Introduction and Conference Focus:

Bill Gates opens the PDC conference by welcoming attendees. He notes that the day’s remarks will be focused on “Building Windows-Based Applications for the Internet Age,” signaling the importance of the topic due to increasing industry demand.

Current State of the PC Industry:

Gates observes that the PC industry is growing at a rapid pace, benefiting from a fundamental business model that involves multiple companies specializing in different sectors. This allows for standards that create integrated customer solutions. The choice between hardware and software is independent, contributing to a high-volume market for applications, peripherals, and chips.

Transition from Traditional Computing:

He comments on how traditional players in the computing industry like HP, NCR, and Siemens have shifted focus towards PC-centric activities. He also points out that the PC segment is now responsible for twice as much R&D as the rest of the industry, highlighting its significance.

Technological Advances:

Gates goes into detail about the hardware and software improvements in the PC sector. Moore’s Law continues to hold, providing faster individual processors. Beyond that, advances are being made in combining multiple processors and evolving memory architectures. These developments pave the way for systems that scale not just in performance but also in reliability.

Transition to 64-Bit Computing:

Finally, Gates discusses the shift to 64-bit computing. He contrasts how the PC industry approached 32-bit computing—where Unix had an early lead—to the 64-bit world, where there is no gap. He mentions that as 64-bit processors become mainstream, Windows will offer a simpler migration path for applications than any other environment.

Concluding Remarks:

Overall, Gates paints a picture of a PC industry in rapid expansion, marked by significant R&D, technological advances, and a seamless transition into 64-bit computing. His focus is on the integration of these trends to create scalable, reliable systems that meet the increasing demands of the Internet age.

New Technologies and Applications:

Bill Gates discusses emerging opportunities that will influence application design. Specifically, he highlights the proliferation of high-bandwidth, always-connected communications and new form factors like tablets and TV-type devices. Microsoft is actively engaged in these areas, working on technologies such as Windows CE, Web TV, and electronic books.

Impact on Business and Software Expectations:

Gates explains that these new technologies will set higher expectations for software capabilities. Businesses are recognizing that their competitiveness will increasingly depend on their digital infrastructure. The potential for software to influence business is seen as even greater than it was at the industry’s founding 25 years ago.

Role of Software in Economic Growth:

He notes that the software industry is responsible for 25% of the country’s economic growth and has seen the creation of 20,000 new companies in the last five years. Gates implies that software is not only an economic driver but also a field of high competition and constant innovation.

Government Involvement:

Gates briefly addresses increased government scrutiny of the tech industry. He warns of the risks this could pose, potentially stalling economic growth and job creation. He gives an example related to HTML support in operating systems, arguing that governmental limitations could hamper technological advancements.

Industry Collaboration:

Gates cites a specific instance of attempted industry collaboration between Microsoft and Apple regarding media player technologies. He expresses concern that government oversight could discourage or misconstrue such efforts, which are essential for driving innovation.

Concluding Remarks:

In closing, Gates thanks everyone for their focus on new products and innovation. He emphasizes that gatherings like the Developers Conference are crucial for discussing new opportunities and for making the investments required to move the industry forward.

Windows’ Performance Metrics:

Bill Gates discusses the commercial success of Windows 98, revealing that it is outselling its predecessor, Windows 95, with over 2.5 million units sold. He also touches upon the growing acceptance of NT Workstation in the business sector, stating that over 20% of business PCs now come with it installed.

Market Share in Browsers and Servers:

Gates mentions gains in Internet Explorer usage, especially in the U.S., where they have had challenges. He also stresses the dominance of Windows NT servers, stating that they now exceed all Unix and NetWare servers and that over 70% of intranets are based around Windows NT.

Focus on Simplicity:

Gates talks about the urgent need for simplicity in software design, indicating that confusing layers and commands in the software prevent people from fully utilizing new technologies. He candidly admits that Microsoft needs to do more work in this area, citing examples like complex error messages.

Product Developments Aimed at Simplicity:

A shift towards simplicity is reflected in upcoming products like SQL 7, which features auto administration, and Office 2000, which promises major simplicity improvements. Gates emphasizes that simplicity has become a top priority for Microsoft, equal to the incorporation of internet standards in past years.

Windows NT 5 and Combining Worlds:

Discussing Windows NT 5, Gates notes its attempt to unify the best elements of web and Windows applications. Features like single-click deployment, client richness, and disconnected use are highlighted. This upcoming version aims to eliminate the dilemma of choosing between web-based and local applications.

Advanced Features in NT 5:

Two themes for the conference are cited: reducing application deployment management costs and easing the building of distributed NT applications. Gates emphasizes the importance of features like Active Directory, installer capabilities, and IntelliMir, which enable efficient management while taking advantage of local execution.

Conclusion:

Bill Gates concludes by underlining the biggest opportunities Microsoft sees are in application deployment and management, which Windows NT 5 is designed to address. He presents this as a key focus for Microsoft’s future direction, and that upcoming products will be designed with simplicity and efficiency in mind.

Developer Empowerment:

Bill Gates begins by emphasizing the role of developers in taking advantage of new features for application management and deployment. He introduces the concept that FileNet and SAP are setting examples in this area.

Application Management and Deployment:

The second speaker, Todd Nielsen, explains the objective to make the process of managing and deploying applications easier and more cost-effective. He demonstrates using the Windows Installer Service and Active Directory for these tasks. The services allow an IT manager to deploy software to groups within an organization effortlessly.

Self-Healing Applications:

Nielsen shows how new Windows Installer Services can make applications more resilient. For example, if a user accidentally deletes essential files (DLLs), the application can “self-heal” by re-downloading the necessary files when next launched.

Global System Information:

Nielsen further illustrates how SAP has integrated with Active Directory to manage global system information centrally. This removes the need for administrators to update individual PCs if server configurations change.

Active Directory in Microsoft Management Console:

The integration of Active Directory with Microsoft Management Console (MMC) allows for centralized alerts and system information. This means administrators are not tied to a specific machine and can manage systems globally.

Bill Gates on NT5:

Bill Gates concludes by talking about the importance of Windows NT5, mentioning that it will support more applications than any other operating system due to its backward compatibility. NT5 is designed to be a broad product that addresses different needs both on the desktop and the server. The emphasis is on lowering the total cost of ownership and improving performance across various server types. Gates also mentions that NT5 will offer a superior user interface and enhanced security features.

Adoption and Versatility:

Gates suggests that the versatility of NT5 will fuel its incremental adoption. Whether it’s used for file and print services, as a web server, or an application server, NT5 promises compelling advancements in each area.

Boeing’s IT Mission:

Boeing, the global leader in aerospace, emphasizes that their IT mission is to provide innovative and effective services to maintain a competitive edge. They manage an extensive network comprising 180,000 clients and over 1,000 Windows NT servers worldwide, highlighting the challenges in software maintenance and upgrades.

Requirements for Applications:

Boeing sets forth their expectations for applications in the Windows NT5 environment. These applications should be “cluster aware,” easy to install and uninstall, and must comply with new industry tool architectures like WMI and MMC. Essentially, these apps must adhere to the Windows NT 5 logo program, including using the Windows Installer.

Centralized Management:

For Boeing, the applications must be manageable from a single location across the entire enterprise. This requirement is particularly important due to Boeing’s global footprint and the complexity involved in maintaining multiple servers and clients.

Software Spectrum’s Experience:

Software Spectrum provides IT services globally across various sectors, including media and finance. They note that the administrative features of Windows NT5 are crucial for their clients, such as colleges with thousands of students. Features that allow scripting replace current manual processes, enabling better administration.

Customer Expectations:

According to Software Spectrum, customers seeking applications in the NT5 environment have specific demands: support for distributed environments, clustering support, security, and performance. They stress that these features are non-negotiable for customers.

Participation in NT5 Development:

Software Spectrum has been involved in the NT5 Rapid Deployment Program since March, interacting with program managers and developers. They indicate that their customers are excited about early involvement in NT5’s development, as they view it as a strategic operating system for the future.

Both Boeing and Software Spectrum highlight the potential and requirements of the Windows NT5 environment, emphasizing the need for applications to be robust, manageable, and in line with modern IT architectures.

Texaco’s Business Model:

Texaco is a global energy company that focuses on adding value through various stages: exploration, production, transportation, and refining of oil and gas. They operate worldwide, from the North Sea to Brazil to Sumatra, aiming to turn natural resources into higher-value products.

IT Infrastructure Challenges:

Texaco deals with a non-uniform IT environment across its more than 15,000 desktops. They are looking to Windows NT5 to unify their architecture into a single Texaco-wide domain. This would allow for better accessibility and management of information across their global operations.

Application Development:

The company is increasingly utilizing client-server-based applications. Texaco emphasizes the need for a three-tiered model that separates high-bandwidth database communication from the end-user delivery. This setup would optimize performance and responsiveness in their applications.

Technology Deployment:

Texaco is not interested in technology for its own sake; their focus is on solving business problems. This practical approach is driving them to deploy Windows NT5 as quickly as possible to meet their operational needs.

Changing Nature of Applications:

The speaker notes that the concept of an “application” has evolved dramatically. Previously, applications were mostly used by employees and were character-based. Nowadays, applications must support an extensive customer base across the web and offer a range of features including multimedia interfaces.

Rapid Development and Reliability:

In today’s landscape, application development needs to be rapid, updates must be easily deployable across the network, and high uptime is a basic expectation. These are competitive factors that help make one application more attractive than another in a market.

Internet Connectivity:

Modern applications should support various internet connections, including virtual private networks (VPNs), making them more accessible and versatile for users.

In summary, Texaco is using Windows NT5 to unify and optimize its global IT infrastructure. Their focus is on efficient, three-tiered application development to solve business problems. Additionally, the changing nature of applications demands more features, rapid development, and high reliability.

nTier Architecture:

Bill Gates discusses the concept of nTier architecture in application development, emphasizing its flexibility. In this model, different “tiers” or layers of an application can either run on separate systems or be consolidated on a single machine for offline use. This uniformity in the programming model is a crucial part of their strategy.

Progression to Web-Aware Applications:

The industry has moved from client-server models to more complex nTier architectures, separating out data access and making applications fully web-aware. This architecture is expected to underpin all new electronic commerce applications.

Windows as an Integrated Platform:

Windows is designed to serve as a comprehensive platform for application development. Gates argues against the need for expensive, separate runtimes, advocating for an integrated approach that ties directly into the OS’s built-in security and administrative tools.

Scalability Across Organizations:

The approach with Windows allows developers to target organizations of all sizes, not just large enterprises. The integrated features in Windows NT make it easier for any organization to adopt it as their foundational IT system.

Technical Innovations in Windows NT:

Starting with NT4 and more fully in NT5, the Windows operating system has built-in support for nTier applications. This includes integrated transaction capability and robust remote procedure calls designed around the needs of client-server systems.

Flexibility and Customization:

Key features such as database access and security have been designed to be highly flexible. Data can be structured in multiple ways, and security has moved to a public key infrastructure. The system is fully scriptable, allowing for high levels of customization.

Migrating from Legacy Systems:

The nTier model enables businesses to transition from mainframes to more modern development environments like Windows NT without having to move their entire databases. Companies like Merrill Lynch have pioneered this kind of migration.

The Myth of Thin Clients:

Gates debunks the myth that browsers can run on “thin” or less capable hardware. He contends that real thin-client architecture involves offloading work to the server. Windows Terminal Server is part of their strategy to give clients the option to choose between full PCs or terminal setups without impacting application development.

In summary, Bill Gates outlines the benefits of nTier architecture and its implementation in Windows NT. The focus is on flexible, integrated solutions that are scalable across different types of organizations and can support the migration from legacy systems. The approach aims to simplify the development process while providing robust capabilities for modern, web-aware applications.

Windows DNA Umbrella:

Bill Gates introduces the concept of “Windows DNA,” an overarching framework where every tier has to have both integration and innovation. This structure allows for code to be moved back and forth between different layers, sometimes even running all tiers on a single machine.

Language Neutrality:

Gates emphasizes the importance of a language-neutral approach within this framework. He expects many new programming languages to emerge, particularly in areas like rule-based programming and data binding. Windows DNA will be designed to support a wide range of languages, including existing ones like C, Visual Basic, and Java.

Presentation Level Flexibility:

At the presentation level, Gates highlights the many ways to connect into the system—ranging from HTML, DHTML, to scripting, and even writing one’s components. This choice is provided to meet the diverse requirements different applications may have.

Installation & Programmability:

One drawback Gates acknowledges is the difficulty in installation when using component or Windows layers. To mitigate this, they are introducing a new Windows Installer capability to simplify both EXE-based and page-based installations. Gates also underscores their belief in rich programmability and mentions the positive response they’ve had from developers integrating Visual Basic for Applications (VBA).

Business Logic & Systems Code:

At the business logic level, Gates discusses their commitment to providing rich capabilities that should minimize the need for businesses to write complex systems code. They are working closely with enterprise resource planning (ERP) vendors to build features that make their lives easier, such as queuing, directory, and security, in a holistic way.

Data Services & XML:

Gates talks about the rapid evolution in data services, including their excitement about incorporating XML into OLADB. This aims to offer a unified API for connecting to various data sources like email systems and databases, thereby streamlining applications that require data from both.

Evolution and Compatibility:

Gates concludes by stating that the industry around these components is thriving and evolving but in an upwards-compatible manner. Newer technologies like Comm Plus aim to consolidate these components effectively.

This segment from Bill Gates offers a comprehensive insight into the Windows DNA framework, emphasizing its flexibility, future-proofing, and focus on simplifying complexities in software development.

Introduction to COM+ Capabilities:

Bill Gates sets the stage by stating that they are promoting a specific model, COM+, which focuses on continued evolution and facilitates distributed computing. He then hands over the presentation to Todd, who discusses two new features in COM+.

The Challenge of Disconnected Computing:

Todd acknowledges the rise in laptop sales, stating that 40% of PCs sold last year were laptops. This surge highlights the challenge of building applications that work both online and offline, given the mobile nature of modern work.

Queued Components:

Todd demonstrates an order entry application that works both online and offline. The application uses “queued components” facilitated by COM+ to work asynchronously when offline. These queued components hold transactions and are ready to upload them when connectivity is re-established.

Uniform Object Model:

Todd emphasizes the importance of having the same object model across all tiers of the application. This uniformity allows for seamless transitioning between connected and disconnected states, simplifying development and ensuring the application behaves consistently across various conditions.

Application Demonstration:

Todd showcases the application by preparing it to go offline, at which point the necessary data, pages, and components are downloaded to the laptop. He then goes through the process of making an order while disconnected, illustrating that the application behaves as expected, even validating local data.

Transaction Queueing:

Todd concludes the demonstration by submitting an order while offline. From the user’s perspective, the order appears to be committed, but in reality, the transaction is held by queued components and will be uploaded when reconnected.

The segment provides a detailed look into the challenges and solutions surrounding distributed computing, particularly focusing on new features in COM+ that simplify the development of applications that need to operate both online and offline.

Completing the Offline Workflow:

The primary speaker, Todd, demonstrates the process of syncing offline transactions back to the server. After completing sales tasks and playing golf, he connects back to the network from his hotel room. The queued orders are then uploaded to the system, successfully completing the offline-to-online workflow.

Dynamic Load Balancing:

Todd switches roles to an IT manager to introduce a new feature of COM+—dynamic load balancing. This feature automatically redistributes the workload between multiple servers. He explains that the feature could either be triggered manually, as shown in his demo, or automatically based on certain parameters.

Implications for Developers:

Dynamic load balancing offers both good and bad news for application developers. The good news is that this feature comes at no extra cost, enabling easy scaling of applications. The bad news is that if developers have already printed datasheets or packaging, they would need to update them to reflect the new feature.

Bill Gates’ Closing Remarks:

Bill Gates reiterates that the future is promising and underscores the role of software in driving scalability and simplicity. He mentions that innovations like natural interfaces such as speech and handwriting recognition will make PCs more pervasive. Gates reaffirms the commitment to take user feedback into account for continuous improvements.

Windows as a Platform:

Gates emphasizes that Windows today serves as the strongest internet and distributed application platform. He sees immense opportunities and an exciting time ahead for both Microsoft and the broader industry, owing to the high level of R&D that’s driving these advancements.

The discussion elucidates the upcoming features in COM+ and how they simplify and enhance the development of distributed applications. It also highlights the overarching vision for the role of software in future innovations.