audio features fromutterances, and then map those into words and phrases. and then we come up with a setof likely phrases. and then earlier, as you explained, eric, a key point here is thislist of likely phrases gets compared to the most popular queries we saw over the lastfew days. and this matching against popular queries, this explains some of the qualitywe are going--we are seeing here with this
application. i mean, you may have noticed,this was not even fazed by my fairly strong accent. so we introduced english about a yearago, and since then, we have covered mandarin and japanese language. and tonight, for thefirst time, i'm going to show you a false language, german. but--i guess that. so, again,same process, maybe something simple first. bilder von berlin. so, i apologize. normally,it's much snappier but, it seems to me we're all competing here for bandwidths, but yousee some nice iconic images from berlin. but how about something a little bit more involved?let's say, you want to know about the hip night club in berlin. techno club berghain,panoramabar in berlin. you know that place? okay, so i recommend it. so you'll see themap and you can pass in the wikipedia page.
so, [indistinct] are work in the field. ihave to say i'm still astonished how well this works. sometimes, i'm driving with mylittle boy in the car, and then i hear him playing with voice search and he gives itthe oddest phrases, and the hit-rate is just astonishing. so this was search by voice,and now we switch to search by image. many of you may have seen that in december, twomonths ago, we released the google goggles, which is mobile visual search. and essentially,the ideas there is, you combine objects that interest you; interesting landmark, a bookproduct, a wine bottle or just a barcode. then, in order to get more information aboutthis product, you would take out your phone, take a picture of it and this serves as aquery to trigger such results for you. so
maybe i can demonstrate this here with a landmark.so i come by to this beautiful place in barcelona, and then i snap a picture of it. and so fast,i couldn't even get back in time to show you the nice animation in between, so we foundsagrada familia. and i can learn that it started to be built in 1882. it's pretty early giventhe state it's in, but it's a beautiful place. so, i'm not done just yet. one advantage,of course, of working in the cloud is that you can mix and match. so we don't only havesignificant investments into image recognition or voice recognition, but we also have a verystrong translation group. and today, for the first time, again, it's a preview like thegerman voice search. i want to preview with you optical character recognition paired withreal-time translation. so i have--if you can
see this here a german language menu. andi would assume that many of you here would, you know, not able to know what to eat tonight.but if you have the new goggle's translation, what you can do, you zoom it, take a picture--ishould show this to you--and place it there, so the speech. thank you. thank you. so in german language, it says,fruhlingssalat mit wildkrautern und parmesan im speckmantel, which in english translatesto spring salad with wild herbs and parmesan cheese wrapped in bacon. so i would thinkthat is tasty, and i'm hopeful that our users would be delighted by this quite helpful feature.thank you, eric. >> schmidt: thank you very much, hartmut.and for me, what hartmut does really is magic.
and i think it shows you a little bit of whatwill be coming over the next few years. if you go back to my thesis of the three intersectionpoints, we decided to move the ball forward at google by releasing a set of products generallyknown as android, which many of you are very, very familiar with. and we wanted to do this,partly, to build a platform ecosystem, which i think is working very well, but also toserve as a catalyst to bring a new model of how people would consume information. andi would tell you that it's working remarkably well. i sort of counted up how well we'redoing. we have more than 65 partners. we have 26 devices and with 59 operators in 48 countriesand 19 languages so far. and i would say we're just at the beginning. to give you a sense,we're now shipping more than 60,000 android
devices in the android industry per day andthat number has doubled over the last quarter. obviously, the growth rate is accelerating,and we hope that that--the growth rate as well as the demand will continue for a verylong time. because of the partner announces they're happening at the end of this week,there's a lot of reasons to think that the open handset alliance that we've done withandroid has really, really worked very well. now, what i thought i would do is give youa couple of demos and have, literally, the best student i ever had at stanford, erictseng, join us. where is he? if you want to come on out and do your demo--here he is.yeah. >> tseng: thanks, eric. i know you're goingto mention the stanford bit. now, i feel like
i'm in a lecture again all over. and i'm aboutto get cold-cold. i already have been cold-cold, haven't i? so, thank you all and thank you,eric. you know, when we think about android, we get really excited because android reallyis about that merger of those three themes that eric has been talking about. you're talkingabout computing, connectivity, and the cloud. and we put that all together; you're reallylooking at what is nothing short of a revolution. the line is blurring between mobile phonesand desktop computing. and what i wanted to do is show you two demos on android that reallyillustrate that blurring of lines starting with something, which has always been kindof missing from the desktop browsing experience. now, one of our main goals when we embarkedon smart phones at google was to really mirror
the desktop web browsing experience rightthere on your phone, right there in your pocket. but for many of you out there--and you knowwho you are--there's been a critical component that's been missing, flash. so, what i wantto give you a sneak preview of today is flash running on android. and here, you see an imagethat many of you are probably familiar with in new york times. but as you scroll around,you can see that all of the components are there including the videos. and i'm just goingto zoom in here. take a look at this video of a logger. and why don't we just start playingthat--that video. so, one tap--this is actually just now buffering. everyone here get off wi-fi.>> schmidt: that's right.
>> tseng: well, as this is buffering, thebeauty of this is that you can actually page around and this video would actually be playingin the context of the overall webpage. let's take you to another video which will actuallyhopefully run and we may be able to come back at that later. but here's one that i thinkwill appeal to a lot of you, which is movie trailers. and, you know, let's launch onehere which is the book of eli. and the beauty of what we were able to do by working reallyclosely with adobe is tie the flash runtime directly into the native capabilities of thesesmart phones, these really high-end smart phones. so, the wondrous thing about thesehigh-end devices now is that they come with very high-end advanced graphics processing.and the flash 10.1, that's now running on
android--this is not flash light, this isthe full flash 10.1--is leveraging the hardware acceleration capabilities that are nativeon the device. so, here you have a movie trailer. focus here.>> thirty-one years ago, the war tore a hole in the sky. only a few survived.>> tseng: all right. let's... >> our only hope...>> tseng: let's put that to a stop. that was getting really creepy. but the last demo iwanted to show is probably one that most of you will spend most of your time using whenwe talk about flash, and that's gaming. so, here we have a site called miniclip. and miniclipis a compilation of a lot of different games that, you know, you probably enjoy here onyour phone. i'll pick one here called alien
attack. and, you know, you've got three minutesto spare at the bus stop. put this to full screen. double tap it to fill the full screenhere and let's start saving the world by shooting down some aliens. that's a friendly. i learnedthat. and here we go. kill the friendly fire, friendly fire. so as you can see, flash isrunning now. what really gets me excited about flash though is the fact that it's not justcompleting the picture about desktop browsing, but it's also extending the reach of all thoseflash developers out there and giving access to all of you to the wondrous catalog of contentthat's working on flash. but the other piece about cloud computing, and sort of tying thisall to mobile, that gets me really truly excited is how we can miniaturize the world. whenwe make these devices, smart phones, connected
to the cloud then anything really is possible.now, a lot of you have probably played with an app called google earth. and you probablyplayed with it on your pc computer. but what is so amazing about earth is its ability aswell educate and to inform. and now, i'll give you an example. let's fly into haiti.now, eric in his earlier talk talked a little bit about the examples of how, you know, smartphones have played a critical role in haiti. in fact, i think it's almost $20 million havebeen raised just through smss alone for the haiti cause. but one thing that i did as soonas the haiti earthquake arose was i launched this app and i showed it to my friends becausethey didn't see what had happened. and what happened was just two days after the earthquakehit haiti, google acquired update satellite
imagery of haiti that showed what had happened.and what i'm going to do here is zoom in to haiti and i'm going to pick this locationhere. this is the presidential palace in port-au-prince, haiti and you can see that the roof of thebuilding has completely caved in. and if i pan just directly across the lawn, there aresome refugee camps that were formed temporarily because of the earthquake. just an amazingillustration of what you can do just in your pocket and inform and educate and learn. and,of course, if we layer on top, some of that great voice recognition software that hartmutjust demonstrated. mount fuji. what you'll find is that you can have all those greatcapabilities that you had and enjoyed on the desktop computer but now here on your phone.and i'm going to fly to mount fuji, it recognized
what i said. it's doing all the animationreally, really fast that you expect to see on a desktop computer and just to prove thatwe did indeed find the mount fuji. i'm going to get that bird's eye 3d view of the mountainright here on my phone. so, there you have it. i think, you know, there's--just two examplesof what really is possible with smart-end phones running on a platform like android.and with that, back to you, eric. >> schmidt: thank you very much. the--so,what's the basic message here? i think it's pretty simple. the confluence of these threefactors means something very fundamental is happening. a phone is no longer a phone. it'syour alter ego. the phone is no longer a place that something that you just use and it'sfundamental to everything that you do. it's
an extension of everything that we are. itdoesn't think as well as we do but it has a better memory. it is more accurate notionof where we are. it could take pictures better than we can remember things and on and onand on. this power that's been invented by the confluence of these things really doesgive us an opportunity to make this be the time for us, the time now. now is the timefor all of us to get behind this. so, what i would suggest here, here, right now, atthe mobile world congress, we understand that the new rule is mobile first. mobile firstin everything. mobile first in terms of applications. mobile first in terms of the way people usethings. and it means some important things. it means that we have a role now to inform,to educate through all these devices, and
by the way, to waste everybody's time toowith games and so forth and so on, which is fine. the important point is it's what peoplewant. it's time for us to make mobile first be the right answer. here we are, mobile first,surrounded by the awesome power of the networks that you all have built, the scale and computationalpower of the data servers that google and others have behind them. they can do thingsthat no single person could ever do. the job here is to create magic by putting all ofthat together in ways that people just go, "oh, my god. how did i ever live without thatbefore?" that's what we do. it's mobile first because it's time for us to have the softwareand the networks work together so that they don't--for example, waste time signaling,that they use the bandwidth that is being
provisioned, which is fundamentally a scarceresource, correctly. it's mobile first in the sense that we need to figure out a way,a right way to handle the one 1% of people who use 70% of the bandwidth, right, withoutinconveniencing the other 99% but providing a good service for 100% of all the users.it's mobile first in the sense that we want to say yes and not no. culturally, it's timeto figure out a way to say yes to the emergent new services and ideas that will not comefrom google or from companies represented here in the room, but by the, literally, millionsof companies and programming shops that will be built on the new platform, such as androidand all of the other ones. they're all coming and they're coming right now. and i thinkthat perhaps the phrase should be mobile first
simply because it's our time to be proud ofwhat we have built together. i'm enormously proud to be part of this. i'm proud to behere. i'm proud to say that i think it's now the joint project of all of us to make mobilebe the answer to pretty much everything. so with that, thank you very much. thank you,alex. >> alexander: thank you. thank you very much.and right now, we'll open--follow-up a questions. and before we say that, it's actually greatto know that it's not only you impacting us that we impacted you as well and mobile firstbecomes really important part of google development. and so now, please prepare your questions.>> hello, again, eric. >> schmidt: yes, hi there. nice to see you.>> [indistinct] from the eds days and the
things that you and i firmly believed in wasthe partnership and alliances. this was something that you and i were doing many, many yearsago. you said cloud computing, connectivity, and content. these are the 3cs. there's also3ps: people, partnership and performance, with thousands of developers with all thepartnership that you developed and--congratulations by the way, again, business is--you did themagic tonight without the magic wand, by the way. but i'd like to know where do you seethe partnership between the mobile industry and google moving forward for the same goaland the same purpose we have? >> schmidt: okay. thank you. a couple of comments,i think, first, ultimately, these businesses, all of us will succeed to the degree thatwe stay end-user focused. so i'm always excited
about a solution that causes a new use, solvesa new problem, and delights the end-user. and the best partnership starts from that.they don't start from dividing up the industry or restrictions on people or so forth. thisis such a large space that there's room for lots of companies, lots of different approaches,and lots of different partnering styles. so, i would suggest that the single most importantthing is to agree on, on at least the definition of what does the end-user want and go afterit. the best partnerships, of course, are ones where everybody is making lots of moneybecause that keeps everybody's alignment. and again, i would say to all of you who areon the operator side, the explosion that you're seeing in data usage and all the revenue isa wonderful sign of great demand, right? and
there are issues about how do you monetizeit and finance it and so forth and the rollout for lt and so forth is very expensive, buti can assure you that you will get that money back in many, many ways. we, of course, benefitas we get the benefit of these enormous things, so again we have goal alignment. the thirdthing that we're doing and that other people are doing is we're trying to share revenuewith the applications developers. the applications in ecosystem that we talked about in thisperformance is not fundamentally going to happen at scale without some way for thosedevelop--application developers to make money. and they'll make it out of it through advertising,companies like admob which google is in the process of trying to purchase, or throughsubscriptions of one kind or another. and
so, it's going to be important that in themobile industry, there'll be opportunities for software and content people to make moneyboth in advertising as well as in subscription and sale. now, i think it's the sum of theattitude toward the end user and then, of course, the focus on jointly making lots ofmoney which will drive the profits and investment in the industry. that's, by the way, how itworks in the pc industry. it's also how it works in the mainframe industry. there's noreason to believe it's any different. thanks, [indistinct]. some more questions.>> strand: john strand of strand consults. when i look at some of the things which googleis saying, it's a little bit like you, on the one side, talk about all these fantasticthings for the end-users and i agree that
beautiful these things you showed today definitelyin great things to see. but when i see the way you are talking about these open networks,the operator's goal, for me it looks like google wants to turn the operator into a dumbdata pipe where you're just provide with all the service on top. you see the operatorsas a data supplier and you see you as the one who's providing with the service. andi can see your head is saying yes. i could see there's money in being a dump pipe.>> schmidt: i have--stop, stop. i have no objections to your question but that's nowwhat i said. i was acknowledging your question. please continue with your question.>> strand: so, if i look at it, you try to reduce the operator's role in the market alsoregarding some of the things you'd done on
the lobby side regarding open networks andall of those things. so, for me, it looks like you want to turn the operators into adumb pipe, who's going to make the investments in infrastructure in the future if the operatorsdon't have the possibilities of turning themselves into an intelligent pipe and you want to reducethem to a dumb pipe? >> schmidt: so, first place, thank you foryour question and i disagree with your premise, completely. so, i hope that's a clear answer.so, let's go through this. in the first place, i feel very, very strongly that we dependon the successful businesses of the operators globally, and i disagree with you that "we'retrying to turn the operators into a dumb pipe," to the contrary. we need advance sophisticatednetworks that understand, for example, security
that can deal with dynamic signaling, candeal with dynamic load and mobility and load balancing. all of which is within the reachof successful and well-run operators. since, you made a series of specific points aboutour lobbying. why don't you explain your criticism and i'll see if i can respond to it. becausei suspect that it's a confusion in the audience, and on your part, on what our position actuallyis. >> strand: could you please give the mic back?>> schmidt: yes, could somebody give him a mic?>> strand: what i'm saying is the lobbying things you're doing regarding--in the states,he was playing like a poker game. regarding these open networks which have to be on everyone--alot of analysts in the america was getting,
you would invest in infrastructure and thenyou pulled in last second more or less, if you can say it that way.>> schmidt: do you think that was a deliberate strategy on our part?>> strand: i don't know. i don't know. >> schmidt: but rather that, let's see--no,you're making an assertion, ask it as a question and i'll answer it so that we can establishthe facts. >> strand: are you wiling to invest an infrastructurein the future? are you will be one of those investing in infrastructure?>> schmidt: we are not going to be investing in broad scale infrastructure. we're goingto have the operators do it. >> strand: okay.>> schmidt: we are--just so it's clear, this
week, this past week, we announced a testaround the one gigabit per second network to precisely do that. since you--since, apparently,they've taken your microphone away which is certainly not my request, let's--the otherthing that you imply had to do with open networks and you were probably asked about networkneutrality. and let me answer that question precisely because alexander and i had a goodconversation. do you want to ask the question and i'll answer his--i'll answer it for him?>> alexander: well, i mean, how would you define that neutrality?>> schmidt: yeah. what happens is everybody sort of positioned us on the other side. weactually believe that it's important for operators to be able to deal with too much capacityand misuse of the networks because we understand
at a fundamental level that wireless networkshave constraints on them. the only specific issue we have is we don't want operators tochoose between different vendors of the same kind of content. the specific example thatfolks over here have video and folks over here have video and i'm the operator, we atgoogle, want to make sure that the operator offers that video on the same basis from bothsides. however, they can choose to discriminate within that category of service. so, for example,if the video uses too much bandwidth on the network, we don't object all if the operatorsin fact do discriminate against one or the other, it's their business decisions. so ihope that that's a clear answer. and indeed, since people are confused about this, youcan go read the joint op-eds that we have
been doing with verizon which precisely definethis so you can understand it. let's go to the next question.>> paul: hi, eric. peter paul from montreal, quebec. obviously, google was a major agentof change and i think the whole lot... >> schmidt: and you use that word was.>> paul: was. >> schmidt: are we like caput already?>> paul: no, no. was but is. i think it make a little bit older so i can go back in historyalso. one of the major paradigm that also has the change with mobile was obviously thepayments, microfinance, getting the un-banked bankable and whatnot. what would be your strategyto bring the banking network, the banking community to embrace this, right, becauseit's a pretty closed network? so how do we
revolutionize that through mobile technologyand through some good strategic lobbying? >> schmidt: well, first was i think the workwas being done by the mobile operators already and doing a pretty good job. as we all understand,the correct credit card is your mobile phone, right, literally, if you think about it. ithas so much information. it's so much more useful. for one thing it is authenticated.it could be tied to your banking system. you have multiple choices with payment systems,et cetera, et cetera. so there are operators all around the world who have either trialsor payment systems and so forth. for example, in japan, they're heavily used--less so inunited states and in europe, it depends on which country. the banking system is of courseunder a lot of attacks for other reasons and
is highly regulated. what i would suggestis a strong lobbying campaign to make sure that alternate forms of payment can includethe mobile phone operators. this strikes me by the way as a perfect example of a myriadof technology and the role that operators play because operators already have a billingrelationship. they're the most efficient dealers by far. and so from the standpoint of sellingapplications, selling services using as a credit card, operators here in the room shouldbe by far the best and we're happy to help. >> paul: okay.>> alexander: number four and then... >> schmidt: number four.>> hi, eric. i'm not going to make any assertions. i'll just ask a fairly straightforward question.>> schmidt: that's okay, i like them.
>> good. how do you feel about the expansionof active eyewear as hands-free especially for drivers that are compelled to multitaskwhat was driving? >> schmidt: well, the first place, the evidencethat i've seen says that drivers should not be looking at their mobile phones while they'redriving, and i say evidence because a lot of people think that in fact you can multitaskwhile you're driving, but the evidence says that accident rates and so forth really dochange. and so some form of regulation, i suspect is going to be necessary, and youknow, what else--i don't know, how else to answer your question.>> alexander: number two. >> nelson: thanks. my name is ekow nelsonfrom ibm. what lessons do you think from the
mobile web lan from the fixed web, particularlyin the business model or the review model? i read that ken auletta of new york timessays you've the changed the view about the concept of free. mostly whether or not ifit's true, but nonetheless, are there any lessons that we've learned from the fixedweb that we should take account of in the mobile web?>> schmidt: i'm not sure about the ken auletta quote. you'll have to it out to me later.we certainly--i've learned a lot and my views have changed over the years so, perfectlypossible. a couple of comments, one of the lessons about the fixed web is the scale ofthings is very, very large if you get a platform that's right. so, there's real benefit ofestablishing, for example, a standardized
web browser so that everybody can programagainst that. so one of these that--things if you go back to the fixed web, the developmentof essentially what we think of is html 5, the javascript, and so forth and so on. allof those, i think, have analogs in the mobile world or they have extensions in the mobileworld. so i think that would be one comment. the second, i've already said, which is thatyou're not fundamentally going to get the vision that i talked about without an abilityfor large number of people to make money especially in the applications area and so all of usare working hard on that. there are huge new innovations with respect to the ability tobuild powerful applications that are downloaded to your phone. remember, only a few yearsago, you had to have these enormously expensive
applications that would be loaded into yourpc, that's largely gone. one way to think about it is that, it's always been the casethat a large number of applications would run well on the web but some required veryspecialized code on your pc. but with the power of browsers and the power of networksthat percentage is getting smaller and smaller. it is, for example, possible now to have sophisticatedgraphics intensive multiplayer games on your pc web browser. as you saw from the demoshere, that will also be very soon possible on mobile phones as well, and that will consumelots of people's time, we should all be able to make a lot of money from this. so i thinkthose are some examples of lessons that we've learned. i, obviously, have a strong beliefin open systems, in open platforms which we've
already discussed.>> alexander: number six please. >> bariso: hi, eric. ray bariso of telcordia.i just wanted to know if you'd share a few words on the strategy of the recent announcementon the fiber to the home trials. >> schmidt: we're having just--we're havinga lot of fun. >> bariso: yeah?>> schmidt: yeah. >> bariso: i'm sure. i'm sure that's a biginterest. but how does that tie-in, if at all, to--like the focus on mobile, it justseemed to come out of a level field. >> schmidt: different groups. a blunt andpragmatic answer is that google benefits from the adoption of broadband everywhere. we benefitand i hope it's very clear to everybody in
this room, we benefit from strong mobile broadbandnetworks as well as strong fixed networks. in the area of--in the area of fixed networks,which is what that announcement was about, we looked at it and we thought, isn't therea way--the current network architectures are tapped at about 100 megabits that they deliverup to that using docs, history, modems, and so forth. and there are technical reasonswhy that appears to be a current sealing. so we'd like to break through that sealingin the demonstration project. as a result of the demonstration project, the rfp is outnow. what we hoped to do is to learn what kind of technologies are needed to provide,literally, a gigabit per second to your home or your office or what have you to your desktop.god knows what you'll do with it, of course,
because there's far more bandwidth than youconsume in most of everything else you do. but people will--i'm sure will come up withways. and then share that information with the industry which i think is a good modelfor us. we're not--so it's very clear. i'll spit it in a negative context. we're not gettingin to that business. it's a very tough business. it's not a business for which we're very welloptimized. >> good afternoon. [indistinct] from the [indistinct]government. so, through to many different application google and many others have developedin order to increase the user experience, we have seen a kind of shift in the broadbandarea. getting from an asymmetrical word towards a symmetrical word that you, of course, addresswith the five projects, my question is referring
do you see the same kind of shift which willbe opening on the mobile world which up to now was still an asymmetrical word?>> schmidt: yes. so, the way to state that is that, historically, there's been a differencein ratio in asymmetry between download and upload speeds of at least 10 to 1 in networks.and that's been true for many, many years. for all the obvious reasons, you tend to consumemore than you produce, and so forth. i think the answer to whether that will continue inthe mobile world is completely a function of two things. the first is the broad scaleof ability for people to do personal video conferencing, which will generate lots ofvideo which is point to point, which is very difficult to cache, very difficult to do anything.it literally takes up all that bandwidth.
and the second one is in massive multiplayergames, which are video intensive. so, the massive multiplayer games are taking off.how video intensive they are will to be determined by the market and by the consumer and by theplatforms that they support. the video conferencing one, i've always believed that the next interestingapplication for your mobile phone is point-to-point video conferencing. it's obvious to me thatthe computer hardware is there, the bandwidth is getting there, the codecs are getting there,and so forth. so i thing we should--we'll see. so, i think it would depend on the answerto those two questions. >> alexander: number four.>> mark: hi, my name is mark for [indistinct] telecom [indistinct], netherlands. you'llbe showing us these nice applications and
you'll be talking about the networks thathas to support them. we also see that majority of operators are migrating to lte. what doesthis mean for your involvement in clearwire or wimax in general? are you going to raisethe investments or...? >> schmidt: good question. we invested inwimax for the same reasons we also support lte. we benefit in the adoption of high speedbroadband. wimax, as you know, has a series of trials in a number of countries includingamerica, and also seems to be doing well. so i think we benefit in all--we benefit regardlessand we're happy to see both succeed. >> kaposki: kaposki, universityof oxford germany. i would like to come back to the google about this mobile-operated question.>> schmidt: why do we phrase it as and rather
than or. please go ahead.>> kaposki: if you look five years ahead, will the customer feel at the first pointas a google customer or will he feel as a vodafone-t-mobile-orange customer?>> schmidt: my actual view of this is that the customer will be a customer of both inthe following sense. >> kaposki: i guessed this answer.>> schmidt: well then--then you don't need my answer. the--and here's why. the relationshipthat the operator is going to have with the device is going to get much more sophisticated.the operator will have, as we mentioned, the billing relationship, the support relationship,and educational relationship or platform relationship, if you will. google will also know more aboutthe customer because it benefits the customer
to tell google more about them. the more weknow about the customer, the better the quality of searches, the better the quality of theapps. they're different, however. the operator one is required, if you will, and the googleone will be optional. and today, i would say a minority choose to do that. but i thinkover time a majority will because of the stored value in the servers and so forth and so on.>> kaposki: so, maybe now, i can get the answer that you didn't give. thank you.>> schmidt: thank you. >> alexander: number three.>> myers: hi, eric. my name is eugenia myers, [indistinct] wimax provider. andmy question is--so, google has really lots of exciting services, but we couldn't seeproper media services in action. so, what's
the future for google video and google music,and when could we see them in europe? thank you.>> schmidt: so, you asked about google video and google music? okay. so, today we don'thave a music product. and google video, of course, we have youtube, which is availableon most devices. my own opinion is that all of those categories--so books, magazines,music, video, will have readers on all sorts of devices, some which will be sold by google.some which will be sold by others. and if you take the kindle as an example, the kindlewill become hugely successful and also hugely copied, if you will, in the sense that theideas of being able to have a subscription, be able to read is such a clever idea, andi congratulate amazon for it. but you're going
to see that on all of the devices. so, froma google perspective, we'll participate in the cloud, we may offer some subscriptionservices, and so forth, but we're not going to go in to the content business which isanother way of saying that. we're going to stay as a platform.>> sean: hi eric. sean, i'm from [indistinct]. firstly, google rocks, and secondly, i justhad two questions. you know, i had the opportunity to be with alexander yesterday night and wewere just talking about mobile advertising. and one of the points we've talked about washow advertisers and brands as such, you know, they don't really budget for mobile advertisingas a whole because it seems that they just don't get it that, you know, they get thetv model but they don't get the mobile model.
so, how are you working on that? that's thefirst question. and the second question is, you know, everybody talks about how successfulgoogle is in all its areas, so is there an area that you think that maybe, you know,you could do better or that you need to do some more developments on that front?>> schmidt: well, on the advertising side, this is why we have a salesforce, that ifyou look at the scale of the advertising industry, it's, i don't know, about a trillion us dollarindustry. the online world is less than a 10th of that, roughly speaking. so, one wayto think about it is that the amount of money that's going into traditional advertising,a lot of that money should shift to online. and within online, over a decade, a lot ofthat money should shift to mobile online.
why online, because people are online allthe time. that seems obvious especially to this group, but it's factually true. muchof the revenue gains in our industry have come at the expense of offline which is unfortunatefor them. but it's because consumers are moving from offline to online. with respect to whymobile, well, mobile advertising should ultimately be better, because ultimately, advertisingis about specific targeting. literally, how accurately can you target. with a mobile device,we know a lot more about the person. for example, we know physically where they are, so we cansuggest a much more local context. the belief at google and many other people in the industrybelieve that the local opportunity is much larger and largely unexplored in online advertisingcompared to where it is today. so the way
to answer your question is to say all we'retalking about is the growth rate and if we can get the growth rate faster, which indeedis our job and the job of other players in the space, but i think it's going to happen.with respect to areas that google is not doing as well as we should in, or areas that havemore investment, i always start from the premise that we want to have a little bit of googlein everybody's transaction with the internet. we want google to add some value at the end-user,and so there are large, large spaces that are interesting that literally would makethe internet more ubiquitous and more available and more specific. all of those areas thatwe're working on and i'm never satisfied with how quickly we're delivering on them.>> sean: just like smart grid.
>> schmidt: yeah. so, an example would bethe smart grid, which is just another extension of the internet into your home and into theelectrical power systems, and those are massive, massive opportunities for google and everybodyelse in the internet. >> alexander: number six.>> greg: hi, eric. my name is greg from belgacom. so, we see some mobile network crashing becauseof the mobile data explosion. and i heard this morning the ceo of rim saying that forthe load of one normal smartphone you can have three blackberry or rim users. do youalso plan to try to optimize the use of network resources in your operating systems and device?>> schmidt: we will in the following sense. the network--we want to make sure that thenetwork is adaptive. and so, what happens,
of course, is the network gets more congested.if we could get information about congestion, we can in fact adapt our use of the protocols.i don't want to taper over the fact that as people are consuming massive amounts of databecause they're adopting more modern browsers, this is a shared problem. so i don't thinkthat's going to be enough and i think, realistically, operators will be force into various formsof tiered pricing and other ways to deal with this sort of top--top one percent, five percentof user. i think realistically given the scarcity, that's all the operators will all be forceif at any one--one way or the other. >> alexander: number five.>> sid: hi this is sid, from web spiders. by 2015, what percentage of non-advertisingrevenues do you see for google in the five
years time?>> schmidt: you're talking about google specific? >> sid: google's--yeah. google's revenue...>> schmidt: we have no idea. at the--the vast majority of our revenue is advertising technology.>> sid: but don't you think that puts a limit on how can you scale--i mean, you have mentionedthat you want to be $100 billion--first media company to cross 100 billion and...>> schmidt: then--but i want to be the trillion dollars. i mean it's the correct behaviorof a ceo to want more revenue. >> sid: no, no, what i mean to say is that...>> schmidt: is there any disagreement over this? go ahead.>> sid: but do you see your more than growing beyond advertising because it seems--it seemthat there's one cash cow and everything is
being funded to the...>> schmidt: by the way, if you're going to pick a cash cow, pick ours. all right? welike--we like ours. we like advertising. we're in the advertising business. we think advertisingprovides a tremendous amount of value. as i discussed earlier, there is a very largeamount of advertising that's unexploited from the online world where we think we can addsome value. i do believe that google will eventually have significant sources of revenuefrom enterprise software sale--enterprise of one kind or any other software as wellas subscriptions or applications, that's an important new area for us.>> sid: thanks. >> alexander: number four.>> chandra: neeraj chandra from tiger global.
eric, i have a question. this week, i havebeen amazed that the sheer number of mobile computing platforms that we've seen: iphone,blackberry os, samsung has one, migo, et cetera, et cetera, and of course android, so i'm curioushow do you see this current environment evolving 5 to 10 years from now? will we still havetwo or three or four predominant operating systems or would you expect this all to migratearound one or two? and then as a correlator to that question, i think one of the driversof migration to an os platform is just what you can do with the phone and the applicationsassociated with it. and google clearly has a lot of fantastic applications as you demonstratedtoday, currently which you generally make available to all platforms, so would googlealways make all of the applications it develops
available to all platforms or at some pointwill you keep this only for android an effort to drive migration?>> schmidt: it's our shaded goal to make everything available for all platforms. not to--particularly,to favor android. so i hope that's a clear answer. the most likely scenario for any ofthese things is the number of platforms goes very large, there's a lot of competition whichis where we are now, and then it winnows down for a smaller number. i don't know how manymonths, years, and so forth it will take, but i--there's certainly--the competitionthat's going on right now of which we are one of many players, i think, is hugely beneficialto the end-user. >> alexander: number three.>> gusev: hello. sergei gusev, from
russia. motor mobile service means that fixedline service will be dying in near future, maybe. but you are continue build new fiber-opticalnetwork for one gigabyte internet access. what for if wireless technology developmentcan deployment and can't--improvement so quickly? >> schmidt: we don't think there's going tobe one solution for data access. for an example, wi-fi will also continue to get better 802.11nand so forth and so on, at the same--in the same that lte becomes this amazing standardin the mobility space. from my perspective, having an all-light--literally, an all fibernetwork is ultimately always going to have more bandwidth because the bandwidth withinthe fiber is essentially unconstrained. because, as you know, the way the signaling works iswithin a fiber. you have all the frequencies
that you can play with, with respect to speed.so there will always be the difference and it will--there will always be a market forpeople who want the absolute fastest network and they're going to be willing to pay forit. it makes a good business opportunity for some operators.>> aleexander: we'll take a couple of more questions, number two.>> meyer: eric, patrick meyer from sourcebits. inspiring presentation and the fact that you'retaking questions is admirable, so thank you. my question relates to apps. we've done about150 apps. we're apple-hero developer. we've also a hero developer for a number of othercompanies. the apps right now that are coming out, android--yesterday, there was a presentationof over 51 apps stores that range from just
a couple of a hundred to maybe 5,000 and thenobviously 150,000 for apple. from a google standpoint, what do you see evolving? what'sgoing to be the app store or app market place over the next several years?>> schmidt: again, i think we--the fact that there are so many choices benefits the enduser-and the operator and we've made a decision not to force everybody into a single model.from your perspective as a developer, it should ultimately mean more markets, more choices,more customers, and that's why we chose it that way.>> alexander: number one and then only one more question.>> beaufort: erwin beaufort, immersed magazine from the netherlands. i've got aquestion, why do the operators here in the
room not have to fear at google moving serviceslike google talk, voice, and gizmo to the mobile environment? thank you.>> schmidt: well, i think google voice already runs in the mobile environment because itruns on the mobile phones. i guess, i'm not--i never understand these questions of fear.so maybe you could ask your question a little differently. i prefer that it sort of focuson users and built stuff. >> beaufort: i was referring to googlestealing talk minutes of mobile operators. >> schmidt: google stealing talk minutes fromthe mobile operators? >> beaufort: yeah, is that clear enough?>> schmidt: so, it's not our objective to steal your minutes? i mean that--the factof the matter is people on these phones are
going to use sophisticated applications whichwill use voice. and the other fact, of course, is that these phones are so powerful thatvoice is really an afterthought. another way to say this is that if i were to ask you aquestion a different way, i would say, isn't sms stealing all those talk minutes, becausepeople are sms-ing rather than talking. and ultimately it's the end-user behavior that'sdriving that--driving that behavior. i think all of us--this is what i was trying to sayearlier--we should embrace that and figure out a way to make money together in it ratherthan try to block it. >> alexander: number five and then we'll takethe last question. >> donahue: hi. i'm julian donahuefrom fundrate.com, a french community
blog. how do you meet with the customers andthe freelance developers because they haven't managed [indistinct] position for to speakabout their feelings? >> schmidt: i'm sorry, i did not understand.did you want me to meet with them? >> donahue: yes. you in the android project,how do you meet them and discuss with the customers and developer freelance becausethey--they don't talk about... >> schmidt: okay. let me just say, we do havemeetings with them and then we also have a very large conference coming up in may whereeverybody is invited. were you looking for a different answer from that?>> donahue: no. >> schmidt: okay, thank you very much then.>> alexander: last question, number six please.
>> shapshak: toby shapshak for times newspaperfrom south africa. there's no doubt that google is amazing and that you brought up a lot ofspectacular game changes, you know, gmail for the purpose of this question being oneof them. it's a two-part question about privacy and there's an increasing concern about itin our cloud computing world. people use their inbox as a way to store all of their passwords,all of their important information, we know that the average computer user, lets say,isn't that bright and they use the name of their kid or the name of their pet as theirpassword, and saw the criminals become pretty sophisticated of getting into someone's gmailor hotmail or yahoo account for that matter and getting that kind of information and letsjust say, stealing their identities, the first
question is, what is google doing to protectthose computer users' doc? i know it's not incumbent on you, but is there something thatyou're doing to do that? and the second part is specifically about what google's doingin terms of privacy. a lot of people say that you're doing very questionable things thatgo against you doing the evil mantra, going into china, banning news organizations whouse google search tools to find out information about the co-founders. history shows us thatpowerful big companies tend to become arrogant and more powerful and more didactic, whatwill google do to remain honorable? >> schmidt: two-part question on the gmailquestion, the simplest answer is to have stronger password authentication and indeed now all--theentire industry, including google, will bring
out things where they say, well, your passwordis not strong enough. so i completely agree with that. people just don't realize thattheir information is at risk. google took the unusual step of announcing that we havebeen attacked in--on january 12. we announced this, the attack occurred late last year.and as a result, created a huge firestorm where we--among other things said that wewere unwilling to continue to participate in the censorship that is required by lawin china. so i would argue that google has taken a very strong, both position with respectto privacy as well as security and so forth. security is a race between the lock pickerand the lock maker. and there are many, many technologies that are in development in google,and i suspect that other companies as well,
that will make our networks more secure. thisis a crucial issue because if you follow the line of reasoning of what i said, mobile first,everything in the cloud. it means more and more of your personal information will becompletely on the network and on the cloud. so, with respect to privacy and those sortsof things, i think you'll find that google is particularly sensitive to these issues.we've taken a strong public position. we are not perfect. we occasionally make mistakes,but we're trying very, very hard. ultimately, privacy will be legislated because it'll becomeso important and it'll be legislated on a per country basis. so anyway, thank you all.thank you very much alexander. >> alexander: thank you very much. you arevery frank.
>> schmidt: thank you, everybody.
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