Microsoft Exec Opens Up About Research Lab Closure, Layoffs

alphadogg writes It's been a bit over a month since Microsoft shuttered its Microsoft Research lab in Silicon Valley as part of the company's broader restructuring that will include 18,000 layoffs. This week, Harry Shum, Microsoft EVP of Technology & Research, posted what he termed an "open letter to the academic research community" on the company's research blog. In the post, Shum is suitably contrite about the painful job cut decisions that were made in closing the lab, which opened in 2001. He also stresses that Microsoft will continue to invest in and value "fundamental research".

Comments

Bull

[TWX]

He also stresses that Microsoft will continue to invest in and value "fundamental research".

That's a load of bull. Just about every company that's had significant research institutions and has closed them down has suffered long-term from that choice. Xerox, Bell, IBM, and several others in telecom/computing alone have done this and suffered the consequences.

Fundamental research is what drives long-term profit. Sure, it costs money. But it also produces patentable products that can revolutionize the market and allow the company to profit from patent licensing even when they aren't interested in the market that the patent would apply to. Get rid of the research and the company's products go stale over time, no new ideas, rehashing of existing ones to the point that someone with new innovation comes along and steals away all of the customers. Short-term it might make more profit, but long term it's like selling one's investments for cash.

This is a terrible mistake for Microsoft.

Re:Bull

[timeOday]

It is very premature to excoriate Microsoft for discontinuing research. Yes they closed the Bay Area site, but Microsoft Research is headquartered in Redmond, along with Microsoft Corporate HQ. If anything, Microsoft has been knocked for pouring money into MS Research with little to show for it (although their patent portfolio may be the most profitable thing they have going in the mobile arena).

If Microsoft is flagging, I actually don't think it's lack of research, in their case. They are way out in front of every movement in industry (hence the patent fees), what they lack is the design and marketing to capitalize on it themselves.