Lights again. Its the whole point of new devices like the nest thermostat. It learns what you like, ideally, you never adjust it again, you just forget about it and the computer handles it. Its kind of like hall in the movie 2001 a space odyssey, at least before he kills everybody. Hall runs the space ship from steering, to climate to communications while the astronauts eat their breakfast and read their ipads. Mark papermaster is one of the worlds top expert necessary chips. He is chief technical officer at advanced microdevices admd before that cisco, a former Senior Vice President of apple, spent 26 years at ibm. Joined by Quentin Hardee of the New York Times and Christina Farr for reuters. Apple, sis coker ibm, amd, you have made the tour. I mean, those are some of the bilgsz, most Important CompaniesSilicon Valley that the hardware space has to offer. I have been very fortunate a chance to work with Great Companies and really great people driving innovation. All right. So let me ask but this surround computing. We have talked in the past about the internet of things, with several different guest. Its kind of the internet of things, but its big theyren that, right . Explain it to me. It s internet of things describes how all of these devices are being connected, the locks on your door, your thermostat, you know, even at work, right . Hefring is getting connected. What is surround computing . It describes fundamentally that these changes are leading to a different way in which we interface with computing. It is immersive. Its a natural voice. Its the Gesture Recognition and bringing information to you, contextually aware and realtime. Youre kind of assuming theres a lot of intelligence everywhere, wherever we turn to theres intelligence and intelligence is probably a portal to much more somewhere in the cloud. We are interacting when we need to and sometimes just behaving on its own. You know, thats lot of complexity. How confident are you that this gets built in a way that actually works on what kind of timeline . Thats a great question. What you have seen with this trend is a need for different computing based on the application. And so you can just see tailor made, you know, chip design, tailor made software. Look at wearables. Wearables need to be connect ed but they dont have heavy lifting, basically sensors and specific functions it is providing. As you move up the chain, you need more and more capability. I dont know how you slice it look at his car. Its gott the high beams, where he is tracking on a map, scotts taking a new route home, maybe that gets tailored into gas mileage. Thats what i think more he should eat, coupons, very cool, but who controls the system in all this . A very good question, privacy issues as well. I think the thing i think is coolest about it is this idea is, yes, its a computer thats controlling my lights, but i now erase myself from the light, i step away from that being something part of constantly running over there and adjusting it, yes, its computer, you no longer think to have as a computer. Who are the Important Companies away from amd itself . Is it the car company, the Cloud Company monitoring all the behavior and selling ads against that . Is it some Consumer Price company thats messaging . Who are going to be the dominant players in this kind of environment . Maybe even the startups. What sector . Lets go to the example that scott gave, because the cockpit of the car is gonna be transformed by technology. You have already seen it, right . Its a capability that no one ever even thought necessary in a car. Doesnt deem it necessary. It is going to lead with startups that have a different vision. You can see in the teslas with the beautiful display, new kind of capabilities, thats just the start so it starts with the idea of we could do something different, Technology Enabling and then be multiple partners coming together to provide that immersive experience and change, fundamentally change, as you said, your driving experience going forward. Fundamentally change any number of applications in industry and at home. Go ahead. So, we are hearing, you know, these terms, yours is surround computing, but internet of things is another one. But then when i look at the technology as a reporter, it seems very first generation, especially some of the wearables, a lot of people not super compelling to just have some device tracking your steps. I mean, i love the car example, cause thats very real application that makes a difference, but most cases, i think the hype and what were actually being delivered is not sort of meeting up. Where are we now . Feel like a nest thermostat, it is, yeah, learning what temperature you like but also starting to learn things like when you leave home. Right. And will eventually hook into, well, maybe the lights should be turned off now. Thats the point, it starts off, thats an example of devices that are providing new points of information, very purpose filled, very specific, a handful of functions. By the way, you like it something you didnt have before and that wearable, controlling the thermostat, but whats gonna happen is you see all of these devices starting to be able to communicate to one another, standards will come out. They will connect together to other devices they have in the cloud. I hope theres a chip Company Working on but wait, does have to be a chip in the device itself . As interconnectivity gets faster, maybe a lot of whats happening in my house is actually happening in the cloud. Which obviously is still driven by chipless but far fewer chips. Right. So, where is where are the chips going . They get so cheap that theyre in every possible little thing in my house . And all of the thought processes happening there or is it happening somewhere else . Yeah, scott, what youre going to see is actually a plethora of different needs. They will all be kecked but what youre going to see is there is not all of the workloads are going to the cloud. So, you dont need, you know, heavy computation on these, you know, personal devices that youre wearing, but think about virtual reality, whole emerging category, it is incredibly computation intense. Sure that is, right. You know amd for graphics, but turns out theres incredible computation, you see it in all the game consoles that have a md technology, all the new game consoles out there. It is that kind of computation that cant be in the cloud because it has to be realtime, interactive. Right. Right. Some devices so intensive and that they need it there but i mean in some ways, it benefits you, too, if everything needs a small chip but in large quantities . Its great for the chip industry, because you can see, you know, real rise in demand because, internet and things, of things, where you can have all these connected devices, you will dethe demand for Technology Going up but you will see different capabilities based on what that is. But heres this thing that gets me about tech companies, sell this vision of a perfect future where everythings going to be serve and lifes going to be wonderful, but the reality is the app crashes and the computer goes to green screen. Youre not talking about the operations of peoples homes, their cars, their lives. What kind of fault tolerance, redundancy, perfection, can we actually expect from this stuff and whats the danger of what happens with my home green screens . And the pod bay wont open . Consumers are very demanding. So, they are i will tell you, for commercial suck he is to occur, youre going to have to have incredible reliability. Youre going to have to have incredible security. You want to know that your personal data is safeguarded. Have you seen a system today that deliverers that . Thats minimum. Have you seen a system today that can deliver that kind of reliability and security . Its coming together. What youre seeing now again is more purposebuilt devices, seen highly reliable home security, seeing highly reliable, you know, Communications Systems put together between personal device and, you know, i will say the cloud, you know, back to whatever mobile device you have with you. But this will evolve and its going to be software and hardware working harmoniously. So, i, you know, as a im a wannabe wearables lover ive tried everything you want it to i want it to work, i have had the jaw bone, ive had the basis, i use them for a couple of weeks, initially quite exciting, i give up and ends up somewhere in my closet im not alone. Retention rates are plummeting, people are buying these devices but not enough data thats compelling. At the same time, people check their phones 150 times a day. Which is sort of true numbers. As long as probably a nicer way to say this answer this question, say it again. These early devices, early hardware wearables and so forth, is that that people are starting to buy, we are just finding that they are not there yetsome that going to sort of ruin Consumer Expectations . Is it gonna mean that we dont buy into this trend because we have what he bad expectations with the first set of devices . Go back to the first smartphones. They were novelties, people used them said, great, i can check my calendar but there werent the applications, there wasnt an ecosystem that connected the early smartphones to a number of things you want to run your daily lives. It is useful. I like it but it didnt become a requirement in your daily life. And you can see that same trend take place. The way the iphone worked. You may ask that question after. I got to take a commercial break. Back with Mark Papermaster of amd in just a moment. Welcome back to press here. Talking with Mark Papermaster who has been at just about every important Hardware Company in the united states. Which one do you think im going to ask you about . You know, scott, i think youre gonna go to any one of them here. Ready . Lets do it alphabetically. Lets talk about imb. Apple. The partnership. You run hardware for a short period of time at apple. But its a very short time. What was that experience like . A great experience. I had been heres at ibm, a great career there and changing over to am, working on a set of products that were Game Changing in the industry, had the opportunity to turn the product line, you know, completely, all new industrial design, all new electronics, ipod, iphone, a great experience and i tell you, its what i love to do, working on innovations, working with great people and so, it was a real eye opener. So i know some of these guys out there are a little wonky. Im going to ask this question. Having worked at ibm and having worked at amd and apple, do you believe hardware and software should be tightly coupled . A good question. Its a always a good question. Jobs is always hardware software, complete experience. What is papermaster . They do have to work in conjunction, generally, have challenging products putting together, have them organized, separate teams and need to get them working very seamlessly, apple has done a great job with that. You were in charge of hardware when the iphone 4 had its antenna problem. And i was in the were you at the press conference where jobs got angry . And youre in charge of it. Your good friend, bob mansfield, is there and youre not. What is that phone call like . Or what was it like there the environment which the boss is that mad . Like any company. When off problem, you get the team focussed on it the Management Team comes together and, you know, there was perception issues, history. And to be fair, the antenna idea was not yours, it was there before you got there, right . You know, theres always a long leadtime of product development, but the fact is that the company came together, was very forthcoming and, you know, as you can just simply look at the number of iphones that were sold, phenomenally successful products. I still, by the way, have an iphone 4. I interrupted you, im sorry. Well, i was gonna ask about this apple ibm partnership, because you worked at both companies and if someone told you when you were back at apple that there was gonna be this big announcement in just a few years about, you know, an enterprise giant partnering with this Consumer Technology player like apple, would you have believe it had . Would you have thought they were crazy . No, you know, time brings companies together, impetus in the industry change. The cloud and the client have to Work Together. Businesses to get their functions done need the mobile devices, need personal devices working with enterprise application, so, this was an eventuality, it drives our strategy at amd fundamentally, you look at the technology we are providing, we need it to work in their client devices, personal device and equally well, do the heavy lifting in the clouds. Who are you having the coolest conversations with now . What businesses, Industry Sectors seem to be thinking ahead about what this technology can do for them . Well, you know, i will say it is really about the client and the cloud, lets talk about both. If you think about the heavy lifting thats going on, you know, getting those back Office Applications done, its all about tying the. These companies and Enterprises Look at how to leverage the technology to get the searches done. Quentin wants a name names. All the big players. I mean, there is i will tell you that all of our customers are extremely, aggressive as to how do they leverage technology. They see that theres an inflection point. I got to ask about the fabled i watch. If you werent gonna, i was. Oh, i cant i cant shed light on i watch. Have you seen one . As the only person at the table who has been the director of hardware at apple, give us your thoughts on generic, wearable watches that other Companies Might want to get into. Really goes right back to our earlier conversation, all of the trend of these wearable devices, its all about getting more and more usefulness into your live, right . So, apple and everyone else will be doing is figuring out over time, how do you make it to be an integral part of your life and as they do that, this is why i love this trend, going to create more and more information, got to be processed. I think all about narcissism, what are my friends saying . How many steps i did take today . Who liked my post . Disagree on that one. I think its all gonna be health and fitness tracking with the because we are such a healthy and fit nation . Okay. Yes. How many cheat toes very eaten . Yes. But reporter, arent you . Actually, grew up in england. But with these smart watches in particular, he is there a lot of sensors that you can put into a device like that you can start to look at certain Blood Pressure measurements, potent l potentially blood glucose, a really exciting area. I think we are talking now about Technology Moving into medical. Right. And thats very exciting thing. I talk about surround computing, think about that scenario you described. Look at a personal device gathering your biometrics on a regular basis, think about your doctors visit, need to go to the doctors office, enter an immersive experience, all your data loaded there, going to be like youre in the doctors office. And you can have the telemetry realtime. Whats mind blowing number of relationships youre talking about, just the way, you know, the ipod had to connect to the Music Industry and the phone connected to the phone business and also the software developer, now talking about a Computer Company that has relationships with the entire and if youre a Computer Company that can make those relationships, probably, probably apple. Mark papermaster, unless you got a 15second response, otherwise, im gonna cut you off. Go ahead. Really correct. All about the application. Companies come together and create an Application Development platform, thats when you see the cases take off. Mark papermaster, chief technical officer at amd. Turns out amazon has a new lowcost all you can read option for the kindle, which is great, unless youre paid to write the words. What do authors, or at least one author, think of the new word buffet . We will find out when press here continues. Welcome back to press here. Late last week, amazon launched its kindle unlimited, sort of a netflix for electronic books. You pay 9. 99 a month, no more paying for each and every book. Thats good news for readers. Its probably good news for amazon, but is it good for authors . Bottom line, is it good for keith . Keith ravel is a bestselling author of thrillers and mysteries are and we often turn to him when we have questions about the publishing industry. Not only is he an author, a graduate of harvard law, former lawyer for the Senate Select committee on intelligence. He also niece heck of a lot about dna sequencing, of all things, but we will talk about apple zohn. And that is it seems to me, if im selling all you can eat, thats bad for the guy making the food, isnt it . Is this bad news for authors . It depends. Amazon is giving aughters a chance to optin or not. If you optin, then your books are only available on amazon. They cant be available on barnes noble. Com, the ebooks can only be on this amazon system and nothing else . And if you decide to do that, then it might be a good thing, because amazon already has a way, if youre an zohn prime, you can borrow books and most authors, including me, find that a nice source of income. But giving up on giving up [ overlapping speakers ] or anything else, well, that costs you, too. I think that the way you want to judge whatever happens is just the way just the way you were doing. You were doing it. Is it good for leaders . , yes. Is it good for writers . That remains to be seen. I dont know why amazon is insisting on exclusivity u another way to look at this, they are selling streaming literature, streaming music, books that come out in a stream. I dont know a lot of musicians who made a lot more money by streaming versus individual purchases of songs. Or albums. Yeah. Right now, what amazon is saying is that so my last book was published by amazon publishing and they are saying they will pay me exactly the same as if someone got downloaded the book. I pay my 9. 99 and i read the very good book, a fine and dangerous season and you get paid even though i didnt really pay for that specific book. If you read enough of it. Okay. You cant just downloading enough, id like to think once youve read the first page of my book or other books that aid keep going. Whats the magic point in which your i think its 10 . Thats not bad. Not at all. The remaining 90 can be dreck, as long as you get me to 11. You know, mickey we have artistic integrity here. Mickey spillane said you write the first beige paige of a book to read that book, you write the last page of the book so people read your next book. 11 turns out to be dreck, might not turn out to be big question. Oh okay. You said its maybe okay for writers, great for readers what about publishers, the largest publishers in the world, sort of going to partner with amazon in the future, some of the big five have chosen against that opted out . None of the big five are doing this with amazon right now. Amazon said 600,000 books are available this way but none of the that includes none of the big five. Before coming on the show, i luke ted top ten best sellers, nine of the ten are from the big five on the New York Times, excuse me, usa today list. On the other hand, amazons kindle list of best kelling ebooks, five of the ten are eligible for kindle unlimited. So i think that this is another challenge thrown down in front of the big five publishers that says innovate or die and so far, they have not been innovating much. They dont do that. And they have had to cut back on the editorial quality and the distribution, they got all their problems. Let me ask you this, you might write to this, will you read on this . Will you consume literature this way, you think . Do you know, im im im pragmatic. It depends on what im doing. Sometimes i read a paper and ink book, sometimes i read on my kindle. I will do this on my kindle in order to in order to do this. I think its interesting that you said, which i was not aware of, that there are different behaviors based on youre saying that the top ten books that are read as books and the top ten books that are read as ebooks are very, very different lists. Well, usa today is supposed to put everything together in one list, which is why i was referring to their list. Oh, okay. So its kindle does not change my a readers behavior necessarily . Well, sure, kindle just looks at e books off of amazon, their list. Fine. Ebooks, paper and ink from any place. What do you think its going to take to get the big five to participate in the netflix model of books . Do you know, i just havent seen much innovation coming from the big five lately. When luke at how publishing has changed, the driver has been amazon since the day they introduced the kindle. And they need to innovate. They wine about the changes, but do you remember, im old enough to remember when American Car Companies were complaining about japanese car companies. Yes. And [ inaudible ] the answer is not to complain, the answer is to build better cars. What do you think they could do in this environment . One of the things they could do, put together a competing site. Offer all five of them. The problem the publishers have right now, guess what, when i said we should look what the readers and writers want, guess what writers are the brand. If you want to read a book by James Patterson or you dont care. The big question is how many twitter followers do you have . Thats what authors need to be building up now. Social media presence. Right. Right. Yeah. I think that the answer always for readers and this is sort of fundamental, is to write good books. Thats the first step. Tweeting, facebooking, Everything Else is good, but you got write we have seen some companies that you would think would never get together with their competitors, hugh slew a good example, hugh slew a darn good app and darn good site, and and, fox, nbc, think maybe some others as well, but partially was partially owned, it was amazing that they came together and we saw that a little bit with music. There were some other streaming, you know, that are, Radio Companies and thats, so not without precedent that these five could manage to pull this off. After the apple decision, it gets very hard for them to Work Together because theres antitrust concerns. Well, there are two competing streaming book streaming companies, describe d and oyster. Two of the big five offered books on both of them, but they are holding back their best sellers until theyve moved off the best seller list. All gave of them could go do that and be there and perhaps offer keith ravel, im against a hardened of this television show. Youre always a welcomed guest and come back and we will talk about dna. Its a always fun to talk to you too, scott. Back in a minute. About dna. Its a always fun to talk to thats our show for this week, my he thankst thanks to my guests. Im scott mcgrew. Thanks for making us part of your sunday morning