Does Ballmer Need To Go?
Pickens notes a TechCrunch analysis wondering — after Windows Vista and the failed Yahoo bid — whether Steve Ballmer's days at Microsoft are numbered. "Ballmer has been the big driver behind [the Yahoo] deal at Microsoft — some would say to the point of obsession. After the disaster that has been Windows Vista, Ballmer may have realized he needed to redeem himself in the eyes of Microsoft's board. And the 'transformative' deal with Yahoo was the way he was going to do it... If Microsoft's board loses patience with him, it might have to ask Bill Gates to temporarily come back as CEO until it finds a replacement. After all, Ballmer has already made a strong and convincing case for why Microsoft needs Yahoo to make its online and advertising strategy work. It's not clear whether Microsoft can achieve its objectives on its own or through other acquisitions. Maybe Ballmer thinks he can still do the deal by making Yahoo's stock price collapse and come back with a hostile offer."
And, the slowest moving company award goes to.......
How we know is more important than what we know.
The fastest moving chair in a company award goes to...
Science advances one funeral at a time- Max Planck
YES...YES...YES...!!!!
Microsoft dropped the Ballmer.
Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
TFA seems to assume that Balmer wanted to aquire Yahoo, and then did it entirely on his own initiative. That is certainly not the case. Even in a company as big as MS, the CEO does not go about spending that kind of money without the approval of major stockholders. He must have had the blessing of at least Bill Gates and Paul Allen, and probably others.
All of them knew going in that Yahoo had to voluntarily cooperate. So they know that Balmer is not to blame. So they are not going to dismiss him. They are going to go to plan B: the hostile takeover.
And what kind of person do you want leading a hostile takeover? You want the most vicious, gut-ripping, back-stabbing, ball-cutting executive you can find. They'll give him a raise.
The yahoo board are more likely to be fired by the shareholders than Balmer.
For that matter Vista isn't really all that much of a failure in the long run, it gets a lot of bad press, but it's not a horrible OS, and even if financially it does turn into the next ME, the lessons they've learned will still be useful in the next OS.
Balmer has been with Microsoft for a long time, and given that everyone will think that the Microsoft CEO is a vicious, greedy, vindictive SOB even if they put a saint in the position, they may as well get the benefits of an actual vicious, greedy, vindictive SOB.
Ballmer took over in 2000. Here is Microsoft's stock performance since 2000:
http://finance.yahoo.com/q/bc?s=MSFT&t=my&l=on&z=m&q=l&c=
Ballmer is responsible for:
* The 7+ billion dollar Xbox fiasco
* The Zune marketplace flop
* The PR disaster that Vista has become
* Mass exodus of Microsoft employees to Google and other exciting and growing companies
* A total failure to get anywhere with Search and Advertising
Ballmer has been a complete failure in every single effort by Microsoft to create viable products outside of their core OS/office software/server software products.
I doubt it, but you never know how Wall Street will react. I've become more convinced lately that individuals like Bill Gates and Steve Jobs, and that guy who built Sony, are critical for stellar growth in high-tech companies. After David Packard left, HP floundered for years. I suppose Gates could revive Microsoft, much like David revived HP for a time, and Jobs has revived Apple.
However, it seems to me that the writing is on the wall: cheaper computer hardware means cheaper software. $200 PCs are a bad sign for Microsoft. Android built on Linux for cell phones is a bad sign for Windows Mobile. Losses in Xbox and other non-core divisions don't help, and defocus Microsoft from it's primary mission: Windows. I'm a big fan of Intel's Atom processor, and I suspect Intel can make the transition to cheaper computing, although with lower revenue. Microsoft... I'm not so sure.
Beer is proof that God loves us, and wants us to be happy.
The SlashDot Borg Icon for Microsoft needs to be Ballmer not Gates.
In Microsoft there are two sets of crowds, the Gates set and the Ballmer set.
The Gates set is more apt to give stuff to users, do things the right way, and has been the underpinnings of things MS has gotten right or had done right by the IT world as a whole. They tend to take what they do seriously, have pride in Microsoft and want it to continue to succeed for the right reasons, etc.
The Ballmer group are the business minded, make a buck, and screw you type of people. They step on each other, screw over other projects if it gains them something, and could give a crap about the IT world or even Microsoft itself in the long run.
When you see the 4 versions of Vista, this was the result of the Ballmer crowd and OEMs wanting a dirt cheap version. The Gates crowd kept NT as two roles, Desktop and Server, but sadly the Ballmer nuts won that war cause they thought it would make MS an extra buck.
Gates = technology and empowering.
Ballmer = dominance and money.
Sadly Gates assumes that because most businesses think like Ballmer that Ballmer is doing the right thing, when Microsoft could be structured more like Gate's foundation and not only help the IT world more, but be just as profitable.
I would love to see Ballmer retire and the idiots that think like him go as well.
throw new NoSignatureException();
> He and Gates surely control enough stock to do as they please.
Not true: Check the holdings:
http://finance.yahoo.com/q/ks?s=MSFT
% Held by Insiders1: 13.42%
% Held by Institutions1:62.70%
If the institutions (banks, mutual funds, hedge funds, etc) want Steve out the door, he's gone.
Sig Battery depleted. Reverting to safe mode.
Bill Gates is still the Chairman, the largest shareholder and founder.
Stevie B is the second largest shareholder.
Between Billy G and Stevie B they hold over 10% of the company (a lot for a large cap company).
Surely the only way Steve gets rolled as CEO is if Bill loses all faith in him, and given their long relationship this seems unlikely.
I doubt very much that in the face of a hostile Bill the board has any hope of removing him even if they, and their institutional shareholders are unhappy with his performance.
It seems exceedingly unlikely that on the back of these problems they'd get rid of him. If it ever got remotely near that, he and Bill would have a word and he'd "retire to spend more time with his family".
--Q
"Ballmer has been the big driver behind [the Yahoo] deal at Microsoft -- some would say to the point of obsession."
Yet when the bid failed he seemed quite able to drop it. I wouldn't call that obsession, obsession would've been continuing the bid until they got Yahoo no matter how costly and damaging to Microsoft. He knew when to quit and he did.
Of course then the summary goes on to bitch at him FOR dropping it. Make up your mind, was it bad that he continued as far as he did to the point the summary feels he deserves to be called obsessive over it or not?
Most Yahoo and MSN are going south and Google is going north.
Its unfortunate. The last thing the world needs is a company with a monopoly on internet search, any company. And that includes google.
If you think Bill Gates is the "chair"man, you must be new here...
MSFT has been underperforming the exchange indices for as long as Ballmer's been in charge. Now that MSFT is not, and will never again be a growth stock, it should be a dividend stock. Every billion dollars that MSFT pisses away on failures like the zune or the Xbox, is shareholders' money being wasted on Ballmer's ego trips.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
I left at the peak. Not just luck of course. Also not just smelling the coffee. It was a feedback effect. By leaving, someone not quite as talented took my place. And soon more people decided it was time to leave. Of course, it didnt just happen to me, but I really do feel if I had stayed things could have been different. Its just that, well, too many parasites and glommed on and it just wasn't worth fighting them anymore.
While I think Ballmer is certainly responsible, the problems really started much earlier. I blame Melinda for taking the edge off Bill, seriouly, he was a changed man after he got married. Balmer picked up the slack and quite frankly, hes an overbearing personality with no technical knowledge.
One of my heroes, Chris Peters had said that in order to have a successful product, you must reduce all dependencies. After he left, Ballmer changed the strategy: he actually told everyone to increase their dependencies on other teams. I think he must have been influenced by some of those self-help gurus who talk about the stages of maturity (dependence,independence, inter-dependence) and misapplied the lessons. Whatever it was, working at MS became a real chore and jerks, megalomaniacs and scammers began get power and the BS built up.
I doubt MS can ever recover from this period, its stock will never rise significantly again.
I agree that fundamentally monopolies are bad for consumers. In the case of Google, today, it's not a problem. Google isn't the default search engine in a clear majority of computers shipping today. That's quite telling. People have to seek Google out on purpose and chose to do so because Google works and works well. If you remember, Google rose to that position due to the arrogance of other search engines. Pay for top ranking, ads disguised as links in the ranks, eye candy over functionality. Then Google came along and said, why don't we try making a search engine first and generate revenue second. They are one of the few dot com companies that tried that and succeeded. Remember when ad words was first added and how "controversial" it was? It was ultimately accepted because Google MUST generate revenue somewhere in order to actually function.
In terms of online advertising, they may end up being a problem. All those ad words customers they generated ended up being very attractive to 3rd parties. Google will pay to put their customers ads up on your site, same basic market model as someone like doubleclick. It is here that a monopoly will end up costing consumers, given the proper board and CEO of Google. They have neither a monopoly there, nor the apparent corporate culture necessary to make this a problem. Yet.
This revenue is what Microsoft is interested in. In order to get there, Microsoft needs a functioning web site with an astronomical amount of users, to attract advertisers. Then they can take that customer base and start sharing it with 3rd parties, which attracts more customers. From what I understand, Yahoo has far better advertisement position than "Live" does. Combined with Yahoo, Microsoft would be in a position to make an advertisement company that could ultimately rival Google, doubleclick, etc. They failed because ultimately Yahoo's internal culture is against Microsoft. From what I can see, it's to the point that employees would have left the company in numbers significant enough that Yahoo would have ended up worthless. This is something the guys at MS didn't see happening. They assumed the amount of cash offered and the overall chance to rival Google in both search engine and advertisements would have been good enough for both management and employees. It clearly wasn't and now Microsoft understands that, which is why they recalled their bid and aren't chasing the hostile take over option.
Burn Hollywood Burn
He doesn't get how Google or Yahoo gets success. They get success because there are purely oriented to services they provide and how a bigger audience they can reach.
Yahoo can spend months trying to make Yahoo Mail beta compatible with one of the fastest moving browser targets on planet, Safari (and Webkit). Same goes for My Yahoo beta which can easily be called a full feature RSS reader APPLICATION running from web browser.
Google guys do everything to keep compatibility with Safari/Firefox and even as a user, I know Safari isn't the easiest browser to code for.
What does Hotmail do? It suggests user to "UPGRADE IE version" to get better experience. Problem? It is/was Safari 3.1 for God's sake.
If they want success on Web, they should fire the first person to suggest IE for better experience, adopt the "Graded browser support" scheme of Yahoo, stop advertising joke like things like Silverlight OR make Silverlight 2 something that people will show Adobe as an example. For example, Silverlight 64bit edition for Linux/FreeBSD , actual MS release without using any puppets.
As you mention Google Android, you know Android syntax is based on J2ME since it is the most known, distributed, multiplatform thing on mobile space. Did MSN code ANYTHING for hundreds of millions of mobile devices having J2ME? Symbian? No. Why? Because they see every device not running Win CE as some sort of "enemy".
On the other hand, Yahoo Go is a full feature application written in J2ME, Youtube (Google) ships an excellent performing J2ME application to mobile devices.
It is not only Ballmer to be fired. It is those idiots at MSN who once dared to block standard WAP browsers except their MS WAP browser (old Sony GSM) from mobile hotmail. As far as I can see, that group of idiots are still active at MS.
and honestly that is when all good companies start the drain spiral. The men with vision and drive for the company no longer in charge but bean counters.
when the bean counters are driving the ship they only look 30-90 feet in front of the bow. The refuse to adjust course for any reason unless they see it within that 30-90 foot window. It's not cost effective to steer around the iceberg that is on the horizon. It's more profitable to keep steaming at it full speed.
The WORST thing for a company is to go public and have most of the stock owned by someone other than the principals that started the place.
Do not look at laser with remaining good eye.
A long, long, long, time.
Google sells stock and ads.
Microsoft has actual products (bitch all you want about them - they do sell).
And there is no way in hell Billy Boy would ever let Google (or anyone else for that matter) buy out his company.
Oh hell no... I say let him stay. A few more decisions like Vista, Zune and the DRM and Microsoft just becomes another Novell; the only two things they make that people really HAVE to have are Xbox and Exchange. Even Office is becoming optional now.
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