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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.)
He's an endowed prof at my alma mater www.tamu.edu. Hope this improves the CS program there.
When travelling, it's ok if the airlines lose your emotional baggage.
Well, let's not forget the original point-contact germanium transistor (granted it was called Bell Laboratories back then.) Pretty much set off the entire solid-state revolution in electronics, which after nearly half a century has culminated in that paragon of technological debauchery known as Slashdot. But seriously, Bardeen, Brattain and Shockley would no doubt be hurt not to have their brainchild included in your list of great inventions.
The higher the technology, the sharper that two-edged sword.
I remember, back in 1987 or so, getting a good look at a computer industry study that showed gross revenues, margins, and so forth for pretty mich all of the companies in what one would consider "the computer industry" of the time. It also showed how much they spent on R&D.
Sperry spent a decent amount; so did Cray, and Hewlett Packard, and AT&T, and NCR, and so forth.
IBM spent more on R&D than the rest of them put together.
In fact, IBM spent more on R&D than the gross revenues of the second-largest company. Not the profits, mind you -- the gross revenues.
That was the single most gobsmacking business statistic that I heard until the one a couple of years ago about how Microsoft could purchase the airline industry out of its cash reserves -- twice .
I was at conference at Bell Labs/Lucent not too long ago and I think part of what is happening is a natural shift in what matters in corporate research. I got the sense that Bell Labs was shifting slightly from its physics/hardware roots to math/algorithms/software future. They still do physics, but they also do proportionally more R&D in the idea/software space. (Disclaimer: I didn't see any budget figures or top secret stuff, so who knows what they really goes on in Murray Hill)
I'm not saying that we should stop R&D on hardware, solid state physics and materials, only that new software and software-related tools would help everyone get the most out of the current portfolio of hardware technologies. Given that we just discussed "Why Programming Still Stinks" and have not discussed "Why Hardware Still Stinks," I would suggest that the bigger research opportunites are in software.
I also suspect that software is more commercialization-friendly. If you look at research advances in hardware/materials it takes 20 years before it makes it out of the lab. By the time a fundamentally new invention is in mass-production its is off-patent. I know BellLabs invented the transistor and the laser, but I wonder what fraction of semiconductor and laser industry's profits actually went to BellLabs/AT&T. In contrast, software can be more self contained and follow a much faster adoption curve.
In summary, I would say that scientists and engineers already have a reasonably good handle on atoms and that the real R&D opportunities are in getting better with bits.
Two wrongs don't make a right, but three lefts do.
As a former labs person, one who was included in last years outsourcing, it is not a surprise to see this happen. For right or wrong the new management has chosen this path and they are succeeding in an alarming rate. What they are succeeding at I have no idea beside the destruction of the Labs and the company as a whole. Am I a bitter ex-employee? sure... but that doesn't change the fact that that it is happening.
The president of the labs is to credit or blame as you see fit. He has a strategy and he is going about it quickly. Is it a good strategy? Time will tell, but it is not one I believe in, nor do I believe in their president, even when I was a loyal employee. He is downsizing research and development and trying to buy off the shelf products for a company that really has no peer in size. Let's face it, the reason why AT&T had to develop all of their own stuff internally was because there was no one on the outside developing towards that market and could achieve the quality that was desired. They have special needs that outside vendors, for the most part, can't fill, but they try and stick the square peg into the round hole.
When AT&T was "The Phone Company", it funded bell labs with an internal "tax". That means that every department in the company would take 10% off the top of what they brought in and send it to bell labs. It was very well funded and the R&D consistently paid off.
Now the stock market is a major player in moving money in and out of compaines and they don't like research. It even appears that most of the major funds consider it a bad gamble in most cases. The side effects of the short sighted profit is that the US economy is loosing 1.3 billion dollars a day and the pyramid scheme that used to prop up some of the economy is falling apart.
Congress needs to start intorducing tax cuts for real R&D.
That is the problem stated by the author.
Its not profitable to innovate and write good software.
MS was very efficiant in terms of making the bare minimium because it was cheaper to develop.
AT&T on the other hand lost money by being too innovative. Unix was great but made very little money to AT&T oddly. There were many other OS's that were multiuser and multitasking. This brought demand down.
I think there is a conflict between R&D vs profits in todays world. CEO's are obsessed with having the maximium productivity done with the least amount of people or white collar workers ( cough India).
Ken Thompson and Ritchie would be fired in a second if they worked on Unix or C today because they were not ordered to do so and it would not be profitable. Sigh.
http://saveie6.com/
Not that R&D isn't good - but academia specializes in that. I'm just saying that it's no surprise to me that companies heavy in R&D spending aren't doing so great. It's a tough time in technology and there's still room to capitalize on the R&D we already have.