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October 2, 2007 11:33 AM PDT

Behind Ballmer's latest bloviating

by Charles Cooper
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It was not what a prospective buyer normally says--unless of course you're aiming to drive down the sales price.

"I think these things (social networks) are going to have some legs, and yet there's a faddishness, a faddish nature about anything that basically appeals to younger people," Steve Ballmer told The Times of London.

If we take Ballmer at his word, I'd say that qualifies as a public dousing of last month's speculation about Microsoft considering a 5 percent stake in Facebook.

Then again, maybe not.

In the same interview, Ballmer allowed that there was value in the "network effects" that comes with a Web site's accumulation of over 40 million users

But then it was Ballmer being Ballmer. The big fella just couldn't resist taking that dig.

"There can't be any more deep technology in Facebook than what dozens of people could write in a couple of years. That's for sure," he said.

For the sake of argument, let's assume Ballmer's right. What then prevents Microsoft from deploying its vaunted development prowess and "out-Facebooking" Facebook?

It's not as if Microsoft lacks for good engineers. If it were a technology question, Microsoft long ago would have trained its Death Ray on Facebook, Google, North Korea--who could match up? He can diss Facebook all he wants but Microsoft's CEO faces a bigger challenge as he surveys a rapidly changing software landscape.

Maybe one of the Wall Street sharpies who follow the company one day will have the guts to call it like it is: Microsoft just can't get out of its own way. Anyone can see that management is struggling to manage a mega-company that's grown too large for its own good.

It's no exaggeration to say that it's been quite awhile since Microsoft was even close to fighting trim. Do you recall the last time Microsoft delivered a "wow" software product? (A colleague says "Hearts" back when Windows 3.1 came off the assembly line.)

If you had to think about the answer for a long minute, I rest my case.

Charles Cooper has covered technology and business for more than 25 years. Before joining CNET News, he worked at the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet. E-mail Charlie.
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It's all about the benjamins
by solrosenberg October 2, 2007 12:46 PM PDT
Microsoft net income for FY2007: $14+ billion
Facebook net income for FY2007: ???
Reply to this comment
It's this kind of thinking that gets you into trouble...
by thriftyT October 2, 2007 1:31 PM PDT
Complacency is a dangerous thing.
a "wow" software product
by yevster October 2, 2007 12:52 PM PDT
Hmm... let me think... Halo 3? Age of Empires franchise? Office 2007? The entire .NET ecosystsem?
Reply to this comment
re: a "
by audionet1 October 2, 2007 1:25 PM PDT
Office 2007 is not a WOW software app/suite -- it's the same
thing with some shiny new buttons. .NET might be wow if it
played well with other platforms or adhered strictly to web
standards. At the very least they should wow us with an
operating system that took five years to develop but instead
manufacturers everywhere received so many incompatibility
complaints that they scaled back their Vista shipments and put
XP back on the line. It's not like they didn't have time to get the
hardware companies on board, ensuring a successful launch. I
agree completely with the statement that Microsoft needs to
step back and take a look at themselves - they are no longer the
intimidating/pioneering giant they used to be.
View reply
Re: A "WOW software product
by alflanagan October 2, 2007 1:26 PM PDT
Office 2007? Are you kidding? That's a "so what" if I ever saw one. .Net is interesting, yes, but I'll say "wow" when I see some good products built with it.
View reply
Microsoft is Your Father's Oldsmobile
by USDecliningDollar October 2, 2007 1:12 PM PDT
MS doesn't realize that it is "Your Father's Oldsmobile" - there really is no more "coolness" factor - maybe Halo3 ... but otherwise, MS is a big stodgy old company trying to be cool. I hate the expression "you just don't get it" but, in the case of MS - they just don't get it. They are about as "cool" as IBM, the IRS or the US Postal Service.

As an aside, every time that I read about Ballmer, I make the same face as if I have just eaten a lemon. MS could do better, simply by paying him to keep quiet and not do any interviews. As decade+ "IT Guy" supporting engineers and software developers - I cringe and I am embarrassed for those poor people every time I see those smuggled MS vids of Ballmer at one of those rah rah rallies. http://youtube.com/watch?v=RaCbvBwVaJU
"Who said sit down?"

"I love this company"

hmmm ...
Reply to this comment
re: no more coolness
by rcrusoe October 2, 2007 2:14 PM PDT
there are a lot of us that have never attributed any kind of "coolness" to Microsoft.

MS parlayed a decent operating system, a good office suite, and an excellent marketing department into a very successful company. But their abilities appear to end there.

Halo3 may be cool but the XBox project, along with search, smart phones, and just about everything else doesn't make any money for the company. If I remember correctly, XBox alone has lost about $6 Billion for the shareholders.

Mr. B's "bloviating" reminds me of another statement attributed to his buddy Bill in 1993:

"The Internet? We are not interested in it"
Make a Ballmer chart....
by jimoase October 2, 2007 1:14 PM PDT
Divide the chart into two columns, postive and the other
negative. For fun mark either column with an increasing count
and you see appropriate.

It has been my observation that Ballmer's name has been
associated often with negative toned articles. Often there is an
implied buffoon charactistic associated with Ballmer articles. Is
that good?

Jim
Reply to this comment
That would be Bungie not Microsoft
by Lanman1 October 2, 2007 1:17 PM PDT
Bungie makes Halo, while Microsoft owns them, that doesn't make them Microsoft in the theme of this article. I'll give them an almost wow on Vista (too late, too slow, too vaporware - vista-aero...), and for the xbox 360 (but they don't make the cool titles here) but as far as apps go - Office is about as boring as it gets, Office 2007? Ok it opens documents and prints, where is the wow? What does Office 2007 do that 2003 doesn't do? What does 2003 do that 2000/XP didn't do?

Microsoft doesn't develop new software anymore, and the ones they've tried sort of don't take off. Infopath, Money, Works, Trips, MSN, Dynamics, Server 2008, Pocket PC. They are all average.

I predict that MS apps will eventually be relegated to corporate IT in the next decade, and in decade to follow the company will break up, and only then will they have an original idea.

If you think I'm ranting just look at their stock price, which hasn't changed in over a year. No one is going to run out and buy MS stock just because halo made 170 million bucks...
Reply to this comment
http://www.bungie.net/
by Lanman1 October 2, 2007 1:20 PM PDT
http://www.bungie.net/
Reply to this comment
"It's not as if Microsoft lacks for good engineers."
by MaLvaDo39 October 2, 2007 1:38 PM PDT
Have you ever used any flavor of Windows???

You can't be serious!
Reply to this comment
actually
by MSSlayer October 2, 2007 2:36 PM PDT
MS has some fantastic people.

The problem is because all that knowledge doesn't filter down and the goal of MS is to create lock-in.

"Don't give the customer a good reason to buy from us, force them"
Break it up!
by jimbocook October 2, 2007 2:32 PM PDT
When I suggested breaking up Microsoft back in 1998
(http://www.netdetours.com/archive/drweb4.html) and again this
year (http://www.seorefugee.com/seoblog/2007/07/16/root-for-
microsoft/) the whole idea was to get rid of bloated management
and product lines and let the engineers actually compete in the
marketplace rather than simply prop up Microsoft' existing
product line. It an idea whose time has come.
Reply to this comment
I thought Visual Studios .NET was nice...
by coryschulz October 2, 2007 3:25 PM PDT
and the Office 2007 menu ribbon. But Ballmer is such a worthless piece of $#!&. He's rotting Microsoft. It's really time they did away with him and brought in some younger people, or just let Ray Ozzie completely take over.

The good news is that as long as mentally handicapped babies are running MS, Apple will continue to gain market share and produce better and better products. I'm buying a new iMac this January after the Macworld expo. I already have an iPhone, and I have to admit that it's entirely amazing.
Reply to this comment
ms needs new leadership with more vision
by zolyfarkas October 2, 2007 5:44 PM PDT
Now, as far as I know, Microsoft went through quite a few reorganizations lately, new HR chief ...

But I think the changes are not enough,

one has to only look at balmer's reaction to the iphone: http://www.youtube.com/watch?v=C5oGaZIKYvo

It just shows quite a lack of vision on his side. I think steve balmer needs to step down and let somebody better take the lead.

Steve Jobs is a way more competent CEO, at least he knows not to compete on price ...
Reply to this comment
Read your own previous story about SKYPE
by max_born October 2, 2007 7:12 PM PDT
Skype. Vonage. TheGlobe.com Will Facebook be next? Or is it genuinely worth much much more?

May be Ballmer is right. May be Meg was wrong. May be users don't count for much anymore.

Or may be not. But its not all as simple as it sounds.
Reply to this comment
I think it is funny
by The_Decider October 3, 2007 6:55 AM PDT
how people think the 'ribbon' is innovative.

It is a tabbed toolbar, nothing more.
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