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Microsoft's Worst Enemy: Themselves

KobyBoy writes "Saw this story posted on OSnews this morning. "Microsoft's biggest threat isn't Linux, OpenOffice, or any piece of software at all--its themselves. Over the last eighteen months two distinctly different Microsoft cultures have emerged, often in opposition to each other." You can get the full article at Sudhian Media."

41 of 556 comments (clear)

  1. Control by deanj · · Score: 5, Insightful

    This all comes down to control. What Bill wants, Bill gets, at least within his own company. You can bet your life that if Gates wanted to do something within the company, they'd turn on a dime, just the way they did back in 1995 to support Internet stuff

    1. Re:Control by sql*kitten · · Score: 5, Interesting

      This all comes down to control. What Bill wants, Bill gets, at least within his own company. You can bet your life that if Gates wanted to do something within the company, they'd turn on a dime, just the way they did back in 1995 to support Internet stuff

      Yes and no. The dissonance between the two cultures could be a sign that the "cult of Bill" is waning. An autocratic leader can only be effective if everyone "drinks the koolaid". It's very hard to fight an entrenched culture, and many CEOs have failed because they couldn't get buy-in from the rank and file. I've seen this first hand, when ordinary staffers made no secret of their contempt for senior management... it's the death knell for a company.

      Perhaps Microsoft are running out of the old-skool staff and the new blood they're hiring doesn't automatically defer to Bill on every decision. I'd imagine that Microsoft people are very poor at playing the sort of corporate political games that are taken for granted elsewhere, the old Microsoft culture actively discouraged it. If they've hired a bunch of people who are politically adept, they will be very difficult to control.

    2. Re:Control by Jason+Earl · · Score: 5, Insightful

      Microsoft's problems do not stem from some sort of corporate culture clash, and I can guarantee you that when Bill speaks people working at Microsoft still jump.

      The problem at Microsoft is that the people running the show (and that includes most Microsoft developers) are more concerned about Microsoft's stock price than the long term survival of the company. Microsoft stock is still priced for rapid growth, and so Microsoft has to come up with a way to provide that growth or Microsoft shares will eventually lose a significant portion of their present value. If you think that Microsoft's $40 Billion is an impressive number calculate what Bill Gates would lose personally if Microsoft's stock lost half of its value.

      The question then becomes where does Microsoft hope to gain its future growth. Linux is cutting deeply into Microsoft on the server side, and there is fierce competition (and very low margins) on the embedded front. That leaves Windows and MS Office, as all of Microsoft's other business units are actually losing money. The XBox is Microsoft's best bet for a new significant revenue stream, but Sony appears to be taking Microsof to lunch on this front.

      That's not all of Microsoft's problems either. The PC market continues to be soft, and MS Office is being replaced on the low-end models of nearly every major manufacturer with Corel's PerfectOffice.

      So what does Microsoft do to keep growing their revenue? They raise prices, that's what. Microsoft knows that their existing customers have large investments in their Microsoft software. Replacing this software would be very difficult, and so Microsoft is making these customers pay the price of their misplaced loyalty.

    3. Re:Control by sql*kitten · · Score: 5, Interesting

      I tend to agree with the original poster, however I fail to see how differing ideas within a company would signal its decline.

      Differing ideas are one thing, differing cultures are something else. Traditionally, Microsoft have had a reputation for being very adademic and meritocratic in their decision making. Ideas are exchanged and debated, and eventually the best one wins (in theory at least). That assumes that everyone is basically moving towards the same goal, and while they have their own ideas on how to get there, their egos aren't tied up in having their personal idea be the chosen one. What matters is the goal.

      But what if some people aren't so much interested in the goal per se, as they are in building their own little empire on the way to the goal? An old-skool Microserf will fully expect to argue the case, then sit back, and let the idea be considered on its merits. They won't be able to cope with a senior manager who does not have the best interests of the organization as a whole in mind. That's what I mean by a culture clash.

      Possibly one of their biggest strengths (other than their monopoly) would be differing ideas among upper management.

      It was when the senior management was largely comprised of Microsoft lifers who joined in the early days of the company and had worked their way up. But it's very different when those people find themselves competing with professional managers brought in as lateral hires.

    4. Re:Control by michael_cain · · Score: 5, Informative

      If I may summarize, MS faces enormous problems in the not-so-distant future in transforming themselves from a hot-shot growth company into a mature firm. Their share price will not continue to double, so they won't be able to use options as currency (how would you like to be a relatively new hire with MS options at $120?). Some of their newer ventures may end up being profitable -- I would bet on MSN, particularly if AOL continues to screw up -- but the profit margins will not be nearly as good as those for Windows or Office. They have been unsuccessful, so far, in finding the next big thing in software that everyone wants.

      MS is not the only firm with this problem. I would also add Intel and Cisco to the list of large successful tech companies whose share price is way too high for their realistic growth prospects. I have a friend at Intel who reported a rumor that Intel's upper management was shocked at a recent meeting with investment bankers who told them that they were a mature firm, not a growth company, and their share price would adjust downwards drastically as the stock market realized that fact.

  2. Court order not needed by KaiKaitheKai · · Score: 5, Funny

    Well, it didn't take a supreme court order to split Microsoft in two.

    1. Re:Court order not needed by Soko · · Score: 4, Insightful

      As funny as that statement is, I'd rather it be modded as insightful, rather than funny.

      Imagine, if you will, that CmdrTaco's little icon joke about the Borg is indeed correct. OK, now, imagine that we manage to insert a little bit of autonomy (by college education, for example) into one of the drones. Remember Hugh? Seems OSS has hurt Microsoft in ways that can't be measured quite yet on the balance sheet.

      I've always thought that the best way to dismantle a machine is from the inside. Here's more credence to that thought, IMHO. Actually, my first thought when I read the article was "Merry Christmas, Soko - there really is a Windows user with a clue."

      Soko

      --
      "Depression is merely anger without enthusiasm." - Anonymous
  3. You Need Only Consider IIS... by BigBlockMopar · · Score: 4, Funny

    Of course Microsoft is their own worst enemy. Who else would allow IIS or Outlook - a security hole which masquerades as an e-mail client - to be some of their flagship products?

    The security holes are even more annoying than the damned animated paperclip.

    --
    Fire and Meat. Yummy.
    1. Re:You Need Only Consider IIS... by BigBlockMopar · · Score: 5, Funny

      My animated paperclip went on a bender and refuses to speak to me.

      The last time I heard mine was a dying scream as I mounted my FAT32 partition, navigated to it, and typed the magic letters:

      # rm -rf *

      It was high, blood-curdling, but strangely satisfying. Like the sound of the welds in a Honda's body popping as the car crusher takes it down to 3 apples tall, then the wet thunk of a cast-aluminum engine block cracking like a flowerpot in a vise.

      Mercifully, when I had to install Excel on Wine because OpenOffice doesn't do something as fscking simple as a polynomial regression, the damned paperclip didn't work.

      --
      Fire and Meat. Yummy.
  4. well, by kingofnopants · · Score: 5, Funny

    Well, this proves it. Microsoft is everyone's worst enemy

    --
    Disco Stu was talkin' to you.
  5. Reminds me of another company by TWX_the_Linux_Zealot · · Score: 5, Insightful

    Microsoft's biggest threat isn't Linux, OpenOffice, or any piece of software at all--its themselves

    When a Time Warner executive stated that using PVR technology was stealing, right as AOL Time Warner dumped tons of money into Tivo, should indicate a lot about corporate culture these days.

    That Time Warner executive should have been fired. He could have even faced lawsuits by AOL Time Warner stockholders, for directly going against (and possibly reducing value) of the parent company.

    --

    IBM had PL/1, with syntax worse than JOSS,
    And everywhere the language went, it was a total loss...
    1. Re:Reminds me of another company by afidel · · Score: 5, Interesting

      How about both? The entertainment industry will not fall to Tivo, or just about any other technology. Remember that the industry has called this death knell with every major technology advancement, from the vcr, DAT, CD's, online direct distribution etc. And yet every year the industries post larger and larger profits. Technology and ease of access to their products helps the industry so long as they take the bull by the horns and controll it, when they try to quench a technology (with the exception of DAT) they lose a market.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  6. Mac vs Apple ][ by zanderredux · · Score: 5, Insightful
    Sounds like the Mac vs Apple ][ fights that took place at Apple.

    Creative destruction anyone?

  7. Excellent article by billmaly · · Score: 5, Insightful

    It puts into words my own feelings about MS that I have not been able to articulate so eloquently. I like Windows 2000, it works and works well (for me). I totally agree that the marketing dweebs will ruin MS's dominance, and drive users to Linux. Linux is still not ready for everyone's PC.....but the day is coming, maybe in Red Hat 10 or Mandrake 11....MS needs to wake up and realize that we don't like being spied on.

  8. preach to the choir by kin_korn_karn · · Score: 5, Insightful

    articles about Microsoft = Bad mean nothing when they're posted on OSS/Linux advocacy sites. When the Wall Street Journal has an editorial from the editor in chief saying that Microsoft is going to destroy the world, that'll mean something

    1. Re:preach to the choir by kin_korn_karn · · Score: 5, Insightful

      See, that's just it. #2 makes #1 irrelevant to everyone but us.

      When will you all get it? WE (meaning the tech/IT industry and community) are the ONLY people that care about our OS being buggy. The fact that #2 has happened makes it irrelevant to complain about the lack of reliability in Windows. And we are DEFINITELY the only people that care about it not being original (don't bring up the Apple/Xerox lawsuits, those have been settled now meaning that we are the only people that ever bring it up). My mom doesn't give a shit if the concept Windows was stolen from a Xerox PARC prototype or a mac or from Bill Gates' college roommate or whoever, she cares about whether her email works or not, and guess what? it does. Not the way you'd like it to, but it's email and it works. Who gives a fuck. The world is not made up of sysadmins.

      The way you beat microsoft is to make a superior product, and market it better. The government has shown that they won't help level the playing field for any competitors to MS, so that's the world anyone taking them on has to work in.

      Linux is not superior to Windows yet. It's more reliable, on the right hardware. It's got that cool CLI geek cred going for it. So does OSX. The GUIs for Linux plainly suck.

      The legal remedy in the DOJ case should have involved abolishing all copyrights MS has to their interface so that KDE or (god forbid) the GNOME folks could clone the Chicago GUI. People would be comfortable with using Linux if it looked just like Windows.

      This is around the point in this discussion where someone whines that "we can't take on microsoft, they have [insert ridiculously huge corporate asset here]!!!" If you feel that way, then stop bitching about what you've got. The glory is in the fight, anyway.

      Which brings me to my next point. Once the fight is won, then you have to manage what you win. The OSS community couldn't handle being in control of the #1 OS in the world. It's too fragmented and too immature. To handle something with the market share and pervasiveness of Windows would take an infrastructure the size of Microsoft. So, build one. Stop whining about losing and go make yourself into a winner.

    2. Re:preach to the choir by wind · · Score: 5, Insightful

      WE (meaning the tech/IT industry and community) are the ONLY people that care about our OS being buggy.

      This is simply untrue. Anybody who has ever lost a half-hour's work on a project, has had their system hosed by a virus, or worse - had porn spam sent out to their coworkers in their name, they care, believe me. The list goes on and on.

      The problem is that the people I talk to don't understand that it can be different. They think it's the computer in some vague, "all computers need to be rebooted every few hours" sort of way. They don't seem to really believe me when I tell them to use a different operating system with different programs that aren't so buggy or virus prone.

      I think anyone who uses a computer to do something that they either care about or are paid by someone else who cares, DO care about buggy code. They just don't know it. They think computers are just like that.

    3. Re:preach to the choir by Doc+Hopper · · Score: 4, Interesting

      I used to think I was at least somewhat in touch with what users wanted at my work and at my home. I thought I was responsive to their needs.

      Then I sat down with a regular computer user. He asked why I had "Don't use this" underneath the "E" on my desktop (Crossover Office, Internet Explorer icon on Windows desktop). I explained that the browser was insecure due to some recent security exploits, and that I only had that particular browser installed so my wife would be able to do online ordering for one particular business she runs.

      "So, you mean, you don't use the Internet?" he asked.

      "No, we just don't use Internet Explorer here due to security problems." I responded.

      "But when I click on the Internet, it still works," replied he.

      I shortly thereafter realized, this kid thought the "e" on the desktop WAS THE INTERNET. He had no idea that it is a network of high-speed fibre circumnavigating the globe, carrying terabytes of information. He had no clue what a web browser or email reader was. He had no idea what a protocol was, or even the concept of security beyond it being what those guys in uniforms in the mall do.

      This is the state of the average computer user. We either educate them, or dumb the computer down enough that they can use it. So I have to agree that it seems that only the "geekier" chunk of society even understands what a computer bug is, much less why we'd want few of them...

  9. perspectives by neildogg · · Score: 5, Insightful

    What I find terribly funny, as a non-American, is that similar things are taking place in American society as a whole, the Patriot Act for example, denying people civil rights in order to exercise freedom. I don't understand the complaint that a company is doing things that impose on privacy when it's a common thread in the entire society around it. Linux is counter-culture; I don't think many people would deny that. Once I see America embracing the freedom it so adamantly preaches, I'll understand complaints such as this one.

    1. Re:perspectives by jackbox · · Score: 5, Insightful

      Indeed, switch a few words around on page 2:

      Add it all up and what you have is a company (country) that, at the least, displays a profound level of arrogance coupled with the unshakable belief that they have not only the ability, but the right to dictate to the rest of the world, from charities to corporations, (to governments) how the world should look....

      Guess Microsoft is succeeding in the American Way. (sigh)

  10. Straddling the Fence by Flamesplash · · Score: 5, Insightful

    The problem is that MS is trying to give different customers what they want in the same package. People want security, bam there you go, oh but wait we want flexibility, bam there you go, but oh wait we had to remove some of the security so you could be flexible. vice versa and repeat

    While ppl will argue linux gives you both, if you are a computer geek, this isn't a valid solution for the average home user. While linux may be secure enough for them, if purely because linux isn't a target platform for widescale hackers and virus writters, the average person will never make use of the flexibility in linux.

    "And you can make kernel modifications as you want them"

    "What's a kernel?"

    "err well you can download other peoples kernel mods off the internet, compile them and add them to your kernel"

    "Uhh What's a compile"?

    MS is in the unfortunate position of catering to a large diverse market, and I don't really think there is a unified theory of doing so. I run w2k because it is stable. It may not be as flexible as say XP, but it suffices for me and what I want to do. And I have a win98 parition if a game won't work under 2k.

    --
    "Not knowing when the dawn will come, I open every door." - Emily Dickinson
  11. Now if only.... by nizo · · Score: 5, Funny

    If we can get one half to sue the other half, we will have something.

  12. This guy has no point by bmetz · · Score: 5, Insightful

    This guy's arguments, listed at the bottom of the article, are asinine. To quickly address some of them:

    - Microsoft put little more than a CDDB lookup into their player. Since everyone freaked out they've made it very very obvious during the install what gets sent. Take a look at everyone else's player and you'll see they are not trying to take over the world in some sinister plot. And product activation sucks but so does having perhaps the most pirated piece of software in the world so you really can't blame them.

    - Microsoft lobbies. Welcome to the united states of america.

    - Attacking microsoft because the PCs it donates aren't good enough? Come on! Donations are voluntary and should be welcomed no matter what they are. Don't forget Gates does some serious giving-back. Funny how he forgets to mention this..

    I'm tired of reading this poorly thought out crap. People will find any excuse to rag on Microsoft. News flash: it's 2002, not 1992. Microsoft-bashing is getting a little old.

    --
    What did you eat today? http://www.atetoday.com/
    1. Re:This guy has no point by Bilbo · · Score: 5, Interesting
      > - Attacking microsoft because the PCs it donates aren't good enough?...

      No, because the donated PC's are simply blatant attempt to supplant Apple's dominance in the educational market, and to generate more license revenue for Microsoft. Who do you think pays to upgrade those PCs when people realize that Windows 3.1 doesn't run any real software?

      (Also, when another independent company tried to do the same thing, MS took them to court because they couldn't prove they had valid licenses for all the copies of Windows 95 that the used computers were running. They ended up having to trash several thousand used computers because they didn't have enough money to buy all brand new licenses for them.)

      --
      Your Servant, B. Baggins
    2. Re:This guy has no point by theLOUDroom · · Score: 5, Informative
      Microsoft put little more than a CDDB lookup into their player.

      Too bad you have no idea what you're talking about.
      You should read more about what media player really does:
      Media Player sends a unique id number along with the info about what you're watching.

      Are you an astroturfer or something or are you just clueless/insane? I don't need to even get into your other points as they're just ridiculous.
      News flash: MS is worse now than they've even been.
      Why exactly should I pretend they aren't?
      --
      Life is too short to proofread.
  13. Re: Writer should get his facts straight by tomhudson · · Score: 5, Interesting
    Before you arrogantly claim it couldn't possibly happen to you, take a good look at companies like Apple, IBM, or 3dfx who's names were once SYNONYMOUS with computing--and who now, without exception, are either dead or relegated to niche markets in the areas they once utterly dominated. </quote>

    IBM sure ain't dead ...

    Revenues last quarter:

    • Microsoft:
      $7,746,000,000
    • IBM:
      $20,592,000,00
    Interestingly, IBM made more GROSS PROFIT the last quarter ($8,094,000,000) than Microsoft's total revenues.

    Contrary to popular belief, IBM, not Microsoft, is the worlds' largest software company. IBM just happens to bundle a computer with many of their offerings.

  14. Re:So open source isn't good enough... by Bilbo · · Score: 5, Informative
    > Until it can do this, it shouldn't expect more users to come flocking to their programs.

    Did you read the same article as I did???

    The point of the article had very little to do with the merits of OS software. He was merely stating the fact that he himself had very little experience with Linux.

    The point of the article was that, no matter how good or bad your product is, or how firmly entrenched you monopoly may be, if you piss off your customers long enough, you will eventually strangle yourself to death.

    Or, to put it another way, "The bigger they are, the harder they fall..."

    --
    Your Servant, B. Baggins
  15. What if... by Lokatana · · Score: 5, Informative
    It's interesting to notice that the author of this article claims to barely know Linux or other competing products to Microsoft. I'm not sure how much I agree with his thoughts regarding a "split" within Microsoft, but...

    What if this type of thinking begins to really penetrate MS's customer base? If Joe User (think of all of your friends and family who use you as their technical support hotline) starts to believe that Microsoft is taking them to the cleaners - not just believe it, but become convinced of the fact - and is willing to make the jump to an alternative OS, what then? What if the tools to make the switch are easy enough for anyone's grandparents to freely obtain and use? (Today, most of these kinds of users don't even know how to locate an ISO, let alone download & burn it! I'm also assuming they don't want to pay for the software from a vendor or store)

    What would MS do if their customer base starts to erode noticeably? Will we see more "Satanic" actions to lock in their customers, or will MS respond in a way that will benefit the overall user community?

    Perhaps this would be a good followup "Ask Slashdot", but I'd love to see people's thoughts on this.

    -Lokatana

  16. Garbage editorialism. by Konster · · Score: 5, Insightful

    "What I am, however, is concerned about how Redmond intends to safeguard my privacy, my right to use an operating system as I see fit, and my rights of fair use. I am, in fact, very concerned."

    Then he goes on to say, a paragrah later, "Right now, Linux has yet to offer me any reason why I should go to the monumental hassle of switching and re-training myself to the new OS..."

    You must NOT be all that concerned about your privacy, the right to use the OS as you see fit (Click on Agree or Decline after reading the EULA? A thought), or your rights of fair use if you blindly click through the EULA and install their product.

    RTFEULA. Worried about all that and still agreeing to MS's EULA and being too lazy to learn an OS that's free from all that just befuddles me.

    And since when did learning Linux become a monumental effort? Rocketing into space is a monumental effort. Learning Linux is akin to Bellybutton Lint Removal 101.

    How does this crap make the news, anyhow?

  17. Another way Microsoft contradicts itself... by weave · · Score: 4, Interesting
    Microsoft claims on one hand that Linux is more expensive, because you have to hire expensive experts to maintain it. On the other hand they push the value of an MCSE to IT people, how it's a serious certification and not something that any chump can get, and how much more money we can make if we just become certified.

    So which is it? I administer a nice big AD domain on w2k servers and I personally am insulted that Microsoft is doing their best to convince my administrators as well as others that Windows administration can be done by a non-expert. How long before CFOs believe this and wonder why they are paying for all of these expensive personnel down in IT? It's bad enough they don't understand the complexity of our jobs, now Microsoft is telling them it doesn't require an "expert" to administer Windows servers. :-(

  18. Parallels by Tall+Rob+Mc · · Score: 4, Insightful
    It is most likely that I'm not the first person to draw this parallel, but I've noticed it more and more recently...

    Microsoft and the US government are in very similar situations.

    Here, we have two extremely powerful entities that are very prone to extend beyond their reasonable range of influence to make everything go exactly the way they want it to.

    Both are facing enemies (the US against terrorists, and Microsoft against Linux) that have emerged as a decentralized and nearly attack-proof.

    Both have earned a good deal of resentment from the communities which they supposedly serve (MS has people like us constantly bitching while President Bush's approval rating has dropped below 50% this December: and both rightfully so).

    Both, despite the great amount of disapproval, appear to be doing nothing to change their situation (except for Bush's recent decision to back down on threats of attacking North Korea, though he intends to push for isolating them economically).

    Could a few good leaders in Washington clear this whole mess up? I think so. Now if only such people existed... -sigh-

  19. Perhaps you should too. by Tide · · Score: 4, Interesting

    Well IBM makes boatloads of cash, thats for sure, but I wouldn't call them just a software company. Like Sun they make their cash off of services and support for overpriced hardware. MS is pretty much all software, and has a market cap more than twice that of IBM, which is why they are the worlds largest software company. Plus Im not sure where you got your profit numbers, but on Quicken a different story is painted:

    MSFT:
    Revenue - $7,746,000
    Net Income - $2,726, 000

    IBM:
    Revenue - $19,821,000
    Net Income - $1,694,000

    And also from Quicken:
    What is Net Income?
    The amount of a company's total sales (revenue) remaining after subtracting all of its costs, in a given period of time (also referred to as "net earnings"). This very important figure (literally the source of the term "the bottom line" for where you find it on an income statement) is the best measure of the current operating state of a company.

    --

    People think Microsoft is the answer. Microsoft is just the question, "No" is the answer.
    1. Re:Perhaps you should too. by frank_adrian314159 · · Score: 5, Insightful
      they make their cash off of services and support for overpriced hardware.

      Overpriced? With respect to what measure? Most of the people who use IBM hardware do so because they can't find alternatives that provide the stability and service provided with an IBM solution. When you get me a PC platform where I can hot swap memory modules and CPUs we can talk. Plus make sure that the OS that it's running supports such usage. Self monitoring so that I don't have 75% of my scheduled jobs crashing before I found out CPU 3 has crashed would be nice, too. People who use these machines might find them overpriced if you want to talk MIPS, but most have other, very rational reasons to use these machines.

      --
      That is all.
  20. Absolutely Correct by awitod · · Score: 5, Interesting

    This author is dead on. The IT graveyard of invincible vendors is wide and deep, and without an exception I can think of the killing blows were always self-inflicted: Micro-Channel Architecture, Word Perfect 5.0 for Windows, Unix-Ware, and on and on and on.

    I watch this board closely to try to gauge perception. (I watch lots of other things too, because everything has some inherent bias, borg toon anyone?) I want to know where the industry is headed. In the past I've felt the pain of backing the wrong technology and after many years have come to appreciate such an error's effect on my families ability to do things they enjoy, like eat and sleep inside.

    For the last several years the food on my table has come from a deep knowledge of many of Microsoft's products. At the end of the day, I really don't care what tools I used to create a new system. What I care about is that I can do what I love (design and build software) for someone who appreciates the effort enough to pay me a decent sum of money.

    I view many of the arguments on this site with mild amusement (open vs. closed source) as the ravings of modern-day hippies or the very young. Unfortunately, I am constrained by certain requirements in my life and I doubt very much that my wife or my children would care about free-as-in-speech vs. free-as-in-beer, and as such care much more about the bottom-line than high-minded principals, no matter how appealing.

    That said, I am starting to study and use Linux and other offerings of this community. Some of it is very impressive and some of it, I must say, is promising but primitive crap. I do not believe that the movement will overthrow Microsoft on its own merit. I do believe that Microsoft is creating enough incentive for the market to make this a commercially viable alternative.

    The PS2's were awesome and reliable machines. They were probably worth the additional price. But, by the time IBM really tried to strong-arm the market, the IT buying community was pissed off enough that the platform's relative merits meant nothing. I believe that OS/2 was equally affected by this, although it's terrible setup procedure hurt it as well. Microsoft is today's IBM. I hope they get their heads out of their asses soon, but they'd better do it quickly.

  21. Dumb and Dumber by Veteran · · Score: 4, Interesting

    Microsoft's managers by the standards by which people in that field judge success are superb.

    What do I mean by that? If you judge Microsoft's management by the universal business scorecard - money - then no one can argue that they are doing a bad job.

    From a technical viewpoint Microsoft's managers are clueless idiots, from an ethical standpoint they are amoral cretins who barely qualify as human; but from a business standpoint - the company has made a lot of money on their watch.

    In reality Microsoft's management is a lot like a defensive lineman who gets a pass stuck in his face guard - then stumbles blindly into the end zone to score a game winning touchdown; they were in the right place at the right time - every thing else was pure dumb luck.

    Of course, Microsoft's management believes that their brilliant business decisions are responsible for Microsoft's success; but then I have already written about their technical judgment.

  22. Re:So open source isn't good enough... by Bilbo · · Score: 5, Insightful
    > Wow, such insight. No wonder this got posted on the front page of $la$hdot.

    Ummmm.... yea. The other point of the article, interestingly enough, is that Microsoft doesn't seem to get it. In fact, it seems to be a pretty common trait among large corporations that a large fraction of their top level executives seem to get so wrapped up in themselves that they don't seem to be able to comprehend simple relationships like this. They have been so successful wringing every last cent out of their customers that they don't even notice when they start to flee in droves, and when they do notice, they respond by simply turning up the pressure, which in turn, accelerates the hemoraging

    --
    Your Servant, B. Baggins
  23. Hits the Nail Right on the Head by serutan · · Score: 4, Interesting

    Hruska couldn't be more accurate. In my past 5+ years as a contractor working mostly at Microsoft, I've definitely seen the internal character of the place becoming less geek-centered and more suit-centered. Recently there was a poster on the wall exhorting people to save the company money by remembering that the free beverages are for consumption at work only. When you have administrative people busying themselves with that type of "hall monitor" behavior, you are also going to see things like junk-computer disposal disguised as charity, advertising disguised as customer feedback, and lawyer-driven software design.

  24. Um. by runderwo · · Score: 5, Insightful
    From the article:
    I'm no Linux user. I've never booted a distro of the OS in any of its flavors, and save for playing with it on a friend's machine, I've never spent much time in it. I am not an open source maverick, nor am I anti-business or anti-profit.
    You know, if someone has to qualify their editorial claims by saying that they aren't part of those "open source mavericks" over there, or that they are not "anti-business or anti-profit", what does that say about us open-source mavericks as a desirable group of people to identify with?

    I think the very idea that someone in the mainstream has gotten the idea that we are anti-business/anti-profit is very BAD, as it constitutes a fundamental misunderstanding of the movement behind free software and the open source development model.

    Who in the mainstream is going to align themselves with us, if we give them the impression that we're anarchists and commies?

  25. Bill Gates' Money by Valdrax · · Score: 5, Informative

    If you think that Microsoft's $40 Billion is an impressive number calculate what Bill Gates would lose personally if Microsoft's stock lost half of its value.

    His fortune is less tied to MS than you might think. Gates has diversified his holdings over the past several years and as of Sept. 9th of this year only held 11.6% of the company's stock. I believe his current net holdings are worth $43 billion. MSFT has 5,346,449,872 shares as of Sept. 30th, and it closed on that day at $43.74. On that day, MS stock was worth $223 billion, and he held only $27 billion in MS stock. If he lost half that, he'd go from $43 billion to $29.5 billion (ignoring the fact that an MS crash would take down the whole market). Boo hoo. He'd still have over 100 times what he was worth back in 1986.

    Of course, this in no way invalidates your argument which is 100% correct. MS is a very stock price-obsessed company, and a lot of mutual funds invest so much money into it because it's preceived as a stable growth company. A major Enron-like shake-up like Bill Parish has been hoping for would devistate the market as badly as Enron's did. MS's business personnel are wholy obsessed with keeping this growth stable, and it's been well documented that MS uses tricky accounting to smooth losses from one quarter to the next by storing up money from good quarters and counting it as "earnings" later.

    Incidentally, the Bill Gates Net Worth Page is an amusing collection of statistics and extrapolations about his wealth, though its data is a little out of date. It shows things like how long he could buy off every major official in the government (if he stopped earning money), how fast you'd have to go picking up dollar bills from end to end to earn money as fast as he has since MS went public (35+ MPH), and how if he can maintain his current rate of growth per year (over 35%!), he'll be a trillionaire by 2014.

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    1. Re:Bill Gates' Money by Zordak · · Score: 5, Interesting
      and how if he can maintain his current rate of growth per year (over 35%!), he'll be a trillionaire by 2014
      And this is exactly Microsoft's problem. As has been pointed out, they are obsessed with inflating stock prices. Their entire strategy is like a positive feedback control system. Make money, Extend monopoly, make more money. Setting economics aside, this kind of system cannot even be maintained mathematically. Unbounded systems are inherently unstable. There has to be negative feedback for the system to maintain itself. In the past, the Sherman Act did a fair job of providing the requisite negative feedback (notice how the Bells are still around, and are still solid businesses, if not as large as before), but Microsoft seems to have been able to castrate that in the latest round, so no there is absolutely nothing to hold them in check. Any system -- physical, financial or otherwise -- has limited energy. I really don't know that our financial system has the energy to sustain an individual trillionnaire. I could be wrong, maybe the number is bigger, but ultimately, there is a finite limit to how much mass a body can accumulate before collapsing in on itself. The larger Microsoft gets, the bigger and more impressive their eventual fall will be, and unfortunately, the more collatoral damage they will inflict in the process. So, Microsoft really is their own worst enemy. In my opinion (I am dead serious about this), the best thing they could do is hire a bunch of controls engineers to take over their business development, who could then come up with a stability model. Unfortunately, as someone else pointed out, Microsoft appears to be much more concerned with short-term growth than with longevity. With their present model, there is no question of if they will crash spectacularly, it is only a question of when.
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  26. Microsoft success or faliure, so what? by miffo.swe · · Score: 5, Interesting

    I have come to the conclusion that wether Microsoft survives or not doesnt bother me a piss. One part of me would most gladly see the Borg go down in agony. The other part looks at his nice linux desktop wich does everything he did in windows and much better and feels a state of nirvana. As long as i have my linux and no one tries to destroy it i couldnt give less sh*t about windows. We need to stop looking at what Microsoft is doing and do our own stuff.

    They are hurt if linux makes a success, we shouldnt care less if Microsoft do. Lets focus at linux and let Microsoft play in their own little pond by themselves.

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