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A Gates reality check
March 9, 2005
For Bill Gates and Microsoft, that's the big question. This week at the software giant's Professional Developers Conference, Gates rallied the troops--software developers, Microsoft's most important audience--to build enthusiasm for Vista, the oft-delayed new version of Windows, and Office 12, an update to Microsoft's most profitable franchise.
Gates' mantra hasn't changed much in 20 years: The PC is the center of the computing universe, and Windows, along with Office and other products, represents the best platform for new software development. What is new, and is much in evidence this week in Los Angeles, is the growing influence of Web-based development.
In that realm, Google has emerged as the poster child for a new wave of applications assembled from the piece-parts of several Web sites. No Windows necessary. Microsoft has its own ideas, of course.
Gates sat down with CNET News.com to talk about competitors old and new, why software hasn't fulfilled promises and the mixed blessing of controlling 90 percent of the world's PCs.
Q: More developers are becoming interested in building new applications using the Web as a platform, as opposed to the PC. Do you feel you're in competition with Google, Yahoo and other Web properties for developers' attention?
Gates: No, I don't think so. The architecture we are interested in we call server-equals-service, so that we will have the full Exchange capability that you can subscribe to, where we run it, or you can have it on-premise with the traditional licensing approach. At this conference, we do give out APIs (application programming interfaces) for the MSN Search and the MSN Virtual Earth capability, so things that have been cloud-based services, you can have client applications that other services can connect to. So, I'd say the evolution is server to service, and bringing that symmetry in.
With Google, there are rumors about them being interested in that services piece, but they really haven't done that much. Our search API is way better than their search API. Clearly, they are working in that area. They haven't done as much on the server piece. They had a Google server, but it was very bad at corporate search. That did not work well at all. That's the only place where I think they have done any server-type piece. Yahoo doesn't think of themselves as a platform company. I don't think you will ever have the Yahoo PDC. Google, because they are in the honeymoon phase, people think that they do all things at all times in all ways.
Well, I guess that's what you have to combat, right? They are in this phase, and when Google does anything, they get attention.
Gates: Yeah. You do me-too Google Talk, and it's a big deal. But we had our honeymoon phase, and it was fun from maybe 1985 to 1995. And we've had lots of competitors in their honeymoon phase. But I'd say, in some ways, this is the biggest honeymoon I've ever seen.
Is that a long-term threat for Microsoft? People like Google come along and they have this Web development idea and they popularize that notion and people listen?
Gates: Developers are not building on some Google thing at this point. The idea that the computing industry can simplify its offerings dramatically by having this server-equals-service approach, and having richer services, absolutely I believe in that, and we need to be at the forefront of that. The idea that management can be more automatic and software updating can be more automatic, state-replication more automatic--there are some big things here that can drive the industry forward. They are very complex, because we have to make things very reliable and very secure if you are going to do this. It's just now that we have the maturity of XML and the Web Services protocols that we can start to do (this).
So Google is not offering development capabilities yet. Of course, I expect they will. But they're not in that game at all today. In fact, they have this slogan that they are going to organize the world's information. Our slogan is that we are going to give people tools to let them organize the world's information. It's a slightly different approach, based on the platformization of all of our capabilities and not thinking of ourselves as the organizer.
So that would be the philosophical difference between Microsoft and what Google is up to at this point?
Gates: Well, we don't know everything they are up to, but we do know their slogan and we disagree with that.
How does Microsoft want to bring that server-equals-service capability to the market? You have the servers. Do you have the services?
Gates: Well, let's go through it. We have Active Directory, which we are making a lot richer. There's a lot of talk about that here. And we have Passport. So we're making those very symmetric, and having this federation capability be central to the architecture, those things follow.
See more CNET content tagged:
honeymoon, Bill Gates, API, Google Inc., developer






- Google & Microsoft are not direct competitors
- by Arbalest05 September 14, 2005 5:16 PM PDT
- Microsoft and Google have completely different business models and don't compete directly - although Mr. Gates and Mr. Ballmer ("I'm going to kill Google") may wished that they did. <br />Google is a web service company that makes their profit through advertising. Microsoft makes their profit selling licenses to software that they own. <br /><br />Active Directory, Exchange and Passport are not web services, at least they aren't today. MSN's search is a pretty solid third place service (behind Google and Yahoo) and that's ok. <br />Microsoft has a habit of getting into markets where other companies or products are dominant (Intuit, Sony, CNN, Google, AOL) and then whining when they don't instantly crush their competition.<br />There's no reason why Microsoft shouldn't compete in Google's space, but they just may have to live with being a number 2 or 3 player in that game. <br /><br />By the way, do any of you know anyone that actually uses Microsoft's IM? I don't either.
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- there is a world out here
- by September 15, 2005 4:38 AM PDT
- MSN IM may not be the marketleader in the US, it very much is in Europe and elsewhere (some 3/4 of the MSN account holders is based outside the US). if you don't know anyone who uses MSN IM, it could be that your social circle (rather than microsoft's reach) is narrow
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- There is a world out here as well!
- by September 15, 2005 4:39 AM PDT
- MSN IM may not be the marketleader in the US, it very much is in Europe and elsewhere (some 3/4 of the MSN account holders is based outside the US). if you don't know anyone who uses MSN IM, it could be that your social circle (rather than microsoft's reach) is narrow
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- Yes, but...
- by Mendz September 18, 2005 7:51 PM PDT
- ... there are some areas of interest common to both which are known to be profitable.<br /><br />- Google's search service is number 1 while MSN search is playing catch up.<br /><br />- There are some web service level technologies that Google released first. While at the same time, Microsoft's web service line ups are not growing.<br /><br />- There are online advertising technologies that Google's very good at and MSN's models are not as successful.<br /><br />- And lastly, both want to hire the same set of IT talents.<br /><br />Although these are not Microsoft's core business, still MSN needs to succeed. Both are branding on the (purely web-based) technology and service levels. In a way, Bill Gates like the idea that users would think everything is available at Microsoft and MSN -- No need to look elsewhere. All Microsoft all the time. :D
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- Google and MS are direct compeditors
- by daryl.j.m September 19, 2005 10:01 PM PDT
- MSN is a web-portal organisation, and although they don't like to admit it, so is Google. Think of MSN as a seperate company, because in Microsoft's little utopia, that's what they are. <br /><br />Here in New Zealand I have only met very few people who use an IM other than MSN. I'll bet that one of the main reasons is because MSN is the default homepage, coupled with having friends on the same network.<br /><br />Most people who use Hotmail as their primary account use MSN messenger, those who do use Yahoo as their primary email, use Yahoo IM and so do their friends. Most people with Yahoo email also use yahoo.com as their homepage, I'll also bet that most people with gmail accounts have Google as their homepage.<br /><br />Generally, people like to use the same organisation for all their services, it just makes things easier. MSN, Yahoo, and Google are definitly competing, and the stakes are high.<br /><br />More info: kiwiscanfly.blogspot.com
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