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Five Years of Ballmer -- the Effect on Microsoft

An anonymous reader writes "In the five years since Bill Gates surprised the technology world by announcing he would give up his title as chief executive at Microsoft to Steve Ballmer, the company has changed significantly. Ballmer is largely credited for tripling the company's cash balance, with sales growing from less than $23 billion in 2000 to $36.8 billion last year. Critics claim that today, we see a much 'gentler' side of Microsoft and Ballmer seems to have received an "A" in Wall Street's eyes."

27 of 324 comments (clear)

  1. PR Translation... by Anonymous Coward · · Score: 5, Funny

    "Everyone is fooled, prepare for phase 2..."

  2. Five sweat-drenched words... by falcon203e · · Score: 4, Funny

    Give it up for meeeeeeeeeee!!!

    --
    ----- "All right. It was a miracle. Can we go now?"
  3. Is it time to shout? by jaredbpd · · Score: 4, Funny

    Developers! Developers! Developers! Developers!

    (Anyone still have that video?)

    1. Re:Is it time to shout? by hph · · Score: 4, Informative

      Monkey boy: mirrors

    2. Re:Is it time to shout? by odyrithm · · Score: 3, Funny

      Yeap, but http://www.macboy.com/cartoons/ballmer/ is far better :D

      --
      moo
  4. A confession by skinfitz · · Score: 4, Interesting

    This really isn't a troll, it's an honest statement when I sat that it was the "Monkey Boy" video that really put me off Microsoft. I remember thinking "this idiot is in charge of what happens to our Windows PC's?".

    It was shortly after that I decided to switch to Macintosh for my primary platform. Obviously I still have a PC but I only use that for games now.

    1. Re:A confession by danheskett · · Score: 5, Insightful

      Really?

      Hmm.. you know, as an actual developer of software, it really actually had it's intended effect.

      The tools MS is providing for developers now are really great. Such an improvement to five years ago. The resources available are just pretty great.

      Software sells systems, and MS is doing a good job getting and retaining great ISVs for their platform.

    2. Re:A confession by Anonymous+Writer · · Score: 4, Interesting

      I can't honestly imagine that he really has that much of an influence over what happens to Windows on a software level.

      FTA; Gates created a new position for himself entitled "Chief Software Architect", so you've most likely hit the nail on the head. It seems like Gates now focuses on what happens on the software level, leaving all the other things like antitrust lawsuits to Ballmer. That's also probably why Microsoft has been patenting so many frivolous things lately. He seems to have a knack for the legalese side of things, and rather than coming up with exclusionary contracts for business dealings, he is now working on controlling intellectual property.

  5. Ballmer, FUD, and patents... by sebFlyte · · Score: 5, Interesting

    Five years of FUD, but financial success... He is feeling rattled by Linux though, as the recent FUD he's been spreading about patents shows. One imagines this will continue for some time to come, since his style may not be popular, but it's certainly effective.

    --
    "Nothing can shake my belief that this world is the fruit of a dark god whose shadow I extend." - Emil Michel Cioran
  6. Re:I notice they don't advertise as much by frankthechicken · · Score: 5, Insightful

    Why should they advertise?

    When was the last time they had a major product rollout?

    Most of their software is so well known that they do not need to advertise. If you buy a computer, you get Windows, if you want word processor/spreadsheets etc., you buy Office. They are not a convicted monopoly for nothing.

    Wait until Longhorn rolls out, then you'll see the major advertising campaign. As was the case with the X-box.

  7. Re:I notice they don't advertise as much by dsginter · · Score: 3, Interesting

    You'd think Microsoft would/could advertise more. What's up with that?

    Everyone thinks that they're a monopoly. Isn't that the best advertising?

    You'd think that they could innovate with their $65 billion in cash. Instead, we get a grand total of - not one, not two - but THREE color schemes for Windows XP. It is arrogance like this that will eventually displace Microsoft. Not that color schemes matter, but the company hasn't come up with anything original in a long time. This is just a good example.

    And they spend billions on R&D every year. It is like there is some law that prevents them from coming up with something both useful and non-evil. I have about a hundred ideas that they could use right now.

    --
    More
  8. Balmer is insane! by SteveXE · · Score: 3, Funny

    Not trying to make fun, but ive NEVER seen a fat man move like that and have that much energy...except Chris Farley

  9. If Balmer rocks, then why doesn't the stock? by Anonymous Coward · · Score: 5, Insightful

    Lets see..

    Now in the past 5 years of Balmer the stock of Microsoft has dropped maybe 50% or so in value.

    Now of course since 5 years ago we had the .COM bubble burst, but while it seems that the the dow jones and Nasdaq have had a bit of a rise in profitablity, they seem to be leaving MS behind.

    I figure it has to do with no new OSes for people to buy and MS's inability to profitable merge into other tech markets.

    Of course if you invest 10 years ago, then you would of rocked the house.

    But if you invested 5 years ago you would of lost almost half of your investment and if you invested your money in them anytime between now and then you would of been better off keeping your money in a savings account.

    Hell you would have at least had some profit if you invested in Apple...

    hmm....

    You know you can go for a very long time in the stock market without rising or falling much at all. Could it be that when you have 95% of hte market your prospects for growth don't seem to hot to investors?

    So 5 years of mediocre performance. What will be the next 5 years? Even them returning a large part of their cash reserves to their investors had little to no effect on their stock... Unless it prevented it from falling further.

    It seems to me like nobody in Walstreet gives a shit about Balmer, but PC and financial magazines sure love that ad revenue!!!

    look fer yerself.

    1. Re:If Balmer rocks, then why doesn't the stock? by suchire · · Score: 3, Insightful
      Let's look at this a little differently, shall we?

      Now in the past 5 years of Balmer the stock of Microsoft has dropped maybe 50% or so in value....I figure it has to do with no new OSes for people to buy and MS's inability to profitable merge into other tech markets.

      It's not that Microsoft is doing badly; it's just that it's "hi tech" stock valuation has finally given way to a more normal business evaluation. Instead of trading at 70 times earnings, it's now trading at a more reasonable 35 times earnings. Considering that it's a huge, huge, huge company, it's a good bet that it can't grow like, say, Apple or the rest of NASDAQ can. Would you expect, say, Proctor & Gamble to grow 70% a year? I doubt it.

      --
      Such irE
  10. i wonder for how long by koekepeer · · Score: 3, Insightful

    "Ballmer is largely credited for tripling the company's cash balance, with sales growing from less than $23 billion in 2000 to $36.8 billion last year."

    their main revenues are form selling the OS and Office suites, right? well, he was still in the luxury position of building on a monopoly. i'm pretty sure it won't stay like this as competition gets more stiff.

    and yeah, OSS and/or Free software are a big competitor in the fields where MS wants to make money in the future (embedded space, servers, for example).

  11. A from wall street, F from developers. by kahei · · Score: 4, Insightful


    It is precisely because of Ballmers orientation toward marketing and finance that MS's real potential is WEAKER than it was in 2000. For every temporary balance sheet win he has made, there has been permanent 'hearts and minds' damage.

    Communication is the issue; MS no longer listens to clients at the tech level. Up until a few years ago I rated MS very high in terms of listening to the marketplace and creating technology to match -- in fact, where governmental bodies and cross-industry standards groups constantly failed, and giant companies simply didn't give a good gosh damn, MS habitually actually listened to people who knew technology and produced what the world needed. This might have been more striking in my area than in some others, but it was certainly a general rule.

    Fast forward to the present day. The world asks MS , "What is your .NET product anyway?" and MS NEVER ANSWERS. Ballmer chants "XML! XML! XML!" for six months while programmers, managers and investors across the globe stare blankly at him. That was the quality of communication, on the subject of MS's own product.

    So financially, I agree that Ballmer has really done a lot. But putting the emphasis on extracting money from clients, rather than delivering benefits to clients, can only work for so long :(

    --
    Whence? Hence. Whither? Thither.
    1. Re:A from wall street, F from developers. by popeyethesailor · · Score: 4, Interesting

      Well, my experience has been completely different. The last 5 years have been the "Open"-nest period for MS. XP and 2003 are solid systems, working with Office files are actually possible(with XML exports), IIS 6 is reasonably secure, and .NET is a productive development platform for millions of developers. If you dont understand it, its not their fault!

      More importantly, is the feedback you can directly provide to MS devs- most of the key people blog a lot. Lots of commentators have influenced decisions made by MS in the past 5 years.

      The parent comment is just irrational blather.

  12. an "A" by micmast · · Score: 3, Insightful

    An A on wallstreet a D for operating system and a F for security... that is still below average to me...

  13. Interesting by Pan+T.+Hose · · Score: 3, Interesting

    It is interesting to see how this $23 to $36 billion growth compares to the drop of the USD value during those very years. Do the math.

    --
    Sincerely,
    Pan Tarhei Hosé, PhD.
    "Homo sum et cogito ergo odi profanum vulgus et libido."
  14. Proper accounting would have reflected $18 b loss by SgtChaireBourne · · Score: 5, Informative
    "Everyone is fooled, prepare for phase 2..."
    No one really noticed the books when Bill hopped off. Or since then, for that matter. Proper accounting would have reflected a net loss of $18 billion for 1998 for Microsoft.
    --
    Beta is broken and the link to classic doesn't work. Stop wasting our time or there won't be anybody left here.
  15. The man is OK by MPHellwig · · Score: 3, Insightful

    What do you expect if you where the CEO of world biggest software company?
    Ofcourse he is out there to make money and to sell Windows.
    He would say anything to make sure his biz stays in biz, just like any other CEO but besides that he is perfectly reasonable, in real live.
    That man is not stupid neither evil, he sells his product in which he believes.
    The only "crime" he would be guilty of is the crime of commerce.

  16. Re:How long does R&D take? by kubrick · · Score: 4, Insightful

    Well, as far as Microsoft's concerned, these "best people" aren't innovating for anyone else, and that's worth paying their salaries for.

    --
    deus does not exist but if he does
  17. Gentler?! Who's kidding who. by freshBlueO2 · · Score: 3, Interesting

    Come on, Bill made comment that would make you laugh and think "get real", "whatever" (One day hardware will be free and people will pay for software). Steve, on the other hand, just pisses people off to the point of demonstrating the bird.

    What's the deal with Asia's Windows XP watered-down edition. With a continent that doesn't care to much about thier pirate mafias, that is sure going to move the governments away from open source.

    Oh yeah, and since it didn't work your going to sue an entire continent over patent infirgements? How about trying that in our country first. Oh, right, you can't becuase you know you'll lose. But I guess Steve must think he can bully those he thinks are ignorant. (If I were you, I won't mess with a peoples that know kung fu).

    And how about comparing a copy of $1000+ CD vs a bottle of cognac? I'm sorry Steve, but people paid for the software, not the medium the software was bought on. And since a backup is like less than a dollar, your comment doesn't justify.

    So, what does that say about the people who seem to think Steve created a gentler M$? (RLOL) In my opinion, I think Steve is having it REAL lucky right now, or pulling an Enron. The way I see it, more and more people are moving to linux open source. Apple did it. Novell did it. IBM and Walmart are using it. Companies and government agencies are moving to it. Pretty soon the gaming industry, the only driving force that is keeping MS afloat, is going to switch over faster than you can say bubblelusicous. Then we will see a slow horrible death to MS (and their BS).

    1. Re:Gentler?! Who's kidding who. by Feztaa · · Score: 3, Insightful

      Hardware is a commodity, but software is quickly becoming so as well. This is how it should be.

  18. Re:Gentler side huh? by lowe0 · · Score: 3, Insightful

    I couldn't care less what histrionics Ballmer goes into on stage - his monkey dance neither amuses nor disturbs me. I judge Microsoft's committment to developers by looking at their current and upcoming tools, their developer resources, etc.. And their committment seems pretty good to me.

  19. Re: Developers like .NET by dantheman82 · · Score: 3, Insightful
    I beg to differ with those who say Microsoft treats developers like crap. For developers, there are so many more people than Balmer to listen to. If you want the PR, fine, go with Balmer. But if you explore your options just a little, you will see what I mean.

    However, need I mention Channel 9, which is run by 5 Microsoft employees. They interview a lot of people within Microsoft and you really get a feel for the stuff they deal with. There is the *free* ISV Buddy Program, a Microsoft employee assigned personally to help answer questions/issues you have with many of their products.

    And I could go on for quite awhile about .NET and the ways they link up with developers on that:

    There is INETA, which has over 300,000 members worldwide and is promoted a lot by Microsoft.

    There are many, many community websites put out or suppported in some way by Microsoft, like GotDotNet, MSDNAA (for students), Free ASP.NET starter kits, etc.

    There are the helpful Shows and Webcasts highlighting and explaining new Microsoft products, which are especially helpful for .NET developers here.

    There is the Student Ambassador (to Microsoft) program where a student serves as the liason between Microsoft and students and provides software, information, and community for students. This is run by Microsoft, and I play a small part as one SA among ~146 on college campuses in the US alone.

    There is the Imagine Cup contest, which is geared for students which provides a programming competition for anyone interested. The website for that is here...

    There's more, but you get the point.

    As far as previous stuff (MFC, COM, etc.) I have not been involved at that stage, and a specific business may have had a different experience.

    --
    This sig donated to Pater. Long live /.
  20. Or in Slashdot speak by Prince+Vegeta+SSJ4 · · Score: 5, Funny

    Chairman Gates: Lord Ballmer.

    CEO Ballmer: Yes Chairman?

    Chairman Gates: Rise...

    Emper^H^H^HChairman Gates: Everything that has transpired has done so according to my design. Your friends, up there in the Justice Department, are walking into a trap, as is your OSS community. It was *I* who allowed the users to know the location of the source code. It is quite safe from your pitiful little band. An entire legion of my best coders awaits them. Oh, I'm afraid the DRM will be quite operational when Longhorn arrives.