Bill Gates Doesn't Work At Microsoft Anymore
itwbennett writes "The recent Fortune article on Bill Gates' post-Microsoft life made one thing very clear to blogger Steven Vaughan-Nichols: 'Bill Gates was, and still is, the face of Microsoft. What Microsoft doesn't want you to know though is that Gates has almost nothing to do with the company anymore.' The fact is that Microsoft doesn't want to draw attention to Gates' absence because the company 'has been tanking in recent years,' says Vaughan-Nichols. 'While Microsoft's last quarter was far better than it was a year ago, thanks largely to Windows 7 finally picking up steam, neither Microsoft's growth nor its profits are what they were like when Gates was at the helm.'"
neither Microsoft's growth nor its profits are what they were like when Gates was at the helm.'"
And what do they think Gates could do differently if he was still calling the shots? For better or worse most of Microsoft's key markets are saturated.
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.
When will /. replace the Locutus of Microsoft icon with Ballmer throwing a chair?
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.
Yeah, kind of a no brainer here. Growth at a large company in a mostly saturated and slow-growing market during a recession is less than growth of a mid-size company in a largely uncontested and growing market during an economic boom. My god, it's the end of the world, sell all your MS stock!
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Don't forget that Apple has become the new Microsoft, in a sense. They've adopted Microsoft's approach of vendor lock-in, and taken it to a degree that Microsoft never could.
Not only does Apple lock you in at the software level, like Microsoft did, but they go so far as to limit what programming languages you can use when targetting some of their platforms. Microsoft never stooped that low.
But Apple takes it further, by holding a monopoly on the hardware stack their software runs on. Microsoft never managed this. They may have had deals and influence with some PC hardware vendors, but they were never really in control like Apple is.
Then Apple takes it yet a step further, and basically dictates how you can use your device when it's networked, and who can provide that access. Microsoft never did anything like this.
So as the Microsoft generation retires from the workplace, we're beginning to see a new generation of Apple supporters move in. Except they're far more gullible and brainwashed than the Microsoft supporters ever were, and these Apple users are willing to accept a far greater degree of dictatorship and vendor control. It makes me weep.
your not thinking like an investor.
Are they growing by more than 8% per quarter! then they are FAILING!
Screw this long term planning stuff, strip R&D, lay off most of your developers and outsource your coding to a cheaper country. We need you to show much improvement next quarter, so my stock will go up a point or two!
What are we going to do tonight Brain?
One way or another, I doubt if Bil Gates really cares very much. I seem to remember him saying right at the beginning that if he made it big, he would end up giving his money away.
Well, kudos to him: he is actually doing that. I dislike Microsoft on many levels (but mostly technical, since I am well and truly old enough to have only a remnant of my ideological principles), but Gates is doing more good with his own money than most of our governments are doing with ours.
As an outsider to investment, it seems to me like this happens a lot with large public companies. It appears that investors get really upset when profits this year are less than profits last year (even if profits are huge) and they encourage the company to start sacrificing long-term stability for short-term income.
Reality check: Microsoft is quite profitable. So is IBM. They make the wheels go around, and that's a solid business. That's what matters, not how much commentary the company gets on Gizmodo and Techcrunch.
There are other big companies like that. Consider Consolidated Edison, the power company for New York City. They've been selling electricity since 1882, and they made $14 billion last year. General Electric is still around, and with about the same product line they had a century ago - power station equipment, appliances, lamps, and turbines. (Along the way, GE entered and left semiconductors and computers.)
Google, on the other hand, is quite vulnerable. They've never had a second profitable product. Google has whole lines of money-losers, from YouTube to GMail. 97% of Google's revenue is still from search ads.
3. The failure to see the rise of the netbook/tablet.
This is I think somewhat unfair, in two ways (since those are two different markets).
For Netbooks, Microsoft didin't really see that coming but reacted very quickly and with skill, to where Windows dominates Netbooks when it looked at first like that would be the realm of Linux. They may not have seen that coming but they managed to win that one anyway to the point where it does not matter that they didn't see it coming.
Now tablets, that's a different story. They saw that coming, something like ten years ago? Off and on they tried VERY hard to make that market work. There they had vision, but no execution - and that I think is mostly the problem, Microsoft still can have vision but they have (for whatever reason) a ton of problems executing. It really seems from the outside like this is the old ossified company syndrome where endless layers of management just boil away any real innovation from a product because real innovation is too risky and focus groups all say they hate the new thing you are trying to do because it is different than what they are used to. I think even if Microsoft made their own tablet hardware (like Apple) they would have had the same issues.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
I think OP seriously overestimates the threat of OSS of the desktop, but has a point of sorts. I see three major threat vectors affecting MS right now, and it's losing ground on all of them. Two it's losing ground slowly and may recover, the third it's already come closing to losing entirely.
1) Enterprise Data center: MS is losing ground to OSS here. Apple has made some small inroads, but basically this is Microsoft vs various Linuxes. They are not being pummeled by any means, but definite inroads are being made, and MS is slowly losing ground. This is bad because MS thrives on its ecosystem. You buy MS servers because they integrate so well with other MS servers and the MS desktops. If you have fewer MS servers then the need for more MS server seems less pressing. Then there's the:
2) Desktop: Obviously at the moment OSS is a minimal threat here, but Apple is more serious. They are making serious threats on the consumer side, and once people become used to it at home they ask about it at work. As things stand now, it's mostly smaller businesses that go for Apple on the desktop, or switch partially, but I've seen Macs creeping in larger businesses too (I used to do work with a Fortune 50 Aerospace company that had buckled and allowed some Macs for video editing in our facility). As bits of the data center go OSS, Macs become less of a liability too. Changes made to accommodate Unix based servers work just as well for Apple's Unix desktops. Installed an AD to OpenLDAP translator for the new web server? Oh look, Macs can auth against OpenLDAP. Again, Apple isn't anywhere close to "winning" on the desktop, but they're making inroads.
3) Mobile platforms: This is where MS is losing big time to Apple and Google (and RIM, and possibly a couple kids with tin cans and a string). This is a pretty serious problem IMO, because this is the next platform. I see mobile platforms, tablets and phones, doing what laptops did 10 years ago and desktops did 10 years before that. Taking over. Not to say that there won't still be laptops, and in the medium term it might even help desktops, but I've already found that my laptop is a bit redundant because of my iPhone. Last trip I went on, I didn't even take it out of the bag. Next time I'm debating leaving it at home. If Microsoft can't own this space, they're going to be in trouble. Not, "OMG they're going out of business" trouble, but growth will become mostly a thing of the past in the next decade.
I don't need a million points of light, just two points of multi-mode fiber and a 10 Gig-E router.