Microsoft Sees IBM as Biggest Threat

Anonycat writes "Bill Gates gave an interview at the Consumer Electronics Show, claiming that IBM is the rival company Microsoft has their sights set on. From the article: 'People tend to get over focused on one of our competitors ... We've always seen that ... I'm never going to change the press' view about what the cool company to write about is. That's Google number 1 and Apple number 2 ... [IBM has] four times the employees that I have, way more revenues than I have.'"

Comments

Microsoft's Biggest Threat?

[ackthpt]

Begging Bill's pardon, but Microsoft's attitudes and practices are their own biggest threat.

Over the years, Microsoft's biggest threats have been:

• Apple Computer
• Sun
• Java
• Netscape
• Anyone who knows of a security hole in one of their operating systems.
• Oracle/Larry Ellison
• U.S. District Judge Thomas Penfield Jackson
• Linux
• The European Commission
• Sony Playstation
• Google

I've heard Bill talk at a CES a few years ago and between the words, you could most definitely hear him placing Microsoft as not a technology partner to consumer electronics firms, but as a direct or indirect threat to their product lines and/or ways of doing business. While he waxed enthusiastic about how Windows CE would be some great enabling force, you could almost hear people break out in a sweat wondering what "Microsoft-tax" they would encounter to hop on or compete with the Redmond bandwagon, whether it actually added anything truly positive. I'm positive more than a few show exhibitors could almost see him in a pinstripe suit with a couple gunsels behind him and a moll on his arm.

<James Cagney Voice>
"We're the new business men in town, see? And you're going to like doing business with us, see? Because when you do business with us nobody gets hurt, see? Yeah. I think you do see. That's very good. Very good for business."
</James Cagney Voice>

Bill most likely sees threats to his company because he cultivates them. Microsoft has profited at IBM's expense for the past 20 years. Why shouldn't IBM be competing with Microsoft?

"We have met the enemy and he is us." -- Pogo

Re:Microsoft's Biggest Threat?

[dc29A]

Begging Bill's pardon, but Microsoft's attitudes and practices are their own biggest threat.

While that's true to an extent, I think it's open source and innovation. Google innovated with search engines, now it's a word. IPod is almost a word, a huge trend. Open Source is an ideology. You can't fight ideologies and words from dictionnary. Open Source + Microsoft's reluctance to change their business model + lack of innovation on their part will be it's ultimate undoing.

Then again, that won't change jack in the big scheme of things. Yesterday was IBM, the big Monopolistic Empire of Evil(tm), today is Microsoft, tommorow it will be (fill in the blanks).

Re:Microsoft's Biggest Threat?

[Pxtl]

Speaking of Words, you notice the inverse relationship? Word, Excel, Windows... MS turns dictionary words into trademarks, while their competators do the opposite.

And of course Microsoft's enemies will be talked about - that's what Microsoft does, they fight. They move into an industry with established technology companies with the expressed purpose of taking it over by dumping wads of development cash into it and making their product tightly interoperable with the rest of the MS family. Microsoft moving into a new niche is a full-fledge onslaught to everyone else in that niche. No wonder they're famous for their enemies.

Re:Microsoft's Biggest Threat?

[AKAImBatman]

Microsoft never had to work hard for the money. Everyone jumped on the Windows/Office bandwagon.

That's just simply not true. Microsoft has worked it ass off to convince the public it needs what its selling. That's been particularly difficult as Microsoft products have traditionally not been very innovative. So Microsoft has taken the tack of marketing the heck out of their product, and crushing the competition in the process.

Take the matter of the VisiOn GUI. Microsoft had nothing to compete. Zip, Zilch, Nada. So they see this VisiOn and realize that they'll soon be irrelevant. To counter this threat, Microsoft annouces that they will be releasing a product known as "Windows" Real Soon Now(TM). Everyone then puts off purchasing VisiOn while Microsoft goes and makes something up. Microsoft is late shipping (since they didn't actually have a product), and ends up bleeding Visi-Corp out of the market. Microsoft then delivers a steaming pile of software known as "Windows" which gains absolutely no foothold on the industry up until the point where it copies the Macintosh. Poorly.

Windows was then scheduled for demolition right up to the point where a couple of smart guys saved the company by getting Windows to run in 32 bit mode. Microsoft throws their marketing muscle behind this new version of "Windows", and the rest is history.

So in summary, Microsoft may be a lot of things. But lazy isn't one of them. Always give the devil his due, or you may get complacent.

Hey, look over here!!!

[AKAImBatman]

Really! See the big shiny thing! Yes, ignore those other things. They're new, small, and boring. The Gigantasaurous Rex over there is the REAL threat! What's that? It's not moving you say? That's because it's... um... conserving its energy. Yea, that's it! It's like a crocodile. The moment you get too close, SNAP!

So look over that way. And pay no attention to the man behind the curtain.

(Sure Bill, we're all going to listen to you. *rolls eyes*)

Does Bill think Everyone is a Fool ?

[majjj]

I mean... how can he expect anyone to believe this. Just a month ago in an Television interview he accepted google as its main RIVAL in the coming times because of its high number and quality of innovations. He also vowed to beat google out of search engine market... I guess Bill is having Nightmare... amnesia these days.

For a company that hates IBM...

[Anonycat]

From page 2 of the article: Also, IBM -- along with Toshiba Corp. (6502.T: Quote, Profile, Research) and Sony -- has developed the Cell microprocessor that will power Sony's PlayStation 3 video game console, a competitor to the Xbox 360, Microsoft's next-generation gaming unit. Who makes the chips for the Xbox360, again?

IBMa threat, no...

[Ucklak]

Bills biggest threat is Chuck Norris.

AND IBM is a prime mover behind Linux

[darkonc]

This makes them something of a double threat. IF MS takes out IBM, they're probably gonna trash Linux with the bundle. IBM's support gives Linux a good deal of respect in the business world.
Then there's google.... Also a Linux user/proponent.
And apple insists on using Open Source (BSD) too....

So Microsoft's top-3 opponents are Open Source friendly companies.

See a pattern there?

Is bill gates an ego-driven individual?

[inertialmatrix]

"The biggest company in the computer industry by far is IBM. They have the four times the employees that I have, way more revenues than I have. IBM has always been our biggest competitor. The press just doesn't like to write about IBM."

I find it fascinating how he uses the term "I" when referring to the company he founded. I wonder how much of his motivation to succeed is pure ego driven. I always found it interesting how all these iconic leaders in silicon valley all know each other, and have all had personal interactions going back 20 years. The old question of whether or not bill and steve really dislike each other, and if that dislike stems from some initial interaction at a computer show in SF back in the 70's.

Strange indeed.

actual interview went like this:

[circletimessquare]

Reporter: Hi, Mr. Gates, I'd like to talk about the latest windows exploit...
Gates: [waving hands] You don't want to talk about that.
Reporter: I don't want to talk about that. Then how about your hottest competitors, Google, and Apple, and Linux is making inroads in...
Gates: Those aren't the companies you're looking for.
Reporter: Those aren't the companies I'm looking for.
Gates: Microsoft is a rock solid business. IBM is our competitor.
Reporter: Microsoft is a rock solid business. IBM is your competitor.
Gates: Move along. Next reporter.
Reporter: Move along... move along.

Size matters...

[hhr]

Wow. You have to wonder what all those people at IBM do and marvel at how efficient MSFT and Google are.

Google: Number of employees.. 4183 http://www.google.com/intl/en/corporate/facts.html
Net earnings: $1.297 billion.
Revenus $5.25 billion

IBM: Number of employees...369277 http://www.networkworld.com/news/financial/ibm.htm l
Net earnings: $7.797 billion.
Revenues: $94 billion

MSFT: Number of employees... 57000 http://www.networkworld.com/news/financial/microso ft.html
Net earnings: 12.867 billion.
Revenues $40.340 billion

Re:Size matters...

[lawpoop]

You're comparing apples to oranges.

Google and MS are software companies. All they need is a few programmers to write some software, and they can duplicate that software and minimal cost and sell it millions of times over.

IBM is a consulting, maintenance, and support business. If you're hired to consult for someone, you actually have to send people there. Problem is, people can only be at one place, or do one thing at a time. Unlike software, you can't copy or clone or consultants, or have them in two places at once. If you get a new support contract, you have to hire additional support staff. If you get a new maintenance contract, you have to hire additional maintainers.

IBM sells people's labor. If they sell additional product, they have to hire addtional people - the cost is almost directly proportional.

Google and MS sell software. If they sell more software, they just print up a few more copies, or purchase additional bandwidth for downloads. The additional costs are minimal.

Re:awesome

[cperciva]

The lack of splits is why the price of any individual share is so high; but it doesn't excuse the inflated total capitalization. According to the market, Google is worth 132.5 billion dollars; but is it really worth more than IBM or Coca-Cola, and almost three times as much as Disney?

Attention Google Fanboys

[vectorian798]

I think most of you are failing to recognize that Google is competing against only a tiny sliver of Microsoft. Note that a large majority of Google's employees are devoted to their search engine technology, whereas Microsoft operates in MANY different markets, and MSN Search is only one of them with less than a tenth of Google's corresponding group in employee count. Seeing as how all the rumors about Google planning for their own office suite etc. have been debunked, I don't think Google is as big a threat as people think it is.

IBM on the other hand, is the largest service sector company and the largest IT company. IBM's rock solid line of servers provide a much larger push for Unix-based systems (not just IBM's AIX, but really any of them) than does Google's use of FOSS in their products, or Summer of Code. Furthermore, IBM is by far the strongest presence in the HPC market, which as Bill indicated previously, is something MS wants to get into. We've also seen that IBM consistently produces great software (DB2, Business and Commerce software, OS, Application Server, and much more) as well as hardware (their hardware line includes complete server solutions, processors, storage systems, etc.) and is capable of using only its own products end-to-end.

Thus, it is appropriate to say that IBM is a bigger threat to MS than is Google.

PS: Google's market cap is not a reflection on its strength or presence so don't bring that up as a figure plz.