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Leaked Memo Gives Microsoft New Direction?

daria42 writes "An e-mail memo sent from Microsoft chairman Bill Gates to top execs at Microsoft has been leaked, revealing the executive wants his company to hurriedly change its focus and start to tap online advertising and services as new revenue sources. In the e-mail, Gates cites another, earlier memo, sent from MS exec Ray Ozzie, in which Ozzie also warns MS of the importance of focusing on the online medium. 'It's clear that if we fail to do so, our business as we know it is at risk,' Ozzie wrote. 'We must respond quickly and decisively. We should've been leaders with all our web properties in harnessing the potential of Ajax, following our pioneering work in OWA (Outlook Web Access),' he continued. 'We knew search would be important, but through Google's focus they've gained a tremendously strong position.'"

12 of 407 comments (clear)

  1. Article Text by Anonymous Coward · · Score: 4, Informative

    Gates memo warns of 'disruptive' changes

    Ina Fried, Special to ZDNet
    November 09, 2005
    URL: http://www.zdnet.com.au/news/software/soa/Gates_me mo_warns_of_disruptive_changes/0,2000061733,392214 68,00.htm

    Aiming to stir up the same kind of momentum as his Internet Tidal Wave memo of a decade earlier, Microsoft chairman Bill Gates has penned a memo outlining the challenges Microsoft faces from a host of online competitors.

    "This coming 'services wave' will be very disruptive," Gates said in an Oct. 30 e-mail to top Microsoft employees. "We have competitors who will seize on these approaches and challenge us."

    In the memo, Gates cites an earlier missive from Ray Ozzie, outlining the importance of tapping online advertising and services as new revenue sources.

    "It's clear that if we fail to do so, our business as we know it is at risk," Ozzie wrote. "We must respond quickly and decisively."

    Ozzie's memo, which was also seen by CNET News.com, includes a laundry list of missed opportunities for the software maker, citing competitive threats from rivals such as Google, Skype, Research In Motion and Adobe.

    Ozzie notes areas that Microsoft could have led, such as Web-based applications, but where other companies are instead more heavily focused.

    "We should've been leaders with all our web properties in harnessing the potential of Ajax, following our pioneering work in OWA (Outlook Web Access)," Ozzie wrote. "We knew search would be important, but through Google's focus they've gained a tremendously strong position."

    In the memo, Ozzie talks about Google as Microsoft's most prominent of the emerging competitors, but also makes reference to Yahoo and Apple Computer.

    "Google is obviously the most visible here, although given the hype level it is difficult to ascertain which of their myriad initiatives are simply adjuncts intended to drive scale for their advertising business, or which might ultimately grow to substantively challenge our offerings," Ozzie wrote. "Although Yahoo also has significant communications assets that combine software and services, they are more of a media company and--with the notable exception of their advertising platform--they seem to be utilising their platform capabilities largely as an internal asset.

    "The same is true of Apple, which has done an enviable job integrating hardware, software and services into a seamless experience with dotMac, iPod and iTunes, but seems less focused on enabling developers to build substantial products and businesses," Ozzie wrote in his memo.

    He also makes reference to smaller, emerging companies that are developing software and services that use the Internet, rather than Windows, as their base platform.

    "Developers needing tools and libraries to do their work just search the Internet, download, develop and integrate, deploy, refine," Ozzie wrote. "Speed, simplicity and loose coupling are paramount."

    At the same time, Ozzie sees am opportunity if Microsoft can create a Web-based development platform.

    "The work of these startups could be improved with a 'services platform'," Ozzie said. "Ironically, the same things that enable and catalyse rapid innovation can also be constraints to their success. "

    Microsoft has talked of a developer platform in conjunction with Windows Live, but the company has offered few details of how third parties will be able to build on top of Microsoft's work.

    Microsoft has already reorganised the company and outlined some of its plans, but the two memos make clear the urgency and importance that the company is placing on this effort.

    The company announced in September that it was reorganising itself into three units and tapping Ozzie to lead a companywide services push. Last week, Microsoft announced the first fruits of that effort--products called Windows Liv

  2. Charles Ferguson is the Man on This by putko · · Score: 4, Informative

    Charles Ferguson created the company that produced FrontPage. He sold out to MicroSoft when he realized that Netscape would lose, due to their own faults. He wrote a great book on his story dealing with VCs and selling out to MicroSoft.

    In the book, he describes how MicroSoft slept through the early 'net, until the Netscape Wunderkind (can't remember his name) said Windows would be reduced to a bunch of buggy device drivers by the web. Then Bill woke up. He writes about it like Sauron has been up in Redmond, sleeping away, until the Netscape guy wakes him up. And then Bill wakes up, like a big pissed off Sauron, turns Ballmer loose so he can get medieval on Netscape and so on.

    Charles Ferguson also happens to have a PhD, and has done a lot on high tech competition. Here's something he's written on the topic of Microsoft fighting Google -- for real.

    "... But if Microsoft gets serious about search--and there is every reason to believe that it will--Google will need brilliant strategy and flawless execution simply to survive..."

    Which is an amazing think to consider.

    Here's the article where discusses this:
    http://www.technologyreview.com/InfoTech/wtr_14065 ,308,p1.html

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    http://www.thebricktestament.com/the_law/when_to_s tone_your_children/dt21_18a.html
  3. The FULL MEMO -- Not just pieces by putko · · Score: 4, Informative
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    http://www.thebricktestament.com/the_law/when_to_s tone_your_children/dt21_18a.html
  4. Re:Leaked? by ScentCone · · Score: 3, Informative

    On second thoughts, based on their recent TV marketing campaign (the one where they show a bunch of children with aspirations including for things like music creation that Microsoft doesn't have any software offering for) which basically has no point whatsoever apart from an opportunity to say "Hi we're Microsoft, don't forget about us" and display a Microsoft logo

    Except, if you do any sort of work - in almost any capacity - to support or deal with the successful aspirants they portray in those ads (famous musician, famous designer, fashionable scooter manufacturer, whatever), you're going to use business software. Every one of the roles they describe is backed up accountants, tax people, messaging, web sites, and a zillion other things that MS very aggressively wants to be a part of. A lot of people don't even know that Great Plains, Solomon, Navision, and Axapta (all widely-used accounting software packages) are Microsoft products.

    They've got armies of custom developers and consulting companies out there adapting those packages for "vertical" integration into all sorts of speciality business models, from mom-and-pop scale bookeeping up to major manufacturing. There's more to that ad campaign than meets the normal desktop user's eye.

    --
    Don't disappoint your bird dog. Go to the range.
  5. Re:AJAX just another name for the same old? by Anonymous Coward · · Score: 2, Informative

    It hasn't taken them this long to get the whole AJAX thing, they were pretty much the company that kickstarted it by rolling out the XMLHTTP object with IE.
     
    Prior to that, before AJAX was called AJAX, Microsoft were using it and similar methods for Outlook web access a good 5-6 years ago. There are also tools built into Visual Studio 2005 for helping to create AJAX components in pages.

  6. Re:Next up by tsa · · Score: 5, Informative

    A not too well-known feature of Acrobat Reader is that when you press shift during loading it skips all the plugins, reducing loading time by about 100 %.

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    -- Cheers!

  7. Re:Next up by stinerman · · Score: 3, Informative

    Try Foxit PDF reader

    Its fast ( 1 sec load on my XP2400+)
    Its efficient (1 .exe, no extra plugins, no installer)
    It displays PDF files ... and doesn't screw around with anything else.

  8. Re:Next up by Blakey+Rat · · Score: 2, Informative

    I can give them 10 out of 10 with fewer bugs and a more socially responsible business model. Who should be receiving the benefit of massive government contracts? Me, or MS?

    You can? What is your OS called? How did you get all those hardware makers to write so many drivers for your OS? How is your business model more socially responsible?

    Frankly, if you actually *did* have a product that does what you describe, you'd already have government contracts.

  9. Re:Next up by soul_on_fire2001 · · Score: 2, Informative

    Thanks. The memory footprint is better too.

    Without any document loaded,
    AcroRd32.exe 35,348K
    Foxit Reader.exe 5,860K

  10. Re:Next up by Slashdot+Junky · · Score: 2, Informative

    Pressing shift as Acrobat loads does indeed stop it from loading the 1200 plug-ins it would do otherwise. Thanks for the info! I'm running v6.0.2a CE on Win2k at work just in case some of you are getting different results.

    Later,
    -Slashdot Junky

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    Landfill Mining Co.
    Managing the (Un)natural Resources of Tomorrow
  11. Re:CNN says MS invented AJAX by elemental23 · · Score: 2, Informative

    The sad thing is that CNN has a recent article where they state matter of factly that MS invented AJAX in the 90's, when they created OWA (Outlook Web Access).

    In what way is this not true? They didn't coin the term "AJAX", sure, but they came up with XmlHttpRequest and used it in OWA years before anyone else did much of anything with it.

    Yeah, I hate admitting this too, but you can't change the facts.

    --
    I like my women like my coffee... pale and bitter.
  12. Re:Next up by PGC · · Score: 2, Informative

    Holy crap, it's true ! ^_^ Omg...so nice...

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    The Dutch will inherit the earth. If not, we'll settle for a bit of ocean. Beta delenda est!