"Building the next generation of IT"
April 27, 2006
Good morning. I’m glad to be here and have the opportunity
to share with you how HP’s research and development
organizations deliver value to you.
Few companies invest in their own research labs, but this
company believes that invention and innovation are vital
to a successful future. And because a strong research program
is such a valuable asset – we spend a great deal of
time on focusing our research strategy.
I’ll explain how we operate and then share a few examples
of our priority projects.
HP as a whole spends around $3.5 billion a year on research
and development. A percentage of that budget goes to HP Labs.
Although much of our work is from 3 to 15 years out, we often
find the benefit of our work is delivered more quickly.
It’s in our DNA to take on big problems, so that traditional
timeframe sometimes fades into the background, as we work
with leading-edge customers to tackle today’s problems.
We are a pragmatic team and we believe that doing great
science while creating real impact is not only possible but
We operate worldwide and have lab sites in Palo Alto, California;
Bristol, England; Beijing, China; Tokyo, Japan; Haifa, Israel,
and; Bangalore, India.
These locations have been carefully chosen because they
allow us access to markets, technology communities and top
talent throughout the world.
In our R&D organization, we have computer scientists,
information theory specialists, mechanical and electrical
engineers, and physicists. Interdisciplinary work is as key
as location. The network of talent matters.
HP has from its very beginning been a company that’s
been defined by innovation. From the research organization
there has been a steady stream of innovation that you may
be familiar with, including inkjet technology, smart cooling
for the data center and a trailblazing articulation in the
vision of the next generation data center concept.
So, let’s look at what we are seeing today in industry-transforming
technologies and where HP is focusing its research expertise.
Key research areas
The next generation of information technologies lead the
That’s an all-encompassing title for the technology
that can be delivered in a modular way and that will lead
to dramatic improvements in the cost and efficiency of information
technology. All are part of an adaptive infrastructure. It’s
a huge challenge, but we are claiming leadership in many
We are helping to automate and virtualize the operation
of large-scale data centers to drive down costs.
We are also expanding HP’s printing franchise, helping
move the company from the office and home applications into
commercial and industrial printing.
And, in the area of mobility, one of the most explosive
growth areas in the market today, we are developing new technologies
and extensive intellectual property.
All are industry- and HP-transforming.
Building an adaptive infrastructure
Let’s start with what’s probably closest to
your heart -- enterprise computing and the adaptive infrastructure
needed to deliver a next-generation data center. We are moving
down the path toward a future of automated, 24X7, lights-out
Not only do we have to address total cost of ownership,
we have to simplify the technology through the use of automation.
Reliability will be improved as automation reduces human
Our enterprise customers are working with enormous complexity
and we must provide technologies that allow them to simplify
the way they manage that complexity. Some of the key challenges
- systems and services
- power and cooling
Believe me, these are the elements most of you deal with
everyday -- and we are very aware of the challenges.
HP is rapidly introducing technologies, products and services
in all of these areas.
Grid for the enterprise
We also continue to build upon our considerable experience
in the Grid computing space. There is a program in Labs called
Tiramisu. (I can only assume that it got its name from layers
of different complexities.)
The origins of the Grid were in technical computing for
scientists and engineers. We believe that Grid technologies
will also have an important role in enterprise computing
The Open Standards we are helping to develop will enable
a common language for management across multiple data centers.
Grid technologies and the Tiramisu project are elements
of our research in support HP’s adaptive infrastructure
This is an open software program, and we started gathering
participants in 2002. It was harder than you might imagine.
Almost every government and university had Grid projects,
but most were on paper. We needed partners with the real
tools to become fully operational.
• We wanted research that would produce results.
• We needed to experiment and receive feedback.
• We wanted to establish a solid, practical foothold
in Enterprise-class Grid computing
We've done that.
We are now working closely with data centers in Russia,
Canada, Singapore and tied into the China Grid via our strong
university relations group.
All are public installations. All run demanding computational
• Russia is focused on SAP, engineering, oil and
• Canada is working on enterprise applications, oil and gas,
• Singapore focuses on multimedia, bioinformatics and the
We also work closely with CERN, the world’s largest
particle physics lab – and, incidentally, the place
where the World Wide Web was born.
Markets for compute power
Another research project explores how your enterprise will
distribute and allocate compute power in the future. This
technology could be applied to shared resources inside your
enterprise or for Internet-based resources outside the enterprise.
It’s software that will provide a market-based resource
allocation, a 10-second-or-less, stock market-type bid.
What if you need compute power, but you don’t know
how much you’ll need to get your job done? You can
already purchase by the hour but what if you want the option
of buying when it’s less expensive. How would you do
that? How would you know when that might be in a grid where
demand and supply change constantly?
HP Labs is developing that service. One of our top researchers
and his team call it Tycoon. It will provide a sophisticated
means for managing resources in the shared services model.
We believe it’s the way of the future.
Now, let’s move on to another of those industry transformations:
Commercial printing is a huge opportunity. Our success in
printing has been built on the desktop and it’s been
a wonderful business for us, but we were essentially addressing
only four percent of the total print market.
We’re combining our strengths in printing and imaging,
and in enterprise computing, move marketing organizations
from . inflexible, mass-produced campaigns into a world of
customized marketing material that can be created on demand.
The technology uses variable-print templates and tools that
automate the creation of sophisticated custom content and
a new high speed printing technology that can deliver output
where every page can be unique. it can do this at a very
high quality and a very low cost.
I’m sure many of you can think of many ways to use
this capability for high-impact marketing materials.
Streaming media architecture
The telecommunications network has been through several
big transformations – switching wired networks to digital
mobile phones and now to media streaming and interactive
services. HP Labs has played a lead role in creating secure
streaming media -- something we were told could not be done.
Labs researchers have worked with some of the largest mobile
operators in the world to understand what drives them. This
way, we are able to develop technology for the needs they
were ultimately going to have.
We’re developing an architecture called OpenStream
that will eventually stream multimedia across different devices
on different networks. It’s a big undertaking, but
we have made considerable progress and have valuable intellectual
property in this area.
Tapping mobile services with RFID
We’re also researching how retailing will change as
we integrate the telco, Internet and the emerging “Internet
of things” that will be enabled by RFID.
Our researchers in Japan are taking the lead here. Their
focus is on developing a ubiquitous mobile services platform
that lets mobile operators aggregate and offer a wide range
of services and promotions to consumers who choose this service.
We see the day when mobile operators will offer retailers
the chance to target promotions to a particular group of
mobile users at a specific time of day and in specific locations.
Bank holiday coming up? Would you like to be able to work
with mobile operators to offer specials to targeted customers?
We think RFID-enabled mobile phones will play a big part
in tomorrow’s advertising. The platform we’re
developing for mobile operators will accommodate RFID technology.
RFID is no longer confined to the warehouse. It’s
going to be in mobile phones, turning them into RFID readers
that can communicate with objects that are equipped with
RFID tags. This is when we will have the Internet of Things.
When we do, you’ll get more information about products
or services. This new technology is more than just RFID tags
and readers; it also involves technologies to enable privacy,
trust and security, which will be key to consumer acceptance.
My time is almost up, so I’d like to talk a bit about
nanotechnology and the quantum world -- the world of molecules,
atoms and photons.
Technologies in this space may seem like science fiction
to many of you, but much is happening right now.
Our chosen areas of nanotechnology are focused on architecture,
mechanics, light and electrons. We anticipate that the structures
we are now building will be integrated into systems with
trillions of components within the next few decades.
Our lab is considered by many to be the world leader in
this nanometer-device-building area.
But right now I’d like to focus on something else
in the quantum world – security – and a technology
we anticipate will show up within just a few years.
We’re using quantum physics to create unbreakable
security for widespread e-commerce.
We know that the conventional means of securing e-commerce
transactions could well be broken one day, either by a clever
mathematician developing a new algorithm, or by the creation
of a quantum computer, which can effortlessly break the mathematical
codes which secure modern information systems and networks.
Our researchers are taking advantage of the laws of quantum
physics, which state that you can’t observe a quantum
system without changing its state and thereby unavoidably
leaving evidence that you looked at it.
They’ve found a way to distribute completely secure
and disposable codes that two parties – say you and
your bank – can use to identify each other and encrypt
These one-time pads of code are known to and decipherable
by only the two parties authorized to use them.
For long-distance communication, one-time pads are created
and distributed using photons pulsed over optical telecommunication
networks – a process called quantum key distribution.
Because it’s quantum distribution, a hacker can’t
go undetected in his attempts to grab the code because he
ends up leaving evidence of his efforts – evidence
you and your bank can detect. And when you do, you can toss
those tainted codes and keep only the secure ones. The hacker
ends up with bits of code that are useless.
Worldwide there is a lot of research underway into creating
secure quantum networks between enterprises and inside them.
HP Labs is working to bring quantum security to the end user.
We’re researching inexpensive and short-range technology
that would put quantum security in every mobile device you
own, so you could securely use your handheld device at the
cash machine or to turn on your computer in your office.
A couple of years ago, Quantum Key Distribution for consumers
was just an idea. Now it works in the laboratory in Bristol.
In a couple of years' time we’ll have prototype technology
to realize this vision. We’ll be releasing more information
on this technology later this year.
I hope you have enjoyed this glimpse into our labs. I have
enjoyed presenting for you.
There are two thoughts I’d like to leave with you:
One, that our goal is to make powerful technology useful
to our customers; And two, that we work hard to understand
what our customers will need in the future to move ahead
of their competition – not just what they are asking
for today – but what they need to solve their deeper
In-depth engagements with customers allow us to understand
their challenges and offer future options. This collaborative process, combined with advanced scientific
capabilities, enables us to deliver leadership technologies
Thank you for your attention.