Ballmer's big mouth is good for Microsoft
Microsoft CEO Steve Ballmer opened his big mouth again. He decided to dish on Apple, saying the company competes by providing little more than a logo and a higher price.
"Apple gained about one point, but now I think the tide has really turned back the other direction," Ballmer said in a keynote speech at Media Summit 2009, discussing Apple's recent gains in the market. "The economy is helpful. Paying an extra $500 for a computer in this environment...to get a logo on it? I think that's a more challenging proposition for the average person than it used to be."
Apple fans came out in force, responding to Ballmer's latest bullet. Commenters tried to correct Ballmer, saying, "That extra $500 gets you an OS that doesn't get viruses and allows you to run for the life of the computer without having to wipe the computer and reinstall." Others were more reactionary. Said one, "Ballmer is an idiot...period."
But is he? Sure, he opens his mouth when most competitors wouldn't, but it's hard to argue with his track record as a CEO. Over the past four years alone, he has presided over a staggering increase in Microsoft's bottom line. During that period, profits at the company have risen from $12 billion in 2005 to more than $17 billion for the fiscal year ending June 30, 2008. Revenue has nearly doubled in that time. And shareholder value--a measure of a company's ability to increase its free cash flow over time--has increased since he became CEO of Microsoft.
Ballmer gets treated harshly in part because he himself is blunt. But how can anyone make the case that he's a bad CEO? Even though the company is having trouble competing online and though Vista was a major misstep, if we look at the bottom line, those issues seem to have had very little impact on Microsoft's success.
He enjoys taking Apple to task by making everyone realize that in 2008, approximately 300 million PCs were shipped, and that only about 10 million of those were Macs.
He is not, however, above admitting when his own company has made mistakes. "Despite the fact you could say we are not where we'd like to be, and we could have gotten started a little bit (earlier), we are very committed," Ballmer said in a discussion about Microsoft's place in the online market with Guy Kawasaki at the Mix Conference in 2008.
Discussing Vista last year at Gartner's Symposium/ITxpo conference, Ballmer said that "Windows 7 will be Vista, but a lot better," indicating his understanding of the situation: Vista was an issue from the very beginning.
While fielding a question from the audience at the CIO Conference earlier this month, Ballmer was forthright in his discussion on Windows Mobile, saying that his company has "a significant release coming this year, (but) not the full release we wanted to have..."
How many times have we wished that a CEO would speak frankly when something went wrong at a company? How many times have we wished that an executive could give us something a bit more concrete than marketing speak? Judging by Microsoft's success, maybe they should start.
Does Steve Ballmer have a big mouth? I'm sure Bill Gates has cringed at what his buddy said more than once. But he says what he believes (or at least appears to). And he's only telling us what we already know: Windows Mobile is in desperate need of a meaningful update; Windows Vista is a bloated mess that Microsoft can't salvage; Mac OS X isn't a credible threat to Windows; Apple charges much more for its computers than most of us think necessary; and Microsoft is a successful company.
What's so bad about any of that? It might hurt the feelings of Apple (and Linux) fans, but it's the truth.
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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
Uhm... EASILY. First, it is a logical fallacy to say, "Company X's revenue increased by Y therefore CEO Z is a great CEO." The correct benchmark is not whether revenue increased (or decreased) but how much it increased relative to some reasonable theoretical maximum.
Second, just look at the disastrous or ridiculous endeavors and boondoggles under his watch:
* Vista -- 5 years, including a complete rework from scratch half way through; most of the major features never even made it to the release (and thank God for that) -- the original product conception was terrible (ex the WinFS file system -- wrong in so many ways and on so many levels I can't even summarize here) -- substantially worse performance, when other OS's have been getting better and faster; boggling broken search -- you can't even figure out how to find a file now
* XBox 360 -- Red Ring of Death, 1+ BILLION dollar charge against revenue
* flailing aimless online strategy
* stagnant browser, with continuously falling market share
* Zune -- MeToo! MeToo! MeToo! -- this is a business strategy???
It just never stops. This guy understands nothing about technology, marketing, new product development, how to manage the managers of critical projects, and on and on. He is probably the worst big company CEO I can think of, and the fact that MS's revenue has been growing has enabled him to remain in his post despite his obvious incompetence and complete unsuitability for the job.
History will support me.
With the exception of Zune, all of the other items you listed have made MS a lot of money during his time. Only 10% of people complain about Vista (most live here on CNET) while the rest are out buying a copy. Look at the numbers and not my words before you reply. XBOX had issues but is selling very well and with the subsciptions to live increasing, i am sure MS will do be fine. Browser share is falling but not not a a rate that is costing MS. People are leaving IE but did they leave Windows in full force thus MS is doing fine.
lol, no comment on Zune...
I guess people have their reason for disliking Steve but I think you have to judge his work but the numbers. The company is moving forward and making money. At the end of the day, that is his job.
It's not so sexy to talk about Microsoft's enterprise presence, so it hardly get real press time at sites like CNET. But real investors like Balmer because he does not run the company like an avid reader of tech sites.
As to the history supporting you - that is truly lol. Balmer has been at MS for 30 years already - he is not some new guy off the street that people are waiting to see his tangible results. History has already spoken about Balmer. The man makes loads of cash - period. And that my friend is what corporations exist to do.
Then my buddy down the street made a computer and last year he went from 10 machines to 1000. Dude, he STOMPED on Apple. Apple sucks in comparison! /S
History supports you? Then history supports that when Steve jobs left Apple, they returned to being profitable 2 years later, which had nothing to do with Steve Jobs. If history supports utility versus aesthetics, then that just goes to show that Balmer is just that... and obviously I dont mean aesthetics !!
See how that comparison works when apple fans step out of the dark and into cold hard reality??
None of their arguments work period. Its time to get help if you are an Apple fan and spend money without knowing why or have bad arguments for doing so. You need a mirror, a long hard stare, need to get a real job, and move out of mom's house.
"This guy understands nothing about technology, marketing, new product development, how to manage the managers of critical projects, and on and on."
It would appear by your posting that neither do you.
Funny that idiots like you think people who dislike the inept MS are socialists or what ever else kind of nonsense when MS is as anti-capitalistic as you can get and still be a business.
Windows vista was a bit of a fluke. But whatever. Windows 7 beta is already better then OS X.
XBox 360 is a really good console. It works fine and I have had it for 3 years, so I know that the red ring CAN happen, but is fixable and does not always happen. Lets see apple make a better console. Oh wait, THEY DONT MAKE CONSOLES.
Stagnant browser? Internet explorer??? You are an idiot my friend. If interet explorer 8 crashes it recovers your tabs for you. I have had it happen once. And once only. Safari sucks. But i like firefox.
"Zune -- MeToo! MeToo! MeToo!" For your information, iPod was NOT the first mp3 player out there. The MP3 market could have big potential. So its a no brainer to try to enter the market, although microsoft has not been entirely successful with its addition, I am glad that they created Zune. I Have one. People often dont give zune a chance because they are brain washed to think that apple's iPod is cooler and so amazing, when really it is not. I'll admit that the iPod touch is better then any zune. But zune is better then any iPod other than the touch and aple could learn a few things from them.
so, i think steve ballmer is a great CEO and will continue to be.
(i hate you apple fanboys)
First of all, Microsoft sales has got nothing to do with Ballmer's or whoever's capability of being a CEO. After all most of their sales was helped by the sales from those PC manufacturers who includes a copy of Windows in their desktop or notebook lines. Even my grandma would be a "good" CEO given that condition.
And i'm wondering where that 10% figures comes from. Official Microsoft website? Yeah right! I wonder if that figures remain the same if you've added those silent complainer who actually got complain but simply no time to waste effort complaining to Microsoft knowing that their complaints are going to fall into a deaf ear. And what about many blockheads who actually use the Vista without knowing that they can actually getting a better deal out of other operating system? They might now have a chance to use XP or Mac OS before. After all you won't know if you've eaten trash if you have never eat a proper food before.
IE7 and IE8 is a complete disaster. Increased speed? Enhanced security? I'll eat my shoes! IE7 and IE8 browse SIGNIFICANTLY slower than Firefox, or Chrome, or Safari. It has got no decent add on either. Decline in market share shows that.
Zune? What a joke. If you think people are getting "brainwashed" by iPod then can you imagine the great CEO behind it who managed to "brainwash" those people without asking them to wear a kind of funny helmet.
And do you call XBox 360 a success after getting slaughtered by Wii? Apple might not have an independent console (or maybe the don't want to) but they do have an iPhone platform that will definitely giving PSP and DSi a run for their money.
MS is a marketing failure. You might want to list out hundreds of reason why MS product is better than Apple but if for example they enter a bread toaster market at the same time without any help from manufacturer and relies completely on their products and marketing, I think Apple's toaster going to outsell MS one by 10 to 1.
And that 1 is Ballmer
There is just too much money to be made by offering Windows 7 on a Mac. Windows 7 is going to be the biggest news in 2010. Snow Leopard is only going to be left for the few hardcore faithful. OS X is nearly a decade old and showing it's age. Windows is the future and a Apple PC with Windows 7 will be a great combination.
Proof of this happening: Apple courting Windows users to switch to the Mac. Apple using the Intel chipset. Apple creating Safari, Itunes and Quicktime for Windows OS. Apple allowing Vista to run on the Apple PC via Boot Camp. Apple changing it's name to Apple Inc. Apple has stopped showing those Mac commercials. Apple can see the dollar signs and wants those Windows users. They will have to put Windows 7 on the Mac in 2010 or lose market share.
This might be the last year that you will hear the word Macintosh, it will live on as Apple. Goodbye Mac Mini, Macbook, Mac Pro. Welcome Apple Mini, Applebook, Apple Pro and Apple Tv. It's all about branding and the Macintosh brand died along with the Power Pc.
Tell us when u are done dreaming of your lovely Microsoft only world.
I think a lot of the hatred for Steve Ballmer stems from comments he has made in the past about Linux being a cancer. People in the Open Source community can't seem to let go of that so they always take him to task every time he says the truth. Mr. Ballmer has said things in the past that has even hurt the Company's stock, telling investors they are over valuing the Company's stock more than they should.
But I think Steve is an example of what a CEO must be, passionate, loyal, crazy and plain disrespectful to the competition. More power to him. Windows Vista is on over 200 million systems world wide by the way.
Especially the one about qualities of a CEO.
I relate these hatred-filled crtics to the protagonist of Ogden Nash's poem
"Confessions of a Born Spectator"
These are the kind of people who would talk because they couldn't do any thing..
:D
enJoY
....
That is bloat and incompetence.
superfetch...not to mention that comparing ram usage for 2 totally different os' doing totally different things is kinda silly.
It's the same hardware. I used Windows XP first (smaller than Vista, works on less hardware), then installed Ubuntu 8.10, did nothing to the hardware.
I gained speed, stability, all the "bells and whistles" that were promised from Vista if you upgraded to a brand new machine, including windows effects. I gained all the Linux goodies like a package manager which keeps all software installed from the repositories up to date, as in, automatic updates for the entire machine, not just the main the OS. I also gained the ability to run virtual desktops (currently running 4). Oh, and I gained a properly set up OS which includes a limited user account which isn't so limited and a journaled file system (no defrag).
By the way, after running the Vista update checker from the Microsoft website and being told that my Pentium 4 (1.8GHz) PC with 512 MB RAM (DDR) was fully capable of running Windows Vista with no mention of being handicapped or underpowered for the advanced graphics and even having the program unable to find my DVD-RW and even screwing it up so I had to go find the fix for what it had done, I knew it was time to leave MS for good.
If they can't even get the updater to work properly and not lie to me or "omit the truth", then I certainly won't be trusting my PC to them.
Ballmer is subscribing to the adage that any publicity (however bad), is still good publicity. And once again, the media is helping him do it.
Given that you are a MS shill it is more than hypocritical to call someone else a sheep. Why are you throwing around insults when you are against it? Off your meds today?
when in doubt, ad hominem, amirite?
No, quite the opposite. I'm a person that weighed the differences and decided on a platform that delivers reliable, easy, hassle free computing. I didn't drink the Kool-Aid of "what is most popular is the best". By that rationale, then we'd all be driving Fords or Chevys. And they clearly are not better than a Mercedes-Benz or a BMW. I know it's a tired analogy, but it's an accurate one. And when dealing with Micro$oft fanatics, one has to speak in analogies to be understood since speaking in raw facts is totally foreign to them.
My apologies for the typo. I can only assume my point was made.
Cause jobs says so? How many companies do you know compliment the competition?
Who is the idiot? The person that says "however" when he means "whoever"?
You might want to show me one piece of generic computer that has the same level of hardware and software that equals the build quality of a Macintosh running Mac OS X and includes as much useful software. I really want to see this comparison that all you Microsoft cronies keep touting. I did my homework last spring and couldn't find one single computer that had the same specs as a MacBook (early 2008 model) and as much software. And to tip the scale even more in favour of the Macintosh, it didn't run that piece of dreck called Windows, but a very stable, easy to use operating system called Mac OS X!
--Computer user and owner since 1985, definitely not a "newbie" nor an "idiot", and definitely not "blind".
Or actually, "whomever"! :-)
All Macs are bundled with whatever OS Apple sells. Just like how - all PCs are bundled with Vista.
So whats the difference?
I think you wanna take back ur comments. :D
When Apple comes out and says.. we will not support certain release of OS, and give the reason.. why published our plan and details well ahead of time.. All MS bashers, include tech cos, writers in media will accept it meekly.
When MS does something similar, even though in more gracious way and as an understanding partner.. ppl wanna rip it apart.
It's the case like.. the quiter partner in a relation get most of the scolding. isn;t it!!
:D
enJoY
....
Microsoft forced OEMs to use their OS in the past and now they are enjoying the fruits of that illegal behaviour because they were not punished as they should have been. They then are able to walk all over web standards because they force their browser onto the market. The EU is looking to correct this injustice so that other companies can compete fairly and hence more reason to innovate, resulting in better products for the public and better prices too.
that's because everyone that has a mac loves leopard. leopard was a major improvement over tiger, but it is also very appealing. i don't know one single mac user that still uses tiger, even on their 4 year old powerbooks. vista, on the other hand, is an os a lot of us don't want to upgrade to, especially if we 3+ year old computers. xp is less resource heavy than vista (largely because of the new UI). But, leopard is less resource heavy due to apple stripping down heavy parts of the OS into smaller and more efficient sections. In snow leopard, everything will be written in 64 bit cocoa, but you'll also be able to run 32 bit apps simultaneously.
I remember very well that Adobe had to re-write a lotsa pieces of their CS3 app and other softwares when Apple made the changes under the hood of OS.
They tried to talk against it, but couldn't, because they feared Apple followers (Adobe's core market) would go against them..
The point I am trying to express here is - glad you love Apple OS, but not because the other Software is bad. It's because you are more Productive on Apple's OS.
Where as majority of masses like Windows. We get more done on Windows OS. Don;t wanna say Apple OS is bad. But I could never been productive there. I would always feel stiffled either by the OS or lack of applications.
And it's just a matter of time, when we will have Viruses on Mac too.
Atleast in MS, I have a company which is willing to work with me, instead of publishing it's style on me.
Vista got changed, but because there is a much much bigger system with Windows, there were more ppl affected and there was more hue n cry. Not necesary it was a bad OS.
Vista requires more memory, well taken point. But that's not the criteria of terming an OS BAD.
I'm still using "Tiger" on a PowerBook I own. Heck, I'm even running 10.2 on a Platinum G3 Minitower! Of course, since my newest machine came with Leopard, that's what's on it.
How about hardware now? hmmm my home printer died so I thought I would get a new color laser...
http://www.officedepot.ca/catalog/txtSearchDD.do?jopa=9DTCa_9c9I2T6Wl965rgkU6&norefinement=true&searchTxt=samsung+color+laser hmm still not Vista compatible...
Other than one person, everyone I have worked with / know would drop Vista in a second for an XP machine.
Microsoft forced OEMs to use their OS in the past and now they are enjoying the fruits of that illegal behaviour because they were not punished as they should have been. They then are able to walk all over web standards because they force their browser onto the market. The EU is looking to correct this injustice so that other companies can compete fairly and hence more reason to innovate, resulting in better products for the public and better prices too."
Forced?
MAC wouldn't allow there os to run on anything but Windows and even the easiest to use distro of linux is enough to drive someone into insanity. When is Linux going to adopt better installation methods? Even with instructions on how to compile a nvidia driver and a java update I simply dropped it.
I'm happy with my Atari computer.. I don't even need a keyboard.
Google is running after Microsoft in the Office suit space, Google wishes they had an entry into the enterprise while Microsoft dominates the enterprise space with Windows Server, SQL server, and Exchange. Xbox has surplanted the once unmovable Playstation for the lead in high end gaming consoles. Xbox live is the envy of Sony and Nintendo with 20 million users and counting every day. Xbox live was years ahead of Sony and Nintendo in understanding that users want one consistent online gaming experience - not a patchwork of game specific networks. Even the constantly bashed Zune leads the way with subscription based services that make Apple purchase every song seem tired and long in the tooth. Media Center in Vista is on a completely different level with integrated cablecard, PVR, streaming HD video and recording, and the best 10 foot interface yet designed. Azure is positioned at the forefront of cloud computing and ties into the most valuable asset of Microsoft - Visual Studio and its legions of developers.
And by the way, you notice that when you talk about Microsoft, you need to site many companies, to come up with the competition. It is easy to pick the best of bread in every niche and comapre it to MS. Try to pick one company and see who stacks up across their product range - you can't do it. That is why Balmer is doing just fine.
baisa is too the points as he looks at the ills of Microsoft
I would add how can any company that has a list of horrors tout itself as in good shape or cheering for a CEO that attacks what he calls paying more for another computer because of a logo.
That's the problem right there in a nut shell or laptop.
Any company that attacks another product or service asking or tell people they are paying to much doesn't get it and is on the way down.
A company should be talking about what they are doing for their customers, how they are moving forward. No one can feel good living just by beating up on something else and not see a benefit to it's owns
You don't hear Google telling it customers don't go to yahoo because yahoo has a bad colored logo. You don't and won't hear Google talking about Yahoo or anyone else for that reason that they push there own. Google moves forward also providing more,
Apple is doing the same.
Giving more to its customers.
Having good service.
And when there is a slow or bad start to service like in mobileMe or push service giving customers a rebate of longer period to evaluate.
I am waiting for Microsoft to stand up and by their customers.
Lastly you want to see how a company, it's CEO and share holders are doing, look at the stock value.
MSFT has been nothing to brag over. Year ago 36 now 15
Uh, have you been under a rock? Ever seen Apple's "Get a Mac" TV campaign where the premise is all about attacking an inferior PC product? Does this mean Apple is on the way down to?
If it weren't tied to the hardware, then it would indeed be a major threat to Windows. Right now, it is a threat, just not as big. The Apple hardware business would suffer, possibly leading to Apple leaving the hardware business. And that would be a crying shame. We'd be left with shoddily built computers by the likes of Dell and HP and every other company out there. I like a world where Apple remains in the hardware business making innovative, attractive, well-built machines to pair with their equally well-built OS.
How is one monopoly better than the others just because it seems cooler at the moment?
Stop trolling. Apple does not "bully" the labels, developers, or content providers. Go back under the bridge please ;-)
Actually, you've got it all backwards. It was the record companies that wanted to charge more, and they fought tooth and nail to keep DRM music off the iTunes Store. Apple wanted to sell DRM free music from early on. I remember reading articles about it back when iTunes was first introduced. It was Apple that petitioned for DRM free music, not the other way around. Your argument doesn't hold water.
You guys just keep cracking me up.
You don't see the DOJ coming after Apple or Google?? But they did come after MS. There is your difference.
You're still cracking me up - DOJ scuttled the Google/Yahoo because combined they would have 90% market share and your memory seems to be conveniently omiting the Norway, Sweden, Denmark and France equivalent of DOJ investigations of anti-competitive and anti-consumer behavior by our turtle necked gods at the fruit company.
All three have been scrutinized for anti-competitive behavior.
Fact is this, Apple is doing VERY well, MS is currently not doing well at all and has for a very long time now. Ballmer to me is the kid on the play that tries to act like a bully, but as soon you call him on the carpet he shows his true colors show. I don't think he is smart at all, he's a typical businessman, not an engineer, not a desinger and frankly has no freakin' clue.
MS has problems in ALL areas of its business units (Zune, Windows, XBox, Office, you name it they have problems) and is lossing stock value everyday. Apple on the other hand is only having a hard time in it's Macintosh line due to the economy being what it is. While other units are doing VERY well and making money. Apple has no debt and has billions in cash and their stock value is either going up or stable.
Good CEO highly doubtful
http://www.google.com/finance?client=ob&q=NASDAQ:MSFT
In fact, it is outperforming the NASDAQ index, S&P 500, Dow Jones, and even your precious Apple.
Why don't you look at the market reports before making an idiotic statement.
Owned!
Recently Microsoft's stock sank to where it was 10 years ago.
Any gains you point out must be viewed from there.
Also they had to let go a substantial amount of staff recently. That is not the actions of a company that is growing.
You are owned.
MSFT %Change 7.44+
AAPL %Change 5.98+
Just saying..
MSFT %Change 7.44+
AAPL %Change 5.98+
Just saying.."
MSFT $18.33
APPL $107.66
Now we both know it isn't that simple.
EXCUSE ME MASSFAT! I was pointing out to Gio that the change in stock prices OR the price per share isn't that simple when it comes to the value of a company.
Then my buddy down the street made a computer and last year he went from 10 machines to 1000. Dude, he STOMPED on Apple. Apple sucks in comparison! /S
See how that comparison works when apple fans step out of the dark and into cold hard reality??
None of their arguments work period. Its time to get help if you are an Apple fan and spend money without knowing why or have bad arguments for doing so. You need a mirror, a long hard stare, need to get a real job, and move out of mom's house!!
- by t8 March 23, 2009 5:53 PM PDT
- People go on about Apple's OS as having a small proportion of the market.
- Like this Reply to this comment
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- by massfat March 23, 2009 7:32 PM PDT
- The problem is that the profit margins for hardware selling are far lower than for pure software. Just take a look at MSFT's operating margins and etc. It costs a lot more for AAPL to make their computers than for MSFT to just copy software after it's built. An indicator of how this is working out for MSFT is their ROE, which is currently at 50%, and that is an outrageous number showing how profitable they are. This happens largely due to the nature of them being a software company. If you notice as well, their consumer based projects are all targeted with profit margins in mind. They want Xbox Live and the Zune subscription services to thrive because they have much better margins than when selling the whole product.
- Like this
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- by pentest March 23, 2009 8:27 PM PDT
- Yup, Apple makes way more profit per unit than MS does.
- Like this
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- by KaalX March 23, 2009 11:48 PM PDT
- Boot Camp is great for running Windows on Macs.
- Like this
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- by pithenumber March 26, 2009 1:27 PM PDT
- @pentest
- Like this
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Showing 1 of 3 pages (124 Comments)What people forget is Apple also sell the hardware that their own OS sits on.
Surely that is extra revenue that Microsoft doesn't get.
So if Apple's OS is 6% of the market (or whatever) then that is most likely around the figure for hardware sales for desktops too. That would be 6% more market share than Microsoft has in computers.
BTW, I don't own a Mac, but thought that the obvious needed to be stated.
Also, Windows can be installed on a Mac. It is also largely emulated using various 3rd party software on Mac and linux machines, so your comparison isn't fully accurate either. I doubt many users ONLY use Mac/Linux without having some form of Windows on their computer, such as dual booting, virtual machine, or other methods of simulating/using windows and windows platforms on Mac/Linux.
and they do that by charging the customer more