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Ballmer Sends Wakeup Call to Staff

Puneet writes "An MSNBC article outlines details of how the world's biggest software company seems to be facing a technology gap. Steve Ballmer, chief executive officer of Microsoft, sent a memo across the company basically saying that with no immediate breakthroughs in technology coming, and with the Linux computer operating system and a batch of other open-source programs biting at its heels, Microsoft will have to do a better job of persuading customers it has something they need. . Microsoft must "improve business consistency" so that customers are not hit with unexpected - and unwanted - changes. Also covered by Forbes but in lesser detail."

19 of 829 comments (clear)

  1. Connected with .NET and Smartphones? by Eminence · · Score: 4, Interesting

    Is this connected with .NET failing to deliver its promises and the fact that Smartphone idea met stronger resistance from cellphones vendors (especially Nokia) than MS expected?

    These two were - arguably - two biggest things MS pushed in last two years. Does that memo mean they don't have anything else up their sleeve? What then with all the money spent and effort at "Microsoft Labs"?

  2. strange... by thoolihan · · Score: 5, Interesting

    I think it's odd the article doesn't mention apple. Sure GNU/Linux is the most immediate server threat, but apple is more likely to threaten the desktop. Also, no mention of software solutions threat (IBM, etc).

    -t

    --
    http://unmoldable.com W:"No one of consequence" I:"I must know" W:"Get used to disappointment"
  3. Shakey by Mattygfunk1 · · Score: 5, Interesting
    It seems to me that Ballmer might be feeling a bit shakey after seeing preview versions of Longhorn. Considering this quote:

    "Longhorn will come when we think itâ(TM)s really ready.

    you have to wonder whether he thinks some of the changes are too extreme and possibly of little value to the user.

    __
    Dragon action figures in Australia Cheap web reseller hosting

    1. Re:Shakey by 4of12 · · Score: 4, Interesting

      Longhorn will come when we think itâ(TM)s really ready.

      Fortunately for Ballmer, customers will see the "value of innovation" and "need" to buy Longhorn because that will be the only way to "upgrade IE" :)

      The tightly connected orbits of Windows, Office and Internet Explorer (Outlook&Exchange) are reminescent of the bola; they will be used to trip up any attempt to escape from "innovation and integration".

      --
      "Provided by the management for your protection."
  4. What else are they supposed to do? by klmth · · Score: 4, Interesting

    With all OS development concentrated on Longhorn, which is several years down the road, they can't hardly do anything else. They have no new products to present to the consumer, so they have decided to hype up Longhorn instead.

    Now, with Mac OS X and several free operating systems doing being able to do jsut about anything you can do with windows, companies are beginning to realise the alternatives. Managers have references of successful OSS-implementations in Office settings, and are willing to do a cost-benefit analysis to determine which suits their needs, instead of merely scoffing at OSS on the desktop.

    Their mudslinging campaign agains OSS hasn't proved to be the success they thought it would be, and more draconian licensing schemes are making customers re-evaluate their need for Microsoft Products.

    Notice, how I'm not talking about Joe Sixpack. Joe Sixpack will be happy to use whatever his machine comes with, as long as it does what he wants it to do. When computer manufacturers stop delivering OEM installations of Windows, we can talk about a level playing field where each OS will be judged on its own merits.

    1. Re:What else are they supposed to do? by SkArcher · · Score: 4, Interesting

      I don't think we are ever going to see a situation where high street companies are delivering 'bare' machines to the customer - the average man in the street does not want to have to install an OS of any flavour onto a machine - he wants to plug it in, turn it on and for it to work.

      The breakthrough will come when the big OEM manufacturers feel ready to deliver machines with a preinstalled Linux adaptation, which will not happen until;

      1) The big OEM manufacturers have a large enough technical support base that can handle over the phone troubleshooting on Linux based systems.
      2) A sufficiently user friendly front end is available for the average user to come to grips with easily.

      Linux geekery aside, ease of use is of the highest importance to the customer, and it is that which will sell products on a mass scale.

      --

      An infinite number of monkeys will eventually come up with the complete works of /.
    2. Re:What else are they supposed to do? by plover · · Score: 5, Interesting
      Even Joe Sixpack is starting to get fed up with Microsoft.

      Joe Sixpack has one feature that Microsoft doesn't want to exploit: he's cheap. Sure, he'll plunk down $50.00 for a game (repeatedly) but when you ask him to fork over $279 for Office (which sounds a lot like "work") he's more likely to take a second look before shelling out that kind of dough.

      Throw in the added whining 10-year-old "but Dad, I need Word for my schoolwork, teacher says" and you've got additional friction.

      I see a big void out there waiting for the Open Office crowd to step in: offering "Schoolwork CDs." It worked very well for Apple in the 80s; school sales literally kept them afloat while the IBM PC ate their lunches in the business world. Picture a schoolful of kids, all needing (yes, needing) an MSWord-compatible word processor for their home computers for their schoolwork. Now picture the local PTA volunteers burning 300 copies of "Open Office for Windows for Schools" with SIMPLE installers, and offering them to parents gratis. Would they still fork over $179 for "Office XP for Students and Teachers" if free disks are lying on a table at the exits? Or would they start seeing Open Source as a viable alternative to All Things Microsoft?

      And for those parents who can't afford the latest equipment, a Linux For Schools distro could be put together that specializes in offering only the stuff people need for schoolwork: Open Office, Mozilla, etc. No check boxes for servers, no configurations other than a time zone. For that matter, a "Configure Your Own Linux For Schools Distro" distro could be put together for the PTA crowd. It would allow the novice to input the schools name, a few bitmaps of the school logo at various resolutions, time zone, etc., and produce an ISO ready for handing out at the meetings. It could even print a disc sleeve that lists minimum computer required. That would need to be nothing more than about a 90MHz Pentium with 2GB of disk that can be had for about $20.00 from a junk trader. Hell, the PTAs invovled could probably get old PCs donated from the more "technologically current" families that they could preinstall and offer to the less affluent students or schools. I know I have a basement full of ancient PCs that aren't improving with age.

      Damn. I'm thinking this sounds pretty good...

      --
      John
  5. Here are a couple suggestions.... by Anita+Coney · · Score: 5, Interesting

    First, Microsoft should dump all money losing divisions. As I'm sure everyone here has heard, Microsoft's OSes and Office products generate over 80% profits, which the company uses to fund losers such as WebTV, MSN, the Xbox, etc.

    By dumping those loses, Microsoft could drastically drop prices AND continue making the same profits. I'd be a win-win situation.

    Second, drop product activation. No one likes being treated like a criminal. And as I've written here before, product activation does NOT stop real piracy, i.e., piracy for profit. The ISO for XP Professional was readily available and instructions for installing SP1 were easy to follow via tweaktown.com's instructions. Simply put, pirates were still able to copy and sell XP Pro without ANY impediment.

    The real purpose of product activation is to stop friends and family from sharing copies. If Microsoft's software was lower in price, (see my first point) people would simply buy their own copy.

    Third, stop the egregious software assurance type deals that only serve to piss off your customers. If you really want Linux to fail, stop giving your customers a reason to use it!

    Fourth, stop with those outrageous deals to stop Linux. You know the ones, when India, China, or Germany wants to switch to open source, Microsoft bends over backwards to give practically free software. This totally pisses off customers paying way too much via software the draconian deals imposed in my third point. Secondly, it gives them an incentive to look into switching to Linux.

    Fifth, stop using the BSA police to force deals. When public schools canâ(TM)t afford your software, donâ(TM)t send the police force a deal. When I didnâ(TM)t buy a GM car, they were kind enough NOT to send the police to check out my garage. We expect the same courtesy from Microsoft!

    Sixth, I could go on and on and on. But since my boss expects me to work for money, Iâ(TM)ll quit here and let others post some suggestions.

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
  6. Re:Unwanted Changes? How About License 6? by tkrotchko · · Score: 5, Interesting

    The issue for Microsoft is that to keep their stock prices high, they've got to show continually rising sales.

    But they're not going to convince anyone to switch to MS product at this point...everybody already runs a MS OS or MS Office, so there's no growth there. The market has matured.

    The server market has slow turnover, and growth will come slowly there (if at all).

    I see them doing two things:

    1) Putting license key schemes in place on their OS's, this will get a marginal revenue increase by eliminating the bulk of casual piracy for the OS

    2) I imagine the same thing will happen with MS Office soon

    3) Hope to god the console business takes off...

    4) Come up with a DRM scheme and convince the record companies and users its a good thing. Unfortunately, they don't have a good reputation as a strategic partner.

    5) .NET - next big thing....

    6) Palladium - next big thing....

    I mean, Ballmer's right, there's nothing there that will mean a big revenue increase for MS; its just a lot of nibble around the edges.

    Frankly, MS would have been better off splitting into an application company and an OS company; each individual company would be forced to innovate and take chances. But as they are now, MS is a very very conservative company, and that's not going to lead them to any big breakthroughs.

    They are equal to IBM in 1975.

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  7. It's Ironic by chia_monkey · · Score: 4, Interesting

    Don't you find it ironic that the worldâ(TM)s biggest software company got there not by innovation but rather by other means, and now they're bemoaning that very fact? They started off by buying OS code and licensing their way into most computers built. As their warchest grew and grew, they simply swallowed up other innovative companies or put innovative companies perceived as a threat to their death.

    This company was never based on customer service and now they want to be perceived that way? It's going to be quite tough for this large company to change the corporate culture that has run deep in its veins since the beginning of its existence, if it's even doable at all.

    --

    "He uses statistics as a drunken man uses lampposts...for support rather than illumination." - Andrew Lang
  8. Marketing Technology by Alien54 · · Score: 5, Interesting
    Basically this sounds not like actual technology, but a complaint that many folks have figured out ways to get around Microsoft's Marketing Technology (things like licenses, etc) that locks them into MS products.

    I've had more people thank me profusely when I've handed them a copy of Open Office, just because they didn't have to shell out big bucks for the MS product. They didn't even know an alternative was available.

    • Some industry analysts have pencilled in 2005, but the company is not prepared to endorse that view. Also, following its recent commitment to delaying software releases until it has ironed out all the bugs â" a marked departure from the companyâ(TM)s earlier practice â" Microsoft seems more than prepared to wait.

    It's probably even money that they'll bow to internal pressure to get something out, sort of like a WinME for XP or something, a stop gap to make people buy something.

    Otherwise, all those people who paid extra to be in the guarenteed update program will be upset, because it will become obvious that they are not getting very much for their money.

    --
    "It is a greater offense to steal men's labor, than their clothes"
  9. Re:Huzzah! by hkmwbz · · Score: 4, Interesting
    I'll probably be modded down for stating the obvious, but it has to be said...

    What is "superior" depends entirely on your needs.

    If Windows offers you exactly what you need, Windows is superior for that task. If Linux offers you exactly what you need, Linux is superior for that task.

    "Superior" is a bad word to use, though. Try "best suited" or "works best". I am not going to claim that I know exactly what is best at what - I am sure others have their informed opinions, and are probably debating the details as we speak (does Linux really run better with multiple processors, and so on). So I try to stay out of discussions like this. But you are making a sweeping statement based on nothing but ignorance.

    Your "fact" is nothing but a badly informed opinion it seems. BSD is a branch of Linux? Please.

    --
    Clever signature text goes here.
  10. Hey, Ballmer - you *still* don't get it. by Asprin · · Score: 5, Interesting


    Microsoft will have to do a better job of persuading customers it has something they need

    How can you be this smart and this delusional at the same time? You want to make Linux functionally irrelevant as a business OS? Here are some **REAL** ideas off the top of my head:

    1) Abandon Palladium. We really don't want to use our PCs to watch movies - we have $50 DVD players for that -- see #3. 'Nuff said.

    2) For that matter, your EULAs are WAY THE F___ OUT OF CONTROL. "Hmmm, it sure is an important OS security patch, but damned if I'm gonna install it because it sez right here that doing so gives MS the right to control my PC." I don't care what you *intend*, that's what it sez. If you want to control what's on my PC and what I can do with it, then you buy it for me, Mkay?

    3) Quit stalking your customers like a collections company. Abolish Open Licensing 6.0 and this *STUPID* software-by-subscription idea of yours. (If you want me to re-buy your software every year, those annual subscription fees are going to have to be lower -- a **LOT** **F___'IN** **LOWER**. Office '95 was good enough for me.

    4) Admit that your security problems are a direct result of your insistance in violating the #1 rule of software design: YOU NEVER MIX CODE AND DATA TOGETHER. You have specifically engineered every product you sell to be scriptable. STOP IT! Remove the OS-level scripting capabilities from your products and provide patches to your current customers to do the same on previous versions.

    5) You guys are acting like the software engineering divisions at HP! Stop trying to improve things that don't need improving and realize that the only perfection is simplicity. Go out and play some golf, maybe take some dancing lessons. ;)

    Sure, I like Linux, but I also like Windows. My problem is that even though I have already given you my hard-earned money many times over, I feel like you've nailed a bulls-eye on my back and handed out shotguns to all your beer-swilling pals.

    I am exploring alternatives because sticking with you is like being a hostage (as in gun-to-the-head) in a car speeding down a desert highway. If I jump out, it'll hurt, but once I stop rolling, get up, brush myself off and walk back to town, I'll be in control again.

    Wow, not-so-ironically, it **really** **is** much more about 'freedom' than 'free'-dom.

    --
    "Lawyers are for sucks."
    - Doug McKenzie
  11. Re:Perception Is Reality by dheltzel · · Score: 4, Interesting

    Or like the NY Times, where your employees are caught making up stuff. I'll never forget MS using an altered video as trial evidence. They even think "marketing" is the answer to legal problems.

  12. Clue caught at last by mwood · · Score: 4, Interesting

    Isn't this what we customers have been saying, nay, *screaming*, for years now?

    I recall the days when U.S. automakers tried to sell cars by telling the buyer, "you need what we build", before they got clobbered by the imports with their "we'll build what you need" attitude. I wouldn't be looking elsewhere if Microsoft's products met my needs.

    OTOH there's a big *natural* market for a company with the Features Uber Alles culture. If Microsoft would be content with a large, secure slice of the pie, instead of trying to grab the whole pie, they could do very well without revolutionary change.

    The trouble comes when you try to *impose* your vision of the market on a segment which holds to a radically different vision. Lose the vision, or lose the ambition to own the market; you'll never achieve both together.

  13. Re:Huzzah! by MeNeXT · · Score: 3, Interesting
    Have you used Linux? Your statement makes it sound as though you just looked at it and made up your mind.


    As a metter of fact YES you can just check off some check boxes, but most programes realise that it make no sense to be obliged to start the app in order to configure it, or if you have multiple stations to configure a simple cp of a file can save an enourmous amount of time, or even better an NFS mount of the config files.


    What stops you from poping in a CD? Most people get frustrated when an installer starts as soon as they slide the CD in because most of the time they are not installing anything they just want to acces that stupid clip art or such. If you wish it to autostart thats not an issue either, lame but not an issue.


    I will stick to my FreeBSD example above;

    Install new package: pkg_add

    Remove package: pkg_delete

    LIst of what is installed: pkg_info

    I need something which I have installed but do not remember what: apropos


    I could also go on an on and on and on. Windows does some things well provided you give up your freedom but most tasks can be done easier using another OS. I make a living in computers I do not have the time to play on them and most of the time I prefer to play on PS and Nintendo. If you like Windows, good for you, just stop telling me it's great. It took MS 8 years to catch up to Linux in stability, I'm hoping it will take them less time to fix the security.

    --
    DRM? No thanks, I'll just get it somewhere else...
  14. Re:Misnomer by jproudfo · · Score: 3, Interesting

    AFAIK, Longhorn won't break much, but applications will have to be rewritten in order to take advantage of some of its new features.

    Its just like the Win16 -> Win32 changes when Chicago (Win95) came out. Everyone was worried that it was going to break 16 bit apps. In the end, very few 16 bit apps had problems on Win95.

  15. Microsoft and developers by SpaceTaxi · · Score: 3, Interesting

    There was one important point reported by the Wall Street Journal that was left of these other accounts of the memo. Balmer mentioned lowering licensing fees to attract young developers to working with Microsoft tools over Linux.

    Certainly one of the factors contributing to the growth of free software is that there is no entry fee for aspiring coders to jump in and start working with a range of free tools available. Thus, MS is not only at risk of loosing end users but also pontential contributors to add to the "value" of their products.

  16. Innovation is coming Steve, don't worry. by presearch · · Score: 4, Interesting

    When Apple releases OS X Panther, it will give Microsoft a few months of new innovations to work on.