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Andreessen Interview Discusses Post-Crash Innovation

kevcol writes "The SF Chronicle has an interview with Netscape co-founder Marc Andreessen, talking about innovation after the dot-bomb crash, how AOL doesn't understand its own customers, his reaction to some comments by Larry Ellison, who believes that 'innovation primarily comes from big companies like Oracle', and Andreessen's post-Netscape experience as head of OpsWare (formerly LoudCloud)."

36 of 291 comments (clear)

  1. You know he is right by Camel+Pilot · · Score: 5, Funny

    innovation primarily comes from big companies like Oracle

    Just the other day I was reading that Microsoft is readying new technology to stop web popup's in their browser - this sort of fast paced innovation is what we can expect from leaders within an industry.

    1. Re:You know he is right by IWorkForMorons · · Score: 4, Insightful

      I do seem to recall them making a profoundly dumb move once or twice, but the details are hazy at best.

      I think the details went along the lines of "We'll buy Peoplesoft to corner the CRM market. Then we'll drive the company into the ground and leave all their customers with no choice but to buy Oracle software." Don't know if those are the exact words, but Oracle's CEO has come out to say things pretty close to that. Sorry, but evil is evil.

      As for innovation only being done by big companies, I do believe Apple started out in a garage. And wasn't eBay started in a basement. Innovation is done by people with a need, or by people who see a need and want to fill it. It's not done by corporations with a desire for more money. Innovation costs money without a guarenteed return on investment. For a business, that's a risk too big for most to take.

    2. Re:You know he is right by rev_sanchez · · Score: 4, Interesting

      Immediate profit motive can be an unreliable impetus for real innovation. Instead of focusing on real quality and good engineering you're sometimes forced into tie-ins, FUD, and other similar schemes to get short term results. Sometimes large organizations can do a better job with this because they have recourses to invest in the long term work it takes to do it right. If there isn't any need to push quality forward because of market conditions then you just manipulate the market (advertising, FUD, differential pricing) to sell more. The key to innovation doesn't really appear to be size as much as competition and patience.

      --
      If you didn't come to party don't bother knocking on my door. Prince '1999'
    3. Re:You know he is right by afidel · · Score: 4, Insightful

      The funniest thing is it isn't to corner the CRM market, it's to become the number 2 CRM vendor and make it essentiall a three horse race (SAP, Oracle, Siebel) with salesforce.com and a couple others as dark horses. That's why it's so insane the Ellison would drain all the capital out of Oracle to buy Peoplesoft, it just gains them a bit of marketshare and a customer list that will lose almost half it's value as soon as he gets it.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  2. former co-founder? by trentblase · · Score: 5, Funny

    is he no longer a co-founder?

    1. Re:former co-founder? by tuffy · · Score: 5, Funny
      is he no longer a co-founder?

      Perhaps the article was written by revisionist historians.

      --

      Ita erat quando hic adveni.

  3. Remember, Mr. Ellison... by Scoria · · Score: 4, Insightful

    'innovation primarily comes from big companies like Oracle'

    Even your company was once an "innovative startup."

    --
    Do you like German cars?
  4. Rearranging the deck chairs on the Titanic by Animats · · Score: 5, Funny
    He's selling a tool to install Microsoft security patches. This is innovation?

    Actually building a secure server - now that would be innovation.

  5. Actually... by IntelliTubbie · · Score: 5, Insightful

    He's still Netscape's co-founder. I mean, you wouldn't call Michelangelo the former sculptor of David just because he's not still chiseling away. He didn't go back in time and un-found it or anything. :)

    Cheers,
    IT

    --

    Power corrupts. PowerPoint corrupts absolutely.

  6. Imposter Boy? by Performer+Guy · · Score: 4, Interesting

    Whe should anyone care what Andreesen says after the truth is out, read about it here:

    http://www.chrispy.net/marca/gqarticle.html

    or is he really the great Entrepreneur:

    http://www.fortunecity.com/campus/alfred/290/andre esen.htm

  7. It's true, for the most part by ObviousGuy · · Score: 4, Interesting

    Large corporations are really the only places where you'd find enough capital to experiment with cutting edge technology. Some examples of these are Microsoft with MS Research, HP with HP Research, AT&T with Bell Labs, Xerox with PARC. These guys are doing what you want to be doing, driving the technology into the future.

    While there have been significant gains in innovation that have come out of OSS, the movement largely remains a follower rather than leader of technology, choosing to re-implement already-existing technology for the sake of software freedom.

    Small companies these days do not find it so easy to get financial backing for their ideas (which are usually cutting edge stuff), so the days of Yahoo!, Amazon, and other current mainstream companies who were once just gleams in their creators' eyes but grew to enormous proportions are long gone.

    --
    I have been pwned because my /. password was too easy to guess.
    1. Re:It's true, for the most part by Lumpy · · Score: 4, Interesting

      Are you crazy?

      In the software world, a 13 year old in his basement with a old P-III 500 and linux has the same tools available to him as the entire microsfot corperation does.

      The Basement/garage Electronics inventor Also has the abilities/tools available.. I can solder BGA chips to the home made 4 layer circuit boards I can make (have a board house do it for you for $100.00 is much easier though) A large number of chip makers gladly dole out single or a 3 pack of samples to small companies or hobbiests.

      Right now the single person has the same capabilities available to them that the largest companies in the world do. Hell we have the "rock-star programmer" building a fricking rocket to launch himself into space.

      you will see this trend accelerate as technology is advanced. I can print and bind a book in my home, I can manufacture my own electronic devices, i can write my own software and I can publish/sell it to millions of people easily.

      --
      Do not look at laser with remaining good eye.
    2. Re:It's true, for the most part by afidel · · Score: 4, Informative

      You forgot the largest currently run private R&D facility, IBM! You know, the guys who churn out more than a patent a day. MS research has done little with their money, HP unfortunatly is no longer really in the R&D game, Bell Labs is gone, and PARC too is a memory.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    3. Re:It's true, for the most part by jallen02 · · Score: 5, Insightful

      I agree that individuals have tremendous amounts of knowledge and equipment available to them at a very low cost, yet the one man show still doesn't have every resource a larger development/research team would. The one man show is missing one key resource: time.

      One person can't possible explore as much as a 5 man R&D team can. A well equipped R&D team researching the same idea a one man show is researching is bound to do better due to the amount of collaboration etc (Assuming the five people are equally skilled as individuals when compared to the one person). There ARE diminishing returns on development projects when you add more developers. There is a sweet spot, and anything more than that gets you less and less. However, that five man team has more raw man hours than the lone hobbiest, which can make a huge difference in the net results.

      I do feel there is significant room for innovation from one guy with a great idea and the grit to see it through to the end, but it is always important to remember that the big company has money/time that one individual may not possess. Hopefully technology can equalize this gap, but it will take time for technology to do this.

      Jeremy

    4. Re:It's true, for the most part by fucksl4shd0t · · Score: 4, Insightful

      In the software world, a 13 year old in his basement with a old P-III 500 and linux has the same tools available to him as the entire microsfot corperation does.

      Erm, not exactly. Microsoft has huge resources available in terms of testing and coding and stuff. A 13-year-old with linux doesn't have those things. He does have a lot of great tools, and he's certainly in a good position to "innovate", but he still can't match Microsoft or any other large corporation for resources. One important thing he's missing is the ability to determine if his "innovation" is going to make money. Large corporations have millions (billions?) of dollars to spend on market research to determine if their innovation will sell.

      The Basement/garage Electronics inventor Also has the abilities/tools available.. I can solder BGA chips to the home made 4 layer circuit boards I can make (have a board house do it for you for $100.00 is much easier though) A large number of chip makers gladly dole out single or a 3 pack of samples to small companies or hobbiests.

      Can you make a processor? More importantly, can you make one that will be "innovative" compared to current bleeding-edge processor technology? For any other electronics project, the issues will be the same. How much do your failures cost you in time and money? How much time and money do you have to spend? For every Jobs and the others that existed in the '80s (the Amiga was designed by a team in their garage as well) there were hundreds of failed garage computers. Even after you've built your innovative piece of electronics, whatever it is, it takes money to manufacture it, and even more to market it. Jobs and Gates and all those guys had a HUGE advantage in their market that we don't have now: there were no PCs. Home computers didn't really exist. As much as I hate to admit it, Jobs and Gates (and Commodore, but they're not around anymore for anybody to remember their significant contributions) made computers available for home users.

      Right now the single person has the same capabilities available to them that the largest companies in the world do. Hell we have the "rock-star programmer" building a fricking rocket to launch himself into space.

      The first statement is just plain wrong. :) Total up your net worth and then compare it to IBMs net worth and then tell me a single person has the same capabilities as the "largest companies in the world". Your "rock-star programmer" building his X-prize contender just happens also to have a significant personal fortune to put into the project. Can you build a rocket that costs a million dollars? Do you have the resources to do all the R&D required to build a rocket? Check out the Armadillo pages to see the failures they have. Can you even afford to have one of their failures?

      Yes, individuals can and will innovate. They will also continue to get rich doing so. But that's not the same as having the same resources available that a large corporation has. It's still David and Goliath no matter how you slice it.

      --
      Like what I said? You might like my music
  8. Of course... by musingmelpomene · · Score: 5, Insightful

    The real innovation happens at companies populated with nineteen year olds. At nineteen years old, you don't have the kind of doubts you'd have at thirty. You don't have a hundred people in middle management telling you what you can't do. You don't have people trying to tell you that you're crazy for having a brand new idea, and you don't have a marketing department that swears up and down that the focus groups thought your product was crap. That's why true innovation starts in people's garages, with leaps of faith that can't be made in a big company. It's true that big companies are best at improving already existing technology, but the newest, most revolutionary concepts come from the brain of ostracized teenagers who just don't know when to quit.

  9. It's all in a capitalist context! by SexyKellyOsbourne · · Score: 5, Insightful

    The entire, long interview only mentions the word Linux once, and none of it takes place in the context of open source -- it's like something out of a 1999 BusinessWeek, when Linux/OSS was considered a joke and a non-factor.

    It seems as if he's just pitting small businesses -- 19 year old wonder kid startups that often fail and caused the dot-com crash-- against brick and mortar computer companies, and COMPLETELY giving the cold shoulder to the open source and free software movement that's currently making all the difference and leading the way in innovation in the computing world.

    Either this guy feels threatened by the free software revolution of the 21st century, or is still stuck in the past.

    1. Re:It's all in a capitalist context! by mellon · · Score: 4, Insightful

      What caused the .com crash was rampant speculation that funded businesses with no business plan, not 19-year-olds. I.e., greed, not inexperience. This is not to say that 19-year-olds always come up with the goods, but at the time of the bubble it was just *stunning* how many dumb business plans got funded.

  10. I'd have to admit.... by tekiegreg · · Score: 4, Insightful

    Marc Andreessen is a person that makes me think. Was he one of the losers of the .com revolution (Netscape died a cruel death at the hands of AOL) or was he one of the winners (his browser returning to its roots as an Open Source Mozilla and slowly but very surely starting an open source revolution). View it how you will...

    I say this as an evil Microsoft developer who just loaded the latest Debian package on his system. To quote Magneto in XMen2 "It has begun...."

    --
    ...in bed
  11. Exactly by Stone316 · · Score: 4, Interesting
    They've made contributions to opensource as well as to the Linux platform. If it wasn't for Oracle, linux wouldn't even be a consideration for us at the moment.

    While they are a 'big' company and some people distrust them based on that fact. Generally they adopt industry standards. Aren't they in our good books today? Or is that Wednesdays?

    --
    "Thanks to the remote control I have the attention span of a gerbil."
    1. Re:Exactly by GoofyBoy · · Score: 4, Interesting

      >having their software running on linux doesn't directly contribute to opensource software.

      Its a huge thing. One of the biggest complaints of Linux is that it can't run stuff Windows does.

      >how about open sourcing the admin tools?

      At the heart of OpenSource is that you are not forced to do anything that you don't want to. Its "as is".

      And who are you to say what Oracle should and shouldn't do? Who named you "King of OpenSource"?

      --
      The surprise isn't how often we make bad choices; the surprise is how seldom they defeat us.
    2. Re:Exactly by Stone316 · · Score: 4, Insightful
      Theres more to supporting opensource than providing free software. A part of it is also helping guide open standards and supporting them. They could have taken the same route as MS but they didn't. They had the forsight to see that open standards are a good thing.

      Supporting their software on Linux also benefits the OS community. Oracle is a 1 point of contact for any problems on the support linux platforms. Thats a HUGE deal for companies considering moving to Linux. No matter what the problem is on a linux server Oracle will support you.

      As for actual code here's a quote from an article:

      Officials at the OracleWorld conference here last week said Oracle will continue to contribute development work and code in areas such as management, clustering and enterprise database to the open-source and Linux community in association with companies such as Red Hat and SuSE Linux A.G.

      Full article here.

      --
      "Thanks to the remote control I have the attention span of a gerbil."
    3. Re:Exactly by marktoml · · Score: 4, Informative

      ...and they DO contribute to the Open Source community.

      http://oss.oracle.com/

  12. Pot Calling Kettle by Davak · · Score: 4, Interesting

    how AOL doesn't understand its own customers

    I don't think most users wanted netscape to develop into the most buggy, bloated browser in the market!

    I remember way back when netscape was actually great alternative to IE... all the geeks used it. Then they started trying to build the great palace of netscape on top of it... and it crumbled.

    If they would have listened to their users, they would have stayed small... and probably done a lot better moneywise.

    Now they are having to build a small browser from the beginnings up--after the money is gone.

    Davak

  13. Re:"post-crash" by Frymaster · · Score: 5, Insightful
    Does he mean the economy or the browser

    well, i hope he means the browser since he knows jack all about the economy. witness from the article:

    Do you want to put up a tariff, do you want the price of Chinese goods to rise? You're taxing your own citizens, and you're paying more for the things you buy at Wal-Mart. Why would you do that?

    apparently andreesen thinks economics stopped with david ricardo.

    the reason you want to put up a trade barrier with china is because they compete on price by breaking the international rules: child labour, forced labour, unsafe working conditions, bad envirionmental track record. you name it. if "free trade" is going to work (a long shot) then there have to be baseline standards about what constitutes fair manufacturing practices - otherwise the "winner" in the global economy is the country most willing to exploit its citizens, fuck its environment and provide substandard or unsafre products.

    bah!

  14. Someone had to point it out.. by k98sven · · Score: 5, Funny

    This is the same guy who gave movie advice
    here??

    Right?

  15. News Buyout? by -Grover · · Score: 5, Funny

    I found this particularly interesting
    When AOL's market cap was at $170 billion, the executives added up the parent companies of the five major newspapers in the country -- the Wall Street Journal, New York Times, L.A. Times, Washington Post and USA Today.

    They could have bought all five for about 10 percent of their outstanding equity at the time. And they almost did it, except for the fact that they didn't think they could get antitrust clearance. But they thought that would be a good thing to do.


    Nothing like unbiased news sources owned by a gigantic conglomorate of everything evil in the world.

    Tv News reporter
    Today in news CEO/CTO of AOLTimeWarnerNetscapeNewYorkLATimes...commerical.. .WSJWashingtionPostUsaToday said that apparently "All your base belong to us".

  16. AOL doesn't understand its own customers by ENOENT · · Score: 4, Funny

    Heh. NOBODY understands AOLers.

    --
    That's "Mr. Soulless Automaton" to you, Bub.
  17. Re:Dot-bomb by frodo+from+middle+ea · · Score: 4, Insightful

    Obligatory Simpsons Quote :- Blame it on the guy who can't speak English<P>
    Surely you do realise that those very jobs were created by the dot-com boom. It was a bubble which was destined to burst. Don't blame the foreigners for faults in your own economic structure. You chose capitalism as your economy , and now you are seeing the ugly side of it.<P>Capitalism just like any other socio-economical structure has its own advantages and disadvantages.

    --
    for the last time people, I am "frodo from middle eaRTH", not "middle eaST".
  18. Big companies and innovation by rm007 · · Score: 5, Insightful

    One of the problems big companies tend to have with innovation is not that they don't have ideas. It's just they're so big that the next innovative idea -- if it's not equally huge -- isn't going to move the needle on their financials.

    And if it is a truly revolutionary innovation, it will destroy the business of the units of the company the currently make all of the company's money ... and therefore the careers of decision-makers in those business units, who tend have a lot of say into the direction of the company and so are likely to fight resource allocation to such threats being developed from within the company. They may have to buy them in later, but that's how most big companies innovate these days, they buy up small companies.

    --


    I've finally got around to changing my sig
  19. Why is this guy so important? by teetam · · Score: 5, Funny
    He started two companies, both of which are down in the dump. Why are people still concerned about his opinion?

    I guess management is the only place where successive failures enhance your fame. If he were an ordinary "worker", with that record, he would be out on the streets.

    --
    All your favorite sites in one place!
  20. ...waiting for the dot-com coredump. by strredwolf · · Score: 4, Funny

    Come on! It crashed! Where's the core dump so we can run it through GDB and find out what went wrong?!?

    --

    --
    # Canmephians for a better Linux Kernel
    $Stalag99{"URL"}="http://stalag99.net";
  21. Why does anyone listen to Mark Andreessen? by NickDoulas · · Score: 5, Insightful

    I mean, don't get me wrong - he seems like a nice enough guy and I wish him well and all that. He had an undeniably good contribution with Mosaic. However, after that, he has always struck me as someone who was in way over his head. I remember reading somewhere while he was VP of Engineering at either Netscape or Loudcloud, that the main advice he gave other entrepreneurs was to "never compete with Microsoft". What kind of advice is that? I never saw how his programming contributions ever qualified him to be VP of Engineering at any company, and I've never heard him say anything particularly insightful in countless interviews he seems to keep getting to this day.

  22. Re:"post-crash" by Imperator · · Score: 4, Insightful

    I agree with you that there are lots of good arguments against free trade. But you have to remember that there's another huge advantage to free trade that no one talks about: peace. One of the benefits of the Marshall Plan, the EEC, and all that was that [Western] European economies were integrated by trade, and this made war between them untenable--their economies would collapse the moment the shooting started, because trade would be cut off. For all their tensions, the US will not go to war with China, because our economies are increasingly interdependent. Free trade is not just about economics; it's about creating a world in which war is unthinkable. That does not automatically make free trade good; as you pointed out, it has many issues. But for all the real evils of Wal-Mart in China, consider the security both countries enjoy from each other, and the secondary savings like not spending as much money on defense.

    --

    Gates' Law: Every 18 months, the speed of software halves.
  23. Mr Andreessen by OpCode42 · · Score: 5, Funny

    Mr Andreessen, welcome back. We missed you.

    (I'm so sorry)

  24. Big companies produce patents, not innovation by Fefe · · Score: 4, Insightful

    Actually, if you use "innovation" in the new-age business lingo of those hipster PR suit bearers, then it may actually be correct. These days it apparently counts as innovation if your software puts the menu choices in a different order than the previous version.

    Innovation used to actually mean something a few years ago. *sigh*