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AT&T Labs' Brain Drain

Frisky070802 writes "The Newark Star-Ledger has an article on the brain drain at AT&T Labs, which laid off close to half its researchers two years ago this month, another good fraction last spring, and has lost many of the rest through voluntary departures. The article claims that only Microsoft might have the money to fund basic research as Bell Labs did years ago, though many (including me) would put IBM in the same camp. It cites problems at AT&T, ranging from researchers paying their own way to present at conferences to a loss of free espresso and bottled water. Many luminaries, such as Lorrie Faith Cranor, Avi Rubin, and Bjarne Stroustrup, are quoted --- with Stroustrup saying the lab was "mugged" by Wall Street. (Rumor has it that the losses haven't stemmed, with more top-notch researchers going to academia in the coming months.)" (Non-registration ZIP and age demographic collection.)

24 of 347 comments (clear)

  1. What do you expect? by mark99 · · Score: 3, Insightful

    They laid off two-thirds of the company. It would be odd if Research wasn't similarly decimated (triated?).

    I wonder if the "Open Source" is picking up the slack in basic research these days. I don't think Universitys have been too productive in my lifetime.

    1. Re:What do you expect? by godIsaDJ · · Score: 5, Insightful
      I wonder if the "Open Source" is picking up the slack in basic research these days. I don't think Universitys have been too productive in my lifetime.

      Now that's way too much to expect. If research was easy surely everyone would win nobel prizes??
      You cannot really expect research to spring up from nowhere just like open source software, the background needed is completely different.
      While becoming a *very* competent developer/architect etc. is withing reach of most smart people around with sweat and hard work, becoming a research is definitely not! Not many people got what it takes and the willpower to gather the knowledge you need just to get started...
      My 2 cents...

    2. Re:What do you expect? by jcr · · Score: 4, Insightful

      If research was easy surely everyone would win nobel prizes??

      Your question ignores the very limited number of Nobel prizes available.

      Regardless of how many poeple may produce very significant work, only a handful will be recognized by the Nobel comittee every year.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    3. Re:What do you expect? by Rinikusu · · Score: 3, Insightful

      It depends. Bell Labs has been, historically, one of the premier research centers in the WORLD. The kind of prestige that brings by constantly pushing envelopes, by constantly being published, by constantly attracting the best and brightest in the industry to your research facilities is almost priceless. These best and brightest also create the foundations of your future product lines, patent licensing income, etc etc. Without products and constant innovation, it could be argued that you no longer become viable (or as viable). Dell is a huge exception to this, as they indirectly benefit from the huge R&D Intel and others invest into their own product lines. But imagine if Intel and the others just sat back and waited for someone else to innovate so they could roll those new ideas into their product line. Dell would quickly stagnate, as would the others. (To be fair, Dell does spend quite a bit on R&D, but overall it's just a tiny fraction of their total income, unlike folks like IBM or Apple, who rely upon their R&D to provide innovative ideas to push the envelope, to use the parlance of our times). (As an aside, I wonder if their R&D expenses also include their packaging/distribution innovations? Dell certainly has "revolutionized" the "Just In Time" manufacturing techniques that everyone indirectly benefits from). What I'm getting at, is if everyone were to do things the Dell (or even Walmart) way, then the world would quickly become stagnated and..bland.

      I'd think that R&D might take a hit, but you don't get rid of your best minds or make conditions unbearable for them just to save on salaries. They provide the long term product line that your future profits will rely upon.

      --
      If you were me, you'd be good lookin'. - six string samurai
    4. Re:What do you expect? by GGardner · · Score: 3, Insightful
      These best and brightest also create the foundations of your future product lines, patent licensing income, etc etc.

      If this were true, Bell Labs wouldn't be shutting down. The truth is, none of the world-class pure research labs (Xerox PARC, Bell Labs, TJ Watson, etc.) do a good job of helping their parent companies in the long run. How much money did Bell Labs directly make on the transistor? The Laser? The C programming Language? C++? Unix succeeded in large parts despite the efforts of USL. Look at how successful Xerox PARC made Apple, but not Xerox. Very few companies now do much pure research for this very reason.

      Many other companies (and society in general) tend to benefit from the breakthroughs in pure research from these labs, but the orginal companies usually have the biggest difficulties managing this.

    5. Re:What do you expect? by HuguesT · · Score: 4, Insightful

      IBM's research centers do very well. They earn in excess of $1B a year in licencing fee alone. Also how much do you think the 50,000 patents portfolio is worth? Don't you think it will come into play shortly with the SCO disaster?

      Bell Labs were explicitely forbidden to market Unix or the C language or C++ for profit due to regulation. Arguably this is a contributing cause to their success, making these technologies open and publicly available to a great extent.

      Management, like politics, is most often short term focussed. Pure research drives what society will use 20-50 years down the track and it can be profitable for companies, as IBM is showing. It just requires long-term management. Maybe they should take a leaf out of some companies that have long-term views, like some wineries (look up Robert Mondavies: he wants to make his premium wine, Opus One, the best wine on the planet, period, within a time frame of 100 years. Right now it is in the top ten).

    6. Re:What do you expect? by JanneM · · Score: 5, Insightful

      Except that the career path has been eroding. The number of full-time faculty positions (to say nothing of tenured positions) have been declining, so people spend more and more time in post-doc limbo. Getting your degree is not the difficult part of the career - getting an actual full-time position is.

      --
      Trust the Computer. The Computer is your friend.
    7. Re:What do you expect? by michael_cain · · Score: 5, Insightful
      The truth is, none of the world-class pure research labs (Xerox PARC, Bell Labs, TJ Watson, etc.) do a good job of helping their parent companies in the long run. How much money did Bell Labs directly make on the transistor? The Laser? The C programming Language? C++? Unix succeeded in large parts despite the efforts of USL.

      At least in the case of Bell Labs, this is hardly a fair criticism. Of the technologies listed -- transistor, laser, Unix, C -- all were developed while AT&T was a regulated monopoly. AT&T was not allowed to go into businesses other than telecommunications and their profits were restricted. Within those limitations, the transistor revolutioned telephone switching systems (stored-program control switching in the early 1960s), the laser eventually revolutionized transmission systems (fiber optics), and Unix and C had an enormous impact on operations support systems and other software applications within the Bell System. Certainly Bell Labs was successful at applying these technologies to design and build a network whose low costs and high reliability were the envy of the world at that time.

    8. Re:What do you expect? by Ungrounded+Lightning · · Score: 4, Insightful

      Management, like politics, is most often short term focussed. Pure research drives what society will use 20-50 years down the track and it can be profitable for companies, as IBM is showing. It just requires long-term management.

      Precicely.

      Basic research pays off - in time to make a bundle for investors.

      But once you've got a bunch of stuff from your OLD basic research in your portfoloio, a bunch of strip-mining Harvard types can make your balance sheet look REALLY GOOD for a few years (long enough for THEM to cash out their bubbled-up stock) by neglecting to plow any of it back into the NEXT projects. Then the guys who inherit the mess get the blame when the house of cards folds up.

      As I understand it:

      Bell Labs was a case in point of how basic research pays off. During the consolidation of the Bell System their size was pumped up partly as a regulatory scam: Once it had the mandated monopoly, the system could get their rates adjusted to make something like 6% profit on anything they spent on the telephone system - including research and development. So Bell Labs' real job was to spend as much money a possible on research on anything vuagely related to telephony. It looked like a no-lose: Spend a dollar, charge the telephoning public $1.06.

      But it "failed" totally: From the first year of this hack onward through the disvestiture and beyond, patent licensing and the like brought in more than Bell Labs spent. Awwwwww... B-)

      Xerox PARC, on the other hand, appears to have been an accounting error. (No by the same team that also mis-accounted lease revenue from their mainframe business, thought it was losing money, folded it, sued IBM for antitrust, and got laughed out of court when IBM's accounting team got hold of their books and found that it had actually been wildly profitable.)

      Seems that early Xerox machines used electromechanical logic to control the device. Lots of relays and moving parts, all expensive. One of Xerox PARC's first projects was to build a control panel using one of those new-fangled microcomputer chips. This saved them a LOT of money on each machine. And PARC kept getting credited with part of this savings. So even though corporate never managed to productize most of the stuff they came up with, they looked profitable on the books. (They DID actually sell some rights to windowing systems and mice to Apple, Though. B-) )

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    9. Re:What do you expect? by NateTech · · Score: 4, Insightful

      The vast majority of the "internal guts" of telco still runs on Unix. I'd say Unix made AT&T plenty of money.

      800 numbers and SS7 wouldn't have existed in the 80's without Unix behind them. Toll-free to the end-user is of course, not toll-free to the business answering the phone.

      Any small office using Definity Voice Mail or IVR platforms is running it on AT&T Sys V Unix, still to this day...

      What ARE you smoking? Unix made AT&T and the later divested companies a ton of money. They didn't create Unix to SELL it, they created Unix to USE it. Which is the CARDINAL difference between Unix and Windows... Unix was created to WORK, Windows was created to SELL.

      --
      +++OK ATH
  2. The real tragedy... by syousef · · Score: 5, Insightful

    ...isn't any one company or research centre closing or being made ineffective. Single institutions grow, evolve and die - they have their golden eras and their stagnant eras. When they're no longer useful or vibrant a new research centre crops up. Innovative scientific progress comes in jumps and spurts and doesn't follow a project plan.

    The real tragedy is rather that with the .COM bust there's not been any funding for new research centres. There is therefore no chance for a new centre to have its creative spurt, and nowhere for today's creative minds to go.

    I don't think we should be trying to revive dying scientific centres at all, or singling out individual ones. Instead money should be going into research and development in general based on the merits of the research. Fix the general problem and give our best thinkers the chance to do their stuff.

    --
    These posts express my own personal views, not those of my employer
  3. Academia by metlin · · Score: 4, Insightful

    As the article points out, a lot of people are also moving into the academia, not necessarily back into the industry. Perhaps they're happier working in academic environments - atleast that way, they get to have their knowledge and findings out in the open.

    However, what the article fails to mention is that a lot of corporate researchers like this guy are increasingly looking at the industry as a means of getting their research done.

    This is an issue not just with AT&T, but lots of other research labs out there. If you look at some of the top conferences on AI, Graphics and the like (SIGGRAPH for instance) - you have an alarmingly high percentage of people performing cutting edge work from Microsoft Research.

    So, it does look like MS-R is becoming a destination for a lot of good researchers out there - however, the collective prowess of other places like IBM, Intel and Xerox might just be able to bring in a balance.

    The good thing is that this brings money for research and researchers. The bad thing is that all the patents of tomorrow in a lot of the cool technologies will be 0wnzer0ed by MSFT - where would that lead OpenSource in terms of a future - if all the technology that is to come is patented?

    Its a double edged sword.

  4. Common in a lot of industries by TrentL · · Score: 5, Insightful

    Well, this is a very common problem. I remember when I went for interviews in 2000...all the reps at Raytheon and Boeing were saying how a huge part of their workforce was going to retire, and all that knowledge was going to walk right out the door.

    Clearly, your hiring patterns have to be continuous. You can sit out economic cycles, but you can't sit out entire generations.

  5. Everyone has their own research division... by Coryoth · · Score: 5, Insightful

    It's a nice idea - every company has their own pure research division to solve all those interesting problems, and the IP stays within the company... except, very few companies can afford to do this.

    Then again, look at what's come out of these sorts of pure research labs: C, UNIX, WIMP interfaces, etc., even Java, to some extent, could well be considered the output of such a process.

    These aren't technologies you can bottle and sell. The value of these sorts of things is the productivity gains they provide. That's not to say the bottle and sell it approach hasn't been tried, but in the end the real meat is often in the abstract ideas, and even with the current patent system you can't patent purely abstract concepts. That is, all these ideas have been cloned, reinvented, or otherwise copied in one form or another.

    Which brings me to my point - if you can't bottle it and sell it, if your competitors are just going to end up making a near duplicate anyway, why are you trying to fund this research lab all by yourself? No one doubts the quality of the work that can come out of these places, so why aren't there more cases of a group of various companuies banding together to fund a research group*? I'm not even talking about joining up with your direct competition - surely it wouldn't be that hard to have a group of companies that are not directly competing yet are all interested in managing to bring about a new, better, computer interface etc.

    This "go it alone" attitude is sinking a lot of potentially incredibly valuable research simply because companies don't seem to be able to cooperate.

    Jedidiah

    * Note, for instance, that OSDL is exactly this sort of thing. A research group funded by a wide range of backers all interested in pushing forward computing. And it seems to be a model that's working well!

  6. Good news! by PissingInTheWind · · Score: 4, Insightful

    At least the research in university isn't (as) tainted as in the industry. If we can get the top researcher to make great and open contributions to the science, it's all the better.

    --

    A message from the system administrator: 'I've upped my priority. Now up yours.'
  7. Re:AT&T Labs? by yukio · · Score: 5, Insightful

    It's the Carly Fiorina touch.

    I'm sure she offed much of the Labs because there was no short-term sales potential for a lot of what they were doing. And as a sales dweeb, that's all she can understand.

    (See also Compaq, Alpha CPUs, HP, Itaniuam servers, the HP 3000 series etc)

    I swear that woman and Celine Dion are the evillest twins on earth.

    --



    To have ambition was my ambition.
  8. Re:GNU/OPEN SOURCE ONLY COPIES, NEVER CREATES by DuctTape · · Score: 3, Insightful
    Ah, I guess Bill Gates really does post as an AC.

    DT

    --
    Is this thing on? Hello?
  9. Re:ATT is not the only one by metlin · · Score: 5, Insightful

    Actually it has been going on both ways - people moving from the industry to the academia and from the academia to the industry.

    Just as an example, think of Jerry Yang and David Filo, Larry Page and Sergey Brin, Leonard Bosack and Sandra Lerner, Scott McNealy and Bill Joy - just to mention a few - all these people could have remained in the academia but chose to go to the industry instead.

    I'm not sure if this will produce the kind of innovative stuff that came out of Bell labs, but at least fundamental research is alive!


    That is the problem - the kind of monolithic no-holds-barred and no-questions-asked environment that Bell Labs provided is gone - that is what the article sought to mention towards the end. Sure, you can do something at the Universities, but not at the scale that it happened at Bell Labs.

    So, it really brings us back to the question - Is fundamental research really happening, or is all research now being funded solely based on what Wall Street wants?.

    It looks more and more like the days of research for the sake of in and itself are slowly coming to an end.

  10. Are we beyond the fundamental research stage? by EmbeddedJanitor · · Score: 4, Insightful
    AT&T did contribute a lot to research, but perhaps we're beyond the stage where organisations like AT&T can provide meaningful reasearch.

    Like aerospace and military, the telecoms industry did push early days computers. However it has been the industrial sector and since then the consumer sector which has driven the smaller, faster and cheaper computing.

    For example, one might argue that modems were a spin off from Rockwell aerospace. However, that would have left us with 300 baud modems the size of a PC. It took the comsumer age to drive us to 56k Compact Flash format modems.

    We have a lot to thank the pioneers for, but after a while they get beyond their usefulness/effectiveness.

    --
    Engineering is the art of compromise.
  11. Re:At&t labs, great contributer to computing. by AtrN · · Score: 5, Insightful
    I don't see Microsoft pursuing research quite like Bell/AT&T Labs has.

    In the CS area they are certainly very active. Check it out.

  12. symptom by ScrewMaster · · Score: 4, Insightful

    This is just the tip of the iceberg: for the past hundred years or more, the rest of the industrialized world looked to the United States for advanced research, innovative ideas and new technologies, if not new products. Now we are being surpassed on nearly every level, and we have no-one to blame but ourselves. Time for us to get the lead out, get back to work, and start competing again. I'm sick and tired of hearing about how we can't compete with near-slave labor, how India has raised so many super-smart engineers and scientists that we don't have any hope ... that's baloney. We are the ones that proved to the rest of the world that there is a better way, that abject poverty need not be the lot of the average human being. I simply don't believe that after a mere two hundred-odd years America has peaked: we can get back on track if we accept a few facts.

    The Japanese have always looked at business as a kind of battleground. China and India are taking much the same tack with us. Now that's fine: there's nothing wrong with stiff competition, in and of itself. If you understand that and work hard to improve your own operations, everyone wins.

    The problem is we, as a nation, haven't fully realized that we're smack in the middle of an economic war. Certainly our corporate leaders have not: they are, in fact, actively giving aid and comfort to the enemy! Were they in the military, they would be summarily executed for profiteering. These people, as well as many members of the government, need to be made aware of some things. For example, I don't believe that good business practices should involve the total destruction of one's own workforce (and just incidentally, one's best customers) nor should it involve massive transfers of technology and proprietary information to foreign "partners". Partners who, I might add, are more than likely to simply take that information while giving nothing in return. Protectionism (in the sense of the government dropping huge tariffs on foreign suppliers) is not a real answer, but on the other hand simply giving away everything you have of value, everything you have spent years and billions of dollars to develop, is just plain stupid. Yet that is precisely what is going on.

    I'm sure that most of us know of companies that took their manufacturing and/or engineering operations to China, say, and then found themselves to be nothing but hollowed-out marketing organizations totally dependent upon foreign suppliers. We allow this to happen, because they don't perceive "good business" in the same way the Western world does, and we don't understand that. At all. That doesn't mean we can't do business with China to the benefit of all, but we simply have to learn how to do it.

    I'm reminded of Yamamoto's words after the attack on Pearl Harbor: "I fear we have awakened a sleeping giant." Well, I think it is past time that America woke up from it's decades long slumber and started to compete again. It can be done: we just have to convince each other of that fact, be willing to accept significant changes in the way we do business, and convince Congress to let us do it.

    --
    The higher the technology, the sharper that two-edged sword.
  13. Re:At&t labs, great contributer to computing. by Prof.+Pi · · Score: 5, Insightful

    What is interesting is that AT&T was able to afford their great labs because their government-granted monopoly gave them a guaranteed revenue stream.

    In the early 20th century, basic phone service in the U.S. was a mess, much like the current situation today with cell phone service. AT&T, the biggest player, managed to convince the government that phone service was a natural monopoly and that they were in the best position to be the ones to run that monopoly.

    This freed them from financial pressures. There was no Wall Street pressure to "increase profitability" because if they did, the regulators would say they're making too much and would mandate reductions in the rates charged to customers. On the other hand, as long as Bell Labs kept coming out with neat stuff (such as, geez, you didn't even mention the transistor?) the regulators would be happy to let the customers subsidize this because everyone would benefit in the end.

    After the breakup in 1984, phone service got way cheaper (I mean, I can call China for 2 friggin' cents a minute) but competition forced phone companies to focus on short-term costs.

  14. Bell was Swell, but.... by fm6 · · Score: 4, Insightful
    Since this is Slashdot, the invention of Unix, C, and C++ should top the list of Bell Labs accomplishments. All OSs in widespread use owe a big debt to Unix -- even those that aren't (like Linux) simply evolutions of Unix itself. And for better or for worse. C and C++ are the most influential of all programming languages, ever.

    As for the end of Bell Labs: I'm just suprised it didn't happen 20 years ago, when AT&T stopped being a legal monopoly, and had to start acting like a business.

    We lost a lot when that happened. Not just all the cool computer science and communications tech. Lots of pure science too.

    And a nasty change in the way the phone business worked. In the old days, telephone equiment was made by well-paid, well-treated workers in the U.S. and Canada. And made to last. And when it finally did wear out, it was shipped back to Western Electric factories, where it was thoroughly recycled. Now phone hardware is made by underpaid peons in overseas sweatshops, designed to last a year or two, and finally tossed in a landifll.

    But, as the Libertarians love to say, There Is No Free Lunch. (Which is not strictly true, but that's another story.) The price of AT&T's huge contributions to science and expense-blind corporate citizenship was immense. Phone calls were expensive, and telephone equipment could only be leased (it was illegal to sell it) at high rates. Forget going out and buying a cheap modem -- if you wanted to do dialup, you had to lease a "data set" (a huge, clunky slow terminal-modem combination) for a horrendous rate. Not that modems weren't availabe -- starting in the 70s, they were, and cost less to buy than a month's lease on a data set. But it was illegal to hook them directly to the phone system (they might break something!). Which is how the acoustic coupler got invented.

    There are what, 100 million internet-connected computers and devices in the US? Probably a similar number of cell phones. Back in the 70s, when the Bell System was at its peak that's how many phones there were total. And only a tiny number of them were mobile or used to transmit data. I can't imagine such a geological shift in technology with AT&T continuing its total dominance of the communications marketplace. And without AT&T, no Bell Labs.

  15. MS Labs: Worst ROI -EVER- by Ars-Fartsica · · Score: 3, Insightful

    Microsoft pours billions into research each year and from what I can tell they have not produced a product for MS or even a seminal non-commercial work.