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Microsoft's Lost Decade

theodp writes "Newsweek's Daniel Lyons (that's Fake Steve to you) explains why Steve Ballmer is no Bill Gates, arguing that what most hurt Microsoft was BillG's decision to step down as CEO in January 2000: 'Gates was a software geek. He understood technology. Ballmer is a business guy.' And the problem with putting non-techies in charge of tech companies, concludes Lyons, is that they have blind spots. So while Microsoft's revenues nearly tripled from $23B to $58B on Ballmer's watch, says Lyons, the company became bureaucratic and lumbering, slowing down while the rest of the world — including Google, Apple and Amazon — sped up."

21 of 603 comments (clear)

  1. Re:Bill Gates is a geek? by sopssa · · Score: 5, Insightful

    Even if that was true, he understood what other geeks needed. Plain business men probably aren't going to understand that.

    And if you're ever read some book by Bill Gates, you'd notice he does have quite (interesting, I might add) ideas. Not just with OS and such, but with technology general and how to combine it with everyday life.

  2. Re:Bill Gates is a geek? by PaintyThePirate · · Score: 5, Informative

    Sure he is. He's even got a paper published on bounds on the Pancake sorting problem.

  3. Doesn't really matter beeing a geek by Stratoukos · · Score: 5, Insightful

    This says a lot more about Steve Balmer's competence than Bill Gate's geekness. A far as I know Steve Jobs is no geek, but apparently Apple's relevance is affected by him being there.

    --
    It may be 7 digits, but at least it's a semiprime
    1. Re:Doesn't really matter beeing a geek by CharlyFoxtrot · · Score: 5, Insightful

      This says a lot more about Steve Balmer's competence than Bill Gate's geekness. A far as I know Steve Jobs is no geek, but apparently Apple's relevance is affected by him being there.

      Jobs is not a geek per se but he talks our language, that's how he got involved with Woz. That and he has an uncanny insight into technology and how it can be used and popularized even when he lacks the technical skill to develop it himself. He's not a salesman (bullshit artist) like Balmer, but someone who can genuinely see how cool a technology is and then transfer that enthusiasm to other people.

      --
      If all else fails, immortality can always be assured by spectacular error.
    2. Re:Doesn't really matter beeing a geek by Hurricane78 · · Score: 5, Interesting

      That's what makes a good manager/boss: Someone who listens to the experts that he hired because they are better at something than he is.

      One could say: A perfect boss is someone, who can perfectly combine and channel all the competence of his employees into one point. Like a network switch. Allowing them do work with each other at top efficiency. A switch is only a relatively simple device. But essential for any network to function.

      One could say, bad bosses are not only just network hubs. They also corrupt the packets on the way, and lead them everywhere but where they belong. Making the results useless for all clients of the company.

      --
      Any sufficiently advanced intelligence is indistinguishable from stupidity.
    3. Re:Doesn't really matter beeing a geek by CharlyFoxtrot · · Score: 5, Insightful

      Uncanny insight? Lisa? NeXT? Let's not try to rewrite history here...

      The Lisa was the competitor (internally at Apple) to Jobs' baby, the Macintosh. I think we all know which one won that battle.

      Wikipedia has the following to say on NeXT's impact : "Despite NeXT's limited commercial success, the company had a profound impact on the computer industry. Object-oriented programming and graphical user interfaces became more common after the 1988 release of the NeXTcube and NeXTSTEP, when other companies started to emulate NeXT's object-oriented system."

      There's a reason why the first browser was written on a NeXT cube you know. Berners-Lee says : "I wrote the program using a NeXT computer. This had the advantage that there were some great tools available -it was a great computing environment in general. In fact, I could do in a couple of months what would take more like a year on other platforms, because on the NeXT, a lot of it was done for me already. There was an application builder to make all the menus as quickly as you could dream them up. there were all the software parts to make a wysiwyg (what you see is what you get - in other words direct manipulation of text on screen as on the printed - or browsed page) word processor. I just had to add hypertext, (by subclassing the Text object)"

      --
      If all else fails, immortality can always be assured by spectacular error.
  4. Re:Bill Gates is a geek? by sopssa · · Score: 5, Informative

    Also like how Wikipedia article tells on his early life,

    One of these systems was a PDP-10 belonging to Computer Center Corporation (CCC), which banned four Lakeside students—Gates, Paul Allen, Ric Weiland, and Kent Evans—for the summer after it caught them exploiting bugs in the operating system to obtain free computer time.[15]

    At the end of the ban, the four students offered to find bugs in CCC's software in exchange for computer time. Rather than use the system via teletype, Gates went to CCC's offices and studied source code for various programs that ran on the system, including programs in FORTRAN, LISP, and machine language.

    Gates wrote the school's computer program to schedule students in classes. He modified the code so that he was placed in classes with mostly female students.

    That gotta give some hacker and geekiness points ;)

  5. The Worlds Lost Decade by SuperKendall · · Score: 5, Interesting

    How far back has the software industry been set back by Microsoft?

    How much further along would server side be if Microsoft had truly worked with the Java community instead of going it's own way with .Net?

    How much better would cellphones be if Microsoft had not bought, and slowly strangled, Danger?

    How much further along would so many areas be if Microsoft had not bought up so many experts and stuffed them in an R&D group with almost no real world output, instead of having them work on practical technologies that made it to market?

    Would the HD video market have been as fragmented as it was without Microsoft pushing HD-DVD long past the point it was obviously dead just so they would get licensing revenue from the menu system?

    If Microsoft the company has lost a decade, it is Karma - for the world and our industry has lost so much more at their hands.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:The Worlds Lost Decade by gmuslera · · Score: 5, Funny

      You must give some credit to Microsoft. If weren't because of them, we would never knew the risks of botnets, trivial exploits and trusting by default in the network. Who knows, if they werent there probably some centuries from now, when we invade some primitive planet, natives would hack our mothership because we never got aware of those risks.

  6. Re:Bill Gates is a geek? by CharlyFoxtrot · · Score: 5, Interesting

    I don't suppose you've ever heard of BASIC before, have you? You know, the language that was on the computer in your own fucking username? The most popular implementation of it even today remains Microsoft Basic, which was initally developed by...wait for it...Paul Allen and _Bill Gates_./p>

    Even better, he developed the C64 basic since Commodore licensed it from MS.

    --
    If all else fails, immortality can always be assured by spectacular error.
  7. Re:Bill Gates is a geek? by sopssa · · Score: 5, Insightful

    Plus which, it doesn't help that Ballmer is a flaming sociopath who should be on medication not running a multi-billion dollar corporation.

    I always thought that was required from *all* CEO's of multi-billion dollar corporations.

  8. Not just Microsoft by michaelmalak · · Score: 5, Interesting
    The decade was lost for the entire tech sector, not just Microsoft. 9/11 triggered a recession that caused most companies to pull back and take on only low-risk maintenance-type projects -- nothing cutting edge. All the good software developers and cutting edge work were relegated to black ops, which we don't hear about, except in bits and pieces like Total Information Awareness and Google's Singularity sub-campus on the NASA Ames campus (which is known for its AI work).

    Oh, there was a bit of an economic lift in the middle of the decade -- the housing boom triggered by Greenspan's one-percent interest rates. So, some software development work went into the mortgage industry. That's as useful, as exciting, and as enduring as granite countertops (which were just a waystation between Corian and compressed quartz). Then the Great Recession hit in 2007 -- back to no innovation at all (as least outside of cleared work).

    What do we have to show for it on the desktop? Window bars that are blurry and hard to read. Faaaan-tastic.

    Where the heck is end-user database/web development? It's like Microsoft Access and Lotus Notes are living time capsules of their 1995 versions. Where is a unified naming system that treats e-mail messages, files, web URLs, and database records homogeneously? Where are agents? Why do I have to manually save every check images from my online banking? Why aren't these automatically downloaded to my computer by a software agent?

  9. Re:Bill Gates is a geek? by causality · · Score: 5, Insightful

    Also like how Wikipedia article tells on his early life,

    One of these systems was a PDP-10 belonging to Computer Center Corporation (CCC), which banned four Lakeside students—Gates, Paul Allen, Ric Weiland, and Kent Evans—for the summer after it caught them exploiting bugs in the operating system to obtain free computer time.[15]

    At the end of the ban, the four students offered to find bugs in CCC's software in exchange for computer time. Rather than use the system via teletype, Gates went to CCC's offices and studied source code for various programs that ran on the system, including programs in FORTRAN, LISP, and machine language.

    Gates wrote the school's computer program to schedule students in classes. He modified the code so that he was placed in classes with mostly female students.

    That gotta give some hacker and geekiness points ;)

    So Bill Gates studied the source code and benefitted from having done so? I wonder if he appreciates that he'd have been unable to do this if everyone operated the way Microsoft does.

    --
    It is a miracle that curiosity survives formal education. - Einstein
  10. The problem is not just Ballmer by mbkennel · · Score: 5, Interesting

    The original article is too timid.

    The problem is not just Ballmer. The problem is that Microsoft wasn't broken up. Ballmer is the symptom.

    After the antitrust ruling was emasculated, Bill Gates should have said "OK, we won. Now we're going to break Microsoft up anyway. That's the only way to prevent us from turning into exactly what we despised when we founded the company: IBM."

    They have many smart people working there but they are all Thralls, in service to the continued maintenance of the Windows Empire, whose first commandment is Thou Shalt Not Think Different.

  11. Re:Apple got lucky by CharlyFoxtrot · · Score: 5, Informative

    The current CEO of Palm is the inventor of the ipod, not Steve Jobs. While at Apple Steve Jobs sent him out to find a hot product to make and he found the 1.8" hard drive at Toshiba that was considered a waste of resources and about to be killed. He made the ipod around it. iTunes came from a company Apple bought and they just renamed the software.

    I'm confused. Are they lucky because they hired good people or because they made smart acquisitions ? They completely redid the GUI for iTunes by the way, Soundjam looked entirely different and they develop it in a a novel way by making it into an interface for their store.

    iTunes took off because Microsoft couldn't get their DRM strategy right and iTunes worked out a good deal with the record companies. the Ipod was one brand from a company everyone knew.

    True, but again that they were able to get right what MS couldn't just proves they were smart not lucky.

    the iphone was a sales disaster until they cut the price and added the subsidies from AT&T. even then it was a slow niche seller until the 3G came out with the AppStore and Exchange support.

    This one is just blatantly false. The iPhone hit all Apple's announced targets, 1 million sold in the first 80 days, 10 million sold by 2008 ("Apple hits 10 million iPhone target two months early".)

    --
    If all else fails, immortality can always be assured by spectacular error.
  12. There is little to suggest Gates knows technology. by Futurepower(R) · · Score: 5, Interesting

    The early Microsoft Basic was buggy and poorly documented. It ran under the CP/M operating system.

    "... the problem with putting non-techies in charge of tech companies, concludes Lyons, is that they have blind spots."

    The problem with managers who have little knowledge or interest in technology is that they are mostly blind to technology. The mentally blind cannot lead.

    If you read the books about Bill Gates and Microsoft, there is little evidence that he was much interested in technology. Remember, he initially didn't think the internet would be important. Hard Drive: Bill Gates and the Making of the Microsoft Empire is interesting, for example. So is Barbarians Led by Bill Gates.

    Read The Road Ahead by Bill Gates and Nathan Myhrvold. There was little in the initial edition, at least, to suggest that Gates knew much about technology. The book was full of platitudes that any buzzword collector would know.

  13. Re:There is little to suggest Gates knows technolo by Brian+Gordon · · Score: 5, Insightful

    Oh come on how do you write a 4k BASIC interpreter and editor in assembly and not "know technology"?

    I don't care how buggy Altair BASIC was, Bill Gates knew what he was doing back then.

  14. I disagree, it's about open standards by Tablizer · · Score: 5, Insightful

    I have to disagree that it's about a tech-oriented CEO. MS's problem is that they are good at leveraging dominance of one market to conquer another. They are bundlers and package-oriented wheeler-dealers. However, the internet relies on open standards to function, and MS simply hasn't found out how to work smoothly among open-standards. Their instinct is and has always been to to kill them off via manipulation, and their reputation surrounding standards has hampered them. They simply came to the end of the leveraging-of-proprietary rope. This would have happened with or without Gates.

    They would have to almost completely change company personality to get out of their rut, much like IBM did when they decided that services, not hardware, were going to be their thing. But IBM had to have it's face shoved into the boiling calderon of death before it realized it had to start over. MS is still a ways from that point.
         

  15. Revised history by SuperKendall · · Score: 5, Insightful

    Regardless of how it got there, having a mass market platform to develop against surely made many projects feasible that would otherwise have cost too much for niche markets.

    UNIX was handling that just fine before Microsoft came along. You also forget there were other perfectly viable user platforms until that point, like Amiga or the Mac, or for that matter even OS/2. Any benefit gained was lost in the terrible issues we have resulting from a security monoculture.

    Java is a tragic missed opportunity.

    Given the number of jobs and active server side development going on, and the fact that Android is based atop it, and the fact that until now mobile programming such as it was was J2ME, and the fact that Java is in the Blu-Ray menuing system... I'm almost afraid to see what an un-missed opportunity looks like (apologies to Strunk & White for the numerous "fact that").

    Buying up experts and stuffing them into R&D is always hit and miss. Generally you'll take a lot of misses to get the one big hit though. It takes time and even with the recession Microsoft is still spending over 9 billion on R&D this year..

    The ultimate Ivory Tower, that doubles as a dungeon - despite all that money spent they have very little usable output to point to compared to Google or Apple or just about any other company that does R&D. It's more a place to try and keep smart people AWAY from other companies than it is a productive force.

    I can honestly say that I don't think anyone cared much that Microsoft was backing HD-DVD.

    It's not about you or I caring. It was all about Microsoft financially backing the format, and the companies that would have leapt from the sinking ship staying about because Microsoft was still there. It's a shame they didn't do further study on the fates of other Microsoft partners or many billions might have been saved (not that I shed any tears for the movie studios)...

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  16. Re:There is little to suggest Gates knows technolo by Orion+Blastar · · Score: 5, Interesting

    Actually Gates knew the 1960's and 1970's technology. His mother paid for time on a mainframe for him and his school mates for the first computer club in his school. Bill Gates learned FORTRAN, COBOL, BASIC, Assembly, etc.

    Microsoft BASIC for the Altair was a group project, but rumor has it they got the Dartmouth BASIC source code from dumpster diving, but nobody can prove that. Anyway Ballmer and Gates wrote traffic control programs in assembly prior to founding Microsoft.

    Bill Gates learned from his father who was a lawyer that the best way to make money is to pay people to invent new technology for you, or buy out your competition if your employees cannot do it. Like Steve Jobs, Bill Gates is a manager with a little about a technical background, but more into marketing, sales, and hype (or propaganda), as well as public relations. Steve Wozniac was the real power behind the early Apple, and Paul Allen and others where the real power behind the early Microsoft (later on Tim Patternson as well).

    I wouldn't say that Gates is not knowing how technology works, but his knowledge comes from the 1960's and 1970's technology, and then management of 1980's to above as he directed others to create the technology even if he didn't write the code himself. Gates gave the vision, and the design, and the ideas and other things to drive others to create Windows, and other projects. Yes Microsoft did indeed copy off competitors and bundled technology in an effort to drive competitors out of business. While Lotus had the Lotus Symphony as the first bundled software, eventually Microsoft bundled Word, Excel, Powerpoint, and even Access as Microsoft Office for Windows and eventually wiped out Lotus (IBM bought the corpse of Lotus) and weakened Wordperfect, and drove Aston Tate out of the DBase database business with Access and SQL Server.

    Microsoft always has had a BASIC product, from MS BASIC to GW-BASIC, to Quick BASIC, to Visual BASIC, to Visual BASIC.Net, the BASIC keeps on going and upgraded to new operating systems and frameworks, now with the Dotnet Framework built into Windows Vista and Windows 7. The Dotnet Framework put a lot of Visual BASIC component makers out of business as Dotnet did what a lot of third party components for Visual BASIC did before it was developed.

    It takes at least a basic understanding of technology to pull all of that off. Baller is the typical Pointy Haired Boss, but Bill Gates was like the Wally of Dilbert at least, and expert on ancient technology but knows how to drive his team to get results.

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  17. Re:Always blaming or crediting the CEO by Anonymous Coward · · Score: 5, Insightful

    As a long time MS employee I can say that what the article says is only partially true. Because Ballmer is no businessman either.
    He would rather save a dollar than earn 10. He is so focused on reducing costs that he leaves billions in the table to save millions.
    His management style could make sense in a company whose main problem is low margins, but when you have >50% operating margins and your only threats come from your competitors being able to outinnovate you (in many cases, simply through investing more, such as in mobile), then focusing on cost is not only absurd, it is irresponsible. If it wasn't his money as well I would claim he's a crook. Since it is, he's just a jerk.