1 00:00:00,000 --> 00:00:00,000 I am really delighted to see all of you here, especially given we're in the middle of final exam week, 2 00:00:05,580 --> 00:00:11,690 everybody is a little tense and maybe a little overextended. 3 00:00:11,690 --> 00:00:18,210 So thank you for coming. My name is Theresa Tobin. I'm the Head Librarian in the Humanities Library. 4 00:00:18,210 --> 00:00:25,750 And together with the MIT Press Bookstore, we sponsor this Authors at MIT series. 5 00:00:25,750 --> 00:00:33,440 And the purpose of the series is to celebrate the scholarship and work of MIT faculty and staff, 6 00:00:33,440 --> 00:00:38,760 or sometimes to celebrate a publication of the MIT Press, sometimes both. 7 00:00:38,760 --> 00:00:45,430 Tonight we are celebrating the work of two of the people affiliated to the MIT. 8 00:00:45,430 --> 00:00:51,770 The authors of "Guanxi: Microsoft, China and Bill Gates "Plan to Win the Road Ahead" 9 00:00:51,770 --> 00:01:02,770 which, for me, provided a really nice context to help me understand why on earth President Hu Bill Gates first before he went to see our President. 10 00:01:02,770 --> 00:01:07,460 It's very interesting. Now I have a better understanding of the forces at work here. 11 00:01:07,460 --> 00:01:17,070 Our two authors, who will be talking tonight, taking your questions and will sign copies of their book after the lecture, 12 00:01:17,070 --> 00:01:23,130 are Robert Buderi who is at of our Center for International Studies at MIT, and Greg Huang, 13 00:01:23,130 --> 00:01:30,570 who has a PhD from MIT from 1999 and is currently at New Scientist as an editor. 14 00:01:30,570 --> 00:01:34,000 So I hope you'll love them then, and enjoy this engaging book. 15 00:01:34,000 --> 00:01:41,840 -- 16 00:01:41,840 --> 00:01:48,740 Robert: Bill Gates made his first visit to China in 1994, and it didn't exactly go very well. 17 00:01:48,740 --> 00:01:56,090 We had translated a very terse account from China's Science Daily newspaper it was given the headline 18 00:01:56,090 --> 00:02:00,770 "The Mysterious Journey to China of the World's Richest Man". 19 00:02:00,770 --> 00:02:07,670 His first visit to China was very short. It was March 21, 1994 when he was 39, to sell Windows. 20 00:02:07,670 --> 00:02:12,690 He met Jiang Zemin. Jiang talked with Gates about Chinese civilization. 21 00:02:12,690 --> 00:02:21,140 He said Gates should try to understand Chinese language and culture in order to be able to collaborate more. 22 00:02:21,140 --> 00:02:24,600 Greg: About a year and a half later, Mr. Gates made a second trip to China. 23 00:02:24,600 --> 00:02:29,550 This time he brought his wife, and his father, and his good friend Warren Buffett. 24 00:02:29,550 --> 00:02:31,860 This time he seemed to be doing a little bit better. 25 00:02:31,860 --> 00:02:37,260 The same newspaper said, "Jiang asked Gates where he would visit this time. 26 00:02:37,260 --> 00:02:44,210 Gates said western China, including Xi'an, the Terra Cotta warriors and horses, Three Gorges? 27 00:02:44,210 --> 00:02:51,310 "Jiang said, 'Three Gorges is a good idea.' He then recited several traditional poems about the gorges. 28 00:02:51,310 --> 00:02:56,980 Jiang talked with Gates as if he was Gates's father. Jiang said, 'You're doing well. 29 00:02:56,980 --> 00:03:01,710 If you keep working hard, you'll succeed even more.'" 30 00:03:01,710 --> 00:03:06,310 Robert: Well, Bill Gates went back several times over the next few years. 31 00:03:06,310 --> 00:03:11,360 Each time developing, actually, a warmer relationship with the Chinese leader. 32 00:03:11,360 --> 00:03:16,400 It was on his fifth visit in early 2003 that they really hit their stride. 33 00:03:16,400 --> 00:03:25,270 They talked only briefly about business, then they got down to a wide ranging discussion that included some talk about the U.S. stock market. 34 00:03:25,270 --> 00:03:29,680 And we would like to show you how that went. 35 00:03:40,340 --> 00:03:46,230 Greg as Jiang: So, why was Microsoft worth almost a trillion dollars? 36 00:03:46,230 --> 00:03:56,150 Robert as Gates: Well, you have to take earnings and project them out over thirty years to get "net present value" which gives you the current stock price. 37 00:03:56,150 --> 00:04:02,930 Greg as Jiang: Well, I guess? okay, but still, a trillion dollars seems too much. 38 00:04:02,930 --> 00:04:09,370 Robert as Gates: Yeah, it was too much. It's much more reasonably valued now. The whole stock market was in a bubble. 39 00:04:09,370 --> 00:04:16,000 Greg as Jiang: Well, stock was in a bubble. So why didn't you sell all of your Microsoft shares? 40 00:04:16,000 --> 00:04:20,840 Robert as Gates: Well, I have certain responsibilities to my shareholders. 41 00:04:20,840 --> 00:04:23,420 Greg as Jiang: Why didn't the company sell all of its shares? 42 00:04:23,420 --> 00:04:30,420 Robert as Gates: Well, we didn't have that many shares, plus that would be viewed as not having confidence in the company. 43 00:04:30,420 --> 00:04:38,620 Greg as Jiang: I guess I understand. This whole thing is not very rational. 44 00:04:38,620 --> 00:04:48,820 Robert as Gates: You know, Mr. Jiang, you are a real capitalist. 45 00:04:52,960 --> 00:05:02,660 Robert: We started this book because we began hearing more and more about this Research Lab that Microsoft set up in China in 1998. 46 00:05:02,660 --> 00:05:08,280 It went from nothing, to become the top computer science draw in all of China, 47 00:05:08,280 --> 00:05:18,420 increasingly important in Microsoft's escalating battles against Nokia in wireless, Sony in entertainment, and especially Google in search. 48 00:05:18,420 --> 00:05:26,240 But far more than the successes of this one lab, what really lit our fire was what it said about the future of innovation. 49 00:05:26,240 --> 00:05:33,540 And that is, that a country like China, an emerging nation, has to be viewed as more than just a nice market, 50 00:05:33,540 --> 00:05:44,280 or a place for outsourcing and cheap manufacturing, but as a vast pool of talent, that must be cultivated and harvested, in order to compete today. 51 00:05:44,280 --> 00:05:51,480 So we dived down in the story. We think we got at issues kind of beyond the rhetoric about the Asia threat. 52 00:05:51,480 --> 00:05:58,220 We look at issues of education. And we really tried to get down deeper about what it takes to compete today, 53 00:05:58,220 --> 00:06:08,100 and what it takes to do business with emerging nations, which often take a longer time horizon than American companies are used to doing business with; 54 00:06:08,100 --> 00:06:15,290 it means increasingly doing business on the host country's terms, and finding ways for everybody to win. 55 00:06:15,290 --> 00:06:20,720 So what we tried to do, which we don't think any other book we know of about doing business in China does, 56 00:06:20,720 --> 00:06:24,020 is tell the story through the eyes of the people involved. 57 00:06:24,020 --> 00:06:26,620 Get down on the ground with them, report them, 58 00:06:26,620 --> 00:06:31,800 go to parties with them, play basketball with them, sit through demos, 59 00:06:31,800 --> 00:06:37,420 and really give you a feeling for what it was like on the ground to build this lab. 60 00:06:37,420 --> 00:06:42,620 We hope that in the process of this, we've drawn out some of the lessons about doing business, 61 00:06:42,620 --> 00:06:50,700 not just in China but any emerging nation in a way that we hope is more fun and memorable than a management treatise 62 00:06:50,700 --> 00:06:53,590 which we don't know how to write anyway. 63 00:06:53,590 --> 00:06:57,490 We had no affiliation with Microsoft. We made no deals with them. 64 00:06:57,490 --> 00:07:02,210 They had no right to look at what we wrote, and they didn't. We hold no stock in the company. 65 00:07:02,210 --> 00:07:06,980 And the few times that we took a meal from them, we always tried to reciprocate. 66 00:07:06,980 --> 00:07:19,180 So, if "the road ahead" is Bill Gates's metaphor for the future, this lab in Beijing was our metaphor for the road ahead. 67 00:07:19,180 --> 00:07:26,660 Greg: So, the idea for the book goes back to 2004. Early in 2004, both of us were at Technology Review at the time. 68 00:07:26,660 --> 00:07:33,890 And like Bob said, we both had been following some of the technologies and some of the innovations coming out of this lab in Beijing. 69 00:07:33,890 --> 00:07:37,480 So when Bob sent me over there to do about a week's worth of reporting, 70 00:07:37,480 --> 00:07:43,280 I was just really thrilled. And I came back with a really interesting story that turned into a cover feature for the magazine. 71 00:07:43,280 --> 00:07:47,030 Then when we got to talking about doing a book, it was really a no-brainer for me, 72 00:07:47,030 --> 00:07:50,660 because of the combined interest, my interest in technology and engineering, 73 00:07:50,660 --> 00:07:54,640 as well as a chance to touch the culture of where my family comes from. 74 00:07:54,640 --> 00:08:02,610 My parents come from mainland China. They settled in Boston in the late 1950s, by way of Taiwan. 75 00:08:02,610 --> 00:08:13,160 So actually, to this day I think the main reason that Bob wanted to work with me on this project was because he thought I could actually speak Chinese. 76 00:08:13,160 --> 00:08:19,230 It wasn't until we got to Beijing that he realized what an incredible mistake he'd made in choosing a partner. 77 00:08:19,230 --> 00:08:21,800 I can tell you a little bit about the title of our book at least. 78 00:08:21,800 --> 00:08:31,650 But first I want to tell you the best question that we've got so far on our tour, which is, "What is 'Guan Eleven' (Guan XI)?" 79 00:08:31,650 --> 00:08:34,240 It's Ocean's Eleven' in Chinese, we tell people. 80 00:08:34,240 --> 00:08:39,640 Pick it up. "And what if I haven't read 'Guan IX' and 'Guan X'?" 81 00:08:39,640 --> 00:08:42,790 Okay, so 'guanxi' is this Chinese word that means "art of relationships". 82 00:08:42,790 --> 00:08:49,630 It's composed of two characters. The top one is 'guan' which means "gate or door"; the bottom is 'xi' which means "to tie". 83 00:08:49,630 --> 00:08:54,800 Another interpretation is that it also can be an enclosed system, as we learned recently. 84 00:08:54,800 --> 00:08:55,690 Why is it so important? 85 00:08:55,690 --> 00:09:02,540 Well, today in China, it's still the case that there's really still no such thing as a purely business relationship. 86 00:09:02,540 --> 00:09:09,980 You have to learn to blend the business with the personal. Sometimes it's not clear where one ends and the other begins. 87 00:09:09,980 --> 00:09:12,270 But it's not really that mysterious. 88 00:09:12,270 --> 00:09:19,400 The guanxi pretty much boils down to four principles that can be translated roughly as trust, favor, dependence, adaptation, 89 00:09:19,400 --> 00:09:24,940 where probably the most important one is the last one, which means that these relationships have to be nurtured over time. 90 00:09:24,940 --> 00:09:27,720 They can't be bought. They can't be rushed. 91 00:09:27,720 --> 00:09:34,080 You may not think you're making progress with your host, but if you're as long as you continue to be sincere, 92 00:09:34,080 --> 00:09:38,600 be honest about, you know, what you're trying to accomplish together, you're going to be okay. 93 00:09:38,600 --> 00:09:42,550 And really, the bottom line is that you have to have guanxi in order to be successful in China. 94 00:09:42,550 --> 00:09:47,060 If you look at the history of western companies going into China, or foreign companies, 95 00:09:47,060 --> 00:09:53,120 you'll see that it's not always the quality of the products that determines whether they capture a large market share. 96 00:09:53,120 --> 00:09:58,810 If you look at Coke that's dominating over Pepsi, Volkswagen over Toyota, and more recently, 97 00:09:58,810 --> 00:10:07,760 Motorola is really destroying Ericsson over there, it's clear that building up relationships with the host country is important. 98 00:10:07,760 --> 00:10:12,440 Now, China has been in the news a lot lately; not always good. 99 00:10:12,440 --> 00:10:20,970 You have a flap over outsourcing of jobs, huge trade deficit, the U.S. losing its lead in science and technology. 100 00:10:20,970 --> 00:10:29,500 One of the main messages in our book is that anything construed as a China threat can really be turned around and thought of as an opportunity. 101 00:10:29,500 --> 00:10:38,520 And so you're all familiar with, you know, the sheer numbers of the graduates in technology and science coming out of China, compared to the U.S. 102 00:10:38,520 --> 00:10:46,380 What if we could tap that talent stream and turn that into a productive thing for the U.S.? 103 00:10:46,380 --> 00:10:51,730 Now if you look at the market numbers, China is already number one in cell phone and mobile devices, 104 00:10:51,730 --> 00:10:57,230 catching up very quickly to the U.S. in web users and personal computing. 105 00:10:57,230 --> 00:11:03,720 So, the message here is actually that China is not contrary to what you might have heard a "waking giant". 106 00:11:03,720 --> 00:11:08,930 China is already awake, and it's already leading in some very key areas of technology. 107 00:11:08,930 --> 00:11:14,500 The question is what can we do about it to turn that to a competitive advantage? 108 00:11:14,500 --> 00:11:18,210 Robert: Well, this was really a key point for us as we looked at some of these numbers. 109 00:11:18,210 --> 00:11:26,330 But the point is not that China is just this nice addition to the bottom line. It is that the flow of innovation in the world is changing. 110 00:11:26,330 --> 00:11:36,690 The way Microsoft used to do business, and other companies too, was invent something here, spiral it to Europe, and then localize it in the Chinese market. 111 00:11:36,690 --> 00:11:45,000 If you look at these numbers, say, in cell phones, what it tells you is that the pioneering innovations are often going to come from China, 112 00:11:45,000 --> 00:11:51,430 because that's where the users are, that's where things are being invented there now that are going to be spiraling over here. 113 00:11:51,430 --> 00:11:56,670 So, to tap into this, to be part of it, and be close to it is a big challenge. 114 00:11:56,670 --> 00:12:01,270 Whatever you think about Microsoft and its innovative prowess, 115 00:12:01,270 --> 00:12:08,200 it was very innovative in seeing China as more than just a market, back in 1998, when it set up this research lab. 116 00:12:08,200 --> 00:12:14,560 At the time, a lot of western companies were opening research labs overseas, especially in Japan. 117 00:12:14,560 --> 00:12:18,730 Microsoft itself opened up a lab in Cambridge, England in 1998. 118 00:12:18,730 --> 00:12:25,920 In every case, companies were opening labs near major universities in developed markets. 119 00:12:25,920 --> 00:12:30,040 But to set up a research lab in China where the market was not yet developed, 120 00:12:30,040 --> 00:12:41,680 and where universities were by all accounts a few generations behind world-class universities like MIT, was a very unusual move. 121 00:12:41,680 --> 00:12:47,030 Microsoft got going in 1998. The first thing they did was look for a director. 122 00:12:47,030 --> 00:12:51,980 They settled on this guy. His name is Kai-Fu Lee; he's been in the news a lot lately. 123 00:12:51,980 --> 00:12:58,420 He was born in Taiwan, he moved to the US when he was eleven, to Oakridge, Tennessee. 124 00:12:58,420 --> 00:13:04,740 He went to Columbia and then got his PhD at Carnegie Mellon where he pioneered in speech recognition. 125 00:13:04,740 --> 00:13:09,500 He was hired by Apple, then Silicon Graphics, which is where Microsoft got onto him. 126 00:13:09,500 --> 00:13:16,760 And he was, for Microsoft, the perfect choice, because he spoke Mandarin and understood a lot about Chinese culture. 127 00:13:16,760 --> 00:13:25,330 He was completely schooled in research, and US R&D management, and maybe most important of all, 128 00:13:25,330 --> 00:13:29,930 he burned with this passion to go to China and help lift it up. 129 00:13:29,930 --> 00:13:36,680 His father had been an administrator in the Nationalist government that was overthrown by Mao in 1949, 130 00:13:36,680 --> 00:13:42,830 and he had to flee to Taiwan for his life, leaving behind his wife and five children. 131 00:13:42,830 --> 00:13:47,210 And it took Kai-fu Lee's mother a whole year to get out with all the children. 132 00:13:47,210 --> 00:13:53,310 And as a result, they were one of the few families from the government that was reunited in whole. 133 00:13:53,310 --> 00:13:58,480 Kai-Fu Lee was born after that. He was the seventh child. And throughout this experience, 134 00:13:58,480 --> 00:14:00,920 what motivated him more than anything was getting to China, 135 00:14:00,920 --> 00:14:09,930 and help lift it up into part of this kind of world of innovation and R&D that he'd been part of in the U.S. 136 00:14:09,930 --> 00:14:17,630 So one of the first things he did was settle this raging argument in Microsoft about where to put the lab. Beijing or Shanghai? 137 00:14:17,630 --> 00:14:21,710 Beijing was the center of government, close to some universities. 138 00:14:21,710 --> 00:14:28,300 Shanghai was the center of commerce and entrepreneurialism, and very business savvy. 139 00:14:28,300 --> 00:14:35,220 So Kai-Fu Lee settled in a very appropriate way. He called his mom, who is in Taiwan. 140 00:14:35,220 --> 00:14:44,730 And she had lived, actually, in both cities. And he said, "Mom, I'm going to go to work for Microsoft. I'm thinking of setting up a lab in Beijing or Shanghai." 141 00:14:44,730 --> 00:14:50,980 She said, "Oh, Beijing. It's so cold there in the winter and so hot in the summer. 142 00:14:50,980 --> 00:14:59,450 All those serious government people. Shanghai, ah the weather is beautiful, the food is fantastic. 143 00:14:59,450 --> 00:15:06,010 If you move to Shanghai, I'm going to move in with you." 144 00:15:06,010 --> 00:15:13,490 Kai-Fu Lee told his wife and she said, "We're definitely going to Beijing." 145 00:15:13,490 --> 00:15:17,520 Greg: Kai-Fu Lee insists that that's a joke and that the real reason was that 146 00:15:17,520 --> 00:15:22,320 when he talked to students in Beijing and young researchers, they were more interested in doing top research. 147 00:15:22,320 --> 00:15:25,190 Whereas in Shanghai, he thought they were more interested in making money. 148 00:15:25,190 --> 00:15:29,910 And really, the main point of the lab in the beginning was to get on the ground and do great research. 149 00:15:29,910 --> 00:15:37,910 This is where the Microsoft lab is located, this building in northwest Beijing, the high tech district called Haidian. 150 00:15:37,910 --> 00:15:42,930 And this place has exploded in the last five to ten years. There's now a Wal-mart across the street here. 151 00:15:42,930 --> 00:15:50,860 There's tens of thousands of people going through there everyday. McDonald's down the street; Starbucks in the Forbidden City. 152 00:15:50,860 --> 00:15:56,480 Now, when Kai-Fu Lee hit the ground in 1998, he had some critical challenges to, 153 00:15:56,480 --> 00:16:02,000 how do you actually set up this lab to do research in China. Nobody had really done it in computer science that well at that time. 154 00:16:02,000 --> 00:16:07,190 It's probably? these challenges were not unique so much to Microsoft, but they were kind of unique to China. 155 00:16:07,190 --> 00:16:10,640 The first thing is something that we emphasize a lot in the book, which is building these relationships, 156 00:16:10,640 --> 00:16:15,480 building the guanxi with Chinese officials and academics at all levels. 157 00:16:15,480 --> 00:16:21,020 The second one was to recruit he could not lower the bar in terms of the quality of talent he brought in. 158 00:16:21,020 --> 00:16:23,060 He had to get the absolute cream of the crop. 159 00:16:23,060 --> 00:16:30,320 And together with that, when you're sort of, what we call 'in-sourcing' a lot of this local talent from Chinese universities, 160 00:16:30,320 --> 00:16:36,510 you had to have top, senior-level staff who could actually spend time, one-on-one, to mentor them, 161 00:16:36,510 --> 00:16:43,060 or at least to delegate to more of the senior researchers, to really spend time mentoring these kids. 162 00:16:43,060 --> 00:16:44,470 I'm just going to go really briefly through this. 163 00:16:44,470 --> 00:16:50,270 Bob and I had a chance to go along on some of these outreach programs that the Microsoft lab is doing. 164 00:16:50,270 --> 00:16:56,230 And this shot is from an auditorium in Qinghua University in Beijing. 165 00:16:56,230 --> 00:17:03,160 And what Kai-Fu Lee set up was, within a year, there was this traveling road show of computer science speakers, 166 00:17:03,160 --> 00:17:07,950 really distinguished speakers, --------- award winners, Pulitzer Prize winners, even Nobel Laureates, 167 00:17:07,950 --> 00:17:14,390 and they would go to places in China that had never seen Microsoft before, kind of getting the name brand out there, 168 00:17:14,390 --> 00:17:20,720 but also showing that they were going to collaborate with local officials, local universities to train the students. 169 00:17:20,720 --> 00:17:26,860 In terms of recruiting the cream of the crop, one of the first guys they got in the lab was this guy, 170 00:17:26,860 --> 00:17:33,750 the kid in the blue jacket. His name is Jin Lee. He was already a celebrity in China, largely thanks to this picture. 171 00:17:33,750 --> 00:17:37,910 It's a 1984 shot from a Shanghai science fair, and Jin Lee, 172 00:17:37,910 --> 00:17:44,570 you can see he's giving a computer demonstration to none other than the Chinese Reform Leader Deng Xiao Ping 173 00:17:44,570 --> 00:17:51,570 This is famous because it was part of a massive campaign to promote Chinese computer science education. 174 00:17:51,570 --> 00:17:57,750 And the story is that Deng Xiao Ping had a slogan, and his slogan was, 175 00:17:57,750 --> 00:18:02,590 "Chinese Computer Science Education Should Begin with Children and This is the Future of China," 176 00:18:02,590 --> 00:18:05,660 and he put his hand on Jin Lee's head as he said this. 177 00:18:05,660 --> 00:18:10,620 So tens of millions of people, in fact, to this day, know Jin by the nickname "Dung Touch My Head". 178 00:18:10,620 --> 00:18:18,830 But between us, in trying to find a picture that actually showed Dung touching his head, 179 00:18:18,830 --> 00:18:24,120 we could not find it so it's sort of an apocryphal story, we don't have any photo evidence. 180 00:18:24,120 --> 00:18:27,570 This picture is even known as "Dung Touch My Head" even though he's not touching. 181 00:18:30,230 --> 00:18:34,980 Together with the young talent, they had to recruit senior guys so these guys don't even look that senior, 182 00:18:34,980 --> 00:18:38,960 but they're incredibly accomplished. They're three of the main characters in our book, 183 00:18:38,960 --> 00:18:47,410 and they're highly tied into the workings of the lab. They're the core leadership under Kai-Fu Lee, and succeeded him after he left. 184 00:18:47,410 --> 00:18:51,630 The guy on the left I'll just tell you a little bit about them all the guy on the left is Ya-Qin Zhang. 185 00:18:51,630 --> 00:18:55,550 He was the youngest college student in all of China at the age of twelve. 186 00:18:55,550 --> 00:19:05,540 He became this engineering-multimedia whiz, in fact, came to the US to do his grad work and turned down MIT for George Washington. 187 00:19:05,540 --> 00:19:08,580 I'm not sure about that one. But it seemed to work out well. 188 00:19:08,580 --> 00:19:18,260 He made his name at Sarnoff, became the youngest IEEE fellow in the history of that organization, that US organization, at the age of thirty. 189 00:19:18,260 --> 00:19:19,460 It was really incredible. 190 00:19:19,460 --> 00:19:31,020 Now he heads up the he's vice-chair of Microsoft China and he's in charge of all Microsoft R&D in China, about a thousand people and growing fast. 191 00:19:31,020 --> 00:19:35,220 The guy in the middle, his name is Hong Jiang Zhang, no relation to Ya-Qin. 192 00:19:35,220 --> 00:19:41,130 An interesting story about his background, he comes from a rural part of China, and he calls it the Kansas of China. 193 00:19:41,130 --> 00:19:48,470 And he and his brother were two of only six people from his entire county who made it into college. 194 00:19:48,470 --> 00:19:56,320 This was right after the cultural revolution ending in the mid-70s where education was pretty much shut down within the country 195 00:19:56,320 --> 00:19:59,470 so it was very difficult to get in, very difficult entrance exams. 196 00:19:59,470 --> 00:20:04,750 And he now heads up the Development Lab which is the development arm of the Beijing research lab, 197 00:20:04,750 --> 00:20:13,620 called the Advanced Technology Center. And his expertise is in image retrieval and information retrieval, the backbone of web search. 198 00:20:13,620 --> 00:20:19,750 The guy on the right is Harry Sheng. He's the current director of the Beijing lab. He's a graphics expert. 199 00:20:19,750 --> 00:20:27,380 He grew up in China as well and went to college by the age of thirteen. So these guys are all kind of baby geniuses. 200 00:20:27,380 --> 00:20:33,890 He did his PhD at Carnegie Mellon, in fact, was turned down by MIT for grad work, 201 00:20:33,890 --> 00:20:38,490 a fact that he still sort of harbors a chip on his shoulder [about] to this day. 202 00:20:38,490 --> 00:20:45,480 Because you talk to him, and he motivates the researches under him by saying, "Do you think you can do better than those MIT guys?" 203 00:20:45,480 --> 00:20:54,100 you know, in graphics. And if not, they have to stay until? they don't sleep at night. 204 00:20:54,100 --> 00:20:57,660 But he was recently promoted as a Distinguished Engineer at Microsoft. 205 00:20:57,660 --> 00:21:03,210 There's only a few dozen of those, so he's a pretty well-respected guy. 206 00:21:03,210 --> 00:21:06,660 Robert: Well, these guys were like magnets for Microsoft. 207 00:21:06,660 --> 00:21:10,600 When Microsoft first arrived in China, they got a very lukewarm reception. 208 00:21:10,600 --> 00:21:17,950 The Senior Vice-President of Research came to give a talk at Tsinghua University, the main science university in China, 209 00:21:17,950 --> 00:21:21,580 and nobody showed up to introduce him, host him. Unheard of in China. 210 00:21:21,580 --> 00:21:27,920 So Microsoft actually had to send around a Microsoft employee to pretend to be from Tsinghua University. 211 00:21:27,920 --> 00:21:30,510 "Welcome! Welcome to Tsinghua University!" 212 00:21:30,510 --> 00:21:32,880 That all changed when these guys hit the ground. 213 00:21:32,880 --> 00:21:41,450 The lab began receiving thousands of resumes, just pouring into the lab, the cream of the crop of Chinese computer science. 214 00:21:41,450 --> 00:21:47,980 And it was tremendously successful, almost from within the first six months of pulling these into the lab. 215 00:21:47,980 --> 00:21:55,810 But right away you get into a kind of roadblock that, even though all these guys were from China, or steeped in Chinese culture, 216 00:21:55,810 --> 00:21:57,760 they hadn't quite appreciated it. 217 00:21:57,760 --> 00:22:06,630 And that was the vast kind of communications and culture gap between a western R&D system and Chinese education system. 218 00:22:06,630 --> 00:22:11,430 So these were things like, the managers were used to being very direct; the students, 219 00:22:11,430 --> 00:22:16,230 the new recruits were trying to read between the lines of what that meant. 220 00:22:16,230 --> 00:22:23,900 The managers expected these PhDs to have a lot of initiative and creativity and hit the ground running. 221 00:22:23,900 --> 00:22:33,000 They were very used to following specific instructions and would not even dream, sometimes, of taking off on their own course. 222 00:22:33,000 --> 00:22:35,810 So this actually sparked a big cultural clash. 223 00:22:35,810 --> 00:22:43,710 We tried to find a photo that really got to the heart of this, and the best we could find was Steve Ballmer, 224 00:22:43,710 --> 00:22:49,320 the CEO of Microsoft, playing basketball that summer with some of the research lab guys in Beijing. 225 00:22:49,320 --> 00:22:55,090 You know, and you see the kind of blank scares as he tries to explain some basketball moves. 226 00:22:55,090 --> 00:23:05,630 We thought that was a great photo until we actually showed it at Microsoft and they said, "Everybody looks at Ballmer that way." 227 00:23:05,630 --> 00:23:11,630 But this was a big crisis in the lab. It sparked a whole new look at how they did things. 228 00:23:11,630 --> 00:23:14,040 They had to change their hiring practices. 229 00:23:14,040 --> 00:23:17,870 They had to reset all the targets and make them much more specific, 230 00:23:17,870 --> 00:23:26,890 and spend a lot more time with the new recruits laying out what was expected of them, in order to make them successful. 231 00:23:26,890 --> 00:23:30,730 And they had to have a longer time horizon for when they would begin to contribute. 232 00:23:30,730 --> 00:23:37,050 We spent a lot of time on that in the book. We're just going to jump here and show you what they were successful in, 233 00:23:37,050 --> 00:23:42,010 though, was building up five core areas of expertise for Microsoft. 234 00:23:42,010 --> 00:23:47,330 User interfaces was Kai-Fu Lee's original area, speech recognition and things like that. 235 00:23:47,330 --> 00:23:51,640 Multimedia, graphics, wireless, and most recently, search. 236 00:23:51,640 --> 00:23:57,660 As a matter of fact, Microsoft had cancelled its search research back in 2000 or so. 237 00:23:57,660 --> 00:24:03,790 And it was kept alive by Hong-Jiang Zhang, the guy in the middle of that photo, as a bootleg project. 238 00:24:03,790 --> 00:24:11,390 And when Microsoft rediscovered the importance of search in 2003, they were able to ramp up very quickly in this lab. 239 00:24:11,390 --> 00:24:17,020 And it has become probably the epicenter of Microsoft's new technology development in search, 240 00:24:17,020 --> 00:24:20,400 as it tries to catch up so desperately with Google. 241 00:24:20,400 --> 00:24:25,210 So it was only supposed to be 100 researchers, but it's already 200 researchers. 242 00:24:25,210 --> 00:24:30,600 They've put out a thousand papers, hundreds of patents. 243 00:24:30,600 --> 00:24:34,730 But just to give you an idea, SIGGRAPH is the world's leading graphics society. 244 00:24:34,730 --> 00:24:40,720 Well, last year, nine out of 94 papers in the world came from this lab in Beijing. 245 00:24:40,720 --> 00:24:50,970 And SIGIR, which is information retrieval, the backbone of search, you can see about 13-14% of all the papers in the world came out of this one lab. 246 00:24:50,970 --> 00:24:57,910 The products? the technologies are starting to find their way into products in almost every aspect of Microsoft's business. 247 00:24:57,910 --> 00:25:02,040 And like I said, it's really coming to the fore, especially in search, 248 00:25:02,040 --> 00:25:08,910 where they've now created a whole search technology center inside the lab that's about fifty people strong right now, 249 00:25:08,910 --> 00:25:11,650 it will be about a hundred strong by the end of the year. 250 00:25:11,650 --> 00:25:13,180 Greg: There's a main message in the book though. 251 00:25:13,180 --> 00:25:20,000 It's that, despite all your successes, despite all your great academic work and technologies and products, 252 00:25:20,000 --> 00:25:25,240 in China especially, you can't forget about the ongoing process of building relationships. 253 00:25:25,240 --> 00:25:32,770 So in one of our chapters, we try to take you behind the scenes, in a closed-door meeting between Microsoft officials and Chinese government officials, 254 00:25:32,770 --> 00:25:37,170 and tell you a little bit about how they interact, and the kinds of deals that they're talking about. 255 00:25:37,170 --> 00:25:41,460 The scene takes place about forty miles northwest of Beijing, 256 00:25:41,460 --> 00:25:49,240 along a stretch of the Great Wall of China that's called the "wild wall" because it's unrestored. 257 00:25:49,240 --> 00:25:55,270 You can see the vegetation and trees growing up through it. It's very difficult to hike on there, 258 00:25:55,270 --> 00:25:59,800 it gets very slippery in the rain. This section of the wall dates back to the 14th century. 259 00:25:59,800 --> 00:26:07,310 At the foot of this hill is an ultra-modern architectural exhibit that's called the Commune by the Great Wall. 260 00:26:07,310 --> 00:26:10,050 If you ever have a chance to visit it, I would recommend it. 261 00:26:10,050 --> 00:26:19,300 It doubles as a high-end resort, and that's one of the eleven kind of strangely designed villas that make up that resort. 262 00:26:19,300 --> 00:26:23,330 You can sort of see the ruins of the Great Wall snaking along the top of the ridge there. 263 00:26:23,330 --> 00:26:29,370 So in May of 2005, we were privy to this meeting between Microsoft and the Ministry of Education. 264 00:26:29,370 --> 00:26:38,050 It was historic in that it was the first time a foreign company had sat down with members of every major division from that ministry. 265 00:26:38,050 --> 00:26:44,180 And what they were talking about, what they were trying to lay out was a plan that they called the Great Wall Plan, 266 00:26:44,180 --> 00:26:52,560 a collaboration between Microsoft and China to train students and researchers to develop talent, in essence, 267 00:26:52,560 --> 00:26:57,610 to help China develop the next generation or a new generation of software developers. 268 00:26:57,610 --> 00:27:04,920 And in exchange for that, Microsoft is getting a lot of talent to work on its own propriety projects. 269 00:27:04,920 --> 00:27:09,400 Another part of the deal was that Microsoft would support these software colleges, 270 00:27:09,400 --> 00:27:16,440 which are computer science departments throughout China that are focused on development and not on the theory. 271 00:27:16,440 --> 00:27:20,420 But now, the most interesting thing that came out of this meeting was watching the social customs, 272 00:27:20,420 --> 00:27:25,440 and how these groups interact, and the sort of patience that went into this whole process. 273 00:27:25,440 --> 00:27:28,590 So in the beginning, the two groups don't know each other very well. 274 00:27:28,590 --> 00:27:32,820 The senior people take a long time just to decide even where to sit in the room. 275 00:27:32,820 --> 00:27:39,450 So in the book there's a couple of stories where just where you sit makes a difference in the impression you're making with the host. 276 00:27:39,450 --> 00:27:43,510 So the senior people will typically sit in the middle of the room or the middle of the table, 277 00:27:43,510 --> 00:27:50,560 and their junior staff will sit along the sides, and they'll sort of wait to be introduced one by one. 278 00:27:50,560 --> 00:27:56,600 And then after a couple hours of meeting, they start to get a little more comfortable and maybe it gets time for dinner, 279 00:27:56,600 --> 00:28:03,020 so they'll have a big buffet with all kinds of Chinese food, and drink and liquor. 280 00:28:03,020 --> 00:28:10,550 And so one of the funny things that we saw was the customs of Chinese toasting, which I had not understood before. So some of the rules? 281 00:28:10,550 --> 00:28:13,620 Robert: That's because you don't speak Chinese. 282 00:28:13,620 --> 00:28:18,900 Greg: The rule is that you don't toast in the beginning, or you don't toast the whole group all at once. 283 00:28:18,900 --> 00:28:25,400 You always toast one to one. You toast throughout the meal even if your glass is empty. 284 00:28:25,400 --> 00:28:31,290 And to show respect for the person you're toasting, you should keep your glass lower than theirs. 285 00:28:31,290 --> 00:28:38,300 Sometimes it happens that the two guys spill their drinks because they crash into the table. 286 00:28:38,300 --> 00:28:43,910 So in this chapter we just kind of pull out? so there was no deal signed at the end of this meeting, 287 00:28:43,910 --> 00:28:49,830 but the relationship was sort of started and would be developed over the next few months. 288 00:28:49,830 --> 00:28:54,430 Robert: In fact, they did make tremendous deal later in the fall, last fall. 289 00:28:54,430 --> 00:29:00,880 Well, everything looked great for Microsoft at this time, last May. 290 00:29:00,880 --> 00:29:09,520 Things had been going extremely well, almost no competition in China for recruiting the best of the best. 291 00:29:09,520 --> 00:29:18,140 You know, as we rode around we stayed with the lab for about a year, beginning in November 2004 going through November of 2005. 292 00:29:18,140 --> 00:29:26,800 As we rode around with them and people started forgetting we were there, we had a great time as we learned more and more about this. 293 00:29:26,800 --> 00:29:32,190 One time, we rode with the Senior Vice President of Research on a bus out to Beijing Airport. 294 00:29:32,190 --> 00:29:38,600 We were in the back, and he started talking about how Microsoft's going to win a Nobel prize when it crushes Nokia. 295 00:29:38,600 --> 00:29:47,620 And he's like, "Because the Swedes hate the Finns, when we crush Nokia we're going to get a Nobel prize." 296 00:29:47,620 --> 00:29:50,280 So we're following all this, everything is looking great. 297 00:29:50,280 --> 00:29:57,830 But unbeknownst to everyone at Microsoft in May 2005, almost as that meeting is taking place, Kai-Fu Lee, 298 00:29:57,830 --> 00:30:03,380 the founder of the lab who'd been promoted back to Redmond as a Vice President, had emailed this guy, 299 00:30:03,380 --> 00:30:10,680 Eric Schmidt, the CEO of Google, saying, "I hear you're interested in going to China. I can help." 300 00:30:10,680 --> 00:30:14,050 What happened was announced a couple months later, last July. 301 00:30:14,050 --> 00:30:20,500 Kai-Fu Lee announced that he was going to Google and do for Larry and Sergei what he'd done for Bill, 302 00:30:20,500 --> 00:30:31,500 and that is open an R&D lab in China and Beijing, to help Google not just get to the market, but help them get to the talent in China. 303 00:30:31,500 --> 00:30:34,220 He is there now. There was a vicious lawsuit. 304 00:30:34,220 --> 00:30:46,990 Kai-Fu Lee emailed me right after the story broke, saying, "I'm very sorry to mess up your book." 305 00:30:46,990 --> 00:30:52,550 So all these great revelations came out in the court documents. We captured them in this bitter struggle. 306 00:30:52,550 --> 00:30:59,970 But they did settle late last year. Kai-Fu Lee is in China now, in Beijing, following the exact same steps in building the lab. 307 00:30:59,970 --> 00:31:08,720 He actually put the Google lab on the edge of Tsinghua University campus, in between it and the Microsoft lab. 308 00:31:08,720 --> 00:31:17,310 And they are hitting the ground running. They are already rivaling Microsoft in the recruitment of talent. 309 00:31:17,310 --> 00:31:20,790 Many people are choosing to go with Google instead of Microsoft. 310 00:31:20,790 --> 00:31:29,260 The deal that brought Kai-Fu Lee there in the first place was a ten million dollar package, unprecedented for an R&D manager. 311 00:31:29,260 --> 00:31:37,500 So as we look at this, we think it's great news, we think this is just what happens in the world as competition simmers up. 312 00:31:37,500 --> 00:31:42,430 Microsoft had a nice run, but it's actually going to get better now that it has competition. 313 00:31:42,430 --> 00:31:45,850 Google is going to get better, and especially China is going to get better. 314 00:31:45,850 --> 00:31:55,730 Because what China wants more than anything now is not capital or low-cost manufacturing, but the access to the tools of knowledge creation. 315 00:31:55,730 --> 00:31:59,820 And if you as a western company can come in and provide training, 316 00:31:59,820 --> 00:32:03,520 collaborations with universities and industry, and actually, 317 00:32:03,520 --> 00:32:12,780 maybe even sowing the seeds of your own competition by training this new generation, you are going to succeed very well in China. 318 00:32:12,780 --> 00:32:17,840 So, the story's not over. As was mentioned at the beginning, just a few weeks ago, 319 00:32:17,840 --> 00:32:27,280 President Hu came to [the US] and he really began to see the payoff for this long twelve to fourteen year investment that Microsoft had made. 320 00:32:27,280 --> 00:32:30,510 His first stop was in Seattle where he had dinner with Bill Gates. 321 00:32:30,510 --> 00:32:35,640 On the heels of this announcement, actually, preceding it, it was announced that Lenovo, 322 00:32:35,640 --> 00:32:42,720 the largest PC maker in China, was now pre-installing legal copies of Windows on every PC it sold in China. 323 00:32:42,720 --> 00:32:45,750 Three other Chinese computer manufacturers made the same deal. 324 00:32:45,750 --> 00:32:51,040 It's expected to be about a billion-and-a-half dollars in revenue for Microsoft a year. 325 00:32:51,040 --> 00:32:58,900 We think this is the payoff of a lot of years of guanxi, not just from the research lab, 326 00:32:58,900 --> 00:33:03,250 but we'll say that whenever Bill Gates meets the Chinese leader now, 327 00:33:03,250 --> 00:33:11,270 the head of the research lab goes with him, and in fact, flew over to give President Hu a technology demonstration. 328 00:33:11,270 --> 00:33:14,870 He gave a demonstration, actually, of an equation recognizer. 329 00:33:14,870 --> 00:33:24,230 The Chinese leadership is almost all engineers, so they actually began to scroll out the quadratic equation and it was recognized. 330 00:33:24,230 --> 00:33:34,250 So we couldn't help wondering, could you imagine somebody doing that for President Bush? 331 00:33:34,250 --> 00:33:38,970 So you will also notice that Bill Gates has learned a little bit about Chinese toasting. 332 00:33:38,970 --> 00:33:45,190 His glass is lower than President Hu's. So anyway, that's what where we're going to end today. 333 00:33:45,190 --> 00:33:55,820 It's a story, we think, of competition, but renewal. And we are very pleased to see it happening around the world. Thank you. 334 00:34:00,130 --> 00:34:06,200 Greg: We would like to take your questions now. Back there, sir. Yup. 335 00:34:06,200 --> 00:34:09,650 Man 1: That's a great story. I've been to China quite a few times. 336 00:34:09,650 --> 00:34:13,730 I remember the early days of Microsoft in China when they didn't quite get it right. 337 00:34:13,730 --> 00:34:18,230 And they were developing their Chinese language software and they didn't actually realize that 338 00:34:18,230 --> 00:34:21,950 the characters used in Taiwan and the ones used in the mainland were different, 339 00:34:21,950 --> 00:34:24,990 and they displayed the Taiwan characters in the mainland. 340 00:34:24,990 --> 00:34:28,180 There was a bit of a gap, but they learned very fast as you can see, 341 00:34:28,180 --> 00:34:33,920 and I can testify that the Chinese writing software on Microsoft Windows is very good. 342 00:34:33,920 --> 00:34:39,800 It rivals the stuff that's made in Taiwan and other places so this is very encouraging. 343 00:34:39,800 --> 00:34:46,000 Another question is, almost all those pieces of advice you gave would apply exactly, 344 00:34:46,000 --> 00:34:53,050 and did apply and were given exactly to American corporations going to Japan in the 1960s, 345 00:34:53,050 --> 00:35:00,240 almost exactly the same kind of advice. And yet the US- Japan relationship has turned out very different. 346 00:35:00,240 --> 00:35:06,860 Much less research labs in Japan than in China. What do you think is the difference? 347 00:35:06,860 --> 00:35:12,410 Robert: Well, I can speak to the research lab part of it especially, because that's what I've studied the most. 348 00:35:12,410 --> 00:35:18,480 One of the things? there are many more western R&D organizations in Japan still than in China. 349 00:35:18,480 --> 00:35:22,910 But in almost every case, there's nothing even close to this size. 350 00:35:22,910 --> 00:35:30,730 They're very small, they often don't have the critical mass to kind of own a technology area for the company, 351 00:35:30,730 --> 00:35:33,840 and several of them have been marginalized, that I looked at. 352 00:35:33,840 --> 00:35:43,400 As a result, Microsoft made that a kind of imperative from the beginning, that it was going to build up a center of expertise, 353 00:35:43,400 --> 00:35:49,280 especially in user interfaces and multimedia, from the beginning in the China lab, 354 00:35:49,280 --> 00:35:52,340 and as you can see, it stopped from being marginalized. 355 00:35:52,340 --> 00:35:58,860 They put much more resource into it. So that's one difference we can speak to. 356 00:35:58,860 --> 00:36:03,190 Greg: Yeah, I guess I would just say that I think the size and scale of the country, 357 00:36:03,190 --> 00:36:12,680 that's an obvious difference, that might be an advantage just in that the sheer size of the talent pool and the market in China? 358 00:36:12,680 --> 00:36:16,220 Man 1: The University systems in China and Japan are very different. 359 00:36:16,220 --> 00:36:20,570 Now they're trying to change the universities in China to a more American model. 360 00:36:20,570 --> 00:36:25,300 The Japanese have a more established European, Germanic style, that's been very hard to reform. 361 00:36:25,300 --> 00:36:30,730 Robert: That is true. We did talk a lot with university professors in China, and one of the things that 362 00:36:30,730 --> 00:36:33,780 China opened up economically about twenty-five or thirty years ago. 363 00:36:33,780 --> 00:36:38,420 There is a movement, and there are actually pilot programs all over China, to open up the curricula, 364 00:36:38,420 --> 00:36:44,040 in the same way, to make it more westernized. And there are probably, I don't know, 365 00:36:44,040 --> 00:36:48,130 a dozen or twenty different schools that have been designated pilots to try this, 366 00:36:48,130 --> 00:36:52,330 get away from the tests, tests, tests. It was one of things that we really thought was interesting, 367 00:36:52,330 --> 00:37:02,100 because over here we're trying to do more test, test, testing. Over there, they're trying to get away from testing. 368 00:37:02,100 --> 00:37:05,030 Woman 1: Bob and Greg, I think you're definitely ready for the prime time. 369 00:37:06,300 --> 00:37:15,810 I enjoyed the presentation tremendously. I was curious about the young "cream of the crop" coming in and being very reticent. 370 00:37:15,810 --> 00:37:20,310 Are there now stories that they're turning into cowboys? Are they getting it? 371 00:37:20,310 --> 00:37:30,270 That challenging your superiors, coming up with __ barmy( a lot of ?) ideas, and flying? How's the transition? 372 00:37:30,270 --> 00:37:34,650 Greg: I'll say there are a couple of stars that we kind of point out in the book. 373 00:37:34,650 --> 00:37:43,930 One guy was completely China educated and came in as a junior researcher in the multimedia group. 374 00:37:43,930 --> 00:37:53,200 He's actually risen now to become a key leader in Microsoft's web advertising platform and search. 375 00:37:53,200 --> 00:38:00,290 And a couple of other examples but I guess I would say that it is changing but those are a few cases. 376 00:38:00,290 --> 00:38:10,740 It's a little bit hard to say where more of an average statistical look at where the kids end up and what they end up doing. 377 00:38:10,740 --> 00:38:14,890 But a lot of them also end up leaving Microsoft and starting their own company. 378 00:38:14,890 --> 00:38:19,160 So there is a sense of entrepreneurship, at least, sprouting there. 379 00:38:19,160 --> 00:38:25,080 Robert: One of the key things Microsoft thinks gives it an advantage over Google in China is that 380 00:38:25,080 --> 00:38:28,010 it's already invested years in some of this young talent. 381 00:38:28,010 --> 00:38:36,210 Whereas, Kai-Fu Lee is just starting out. It's going to take a couple of years for them to really start to make their mark in China. 382 00:38:36,210 --> 00:38:44,480 So I think they really feel that it's starting to pay off now, and a big percentage, or a significant percentage, are getting it. 383 00:38:47,250 --> 00:38:50,890 Man 2: I'd just like to ask you a question about and search particularly. 384 00:38:50,890 --> 00:38:56,960 What percentage of all the pages out there are in Chinese versus English? 385 00:39:02,490 --> 00:39:23,080 Greg: I think it's? I don't actually know, I have seen projections that within 5 to 10 years there will be more Chinese sites than English 386 00:39:24,610 --> 00:39:28,850 Man 2: because for content management, and acknowledgement of the search, 387 00:39:28,850 --> 00:39:31,810 you got to figure out what kind of characters you are searching for, 388 00:39:31,810 --> 00:39:38,480 and so that's why at google labs I thought you guys might have explored a little bit about that. 389 00:39:38,480 --> 00:39:48,700 When we search, what character sets are we using, what knowledge underlines the framework that we are using? 390 00:39:48,700 --> 00:39:55,140 I'd say multilingual searches are a huge, huge battle right now for the 21st century. 391 00:39:55,140 --> 00:39:59,680 Robert: We promised we would start, the reception starts at 6.30, so lets just take one more question, 392 00:39:59,680 --> 00:40:04,920 we will be glad to answer more questions as we sign all those books you bought. Bob. 393 00:40:04,920 --> 00:40:17,450 Bob: You have Bill Gates' plan in your title,//how much does the book get actually get into his vision for this whole endeavor, 394 00:40:17,450 --> 00:40:22,760 and and did you have the chance to talk to Bill Gates about the book. 395 00:40:22,760 --> 00:40:30,570 Robert: Yeah we did, we did interview him briefly, probably about 20-30 minutes about China and R&D lab, 396 00:40:30,570 --> 00:40:38,030 and then again we got to ask him a question in Japan last summer about when they were opening an arm of the Beijing lab in Japan 397 00:40:38,030 --> 00:40:44,120 as a matter of fact. And what we get into really, what we're talking about when we say to plan the road ahead, 398 00:40:44,120 --> 00:40:52,420 we are talking about the plan to view China as more than just a market, to plan to tap into talent, 399 00:40:52,420 --> 00:40:59,800 and to form a well-spring for the creation of new technology and ideas from a group of people 400 00:40:59,800 --> 00:41:05,300 who aren't going to come to Redmond or maybe even the united states, and that's what we are talking about. 401 00:41:05,300 --> 00:41:12,320 And at the end of the year, you know just last year Microsoft opened its first research lab in India, 402 00:41:12,320 --> 00:41:19,750 and we foreshadowed that a little bit as well through Microsoft's eyes, and a little bit of Gates', 403 00:41:19,750 --> 00:41:26,490 but we didn't spend a lot of time with Bill. We were asked to sign book for him recently so we'll see. 404 00:41:26,490 --> 00:41:28,590 All right well we thank you very much. 405 00:41:28,590 --> 00:41:29,680 Greg: Thank you 406 00:00:00,000 --> 00:00:00,000 407 00:00:00,000 --> 00:00:00,000 408 00:00:00,000 --> 00:00:00,000 409 00:00:00,000 --> 00:00:00,000 410 00:00:00,000 --> 00:00:00,000 411 00:00:00,000 --> 00:00:00,000 412 00:00:00,000 --> 00:00:00,000 413 00:00:00,000 --> 00:00:00,000 414 00:00:00,000 --> 00:00:00,000 415 00:00:00,000 --> 00:00:00,000 416 00:00:00,000 --> 00:00:00,000 417 00:00:00,000 --> 00:00:00,000 418 00:00:00,000 --> 00:00:00,000 419 00:00:00,000 --> 00:00:00,000 420 00:00:00,000 --> 00:00:00,000 421 00:00:00,000 --> 00:00:00,000 422 00:00:00,000 --> 00:00:00,000 423 00:00:00,000 --> 00:00:00,000 424 00:00:00,000 --> 00:00:00,000 425 00:00:00,000 --> 00:00:00,000 426 00:00:00,000 --> 00:00:00,000 427 00:00:00,000 --> 00:00:00,000 428 00:00:00,000 --> 00:00:00,000 429 00:00:00,000 --> 00:00:00,000 430 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--> 00:00:00,000 460 00:00:00,000 --> 00:00:00,000 461 00:00:00,000 --> 00:00:00,000 462 00:00:00,000 --> 00:00:00,000 463 00:00:00,000 --> 00:00:00,000 464 00:00:00,000 --> 00:00:00,000 465 00:00:00,000 --> 00:00:00,000 466 00:00:00,000 --> 00:00:00,000 467 00:00:00,000 --> 00:00:00,000 468 00:00:00,000 --> 00:00:00,000 469 00:00:00,000 --> 00:00:00,000 470 00:00:00,000 --> 00:00:00,000 471 00:00:00,000 --> 00:00:00,000 472 00:00:00,000 --> 00:00:00,000 473 00:00:00,000 --> 00:00:00,000 474 00:00:00,000 --> 00:00:00,000 475 00:00:00,000 --> 00:00:00,000 476 00:00:00,000 --> 00:00:00,000 477 00:00:00,000 --> 00:00:00,000 478 00:00:00,000 --> 00:00:00,000 479 00:00:00,000 --> 00:00:00,000 480 00:00:00,000 --> 00:00:00,000 481 00:00:00,000 --> 00:00:00,000 482 00:00:00,000 --> 00:00:00,000 483 00:00:00,000 --> 00:00:00,000 484 00:00:00,000 --> 00:00:00,000 485 00:00:00,000 --> 00:00:00,000 486 00:00:00,000 --> 00:00:00,000 487 00:00:00,000 --> 00:00:00,000 488 00:00:00,000 --> 00:00:00,000 489 00:00:00,000 --> 00:00:00,000 490 00:00:00,000 --> 00:00:00,000 491 00:00:00,000 --> 00:00:00,000 492 00:00:00,000 --> 00:00:00,000 493 00:00:00,000 --> 00:00:00,000 494 00:00:00,000 --> 00:00:00,000 495 00:00:00,000 --> 00:00:00,000 496 00:00:00,000 --> 00:00:00,000 497 00:00:00,000 --> 00:00:00,000 498 00:00:00,000 --> 00:00:00,000 499 00:00:00,000 --> 00:00:00,000 500 00:00:00,000 --> 00:00:00,000 501 00:00:00,000 --> 00:00:00,000 502 00:00:00,000 --> 00:00:00,000 503 00:00:00,000 --> 00:00:00,000 504 00:00:00,000 --> 00:00:00,000 505 00:00:00,000 --> 00:00:00,000 506 00:00:00,000 --> 00:00:00,000 507 00:00:00,000 --> 00:00:00,000 508 00:00:00,000 --> 00:00:00,000 509 00:00:00,000 --> 00:00:00,000 510 00:00:00,000 --> 00:00:00,000 511 00:00:00,000 --> 00:00:00,000 512 00:00:00,000 --> 00:00:00,000 513 00:00:00,000 --> 00:00:00,000 514 00:00:00,000 --> 00:00:00,000 515 00:00:00,000 --> 00:00:00,000 516 00:00:00,000 --> 00:00:00,000 517 00:00:00,000 --> 00:00:00,000 518 00:00:00,000 --> 00:00:00,000 519 00:00:00,000 --> 00:00:00,000 520 00:00:00,000 --> 00:00:00,000 521 00:00:00,000 --> 00:00:00,000 522 00:00:00,000 --> 00:00:00,000 523 00:00:00,000 --> 00:00:00,000 524 00:00:00,000 --> 00:00:00,000 525 00:00:00,000 --> 00:00:00,000 526 00:00:00,000 --> 00:00:00,000 527 00:00:00,000 --> 00:00:00,000 528 00:00:00,000 --> 00:00:00,000 529 00:00:00,000 --> 00:00:00,000 530 00:00:00,000 --> 00:00:00,000 531 00:00:00,000 --> 00:00:00,000 532 00:00:00,000 --> 00:00:00,000 533 00:00:00,000 --> 00:00:00,000 534 00:00:00,000 --> 00:00:00,000 535 00:00:00,000 --> 00:00:00,000 536 00:00:00,000 --> 00:00:00,000 537 00:00:00,000 --> 00:00:00,000 538 00:00:00,000 --> 00:00:00,000 539 00:00:00,000 --> 00:00:00,000 540 00:00:00,000 --> 00:00:00,000 541 00:00:00,000 --> 00:00:00,000 542 00:00:00,000 --> 00:00:00,000 543 00:00:00,000 --> 00:00:00,000 544 00:00:00,000 --> 00:00:00,000 545 00:00:00,000 --> 00:00:00,000 546 00:00:00,000 --> 00:00:00,000 547 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