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by a friend, and had large prints made on thick paper boards and placed in an elegant box. Scrolling through his iPhone, he found the note that he had composed to be included in the box and read it aloud: We didn’t know much about each other twenty years ago. We were guided by our intuition; you swept me off my feet. It was snowing when we got married at the Ahwahnee. Years passed, kids came, good times, hard times, but never bad times. Our love and respect has endured and grown. We’ve been through so much together and here we are right back where we started 20 years ago—older, wiser—with wrinkles on our faces and hearts. We now know many of life’s joys, sufferings, secrets and wonders and we’re still here together. My feet have never returned to the ground.
By the end of the recitation he was crying uncontrollably. When he composed himself, he noted that he had also made a set of the pictures for each of his kids. “I thought they might like to see that I was young once.”
iCloud
In 2001 Jobs had a vision: Your personal computer would serve as a “digital hub” for a variety of lifestyle devices, such as music players, video recorders, phones, and tablets. This played to Apple’s strength of creating end-to-end products that were simple to use. The company was thus transformed from a high-end niche computer company to the most valuable technology company in the world.
By 2008 Jobs had developed a vision for the next wave of the digital era. In the future, he believed, your desktop computer would no longer serve as the hub for your content. Instead the hub would move to “the cloud.” In other words, your content would be stored on remote servers managed by a company you trusted, and it would be available for you to use on any device,
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anywhere. It would take him three years to get it right.
He began with a false step. In the summer of 2008
he launched a product called MobileMe, an expensive ($99 per year) subscription service that allowed you to store your address book, documents, pictures, videos, email, and calendar remotely in the cloud and to sync them with any device. In theory, you could go to your iPhone or any computer and access all aspects of your digital life. There was, however, a big problem: The service, to use Jobs’s terminology, sucked. It was complex, devices didn’t sync well, and email and other data got lost randomly in the ether. “Apple’s MobileMe Is Far Too Flawed to Be Reliable,” was the headline on Walt Mossberg’s review in the Wall Street Journal.
Jobs was furious. He gathered the MobileMe team in the auditorium on the Apple campus, stood onstage, and asked, “Can anyone tell me what MobileMe is supposed to do?” After the team members offered their answers, Jobs shot back: “So why the fuck doesn’t it do that?” Over the next half hour he continued to berate them. “You’ve tarnished Apple’s reputation,” he said.
“You should hate each other for having let each other down. Mossberg, our friend, is no longer writing good things about us.” In front of the whole audience, he got rid of the leader of the MobileMe team and replaced him with Eddy Cue, who oversaw all Internet content at Apple. As Fortune’s Adam Lashinsky reported in a dissection of the Apple corporate culture,
“Accountability is strictly enforced.”
By 2010 it was clear that Google, Amazon, Microsoft, and others were aiming to be the company that could best store all of your content and data in the cloud and sync it on your various devices. So Jobs redoubled his efforts. As he explained it to me that fall: We need to be the company that manages your relationship with the cloud—streams your music and
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videos from the cloud, stores your pictures and information, and maybe even your medical data. Apple was the first to have the insight about your computer becoming a digital hub. So we wrote all of these apps—
iPhoto, iMovie, iTunes—and tied in our devices, like the iPod and iPhone and iPad, and it’s worked brilliantly.
But over the next few years, the hub is going to move from your computer into the cloud. So it’s the same digital hub strategy, but the hub’s in a different place. It means you will always have access to your content and you won’t have to sync.
It’s important that we make this transformation, because of what Clayton Christensen calls “the innovator’s dilemma,” where people who invent something are usually the last ones to see past it, and we certainly don’t want to be left behind. I’m going to take MobileMe and make it free, and we’re going to make syncing content simple. We are building a server farm in North Carolina. We can provide all the syncing you need, and that way we can lock in the customer.
Jobs discussed this vision at his Monday morning meetings, and gradually it was refined to a new strategy. “I sent emails to groups of people at 2 a.m. and batted things around,” he recalled. “We think about this a lot because it’s not a job, it’s our life.” Although some board members, including Al Gore, questioned the idea of making MobileMe free, they supported it. It would be their strategy for attracting customers into Apple’s orbit for the next decade.
The new service was named iCloud, and Jobs unveiled it in his keynote address to Apple’s Worldwide Developers Conference in June 2011. He was still on medical leave and, for some days in May, had been hospitalized with infections and pain. Some close friends urged him not to make the presentation, which would involve lots of preparation and rehearsals. But
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the prospect of ushering in another tectonic shift in the digital age seemed to energize him.
When he came onstage at the San Francisco Convention Center, he was wearing a VONROSEN
black cashmere sweater on top of his usual Issey Miyake black turtleneck, and he had thermal underwear beneath his blue jeans. But he looked more gaunt than ever. The crowd gave him a prolonged standing ovation
—“That always helps, and I appreciate it,” he said—but within minutes Apple’s stock dropped more than $4, to $340. He was making a heroic effort, but he looked weak.
He handed the stage over to Phil Schiller and Scott Forstall to demo the new operating systems for Macs and mobile devices, then came back on to show off iCloud himself. “About ten years ago, we had one of our most important insights,” he said. “The PC was going to become the hub for your digital life. Your videos, your photos, your music. But it has broken down in the last few years. Why?” He riffed about how hard it was to get all of your content synced to each of your devices. If you have a song you’ve downloaded on your iPad, a picture you’ve taken on your iPhone, and a video you’ve stored on your computer, you can end up feeling like an old-fashioned switchboard operator as you plug USB cables into and out of things to get the content shared. “Keeping these devices in sync is driving us crazy,” he said to great laughter. “We have a solution. It’s our next big insight. We are going to demote the PC and the Mac to be just a device, and we are going to move the digital hub into the cloud.”
Jobs was well aware that this “big insight” was in fact not really new. Indeed he joked about Apple’s previous attempt: “You may think, Why should I believe them? They’re the ones who brought me MobileMe.”
The audience laughed nervously. “Let me just say it
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wasn’t our finest hour.” But as he demonstrated iCloud, it was clear that it would be better. Mail, contacts, and calendar entries synced instantly. So did apps, photos, books, and documents. Most impressively, Jobs and Eddy Cue had made deals with the music companies (unlike the folks at Google and Amazon). Apple would have eighteen million songs on its cloud servers. If you had any of these on any of your devices or computers—
whether you had bought it legally or pirated it—Apple would let you access a high-quality version of it on all of your devices without having to go through the time and effort to upload it to the cloud. “It all just works,” he said.
That simple concept—that everything would just work seamlessly—was, as always, Apple’s competitive advantage. Microsoft had been advertising “Cloud Power” for more than a year, and three years earlier its chief software architect, the legendary Ray Ozzie, had issued a rallying cry to the company: “Our aspiration is that individuals will only need to license their media once, and use any of their . . . devices to access and enjoy their media.” But Ozzie had quit Microsoft at the end of 2010, and the company’s cloud computing push was never manifested in consumer devices. Amazon and Google both offered cloud services in 2011, but neither company had the ability to integrate the hardware and software and content of a variety of devices. Apple controlled every link in the chain and designed them all to work together: the devices, computers, operating systems, and application software, along with the sale and storage of the content.
Of course, it worked seamlessly only if you were using an Apple device and stayed within Apple’s gated garden. That produced another benefit for Apple: customer stickiness. Once you began using iCloud, it would be difficult to switch to a Kindle or Android device. Your music and other content would not sync to
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them; in fact they might not even work. It was the culmination of three decades spent eschewing open systems. “We thought about whether we should do a music client for Android,” Jobs told me over breakfast the next morning. “We put iTunes on Windows in order to sell more iPods. But I don’t see an advantage of putting our music app on Android, except to make Android users happy. And I don’t want to make Android users happy.”
A New Campus
When Jobs was thirteen, he had looked up Bill Hewlett in the phone book, called him to score a part he needed for a frequency counter he was trying to build, and ended up getting a summer job at the instruments division of Hewlett-Packard. That same year HP bought some land in Cupertino to expand its calculator division. Wozniak went to work there, and it was on this site that he designed the Apple I and Apple II during his moonlighting hours.
When HP decided in 2010 to abandon its Cupertino campus, which was just about a mile east of Apple’s One Infinite Loop headquarters, Jobs quietly arranged to buy it and the adjoining property. He admired the way that Hewlett and Packard had built a lasting company, and he prided himself on having done the same at Apple. Now he wanted a showcase headquarters, something that no West Coast technology company had. He eventually accumulated 150 acres, much of which had been apricot orchards when he was a boy, and threw himself into what would become a legacy project that combined his passion for design with his passion for creating an enduring company. “I want to leave a signature campus that expresses the values of the company for generations,”
he said.
