So, I get to talk about iCloud. We've been working on this for some time now and we're really excited about it.

About 10 years ago we had one of our most important insights. And that was that the PC was gonna become the digital hub for your digital life.

What does that mean?
Well, it meant that that's where you were gonna put your digital photos. Where else were you gonna put them? Your digital video off your digital camcorder, and of course your music, right? You were gonna acquire it in the device or potentially on your Mac.
And you were gonna basically sync it to the Mac and everything was gonna work fine. And it did for the better part of 10 years. But it's broken down in the last few years.

Why? Well, because the devices have changed. They now all have music. They now all have photos. They now all have video. And so if I acquire a song, I buy it right on my iPhone, I want to get that to my other devices. Right? I pick up my iPad and it doesn't have that song on it, so I have to sync my iPhone to my Mac. Then I have to sync my other devices to the Mac to get that song, but then they've deposited some photos on the Mac, so I have to sync the iPhone again with the Mac to get those photos. And keeping these devices in sync is driving us crazy.(applause)

So, we got a great solution for this problem, and we think this solution is our next big insight. Which is: we're gonna demote the PC and the Mac to just be a device. Just like an iPhone, an iPad, or an iPod Touch.
And we're going to move the digital hub, the center of your digital life, into the cloud. Because all these new devices have communications built into them, they can all talk to the cloud whenever they want.

And so now if I get something on my iPhone it's sent up to the cloud immediately. Let's say I take some pictures with it. Those pictures are in the cloud, and they are now pushed down to my devices completely automatically.
And now everything's in sync with me not even having to think about it. I don't even have to take the devices out of my pocket. I don't have to be near my Mac or PC.
Now some people think the cloud is just a hard disk in the sky. Right? And you take a bunch of stuff and you put it in your drop box, or your iDisk, or whatever, and it transfers it up to the cloud and stores it. And then you drag whatever you want back out on your other devices.
We think it's way more than that. And we call it iCloud. Now iCloud stores your content in the cloud and wirelessly pushes it to all your devices. So it automatically uploads it, stores it, and automatically pushes it to all your other devices.
But also it's completely integrated with your apps. And so everything happens automatically, and there's nothing new to learn. It just all works. It just works.(applause)

Now you might ask: why should I believe them? They're the ones that brought me MobileMe.(laughter, applause)
It wasn't our finest hour. Let me just say that. But we learned a lot. Now the three core apps in MobileMe were contacts, calendar, and mail. Three things we'd obviously like kept up to date. We've thrown them away. We've rearchitected and rewritten them from the ground up to be iCloud apps and we put them on all of our devices.
So as an example, in contacts when I make a new contact on my iPhone it's automatically brought up to the cloud where it's stored in the cloud. Right? The truth is on the cloud.
And then it's automatically pushed down to my other devices so they're all in sync. It's that easy. I just update a contact on my iPhone and don't even think about it, and that contact is updated on all my other devices. And if I change it on any device it's updated on all devices wirelessly, automatically, without me doing a thing.

So that's contacts, here's calendars. Works much the same way. I make a new calendar event on my iPhone. It's stored in the cloud. And it's pushed to my other devices. Pretty cool. We've also added calendar sharing.
So as an example if I'm sharing a few calendars with my wife, the school and soccer calendars let's say, right? And I add a new calendar for a teacher's parent conference on my phone; it's again automatically pushed up to the cloud and automatically pushed to my wife's iPhone. If she adds an appointment for a soccer game, again goes up to the cloud and back to my iPhone. It's that simple.
And so calendars has; it stores your calendars in the cloud, changes on any device are pushed to all your devices, and we have shared calendars. And we think you're gonna love the new calendars. It just works.

And then we have mail. Mail is in the best shape of all, but it's even better now. We give you a mail account that's at Your new messages again are pushed to all your devices, and like we're used to, your inbox and folders are all kept up to date on all devices. So that's mail, and no ads.(applause)

We build products that we want for ourselves too. And we just don't want ads, so we can't get there. So these are the three apps that form the core of MobileMe. We used to sell them for a subscription price of $99 annually. As of today this product ceases to exist and those three apps are now gonna be free.

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