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Fasten Your Seatbelts: How Computing Took Off in the 2000s

The 2000s transformed technology around constant connectivity. As Wi-Fi unlocked mobility and smartphones put the internet always at hand, being "always on" became normal for work and life. These 10 years set the foundation for today‘s cloud-connected, mobile-first computing era. Let‘s reconnect with the tech advancements that defined this seminal decade.

Overview: Connectivity Takes Center Stage

Three themes characterize 2000s computing:

  • Mobility – Wi-Fi and improving laptop capabilities untethered productivity
  • Connectivity – Between broadband, Wi-Fi and early smartphones, continuous internet access was the new norm
  • Communication – Websites like social networks and YouTube connected people in new ways

Developments across hardware and software improved access to information and people no matter where you were. By the end of the decade, being constantly connected felt indispensible.

Laptops Unplugged: Sales Overtake Desktops As Wi-Fi Freed Productivity

Early laptops were niche for traveling business people or the very wealthy. But adding Wi-Fi suddenly made laptops practical ubiquitous home and work computers. By 2008, global laptop sales overtook desktop PCs for the first time ever.

Worldwide PC Shipments 2000-2008

Year Laptops (millions) Growth Desktops (millions) Growth
2000 23 110
2001 26 13% 115 5%
2002 35 35% 117 2%
2003 39 11% 115 -2%
2004 53 36% 117 2%
2005 64 21% 117 0%
2006 84 31% 114 -3%
2007 94 12% 110 -4%
2008 110 17% 107 -3%

Compiled from Gartner and IDC 2000-2008 reports

Wi-Fi deserves much credit by untethering laptops from Ethernet cables. As Wi-Fi hardware got cheaper and hotspots spread everywhere from homes to coffee shops to college campuses, getting online without wires became normal.

I still remember the feeling of freedom working on my old Dell laptop from a plush chair at my neighborhood Starbucks thanks to their zippy Wi-Fi. Without those capabilities, laptops may never have taken over the world.

Operating Systems: Windows XP‘s Epic Run While OS X Found Its Feet

Windows XP dominated the 2000s thanks to unmatched stability and staying power. Launching in 2001, XP‘s streamlined interface resonated with millions of mainstream users. Internet Explorer 6 became a standard web browser for better or worse.

Meanwhile under the hood, Windows XP took advantage of advancing hardware. Its graphics subsystem enabled smoother gaming while plug-and-play support made installing new USB gadgets easier. XP proved both familiar enough yet substantively better for average users.

Incredibly, Windows XP powered over 70% of internet-connected PCs at its peak in 2007:

Global OS Internet Usage Share 2000-2007

Year Windows XP Windows 2000 Windows 98 Mac OS X
2000 0% 12% 77% 2%
2001 7% 16% 63% 5%
2002 26% 12% 59% 6%
2003 35% 7% 50% 8%
2004 45% 6% 32% 12%
2005 63% 4% 11% 17%
2006 70% 3% 3% 21%
2007 72% 2% 1% 25%

Compiled from StatCounter 2000-2007 OS data

That type of market dominance was enough to make heads spin at rival Apple. But a major OS transition helped revitalize the Mac. After years building software at NeXT, Steve Jobs spearheaded Mac OS X in 2001 using advanced Unix-like foundations for improved stability. The slick interface built on classic Mac OS strengths while introducing useful innovations like Time Machine automated backups.

While OS X didn‘t achieve mass market success overnight, substantive improvements combined with elegant new hardware like the iMac G4 led to rising Apple adoration into the late 2000s. Windows ruled the roost but Apple was back as a beloved alternative brand.

Even open source Linux distributions like Ubuntu expanded significantly among enthusiasts. While hardcore system administration knowledge was a must, Linux appealed to an engineering-minded crowd as a free OS option for breathing new life into old computers. Early experiments bringing Linux to more beginner-friendly desktop environments portended the OS spreading further in decades hence.

Faster and Fancier Hardware: Multi-Core CPUs, Better Graphics and USB Drives

Inside computers, components evolved rapidly to meet growing software demands. After single-processor CPU speeds tapped out around 4 GHz, Intel and AMD transitioned to multi-core chips that split tasks across two or more internal processors. High-end desktops passed quad-cores by 2007 while dual-core laptop chips managed power efficiency gains.

Processing speeds skyrocketed as a result for editing video, managing huge spreadsheets or just having 100 browser tabs open at once. My favorite example was encoding a CD into MP3 files for my brand new iPod – multi-core CPUs sliced encoding time from an hour down to 10 minutes.

Top CPUs Over Time: Speed and Core Count

Year CPU Cores Clock Speed
2001 Intel Pentium 4 1 1.5 GHz
2002 AMD Athlon XP 3200+ 1 2.2 GHz
2003 Intel Pentium 4 Extreme 1 3.2 GHz
2005 AMD Athlon 64 X2 2 2.2 GHz
2006 Intel Core 2 Duo 2 2.4 GHz
2007 Intel Core 2 Extreme QX9650 4 3.0 Ghz

Samples of notable CPUs over the decade

Graphics power also increased tremendously thanks to programmable pipelines and faster memory clocks. Top-end NVIDIA GeForce and ATI Radeon cards enabled smooth 60 FPS gameplay on visually stunning games like Half-Life 2. GPUs also accelerated creative apps – I still remember marveling as Photoshop filter effects previewed instantly instead of slowly drawing line-by-line.

Finally faster peripheral connections like USB 2.0 enabled snappy file transfers. USB thumb drives surged in popularity for easily moving files between computers instead of unreliable floppies. By the late 2000s I had replaced all peripherals from printers to webcams to external storage with their USB-connected equivalents taking advantage of easy plug-and-play.

Web 2.0 Rising: Broadband Fuels Constant Connectivity Culture

The early 2000s saw the rise of "Web 2.0" with interactive sites and two-way engagement between creators and community. Broadband fueled this always-on culture – by decade‘s close 54% of Americans had broadband at home:

US Household Broadband Subscriptions 2000-2009

Year Percent with Broadband
2000 5%
2002 10%
2004 20%
2006 42%
2007 47%
2009 55%

Compiled from Pew Research data

Oftentimes actually keeping broadband running was rockier than today‘s set-it-and-forget Internet. I have foggy memories struggling through Netflix streaming glitches or Facebook loading…eventually on sluggish DSL lines.

Fortunately Wi-Fi helped ease reliability gaps with over 85 million Americans accessing hotspots outside the home by 2009. With an Ethernet wire no longer tethering laptops and tablets to a single spot, professionals frequently stealing cafe seating was my most vivid indicator of emerging location flexibility needs long before digital nomads.

The seeds of our social Internet were planted with YouTube user-generated content and two-way conversations on Facebook that reframed users as content creators. And while the dot-com bust crushed many Web 1.0 players, innovators like YouTube and Facebook built lasting Web 2.0 information sharing models aligned with the times. Computing became participatory – not a one-way street but an engaged dialogue.

BlackBerries & Glass Slabs: The Seeds of Today‘s App-Powered Smartphones

Another major milestone was early smartphones paving the way to the app age. While basic internet-connected mobiles existed prior, the late 2000s marked the start of phones being taken personally.

For business customers, RIM‘s BlackBerry smartphones like the Pearl or Bold proved a killer productivity app by keeping professionals always connected. Secured push email and robust remote management catapulted RIM into a $14 billion valuation titan practically overnight.

But Apple saw an opportunity for mainstream mobility by using bleeding edge touch technology previewed on older PDAs. The original iPhone in 2007 completely reimagined computing as an app-driven glass rectangle while demonstrating multi-touch UI changes everything. Suddenly finger pinches zoomed maps and inertial scrolling kept websites smooth. It sold a cool 6 million units by 2008 – modest by today‘s blockbuster standards but impressive out the gates:

Early Modern Smartphone Sales

Phone Release Units Sold
BlackBerry Pearl 2006 1M
Palm Treo 680 2006 350k
iPhone 2007 6M
HTC Dream (G1) 2008 1.5M

Of course Apple lacked a compelling app ecosystem compared to the 180,000 modern catalog. That same year Google announced Android OS – envisioning an open alternative to Apple centered around touchscreens and deep integration with their popular web properties. Android phones like the HTC Dream laid groundwork on features if not yet apps. The stage was set for mobile becoming intensely personal.

I still have my suit jacket pocket permanently bumped out from stuffing my T-Mobile G1 in before heading anywhere. Camera phones fast became digital sketchbooks while music collections lived comfortably beside keys and change. By decade‘s close these early pioneers established mobile‘s indispensable role in our lives for the next era.

Digital Entertainment Matures: Gaming Hits Mainstream While Music Goes Pocket-Sized

Gaming and digital music also hit new highs starting in basements before reaching worldwide phenomenon status.

Sony‘s PlayStation 2 became the best selling console ever moving over 155 million units on the back of revolutionary 3D games like Grand Theft Auto III and Metal Gear Solid 2 that defined new genres. Emotionally impactful epics like Final Fantasy X and rich licensed movie tie-ins drove record software sales and suggested gaming‘s mainstream potential.

Nintendo also rebounded from mid-90s missteps with the innovative Wii in 2006. While graphics lagged PlayStation 3 or Xbox 360, the fun motion controllers made gaming accessible to audiences previously intimidated. Wii Sports became a cultural sensation from dorm rooms to bowling leagues while my grandmother asking for Nintendo game gift cards made gaming‘s broad appeal abundantly clear.

On personal computers, addictive multiplayer sensations like World of Warcraft attracted millions of subscribers to spend entire weekends questing and raiding. Korean Internet cafes dedicated to gaming arose while competitive circuits like Major League Gaming took shape.

Game streaming pioneer Justin.tv (later Twitch) also emerged allowing anyone to broadcast gameplay commentary to dedicated fans. Gaming touches most lives today but saw its cultural ascent here.

Music also went pocket-sized thanks to the iPod which soon became the digital Walkman for a new generation. Apple perfected the formula with an intuitive click wheel interface, seamless software like iTunes, and crucially for the time – the capacity to carry your entire CD library anywhere. I remember marveling as DJs transitioned to iPods instead of binders full of fragile scratched CDs.

Of course the iPod also facilitated music piracy during the Napster era. While legally dubious, it demonstrated pent up consumer demand for affordable digital listening. The music industry was dragged towards sane $0.99 song downloads on Amazon or iTunes only after trying every strategy to criminalize fans. Digital music graduated from piracy to profits after painful lessons.

Dot-Com Growing Pains Give Way to Lasting Innovators

Despite vibrant technology adoption, the 2000s began ominously. Speculative investing led to hundreds of long shot internet companies scoring astonishing funding but few had workable business models. The catastrophic dot-com crash began just one year in wiping out $5+ trillion in market value by October 2002:

Nasdaq Composite 2000-2002

Date Closing Value % Change
1/3/2000 4069
9/1/2000 4706 16%
1/2/2001 2475 -47%
10/9/2002 1114 -55%

This meltdown devastated Silicon Valley. Once high-flying companies like pets.com shuttered while stalwarts like Cisco and Oracle shed billions in valuation. Venture funding dried up as recently dominant tech employers halted hiring practically overnight.

But the rubble left behind did fertilize soil for companies taking a steadier approach. YouTube arose in 2005 from dating site embers seeking online video viability where others failed. Their measured experiments correctly anticipated ad revenues materializing around engaging user-generated content.

Facebook learned from crash friendster‘s struggle to balance rapidly scaling infrastructure with fickle user loyalty. Harvard-only beginnings ensured passionate fans before targeted expansions to other networks prevented growing pains from fracturing the community. Their approach spawned a 1.1 billion user titan by decade‘s end.

Of course no rising phoenix compares to ecommerce backbone Amazon in both surviving the turbulence and ultimately coming to define modern online retail. Their strategy of prioritizing customer trust, selection depth, and infrastructure investments enabled weathering years of profitability struggles before emerging as The Everything Store. Last year‘s $386 billion sales simply unfathomable just 20 years earlier.

The dot-com crash purged an entire generation‘s sky-high hopes but ultimately produced focused, deliberate innovators aligned to computing‘s always-on social direction who transformed entire industries.

Fasten Your Seatbelts: The Mobile Revolution Lifts Off

Many technologies we take for granted today sparked in basements, dorm rooms and Silicon Valley cubicles during the 2000s. Wi-Fi and faster laptops untethered working from the desk while smartphones put broadband in pockets to make computing intimate. Stable operating systems like Windows XP met our basic needs while experimenters kept jazzed with stylish OS X Macs or community-built Linux.

Processing power took leaps to fuel gaming visuals and video editing creativity. We saved data rapidly thanks to capacious hard drives and convenient USB thumb drives. Always-on internet enabled interactive Web experiences, but not before speculative excess led to a painful dot-com reckoning. Despite that turbulence, meaningful startups navigated uncertainty by tapping community connections rather than chasing short-lived fads.

Above all, the 2000s formed around increased access to information, entertainment and each other. Mobility unlocked the immediacy and intimacy of computing as we know it today. The next era of iPhone apps, Android clouds and AI assistants built firmly upon foundations and connectivity laid here. As laptops surpassed dust-gathering desktops in 2008 for the first time, the technological training wheels came off. Computing left offices to spread its wings throughout all facets of life thanks to devices planted in the 2000s finally bearing fruit.