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CES 2010: Beyond Fun and Games

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This week, I'm honored to deliver the opening keynote at the Consumer Electronics Show (CES) in Las Vegas for the second year in a row. I love CES because it's an incredible annual happening where all of us in the consumer electronics industry share a peek at what lies just ahead for consumers -- everything from hot new gadgets to groundbreaking video games, the latest state-of-the-art PCs, devices, phones, TVs, and much more.

But while technology plays an increasingly central role in entertaining us and making our lives easier and more convenient, its role as a global force for good is still relatively nascent. I firmly believe that we are just at the very beginning of discovering what technology can do to transform the lives of billions of people around the world for the better.

But what a beginning it has been! In the last 35 years, technology has advanced more quickly and more profoundly than it did in the previous 3,500 years. Almost everything we ever thought might happen is happening -- and more. What was science fiction a few years ago is now reality.

And while you can have a lot of fun with it all, the truth is that technology is also a powerful engine for social and economic progress. At the center of this progress and transformation is the ability to access information and reach each other across many screens -- from the largest screen in your living room to the smallest screen in your pocket -- at any time and from almost any location. Today, nearly a billion of us take this ability for granted. In all likelihood, by 2035 we will reach 4 billion people and eventually just about every person on the planet will be connected.

All of this connection and convergence -- made possible by the combination of rich software and intuitive services accessed via the cloud -- has a new purpose, creating community and increasing human interaction. Technology is rapidly becoming the fundamental foundation that shapes and enables our social lives, both locally and globally. Increasingly, it's how we find a date -- or a mate -- locate old college roommates, share our interests, and meet people in new places.

Think of how this has changed the nature of friendships. When I was a kid, I had six or seven friends and they mostly lived on the same street as me. Today, kids have an average of 232 friends on Facebook and those friends can come from every corner of the globe.

Powerful social networks are emerging from this drive for connection. Of course they serve as a catalyst for cultural trends and help us create demand for products, but that is just the beginning. In a disaster, they enable us to get help to people who need it; and they sometimes help us prod our politicians -- or get them elected.

But in the next decade I think that the real story will be even bigger as technology assumes a central role in helping us tackle three of the biggest issues we face: providing quality affordable health care, taking care of our planet, and educating our children.

For instance, one thing emerging from the health care debate is the realization that moving medical records online has the potential to improve the way health care is delivered. The potential savings are enormous -- tens of billions of dollars a year. Even more important are the opportunities to improve care and reduce errors by giving consumers access to their own health care information, while ensuring that doctors can quickly see the patient information they need to make the best patient care decisions -- medication history, test results, and evidence-based treatment recommendations based on the most current research for a given medical issue.

But the opportunities don't end there -- we are developing the capabilities to provide remote-monitoring for patients with chronic diseases that need daily management and provide health care to people who live in remote locations beyond the reach of the nearest doctor or clinic. In every area I think you will see computing deliver greater efficiency to medicine at a time when the number one issue we face in health care is keeping quality high while reducing costs.

The wider availability of computing will also play a role in protecting our planet from climate change and other environmental issues. There are over 4 billion light bulbs in this country -- and if you want to get them turned on and turned off to save power, it's time to get more of them under computer control. There are over 250 million cars in the U.S. alone and the latest ones have more computing power on them than our first manned rocket ships providing opportunities to help drivers avoid traffic jams, offering real-time tips for efficient driving, and programming electric vehicles to recharge at optimal times. And as we add more computing capability to automate our homes we also need to ensure that we improve the efficiency of PCs. At Microsoft, we have built new energy saving software features into our Windows 7 operating system. If fully implemented the software would cut the power consumption of PCs by over 30 percent worldwide. On a billion PCs globally, that's a lot of savings.

On the education front, today, many classrooms are the same as they were a hundred years ago: students still sit in rows, take notes (or scribble and IM notes to friends) while the teacher talks at them from the front of the room. That industrial era model was designed to churn out manufacturing labor. But we are now seeing new models emerge that shed the old structures. Thomas Friedman summed it up very well in his book "The World is Flat," when he calls for "a policy that seeks to move from a culture of lifetime employment, which was the old industrial model, to one of lifetime employability." Students graduating from schools today and in the future need very different skills -- they need to know how to collaborate, to solve abstract problems, to communicate, to be digitally literate and more. But the way in which to best "teach" those skills is to recognize that each of the 1.4 billion students in the world is different and that schools need to adapt education to meet individual student needs, helping them to learn what, when, where, and how they choose.

Around the world, we are now seeing the beginnings of this technology-assisted transformation. While still in its infancy, Internet-based education is growing rapidly. Forward-thinking institutions are harnessing the power of information and communications technology to work more efficiently, forge deeper connections with their communities and achieve ambitious learning goals. It is easy to imagine that because of what technology delivers, within the next 50 years, everyone everywhere will have access to a quality -- and personalized -- education and that the graduates from schools will be well equipped for jobs well into the future.

So while there is a lot of fun and games at CES, that is not all that's taking place in our industry today. We are creating technologies that will transform the next generation of health care, help make it possible to save energy on a massive scale, and foster new tools for education that will open up opportunities for tens of millions. As we close out the first decade of the 21st century, the next decade offers the promise of touching everyone on the planet in bold and new ways.

 
 
 
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HUFFPOST SUPER USER
jalowe1957
Poisonous epitaphs dished out periodically.
07:46 PM on 01/11/2010
Been to CES, survived all four days of the show. Won a few raffles here and there. Took a lot of celebrity photos there...

However, many of the vendors who would normally be there (Netgear, Nero, Real Networks) did not have any presence at all this year, and the show was smaller than last year's.
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HUFFPOST SUPER USER
Paramendra Bhagat
Tech Entrepreneur/Consultant, Democracy Activist,
04:38 PM on 01/11/2010
Yeah, it is about touching everyone on the planet.
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HUFFPOST BLOGGER
Chauncey Zalkin
Writer
10:08 AM on 01/09/2010
see, yes, lbcyclist, i only scanned the ballmer article because you know there are not going to be any genuine insights there. you have to go to the scrappy guys at CES with the digital cameras and the sleuthy glimmer in their eye.
04:10 PM on 01/07/2010
I would like to thank the Microsoft corporate communication department for writing Mr. Ballmer's article for him and the external PR agency for their observation and assistance. I also would like to express my deepest gratitude to Mr. Steve Jobs, who me a computer that works and with which I can read the article and watch entertaining videos, such as this one: http://www.youtube.com/watch?v=2tX4N2oUa2Q
12:54 PM on 01/07/2010
One shot of EMP (electromagnetic pulse, see WIKIPEDIA) from Mother Nature or terrorists, and it's lights out.

For everybody.

Unless they harden the infrastructure before it happens.
12:33 PM on 01/07/2010
A decent summary of all things that are already in progress. With the error being "We are creating technologies".

MS while being a hugely successful company, has done more to hinder progress then it has to help it in the last 15 yrs. The companies monopolistic self-serving insistence on shunning standards, and your lack of cooperation and vision still continues today.

Far be it for a goof like me to imagine/criticize what it takes to be a CEO in the worlds largest software company.

But to be on such a horse, after your insistence to not cooperate with internet standards, taking advantage of an all but forced monopoly, and to release such flawed software and devices, is equally unimaginable. Very freudian of how you bring in the health care situation with your company sharing the we got you know business practices of the insurance companies.

And vision? Money quote...

"Ha, Ha, people will never pay that much for a phone".

Peace.
10:35 AM on 01/07/2010
When I was a kid, I had six or seven friends and they mostly lived on the same street as me. Today, kids have an average of 232 friends on Facebook and those friends can come from every corner of the globe.

LOL. "Friends".
09:58 AM on 01/07/2010
The concept of using electronic medical records is hardly new, and is available in the marketplace. The VA has been doing this for years, and it is the standard of care in France and other countries. What has prevented adoption of EMR by most American physicians is the lack of standardization, and the high cost of custom solutions.

The domination of Friedman economics by every administration since Regan has left standards to be set by the marketplace, and not the government. Each player wants the standards to be set to benefit their own product, at the expense of all others. Hence, no standard is adopted.

Changing topic, its odd, but then again not really, that Mr. Ballmer did not mention the use of Internet voting. Implemented correctly, Internet voting would resolve all issues of voter fraud, would increase voter turnout, and would cost government less than the current system. Of course no would trust Internet voting over a closed source operating system like Microsoft. The solution would have to be open source like Linux. If this were to happen, it would be the kiss of death to Microsoft. This is why there is no mention of Internet voting.
09:09 AM on 01/07/2010
"Thomas Friedman summed it up very well in his book "The World is Flat," when he calls for "a policy that seeks to move from a culture of lifetime employment, which was the old industrial model, to one of lifetime employability." "

There's a flaw in that logic. It doesn't really matter if one has lifetime employability if one can't find a job. And if one can't reasonably expect lifetime employment why would one endeavor for lifetime employability...whatever that means?
08:37 AM on 01/07/2010
"For instance, one thing emerging from the health care debate is the realization that moving medical records online has the potential to improve the way health care is delivered. The potential savings are enormous -- tens of billions of dollars a year. Even more important are the opportunities to improve care and reduce errors by giving consumers access to their own health care information, while ensuring that doctors can quickly see the patient information they need to make the best patient care decisions -- medication history, test results, and evidence-based treatment recommendations based on the most current research for a given medical issue. "

What is the risk that this very personal information can be hacked and exploited? I am sorry but cost savings doesn't always result in better personal results. Not only will doctors and patients be able to see said information but so will insurance companies and employers who will use this information to their own goals. Much like credit scores are now used to decide who get's a job. And what guarrantee this information won't be sold to marketters?
01:45 AM on 01/07/2010
I'm excited that there will be a video phone at CES.:) The problem is though, while we have increased the capabilites of computers, the infrastructure which allows huge data flows needs to be updated. AT&T touts the wonderful functions of their phones, but gets upset because people actually use them, straining their system. I'm also looking forward to having a terabyte drive on a cell phone/mp3 player/camcorder/camera/computer in the near future-with projector option of course. ^_^
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HUFFPOST SUPER USER
World Citizen
03:22 AM on 01/07/2010
You identified the bottleneck. It certainly isn't the devices. In the case of the U.S, its the communication network.

Here in France, video phone is certainly possible via mobile and through PC to PC as well. For most french people with internet service at home, they can call most landlines in almost (80%) all of the countries in the world for FREE.

I had worked for the phone company a long time ago when it first was under AT&T, then it got broken up into baby bells, then as I noticed is back again under AT&T. Throughout the years, the local phone companies were always considered utility companies and were subjected to regulation. As I know it now, regulation basically assured utility companies their cost + profit. No matter what, they were always assured a profit. This scenario therefore did not foster competition and thus U.S. is still where it is in terms of communication.
08:43 AM on 01/07/2010
Great evaluation. Just look at how deregulation of utilities worked for California. Enron had a hay day and the citizens got Arnold in return.

Internet and phone service in France just another thing they got right and we didn't. We are still focussed first in allowing corporations to suck every last drop of profit out of us first. Just like health care.
08:50 AM on 01/07/2010
And let's talk AT&T for a minute. I stayed with them through the breakup. And until year before last when they were allowed to take over again my phone bill for plain Lifeline service was 5.85. Last year it more than doubled to 12.87 for the same service. No new equipment, no upgrade to my wiring. And when I tried to call for an explanation and I called numerous times, the operators didn't speak or understand English well enough to provide anything in the way of an adequate explanation. But perhaps that was their motive in outsourcing their support phone banks.
03:42 AM on 01/08/2010
a new phone yeah what for ?
so your old... 2 months old, phone can go to a land field
the benefits from your new video phone can finance a private army/guerilla/whatever securing a mine extracting the minerals in Africa (sorry rapping Africa a little more) required for the proc in your n+2 phone (cool that's only in 2 months)
01:15 AM on 01/07/2010
We love (here in our place) the energetic yet cuddly role you portray with every microsoft engagement you took. Thank you. We are looking forward to see the HP slate and Natal this year. Our kind of CEO: http://bit.ly/ballmer-gone-wild-the-best-funny
01:38 AM on 01/07/2010
TY for that (again), those clips never gets old LOL
HUFFPOST SUPER USER
Balzac
02:53 AM on 01/07/2010
I agree, Steve Ballmer is good at whooping it up, firing up the developers. I tried using the "Developers, developers, developers" chant to build my own crew, but to no avail. I was only a pale, bald imitation of the real Ballmer.
HUFFPOST SUPER USER
Balzac
12:41 AM on 01/07/2010
I agree with the focus on technology for improving things. I'm looking forward to Microsoft making bold changes in software licensing in order to engage the developer community.

I'm dead-set against software patents, and do not support the mis-application of patent law, as it should not apply to software at all because software is a written work, and copyright law is applicable.

Free Software is important, and I'm interested to see how Microsoft will adapt to the growing popularity of free software.
09:16 PM on 01/06/2010
Keep in mind - a lot of the "techs in the family" are now the corporate decision makers. We are still "techs in the family", our family is just a lot bigger. Many of us are still as geeky now as we were 15 years ago, and we still game, build boxes and stay up with new tech.

When we move off of a Microsoft platform, we take a lot of people with us, which in turn encourages others to go, as well. Firefox is a perfect example. That leads to programming, architecture and server changes.

Firefox ate IE's lunch, as an example, because it became impossible to secure IE. That condition lasted so long, everyone discovered it was better to just switch to an open source model and be done with it. People who fled that platform also became responsible for pressuring the developers of their apps to make them independent of ActiveX, and to move to common foundations.

The problem is that the door is open now, and MS isn't doing much to impress the right people. They have done way too much chasing of high level partners while forgetting the low level ones that actually buy, implement and support the entire reason for those partnerships to exist.
08:50 PM on 01/06/2010
Great post Steve. Hopefully the fanboys (all shades) will keep the sophomoric attitude aside and focus on the issue of technology being a force for good.

Even Nobel (inventor of the dynamite) realized this many years ago.