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Paul Graham Claims "Microsoft is Dead"

netbuzz writes "He doesn't mean dead as in six feet under, but rather that the software giant no longer instills the kind of fear — particularly among entrepreneurs — that it did back in the day when it was making road kill out of companies like Netscape. Microsoft obits have been around for almost as long as the company, but Graham's stature, style and devoted following are likely to make this one a classic."

28 of 536 comments (clear)

  1. It's not dead yet by scwizard · · Score: 5, Funny

    But if it keeps releasing "upgrades" that serve to only make your computer slower and slower then it will be soon.

    --
    ~= scwizard =~
    1. Re:It's not dead yet by trewornan · · Score: 4, Funny

      No, it's life but not as we know it.

    2. Re:It's not dead yet by pogson · · Score: 4, Insightful
      The last gasp was 2001 when they brought out XP. It took them five years to fix its bugs and now they have to kill XP in order for Vista to have any chance. That last gasp brought in some oxygen to keep the beast barely alive, but it is all gone now. If they had done an Apple and put some UNIX underneath they would not have to be a bully to protect their turf. They would not need to throw out silly features to sell the stuff. It would be good. MSFT made it to monopoly by being in the right place at the right time and it would have kept monopoly if the product had been any good. Instead of improving it by using sound design, they kept on adding crap and using dirty tricks to keep the monopoly. You can only fool all of the people for a period of time and they wake up eventually.

      It is too late now. They have burnt too many bridges. Even the hardware makers hate MSFT because they changed VISTA just enough to break all the drivers. Millions of school kids are experiencing the richness of GNU/Linux. Dell and HP are getting serious about Linux machines (maybe). The EU may realize that mega-fines are not enough and outright ban MSFT. Even Uncle Sam is discouraging the use of Windows for security. MSFT is like a long-necked dinosaur trapped in a tar pit. The brain is so small and so far away that it has not received the final BSOD yet. The body is cooling slowly because of the large mass to surface ratio.

      --
      A problem is an opportunity http://mrpogson.com
    3. Re:It's not dead yet by Izaak · · Score: 5, Informative
      No one wants to have to worry about distro, GUI, etc. and compatibility issues, hunting for drivers,etc.


      Have you tried Ubuntu? Your argument might have been true at one time, but it doesn't hold water anymore. Ubuntu is actually easier to install and manage than Windows, and installing software is waaaaay easier with their point and click Add/Remove Applications interface. It even trumps Vista in the eye candy department when you install Beryl. The only advantage Windows has at this point is availability of various popular applications and games, and that gap is steadily narrowing.

      The truth is, most users have no loyalty to Windows; their loyalty is to applications. As the Linux application market matures (and it is, rapidly), arguments against migration dissolve.

      Thad

    4. Re:It's not dead yet by Shag · · Score: 4, Informative

      Actually, since the NT Kernel was heavily influenced by some coders (and code) from DEC...

      We're talking about UNIX and VMS.

      Welcome back to 1987, only with smaller boxen that fit with your decor and have slicker UIs. Oh, and the games are better, for the most part.

      Oh, and remember how UNIX vs. VMS turned out?

      (Unfortunately, it's harder to turn your old computer into a bar now...)

      --
      Village idiot in some extremely smart villages.
    5. Re:It's not dead yet by westlake · · Score: 4, Informative
      Insightful would be saying that Microsoft never was in touch with the world of computing, only with their own little microcosm.

      That little microcosm pretty much defines the limits of the industries that evolved around the commercial computer-on-a-chip.

      Thirty years experience in programming for the micro computer.

      90% of the world's desktops. Development tools for the PC. An office suite, a server OS.

      The U.S. Navy's Off-The-Shelf "Smart Ship" OS. [Stop thinking about the Cruiser Yorktown - decommissioned in 2004 - and start thinking about the Carrier Ronald Reagan, in service now]

      Synonymous with PC gaming. Strongly positioned in console gaming. Mobile devices. Etc, etc.

      How much more "in touch" do you need to be?

    6. Re:It's not dead yet by RobertM1968 · · Score: 4, Interesting

      That little microcosm pretty much defines the limits of the industries that evolved around the commercial computer-on-a-chip.

      Thirty years experience in programming for the micro computer.

      Thirty years experience in buying, stealing, licensing or otherwise acquiring other companies' programs and adding hack after hack to it to "increase" features and "fix" bugs.

      That is probably how it should read. MS didnt write anything they currently sell. They acquired it and revised it and added stuff to it. There is a very very long list of all of MS' acquisitions someplace online listing them all - including every part of Office, the entire graphics engine (including DirectX), IE, the Windows GUI, The WinXP theme changes, DOS, Win16, IIS, Exchange, and on and on. Acquired and added to by MS.

      Yeah, maybe that qualifies as programming... but to me, the programmer is the person who wrote the apps to begin with... the work MS did is called modifying - which is done by programmers as well... but the way you have it worded makes it sound like MS actually programmed the stuff they sell.

    7. Re:It's not dead yet by westlake · · Score: 4, Interesting
      MS didnt write anything they currently sell. They acquired it and revised it and added stuff to it

      Uh huh...

      That is how an entrepreneur thinks.

      What is most important to Microsoft when making acquisition decisions? People are the most important factor in any acquisition. Microsoft looks for talented engineering teams with vision and passion and experienced management teams. Second is technology and IP that can add value to an existing Microsoft product. Third is the opportunity to acquire stand alone products for existing customers. Examples include Visio, Hotmail, and Vermeer. Another, more rare, decision point is the opportunity to enter whole new markets. Great Plains and PlaceWare are excellent examples.

      How does Microsoft decide to acquire rather than build internally? This is the toughest question in any acquisition discussion. Microsoft has thousands of very talented software engineers that can build just about anything. How can you justify paying hundreds of millions or even billions for something a team of 30 engineers could build in a year or two. That translates to about $12M of development cost versus a huge acquisition cost. Technology is not the issue here. It is all about marketing channels, sales expertise, and market leadership in segments where Microsoft is not strong.

      It comes down to this; if the company in question has a product that is squarely in the domain of an existing Microsoft product than the valuation is a small premium over the internal development cost. If the company has market leadership in a new product space or market segment than the valuation goes up significantly.

      Entrepreneurs should remember this. The "barriers to entry" are most often market position, not technical brilliance. I have heard start-ups say "we have a two year lead on our closest competitor". In fact, I have said it myself at previous start-ups. I was wrong. Most technologies can be replicated by a talented engineering group within a year or less. Many times a similar technology can be licensed immediately and a new product shipped within months.

      Many start-ups have failed by focusing too much on their technology and not enough on the value they bring to customers and the channels they use to service the customer. Many times the early innovator fizzles, and a "fast follower" comes in and makes all the money. "Microsoft will acquire my company"

  2. It Depends, Really by p3net · · Score: 5, Interesting

    While many large companies don't fear Microsoft as they used to, there are still multiple small ones who still have a fear of being swallowed whole or being beaten out of business. Microsoft, if nothing else, still has the power it needs in order to take another (smaller) companies ideas and launch them themselves, creating a hit and effectively driving their competition out of business.

  3. The article sounded credible until I read. . . by idesofmarch · · Score: 4, Insightful

    Thanks to OSX, Apple has come back from the dead in a way that is extremely rare in technology. Their victory is so complete that I'm now surprised when I come across a computer running Windows.
    Come on, 4% market share and you are surprised when a computer does not run OSX?
    1. Re:The article sounded credible until I read. . . by ivan256 · · Score: 4, Insightful

      I think the more disturbing trend is in the enterprise server environment. Until a few years ago, this was a Microsoft-free zone. Nobody took Microsoft seriously enough to install Windows on systems the "mattered". Now, Server 2003 and MS-SQL are in the door... They're not the dominant platform by any means, but they are conspicuously present, and the number of windows servers in the enterprise is growing.

      How do you define "segments that matter"?

    2. Re:The article sounded credible until I read. . . by BlueStraggler · · Score: 4, Insightful

      The real trend in the server room is to commodity x86 servers, not Windows. Of course, Windows has benefited from that trend, but Linux has benefited more, and both have benefited by taking share from bigger iron.

      How do you define "segments that matter"?

      The creative sectors in computing are in academia, start-ups, and the high-end of the hobbyist community. These people define what we will be doing in 5-10 years. Every important new trend of the last 20 years has come out of this sector, including the Internet and Web itself. 20 years ago, most people in this sector used Microsoft OSes, because the IBM PC platform was the most open and hackable platform for expressing their creativity, and Microsoft had the hackable OS of choice for that platform. 10 years ago, Unix and Unix-like OSes were making inroads, but the Microsoft PC was still cheaper and easier to work with in most respects. Today, the PC is still the hackable hardware platform of choice, but the difference is that there are better hacker-friendly OSes to run on it. And not just one, but at least four (counting Linux, OS X, BSD, and OpenSolaris). Meanwhile, Windows is becoming less hackable, with all of its protected paths and DRM and unnecessary levels of complexity that even Microsoft can't seem to keep sorted out.

      Seriously, when Apple makes an OS that is more friendly to hackers than yours is, you know you've taken the wrong path.

  4. netcraft by Lehk228 · · Score: 4, Funny

    I won't believe this untill it is confirmed by Netcraft

    --
    Snowden and Manning are heroes.
  5. Microsoft isn't dead... by Anonymous Coward · · Score: 5, Funny

    ...it's just pining for the fjords.

  6. Not Yet by kraemate · · Score: 4, Insightful

    I am a big fan of Paul Graham's essays, and have to admit that this one definitely ranks as the worst. Microsoft today has a lot of money - and i dont think businesses can simply die out in a few years, specially if they are not facing a steep downward slope. I mean, just look at M$'s profits/revenues (cant cite the source, sorry) they appear quite OK to me. I'll only start celebrating when they start posting huge losses, or when windows domination ceases.

  7. Look at it from Graham's Perspective by NickFortune · · Score: 4, Interesting

    Come on, 4% market share and you are surprised when a computer does not run OSX?

    I think that tells you a lot about Paul Graham's everyday environment. He's working with startups, he's trying to put together teams of the bright and innovative, and what he's finding is that most of these people are not using Microsoft software.

    I suppose you have to allow for a bit of statistical bias there. Since Mr, Graham is (presumably) involved in selecting these people, it's entirely possible that a subconscious selection criteria might be "doesn't do windows" or something similar.

    Even so, I think he's got a point. How much of that market share is down to corporations who bulk-order generic beige boxes based on buying guidelines that are fifteen to twenty years old? How much is down to private homes where someone wanted to "get a computer" without realising there was a choice, or where the major criteria was that it should be "the same as the one at work".

    It wouldn't surprise me at all to find that the Microsoft market share among the up-and-coming wave of computer innovators is actually very slim. And if that is in fact the case, Microsoft should indeed be worried.

    --
    Don't let THEM immanentize the Eschaton!
  8. Microsoft is dying by Anonymous Coward · · Score: 4, Funny

    It is now official. Paul Graham confirms: Microsoft is dying

    One more crippling bombshell hit the already beleaguered Redmond company when analysists confirmed that Windows market share has dropped yet again, now down to less than a fraction of 1 percent of all serious users desktops. Coming on the heels of a recent survey which plainly states that Windows has lost more market share, this news serves to reinforce what we've known all along. Microsoft is collapsing in complete disarray, as fittingly exemplified by failing dead last in the recent Sys Admin comprehensive networking test.

    You don't need to be Steve Jobs to predict Microsofts future. The hand writing is on the wall: Microsoft faces a bleak future. In fact there won't be any future at all for Microsoft because Microsoft is dying. Things are looking very bad for Microsoft. As many of us are already aware, Microsoft continues to lose market share. Red ink flows like a river of blood.

    All major surveys show that Microsoft has steadily declined in market share. Microsoft is very sick and its long term survival prospects are very dim. If Microsoft is to survive at all it will be among OS dilettante dabblers. Microsoft continues to decay. Nothing short of a miracle could save it at this point in time. For all practical purposes, Microsoft is dead.

    Fact: Microsoft is dying

  9. Not dead, but irrelivant by Wellington+Grey · · Score: 4, Informative

    If you read the actual article, Graham isn't actually claiming that Microsoft is dead (despite his provocative title) but that it is simply irrelevant -- that it's something startups don't need to worry about.

    -Grey

  10. What killed the dinosaurs? by HangingChad · · Score: 5, Insightful

    I think Microsoft's fatal flaw is summed up in this quote:

    Microsoft's biggest weakness is that they still don't realize how much they suck.

    And they never will. That's why they won't be able to adapt to changing climate conditions in technology and the nimble little warm-blooded creatures they barely notice will thrive and ultimately outlive them.

    I mean look, they haven't even gotten rid of Ballmer yet. As long as he's on top it's going to remain the same stodgy old company it is now. MSFT reminds me of some 40 year old guy who thinks he's cool hitting on his daughter's college friends. He's the only one who doesn't realize he's creepy and pathetic.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  11. I Claim by roman_mir · · Score: 5, Insightful

    I claim that the word 'dead' is dead. Not dead like 6 feet under, but dead as a meaningful word. It still applies to loss of life, empty batteries and forgotten projects but now it also means 'changed' now, which makes it more ambiguous.

  12. Barbed wire by $RANDOMLUSER · · Score: 4, Insightful

    But eventually the open source world won, by producing Javascript libraries that grew over the brokenness of Explorer the way a tree grows over barbed wire.
    A beautiful turn of phrase, but he's forgetting how much barbed wire Microsoft has laid. Not just Outlook and IE and Word and Excel and Powerpoint, but the way IE renders HTML, and the .DOC format, and billions of lines of Excel macros, and hundreds of millions of vapid PowerPoint presentations. It's like the legacy Cobol codebase - it's never going to go away until some watershed event like Y2K makes it go away.
    --
    No folly is more costly than the folly of intolerant idealism. - Winston Churchill
  13. I actually RTFA by porkThreeWays · · Score: 5, Insightful

    I know there are going to be hundreds of posts claiming Microsoft isn't dead and that they are still a very profitable company etc etc, but that's not what the article is about, so you might as well mod those posts down now. The idea is that Microsoft's throne as supreme monopoly that can do whatever they want and everyone will follow is over. I whole heartedly agree.

    There was a time 5 years ago that if MS released a technology, now matter how bad, would become the de-facto standard for no other reason than MS released it. MS has yet to do anything new in about 2 years that has become the supreme technology just because they blessed it. Their game of catchup with Google has yielded nothing powerful. Their strategy has been mostly centered around Windows Live, which has yet to garner any real interest. All their Web 2.0 stuff is massively better than what they were releasing 5 years ago (their mapping software isn't half bad), but I've yet to interact with someone who's excited over it. I know a lot of web developers who get a boner over the Google maps API though. Even their desktop software hasn't yielded anything terribly popular. People will keep using Windows and Office, but be extremely slow to adopt any of their new technology.

    I guess the real nail in the coffin is that there's no single company for MS to set their sights on. The entire web is surpassing them, not just Google. Google is giving important direction and acting sort of as a leader for the industry, but I see just as many interesting things coming from outside of Google as in. How can MS compete with that? They can keep trying to break IE as much as possible, but even there they are being forced by the market to become more standards compliant.

    I don't think MS will just go away and they probably will be relegated to Windows and Office until those are slowly chipped at. The OS market will one day reach the maturity hardware has and there will be standards and most common software will be written in cross platform toolkits. It will happen so slowly that we'll step back and say "Remember Microsoft 15 years ago?" just as we are saying today "Remember Microsoft 5 years ago".

    --
    If an officer ever threatens to taze you, say you have a pacemaker.
  14. The desktop is dead?!? by FlyByPC · · Score: 4, Insightful

    Maybe I'm a dinosaur (OK, I like BASIC and assembly, so that's a given) -- but I don't see the benefit to putting applications on the Web. I'm no paranoid tinfoil-hat cypherpunk, but I don't trust the reliability and security of running my applications via a connection to the great Out There. Downloading open-source solutions, compiling them, and running them over a LAN, perhaps, but I don't see the venerable hard drive (read: fast local storage) going away anytime soon.

    I can see inherently Web-centric applications (email, searches, etc) as migrating to the Web -- but for things like word processing, circuit simulation, and (most dramatically) video editing, I can't imagine how running these over the Internet is going to work, let alone make them Better. Even with the new fiber-optic cable they just finished burying here.

    Do I just not "get" it? Why should I use Web-based applications when OpenOffice works just as well? Why complicate things by introducing more points of failure (the whole Internet connection chain of devices, software, and protocols) into the mix?

    --
    Paleotechnologist and connoisseur of pretty shiny things.
    1. Re:The desktop is dead?!? by rolfwind · · Score: 4, Interesting

      Computing Intensive stuff like video editing, games, etc, are going to remain on your computer.

      But word processing? I doubted it myself, but I really like Google Docs and Spreadsheets - it allows me to work on certain things on any computers without dragging files around - and I can collaborated on a word document or spreadsheet with a ton of people without a ton of file swapping happening - I just have to invite who I want to look or give them read/write access - and I can see their revisions easily.

      That is the unhyped, 0 buzzword reason I like it.

  15. Re:It's not quite dead yet by geobeck · · Score: 4, Funny

    "I'm getting better."

    "No you're not; you'll be stone dead in a moment."

    "I think I'll go for a walk."

    "Look, you're not fooling anyone."

    "I feel happy..."

    --
    Find environmentally and socially responsible products on http://buy-right.net
  16. Microsoft is Dying by Angry+Black+Man · · Score: 4, Funny

    It is official; Paul Graham: microsoft is dying

    One more crippling bombshell hit the already beleaguered microsoft community when IDC confirmed that microsoft market share has dropped yet again, now down to less than a fraction of 97 percent of all servers. Coming on the heels of a recent Netcraft survey which plainly states that microsoft has lost more market share, this news serves to reinforce what we've known all along. microsoft is collapsing in complete disarray, as fittingly exemplified by failing dead last in the recent Sys Admin comprehensive networking test.

    You don't need to be a Kreskin to predict microsoft's future. The hand writing is on the wall: microsoft faces a bleak future. In fact there won't be any future at all for microsoft because microsoft is dying. Things are looking very bad for microsoft. As many of us are already aware, microsoft continues to lose market share. Red ink flows like a river of blood.

    Windows is the most endangered of them all, having lost 93% of its core developers. The sudden and unpleasant departures of long timeWindows developers Jordan Hubbard and Mike Smith only serve to underscore the point more clearly. There can no longer be any doubt: Microsoft is dying.

    Let's keep to the facts and look at the numbers.

    Vista leader Theo states that there are 7000 users of Vista. How many users of windows are there? Let's see. The number of Vista versus windows xp posts on Usenet is roughly in ratio of 5 to 1. Therefore there are about 7000/5 = 1400 Vista users. Vista posts on Usenet are about half of the volume of windows xp posts. Therefore there are about 700 users of BSD/OS. A recent article put windows at about 80 percent of the microsoft market. Therefore there are (7000+1400+700)*4 = 36400 WinXP users. This is consistent with the number of WinXP Usenet posts.

    Due to the troubles of Hotmail, abysmal sales and so on, Windows NT went out of business and was taken over by the Vista team who sell another troubled OS. Now Windows Vista is also dead, its corpse turned over to yet another charnel house.

    All major surveys show that microsoft has steadily declined in market share. microsoft is very sick and its long term survival prospects are very dim. If microsoft is to survive at all it will be among OS dilettante dabblers. microsoft continues to decay. Nothing short of a miracle could save it at this point in time. For all practical purposes, microsoft is dead.

    Fact: microsoft is dying

    --
    the byproduct of years of oppression by the white man
  17. Totally stupid, ......and typical. by LibertineR · · Score: 4, Interesting
    This uber-geek technical elite you speak of? The ones setting the direction of computing 10 years out? Uh, been there, done that, okay? Its pure nonsense.

    You see, eventually these folks, flush with their startup money have to evolve into businesses with CUSTOMERS. This is the moment when all their foresight, vision and knowledge gets kicked in the ass by the reality of their target audience, who whether they like it or not, are generally using Windows in one form or another. I see this all the time. Awesome ideas, cool marketing strategies, beaten senseless by a a few basic questions: "This is cool, but will it work with Exchange? No? Damn, we cant switch. Sorry." "You mean we cant SSO with this?" Or "Okay, but can I control this through GPOs or can we LDAP it with Active Directory? No? Damn. Sorry, we cant switch."

    No, Microsoft is not doing anything intreguing, but I think that for the moment(though not too much longer) they have enough entrenchment to fight off all but the most innovative of ideas. Microsoft can still zap Apple any time they want by stopping MS Office development on the MAC. This will change too, but if your business docs are in nothing but Word and Excel, you are not going anywhere soon.

    One of the reasons for the dotcom bust was that too many startups never got around to the thought of what their customers WANTED, thinking that they could just convince them that their idea was so cool, so sweet, that they would just jump on it, without business considerations being a factor.

    Its just like parental pride in a newborn baby. No matter what it looks like, they think the child is beautiful, when in reality, it could be a hideous creature and they would never know it.

    If you are an Entreprenuer who believes that they have a target market large enough to pay back their VC without some form of Windows compatibility, they are headed for a fall, just like all the others before them. You dont find a Google every day of the week.

  18. Microsoft cannot eptly launch new things by SuperKendall · · Score: 4, Insightful

    ...Microsoft, if nothing else, still has the power it needs in order to take another (smaller) companies ideas and launch them themselves...

    That's just the thing. The article is saying Microsoft has the power to do this, but not the ability. It used to be that Microsoft could look at a small product, and just announce they were doing something similar "due out soon" and that company was dead.

    Now if Microsoft said "Oh, we're working on that" the effect would not kill a company. And there is a good chance that even if Microsoft did do all the work to build a new product, it would take them some time to deliver and being a Microsoft 1.0 product, it would suck - giving a small company pelnty of time to get a product through a few iterations, and have a good head start.

    Microsoft does not have the ability to compete with quick and intelligently targeted iterations anymore.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley