Showing posts sorted by date for query mini-microsoft. Sort by relevance Show all posts
Showing posts sorted by date for query mini-microsoft. Sort by relevance Show all posts

tis hurtin'



Stayin' alive long enough can show one that the stronger some views were held to more ironic they seem now. Case in point, the Mini-Microsoft Blog and its author who goes by the name of Mini. A few years back, a smart and differently outspoken Microsoft employee--read, anonymous yet very publicized--decided to create a blog whose mission can still be read on the frontispiece:
Let's slim down Microsoft into a lean, mean, efficient customer pleasing profit making machine! Mini-Microsoft, Mini-Microsoft, lean-and-mean!
A recent visit to the MiniMsft blog has revealed the following excerpt, to which I append my comment, left at that site as well:
The looming threat of continuing RIFs and layoffs indicates that Microsoft is just too big for its leadership. It is beyond their capabilities to wrap their minds around everything Microsoft is doing. It has gotten away from them. What needs to go? Hell, I don't know even what all these people do, and you want to decide who stays and goes?
We've lived to see you write this--been waiting for a while ;-)

Now, what would you expect, Goldilocks? Of course nobody knows how many employees MSFT ought to cut! It's always been like this, too much either way. Oh well, soon we'll talk about executive compensation and I may be getting myself in trouble...

Yes Mini, dying from 1,000 paper cuts aint's easy, be careful what you wish for!



Nota Bene: There was a time I used to be a regular visitor of the Mini-Microsoft blog, check it out!

Blogosphere++

About two years ago, when I started to publish Hattrick, I had an entry about my take on the blogosphere--what makes it work and how from an individual perspective. That piece is available here: Blogs are free enterprise capitalist expressions of communication.

Meanwhile, Mini-Microsoft came along and, with it, the blogosphere took another turn. Corporate communications changed by bringing together constituencies kept separate until then--employees, investors, customers, etc. Here you can access some of my contributions to this turn.

Now, it's time a company set its website as a BLOG. The company, arvetica, in its own words, help[s] companies design and implement innovative projects, and seems to be about business and creativity, just like CREIRE.

I wonder what the next stage of the blogosphere will be.


If you find a virtualization fork in the road...

Almost a year after Apple decided to switch to Intel processors the rationale for such a move still remains a guessing game for most. Then, in January 2006, the hacker community is challenged to build a solution to natively boot Windows XP on the Intel Mac. Two months later, the challenge is met and after one more month, in April 2006, Apple itself launches Boot Camp Public Beta, a technology that lets one install and run the Windows XP operating system on an Intel Mac.

Without speculating about the level of involvement Apple might have had in lining up the events in the above sequence, I think, Apple faces some uncommonly strategic options around the notion of virtualization. In essence, Apple opens its outstanding hardware platform to the equally impressive universe of Windows-supported applications. This way, Apple exchanges some of its nobility for the democracy of Windows applications. Indeed, didn't you also think, when seeing the latest Mac Mini, "For this price I'd get a couple except that I don't know what to do about applications."?

Let's quickly chart some alternatives in terms of players, costs, risks, and benefits:

At these early stages, Microsoft still holds some cards, so Apple is tentative and mindful--both in its PR and the requirement to have "a bona fide installation disc for Microsoft Windows XP, Service Pack 2, Home or Professional." Lest we forget Microsoft's own Virtual Server 2005 R2. On the other hand, AMD and the traditional IBM-compatible PC makers will have to start thinking beyond the parallelopiped.

At this time, keeping the cost of hardware the same, I would expect the performance of running XP on MAC to be lower than that of XP on a PC. However, two mitigating factors will have to be considered: (a) Within certain limits, cool-factors overshadow performance/cost factors; (b) Due to multi-core processors, non-enterprise users have now the chance to enjoy the best out of virtualization, without low performance/cost factors--Intel is placing a momentous bet on its releasing a new multi core architecture that increases the performance, while decreasing power consumption, of its processors in the 2nd half of 2006.

Among the risks we have: Problems at Intel continue; Microsoft Vista comes on time with an overwhelmingly positive user experience; Users begin to pay more for hardware; Microsoft problems may erode Apple's image.

Among the benefits: Users will do whatever they do in style; Apple and non-Apple ISV's can begin a relationship, even if indirect in the beginning; personal computing starts being interesting.

So, as Yogi Berra put it: " When you come to a fork in the road....Take it "

Non
-Event @ MSFT

Much ado about little seems to be round the latest delay that keeps Microsoft from releasing Vista, its who-in-the-market-is-waiting-for operating system. The novelty this time is about being able to glimpse at the communications (even thought process) several Vista-related constituencies have on the Mini-MSFT blog--see the second part here.

From a customer perspective, I suppose, the impact is minimal. Why should it matter a few-month delay more than an already multi-year one? What is there that people want to capitalize on and only Vista enables them to do so? Enterprise customers will get their hands in the software this year still, yet their upgrade cycle is somehow independent of the release schedule of software providers. And, yes, the home users may get some back-to-school/holiday purchase plans redrawn, but it's not to say they'll have that much of a different alternative, financially speaking for Microsoft at least.

This delay could be more complicated for Microsoft hardware OEM partners, but even those are grown-ups with their own histories of mishaps.

More noticeable effects are likely to occur on a couple of fronts though. One is a short to medium term hit MSFT will take in the financial markets. MSFT stock has been between $22 and $28 for the most part of the last 6 years, so now it has some room to slide from $27. The other is with Microsoft's own employees who seem to be ever more confused as to what the direction of their company is. The rank and file are unhappy about the slow growth, whereas the executives have been in a state of prolonged denial. The problem with the former is their resistance to becoming more like, let us say, IBM employees; the latter seem to have run out of ideas with real impact on the markets and their own employees. Elsewhere on this blog, I even dared make a suggestion for what Microsoft might want to do--in essence a clear separation between applications/infrastructures for home and enterprise customers, respectively.

I consider Vista's delay just one more symptom, alas one of the highest visibility, of the problems companies in general and Microsoft in particular face. This is to say nothing about the novelty Microsoft has been trying to pull off: to have a major redoing of a multi-million line of code piece of software every few years...

Per chance you have not visited Mini-MSFT lately, here are my favorite three comments about the market delay of Vista:
First, calling it an operating system is a misnomer. It is a bloated 'user experience' that has no relationship to an operating system.

Second, XP ('ancient' 'years old') is the first stable general market OS you folks have produced. Yes, NT was a decent product and 2000 was fine and started the transition to the general market but XP is still good enough based on your history. And I have no incentive to rush to Vista.

You produce bloatware. And all indications are that the Vista bloat will follow Moore's law once again.

You aren't producing operating systems you are following a business plan. And you do that very well in a totally selfish and proprietary manner that has had its obvious success.

But, I really wish you'd quit calling yourself something you aren't.

I have used 2 stable OS's in my long life--CP/M on the 88 series and OS/2 w. 386. And I have used a reasonably stable x86 product with XP.

I guess you might call me a MS basher but I am also a realist. I have no incentive to be a masochist and run an alternative OS. But, the cost is all the crap MS makes me use a better processor and more memory than my 'real' applications require.

I run the applications that I want to use and they are on the MS platform. But I can live without the 'enhanced user experience' that you are selling. As a long time (retired) consultant and programmer to industry, I'd have no qualm in telling any former client to wait and wait whether Vista shipped tomorrow or in the next decade.

You are very accurate in one area--you folks are really full of yourselves.

I think this is all a huge laugh. I recall Bill's comments back in DOS days about a bloated, decisionless IBM that he was out to take down. He should have read Pogo rather than computer journals--we have met the enemy and he is us.
KenP


I'm just a simple sysadmin that has to install and maintain Windows but I agree that the direction the OS has taken with Vista/Longhorn is several steps backward. It appears that MS is losing sight of exactly what Windows is used for.

Basically it's just a tool; for business and for entertainment. Adding eye-candy doesn't improve the mix; it makes it more difficult to support and more expensive to re-train.

Yes, MS needs to correct the Windows team problem, but it also needs to reconnect with the users.

If anyone needs to see some good examples of what NOT to do with a good OS, slide over to the V/LH beta newsgroups and read what's being posted. It's quite an eye-opener.
Mark-Allen

And now, the third, which reminds me an entry into the Ideas Lab section of this blog, about Agile software development:

It dawned on me during the commute over the 520 bridge: I'm irritated with all the recent sh*t-flinging at the company, but I don't think Vista inherently sucks. I think it is just too ambitious a project. Just like WTT (WDK for external folks) What a piece of garbage WTT continues to be. I can't even get my daily stress runs to count in the stats pages lol!

Anyway, these big projects look great on paper, but when it comes time to implement, it quickly becomes a crap-fest due to the complexity. As a low level employee, I can't even fathom how you could possibly manage all this properly. Is there a comparable software project out there of this complexity? I doubt there is anything that matches the lines of code...

I think Windows should trim down the release cycle and become more like NASA. Instead of flying men to the moon, just do smaller, manageable projects here and there. A probe one year, a rover the next. Makes the news; gets the budget dollars flowing; keeps people excited.

We can do this with Windows. We did some awesome stuff with XP SP2. OCA hits went down big time. Games started working again. Data execution prevention opt-in improved security. Ok not the most glamourous examples, but I hope you get the idea: we made stuff really work.

Why not have Windows be a real subscription service? In order to download the next new feature, you have to subscribe and activate your copy. Don't want Windows Parental controls? Don't subscribe. Don't want Media player eleventeen? Don't subscribe... Don't want LDDM/avalon/glass? Don't subscribe.
Anonymous
In the third comment, I think the anonymous Microsoft employee is onto something. Except that the process s/he is describing cannot be applied to all product lines at her/his company. And I would contrast the process advocated by this employee with the observation KenP made about what appears to be (driving) the current process: You aren't producing operating systems you are following a business plan. And this is only to show how far the far-between is.

An unorthodox mix of voices

What an interesting phenomenon is shaping up at minimsft, right now! Due to either the exhaustion of more mundane subjects or the logical escalation of the conversation, minimsft has started tackling a subject of major importance for Microsoft: How Fit Is Steve Ballmer as the CEO of Microsoft? Judging by the comments on the subject, the conversation is spreading beyond the usual (SDE) suspects of the blog to embrace what seem to be Microsoft more sophisticated constituencies such as Company management and investors.

It is interesting how, by "ignoring" the conversation, Mr. Ballmer has attracted onto himself the lights of public scrutiny. For most, in the end, it doesn't matter who's raising the questions about the top guy as much as the rise of the right questions themselves.

How this whole episode in corporate communications will end? Your guess is as good as any. However, management at public companies is likely to have one more Sarbanes-Oaxley-type of burden to put up with: the "unorthodox" mix of voices coming from employees, customers, investors...


Addendum Oct 8, 2005

Apparently, there is at least one member of management at Microsoft, Ken Moss - General Manager MSN Web Search, who has read minimsft. Mr. Moss has "strong opinions on many of the points discussed on Mini’s blog and in the comments. But I’ll save those for another discussion." For the time being, Mr. Moss is only addressing a challenge to the anonymous employee behind Mini-Microsoft:
I have no idea who Mini is, but I would like to officially issue a challenge to him to come and do a totally anonymous informational interview with me. If he passes our hiring bar, I am confident that we can provide him with a way to feel inspired by Microsoft and the work we’re doing. We have many awesome features he can come and work on – and he’ll be able to ship them as soon as they’re ready since we update our service constantly.

I, and the rest of the management team, will do our very best to provide cover for any bureaucracy that may stand in his way. Mini will be free to innovate and ship software as fast as he is able to. He will be able to challenge himself to see how good he can be. He will be inspired and have a blast. I can almost guarantee that success won't be easy -- but I can guarantee the opportunity to challenge himself. If he does great work, he will get great rewards.
I find such an idea commendable--to invite an employee to an interview whereby s/he could work in an inspiring environment. Indeed, there are great individuals who get stuck in one organizational context or another, and the only way out/up is outside the organization. Having a second chance in the same place cannot hurt. However, a question still remains: Why would a manager make such an invite only to the person who, supposedly, is behind minimsft? What recommends an anonymous figure to such preferential treatment is an enigma to me... unless this is an attempt at tackling the Mini-Microsoft blog issue?

Hmm... I think the horse is out of the barn and enjoying, albeit in a contorted way, the blogosphere pastures. However, since investors and customers have joined in, minimsft is no longer an internal Microsoft affair. Thus, Microsoft management should kick into gear and treat the whole issue at least at a PR level. Observers of the whole phenomenon would probably welcome Mr. Moss' addressing any of the several MSN-related issues that have come up at Mini-Microsoft.

Addendum Oct. 17, 2005

On where Bill Gates sees himself in ten years:
I’ll be turning 60. I have to say, ten years older than me always seems like that’s when I’ll be old. When I was 40 I thought 50 would be that mark, and, now that I’m very close to that, No, no, no, that’s not being old. My life’s work in terms of creating a company is certainly around Microsoft. Software was what I thought about when I was very young and believed something dramatic could happen, and so the opportunity to be involved in that and shape that industry, that’s really my professional work.

Over the next ten years, my balance between the time I spend on philanthropic things vs. my full-time job will switch in favor of doing philanthropy. It does mean I need to get one of the great young people at Microsoft to get on the hot seat of setting product strategy. I love my job, it’s an amazing job, and I’ll always be able to have some mix of Microsoft and philanthropy.


Addendum: 12/02/2005


Kevin Schofield, General Manager with Microsoft Research, visits MiniMSFT and leaves the following comment:
Regarding Thinkweek documents, they are company confidential documents and should not be discussed outside the company. As employees who want to be trusted by our company, it's our responsibility to be trustworthy in return and not "go rogue" and leak confidential information.

For example, if there is indeed a thinkweek paper about taking MS private (I haven't tried to verify this) it's inappropriate for you to mention it here. Some reporter will read your comments, will start calling Microsoft asking for a copy of it and comments on the record, and will eventually nag enough people that someone will dig it up and leak it to the reporter. Or worse, they'll just make stuff up. This is a huge can of worms that you don't want to open.

Mini, I understand why you feel like you need to stay anonymous to be a public critic of Microsoft, and while I'm not sure I agree I certainly respect the reasoning and emotion behind that decision. You'd lose all respect in my book, however, if you start using the cloak of anonymity to leak confidential information. I think it's great that the company encourages a broad set of employees to read and discuss Thinkweek papers -- I love the philosophy that by default we should trust our employees -- but this is a relatively new trend for Thinkweek and I worry that they will be forced to re-think that policy if the papers keep leaking.

But by all means, I hope you enjoy reading the thinkweek papers. There's a lot of good stuff.
available here
Here's my reply:

Kevin, knowing that a GM with MSFT visits these pages confirms my suspicion that Mini-MSFT cannot be ignored where it counts a great deal (i.e. among the executives of the Company). Not being privy to the discussions you and your peers have about Mini-MSFT, I would certainly expect that, at least when you officially visit this place, some consideration is given to any one of the real issues people bring up. Addressing this forum obliquely does justice neither to your position with the Company nor to your public profile as illustrated by radio.weblogs.com/0133184/

The option of taking technology companies private again has been exercised by several (e.g. Trilogy, Seagate, Corel, etc.). In other words, changing the form of ownership of a company, from public to private, is just one of the several strategic options managers ought to consider. Since a prior comment here addresses so well such (im)possibility for Microsoft, one should be grateful to the public, if anonymous, intelligence, enabled by this blog, for saving some brain-cycles of Microsoft executives.


Addendum 1/19/06:

To the growing chorus enabled by blogger/minimsft, we should hail the latest voices: Microsoft Partners'. To judge the amount of scripting vs. improvisation, the over/under-tones, and any other parameter in these folks' tunes, have a look here: http://minimsft.blogspot.com/2006/01/when-partners-collide.html

And now, the $10k-question: How soon will the top two acknowledge the minimsft- phenomenon?

On sources of technology innovation


Two recent comments, posted at Mini-Microsoft, have given me some food for thought. Please, read through and ...
  1. Oh by the way, there is the SmartWatch to look out for. You know - BillG's innovation that made the IEEE Spectrum list of the ten dumbest ideas of the year? LOL, that's the kind of innovation Microsoft is famous for!
  2. The sad fact is that our execs are now so very disconnected from the real morale/culture problem. They think that somehow just shipping more product will help. NOOO, that's not it. It's the fact that our execs don't understand what it's like to be an IC, to want to just get something done, get credit for it and get paid well to do it...and NOT be getting micro/process managed to death while you're doing it. That's it, plain and simple.
... answer: Could multi-(b/m)illionaries innovate on behalf, and for the benefit, of your average JOE?
Since the collective intelligence is more apt to tackle such a question, I invite you, the reader, to think about this. Your comments will be appreciated!

From behind the NDA curtain

Considering the (qualifiable) success of Mini-Microsoft, a supposedly Citrix employee has launched a Mini Citrix blog. Is this part of a trend that's going to make corporate management honest, and overall better? Only time will tell. Meanwhile enjoy what the smart, and identity-less, folks say, despite the NDA curtain.

Comments I posted at Mini-Microsoft

Here are my comments posted in different places on the Mini-Microsoft Blog. In green-font are (snippets of) others' comments posted there that prompted me to reply.


I

It is interesting how, across most postings to Mini-Microsoft, most blame is directed at management. And, to a great extent, management is responsible--otherwise how in the sky could they justify their own compensation schemes?

In ancient times, people used to vent their passions during carnivals, when kings and fools exchanged places for a brief. In the long interval between carnival days, it used to be religion. In democracies, we have elections. Religion has been replaced by shows and morale building exercises (i.e. propaganda). When the individual (contributor) doesn't believe anymore in the show managers put on, it's time for a (ritual) reversal... So, managers, take notice!

Yet, where is the personal responsibility that arises from a conscious decision to grow up as individual and either clean up the mess around you or move on?In the end, let's face it, the cake is in only one place!


II

For the MSFT shareholder who asks why the Company has a finger in the gamming pie, I would venture to answer:
  • Because of digital convergence;
  • Because of no-longer growing revenues in those areas that have made him money so far;
  • Because it's fun for the engineers who work on it;
  • Because consumers welcome alternatives (to Sony and Nintendo);
  • Because it's there--as a growing market.
...should I go on?


III

Somebody at Mini-Microsoft quoted "Microsoft Corp. and Time Warner Inc. have been discussing potential online partnerships that would help the two companies better compete against rivals Google Inc. and Yahoo Inc. (Nasdaq:YHOO - news), two people familiar with the talks said Thursday."

MSN has always had a problem: it tried to be(at) AOL no matter what the users who were running to Yahoo! and Google were saying. Now, does anyone think that putting together two less-than-stellar entities will form something great? Hmmm, unless I am a hopeless geek, they should ask Carly--the former first lady at HPQ!


IV

Why is it that folks think Microsoft has lost it's agility? My guess is that most associate the Longhorn/Vista delays with this lost agility. I think this is a cop out. The systemic constipation inside of Microsoft around Longhorn/Vista is the result of the Chief Software Architect's failure to properly design and architect his vision of integrated innovation. Bill is an architect in name only.


The above comment raises some interesting (insider) points. For us, the outside observers, the big question nobody has been willing to ask is: "How much does BillG still deserve the position he appointed himself to?" Follow up question becomes: "When talking about accountability, how high up can one go?"

Be it as it may, we've seen how Scott McNealy and Larry Ellison have stepped aside to make room for new blood...

Few more interesting points, and I would welcome a conversation on the subject, are those related to MSOffice on Linux, getting together with Apple's music format at the expense of WMA, etc. That such points make for heresy at Microsoft goes without saying. I'm not sure though they make a lot of business sense.

Oh well, drop us a line, especially if you are PM in one of these areas. In any case, state your function at the Company!


V

The owner of, and MSFT participants to, the Mini-Microsoft blog might have done more (for better or worse) to set things in motion at Microsoft than scores of executive wonks. Hence the value of the internet in making the workplace more democratic. Now we should wait and see how well this does to business. I cross my fingers!


VI

From all incentive systems I've known, for large organizations, I had come to respect the most the one employed by McKinsey.

Consultants (at lower levels) rate their next-level-up manager/mentor anonymously, and are being rated by their manager. There is assumed flexibility for a junior consultant from a mentor to another. This inter-rating mechanism keeps most bastards honest, and people do actually get useful feedback for improvement.

For how long has this incentive system been in place at McKinsey? For as long as anybody at the Company remembers!

Now, incentive theory is really a chapter in the science of economics. Have you wondered why when you get in a cab, it starts with a few dollars on the meter as the driver turns the engine on? And, relative to the cost per mile, the starting-fee is not trivial. They make it so a driver gets enough from such starting-fees that he's got an incentive to drive you in the shortest time to destination...


VII

Dear fellow minis,I really love this blog and I am a huge fan of the "Mini" himself. But please quit with the constant field sales bashing,e.g - that shit might get salespeople fired up but for your average introverted dev it does nothing but promote ennui.We both love and fear for the company just like you do. Signed, Longtime EPG account rep (lowest of the low but I have served one of our biggest customers for 7 years and beleive me the software you develop (a) isn't easy to sell and (b) it's a total b***tch to deploy across an enterprise.

Sometimes, it takes an "EPG account rep" to see the gap between the coolest/innovative ideas and happy customers--some people call it "process." Other times, nothing does the trick but a higher stock-price.

Thinking more about the review process at MSFT, it looks like it encourages massive politicking due to its one-sidedness. I would be surprised if, in fact, there have not been executive drives to streamline middle management and increase accountability. But hey, everyone has got a friend, with a lower IQ, whom can be turned into a power base through the one-sided review process.

In other words, a bad process may be as costly as no process...


VIII

Bring back some sense of fairness between execs and rank and file. 320,000 shares for Kevin Turner? Is Kevin really worth 320X+ more than the average good employee? Should a grossly underperforming exex like Burgum not only retian his job but cash a couple $M every Q? I don't think so.


I wonder since when has it become an issue the fairness of executive pay? By and large, little is fair about it, and so is life!

Having incompetent executives is a another matter. The novelty about this latter notion is given by this couple of key elements:
  1. MSFT has smart, and type-A, personalities who came to the Company after/under genetically less endowed managers;
  2. The employee-liberating, and -enabling, capabilities of a blog.
The rest will be a new page in corporate reform, driven by the explicit action of a vocal, and newly empowered, minority.


IX

Imagine if Apple suddenly decided to offer MAC OS 10 on standard Dell platforms, and when you called Dell, they asked which OS you wanted.


...new UI in Office 12 with other 23.984 useless featuress (where each running Office app will eat 70 MB of the memory)...

Reading some recent opinions posted at Mini-Microsoft about how several of MSFT products/features turned into resource hogs, let me put it in a slightly different (non-Google) context:

There has been a yesterday's company whose platform runs most efficiently and effectively out there. Its customers loved it so much that they saw no need to upgrade--no, it's not about some mainframe architecture.

So, what happened? Hardware system vendors (HSV's) decided to stop offering support for the old platform. The old hardware would either crash or not interconnect with the newest hardware. In the end, customers had to jump ship. Who benefited from this? MSFT, Intel, and al other usual suspects in the HSV space. Who lost? The customers and Novell.

Fast forward (I) to the early 2000. IBM, not to be fooled twice, drops a lot of mainframe-, and new-IP, into Linux (e.g. virtualization, driver support). Not to be outdone, the rest of the HSV band (formerly, of MSFT-brothers), with the partial exception of Dell, joins IBM in supporting straight Linux, or one of its corporate flavors (Red Hat, SUSE/Novell). As a measure of this transformation, 5 years ago, who would have thought SUN would complement both Solaris and Sparc with Linux and Intel/AMD, or the fact that Oracle would run on Linux??? And, except for IBM (and possible Oracle) nobody does it despite Microsoft.

Fast forward (II) to the Google's IPO. The public at large gets a taste of Google's context (i.e. simple things in small-sized software).

Fast forward (III) to 2005 corporate customers. Here's the voice of a select few. What is the message? They want to DO MORE WITH LESS!

Fast forward (IV) to 2005 HSVs and ISVs. Oracle and IBM are doing/promoting about grids, and most every HSV is doing blades. How do I translate III & IV? Optimal allocation of IT resources or better ROI's for the IT budgets.

Fast forward (final) to mini-msft blog. Microsoft engineers ponder how it is possible that their Company continues to invest in countless obscure Office-like features. Yeah folks, the genie is out, yet who knows when the turn comes for your management to think of growth alternatives to bloating software.

As end-user I've been able to tolerate MSFT annoyances up until two episodes. (1) When a customer from abroad emails me an audio-clip he made using MSFT tools, I could not play it back until Windows Media Player checked with some DRM-god on the internet. (2) Hearing the complaints of a partner (marketing-strategy type) about his Dell laptop slowing down I suggested, and then wanted to initiate, a reinstallation of the system from the vendor's CD. I was told that, because the XP version on the CD was older than the (patched) one on the laptop, I could not reinstall the system.

Why did I share the above two anecdotes with the readers here? To illustrate how MSFT-neutral customers might have grown unhappy with MSFT to the point they'd switch when alternatives show up. For the (mini-)Microsoft engineers, such consideration should only nuance the(ir) conversation--after all, they've gotten paid their salaries from such tactics. For those in management, it is a whole different thing. It's up to them whether or not to take their customers and (minimsft-)employees seriously, regardless of their particular biases.


X

Somebody posted a remark about Apple grabbing mindshare with the iPod and OS X. As somebody who is completely outside of Microsoft -- I'm a journalist, but very much not tech -- I can't stress enough how right that is. It is not only the products like the iPod, it is the decisions they have made, like yanking the iPod Mini at the hight of its sales to market the Nano. The collective reaction among the people I know was first something like God, the balls on those guys! followed by God, is that beautiful!. And the "halo effect", though probably overrated, is real. All the Apple people in my department have to do is say something like "If you think that is cool, you should see my Mac."

I think folks in MSFT Entertainment Group have taken notice--As proof, msofties themselves are saying the latest XBox is something they look forward to buying.

"If you think that is cool, you should see my Mac."

Now this is major indeed. Not as much for its effects--when Apple started going down, it still offered a greater experience than MSFT--as for its power of example for companies dealing with consumers. The platform approach at MSFT, which made them so big, sustains a vicious circle in which some products are put on the market without being required to compete on their own merits. We are probably witnessing in fact the price platforms are exacting on a firm by skewing the behavior of marketing and development folks. On their part, customers who sunk so many resources in MSFT technologies have little option but keep "consolidating" the platform. The ideal situation would be when customers like so much a product that they want to try others from the same vendor. Only then should the vendor look for platform synergies. Again, this would be ideal.


XI

More on mini-Microsoft
On MicroSoft

More on mini-Microsoft



I keep reading the comments posted on Mini-Microsoft pages about how lean and mean MSFT used to be, and how annoyed are the developers by the extra layers of "bureaucracy"--program managers (PMs) and testers included.

These are probably the voices of those (younger) developers who got into MSFT at its top form. Yet, why aren't they being told that MSFT used to ship buggy software ("blues screen of death") and made for tons of jokes about bad software development? When you grow big and customers say you need to fix up or else, adding more testers and "bureaucrats" to make sure the customers don't switch is VITAL!

I shipped myself some big software and know full well about the culture clash at the intersection of developers, business, customers, partners, testing, consulting, etc. Guys, beyond a point in size, it's just life! For those advocating a smaller MSFT (hence mini-Microsoft?), I should add that a little fat hasn't killed anybody, and one gets to appreciate that when a new opportunity shows up or the market fluctuates. In a sense, one of the problems Microsoft has is its inability to hire what/how much it needs! And this is not a function of Google as much as a function of how education fails US. Moreover, as of late, we've seen many of downs, yet people complain about having to co-pay $40 for branded medicine. If you spent time with the folks from Wall-Street, who are ready to chew you up at a moment notice, you'd have a better understanding of where Ballmer is coming from on that.

As I said elsewhere, I suggest MSFT reorganize along big enterprise stuff and consumer stuff. Big enterprise software is meant to be boring and process-laden(sorry folks!), consumer software being in the opposite category. Self selection of the employees could put its mark on the overall happiness then. As another recommendation, MSFT could do better if stayed away from just about everything that (can) exists in digital form. Initially, this approach might have been the result of lower projected revenues in mature areas. Now, when so much is becoming digital, it may be hubris. A better way to tap into the future would be to just buy whatever company is doing well in a promising area--problem is, those guys don't always develop on .Net or Visual Studio...

Why wouldn't the top brass at MSFT put everything into two buckets? Maybe because they keep telling everybody Windows is a monolith that cannot be taken apart into modules--yet they are doing just that, at least when it comes about developing the beast. In other words they might have gotten themselves on a "dependency path" that does not allow Microsoft to be different and save management/legal face at the same time. To counter a possible argument like: "fCh, doesn't MSN cut it both ways under your two bucket plan?" I would say that beyond a certain size, MSN consumer cannot be(come) MSN enterprise, unless you want to make everybody unhappy--from developers to customers, your cousin included. A grown up MSN consumer would be more like Yahoo!, whereas MSN enterprise like salesforce.com. Who in the right mind would MERGE (all the way to developer-level) the two of them?

As for Google, let those guys go round the bloc for a few times, prove their worth, and then jump to conclusions. Google is not the answer, any number of start-ups in the Valley might be--at least for those who dream of themselves sleeping on/under tables and developing untested software. I use and respect Google's stuff, yet I am apprehensive like hell about what it may turn into--I'll write more about this soon. For an early taste of what's to come, click here!


On MicroSoft

BusinessWeek features an interesting cover story on its 09/26/2005 issue about Microsoft: "Troubling Exits At Microsoft - Once the dream workplace of tech's highest achievers, it is suffering key defections to Google and elsewhere. What's behind the losses?"

Amid all changes in the marketplace, Microsoft's stagnant stock price and increasing attrition rate make for a troubled picture. The BusinessWeek article seems to suggest that Microsoft was different in the '90s, and only now, with Ballmer at the top and Google/Yahoo becoming better professional destinations, things take a while to come out of Redmond. However, one should recall that after shipping MS-Windows 95, it took Microsoft a long time to come out with MS-Office--a suite that was made up of various pieces, built or acquired.

Obviously, Microsoft is facing a fork on its road. On one hand, enterprise software needs to come out to the market in lockstep. Thus, most efforts to transform the Company into a mature business ought to be in areas dealing with large enterprise software. There are many models one could think of, yet one has to start from one's own premises. On the other hand, in the consumer space, where the innovation pace has been set by Google, Yahoo, and Apple, Microsoft would do well to think of ways to stay nimble and flat! In any case, there are always some who wonder: "When has Microsoft stood for (product) innovation?" pointing to the Company's long string of acquisitions. On the enterprise side, Microsoft should look at ways of getting better than IBM, on the consumer side it's got Google and Yahoo to worry about. Accordingly, there could be at least two different corporate entities, one targeting enterprises, the other consumers. No matter what the answer may ultimately be, trying to cut it into a size that fits all is just a dream, and no other entity has managed to be all things to all markets.


Forbes also has an article in its 09/13/2005 Business Strategy section: "Microsoft's Midlife Crisis"

This article goes into some of the details about daily life at Microsoft. The reader learns about a number of management initiatives launched by Ballmer, such as everything-reviews, or the dismissal of "6.5% of the workforce every year for inadequate performance." While these initiatives could make all the sense in the world, the reader is not given the context, either organizational or historical, in which they occur. This, together with the scattered complaints of its employees, leave the reader bewildered as to what the diagnostic and solution might be for Microsoft (culture) ills.

In fact, for the student of corporate culture, a better place to start thinking about Microsoft's situation would be to look at Mini-Microsoft, a blog where people with all Microsoft-related affiliations vent out about the Company. From there, I quote an anonyous reply that puts the employees' complaints in a better industry perspective:

Hopefully sites like this will add value to the discussions around the problems that MSFT faces and what can be done to address those problems.

But the fact of the matter is if anyone thinks MSFT is in poor shape in terms of innovation, morale, etc... take a look at the rest of the industry, and just the economy in general.

You want to be really depressed, talk to folks who work in the auto industry... or let's look into what ails the airlines... two bankruptcies in one day, and who's accountable? No one knows for sure, but a lot of pilots, flight attendants, mechanics, etc will be paying the price for management mis-steps...

Even in the hi-tech industry, think MSFT is bad? Try working for IBM, HPQ, Sun, SGI, Intel, or if services is your thing, try EDS, Accenture, etc. Talk about endless meetings, lack of passion, regular quarterly headcount reductions to cut costs, missing the innovation that made some of these companies great... MSFT isn't so bad by comparison.

However... just because MSFT isn't as bad off as these stalwart companies, I also can't deny that MSFT isn't as passionate, innovative, and hip a place to work as companies like Google, Yahoo, and other darlings of Wall Street and the media are. But they'll all end up in the same place as MSFT eventually (with the same BW or Forbes articles written about them), and those same passionate, innovative, A-Type personalities will move on to the next big thing.

It's part company growth and part Wall Street. Get big enough, get successful enough, and God forbid, go PUBLIC, and you can flush long-term innovation and employee morale right down the toilet. Bill and Steve are just as beholden to Wall Street these days as Immelt and Palmisano and Hurd... cost cutting, earnings, and stock price trump innovation, employee morale, and benefits every time.

Upset about having to pay $40 for a prescription or no longer having towels for your after-workout wipedown during lunch? Would you trade that for what other competitors and other industries offer? Probably not.

As I mentioned, just because MSFT isn't as BAD as the majority of companies, that doesn't mean it's as GOOD as Google, et al, in terms of passionate workforce, excellent benefits, stock options, innovation, etc. There is significant room for improvement.

But at the end of the day, I'm not certain any publicly traded company in America can sustain the entrepreneurial spirit that got them going in the first place, once investors become the key stakeholders. Just look at what happened to the HP Way... it got laid off and put to pasture... Gerstner made quick work of the IBM family, and the "Think" mantra morphed into making the elephant dance... on the backs of tens of thousands of layoffs.

Microsoft has the talent and people and money to re-invent itself and compete. And most likely, change will need to start at the top with Ballmer. Often times, executive shakeups produce near and mid-term results. But ultimately, MSFT's situation is more a function of the influence Wall Street has on good companies, than anything else.

In other news: This site is fantastic and I just saved a lot of money on car insurance by switching to GEICO. ;>


In the end, here's Goldman Sachs' position about the current situation at Microsoft:

Goldman Sachs maintained an "outperform" rating on Microsoft despite employee morale issues.

The research firm cited recent reports about a decline in morale among Microsoft employees. "Microsoft has never been the most innovative company," Goldman said. The rapid pace of innovation by competitors including Google has been a lingering employee concern, according to Goldman.

Moreover, the maturity of Microsoft's products has been a damper on growth, on the stock and on employee compensation, according to the research firm.

Goldman remains convinced that Microsoft still has "a lot of smart and highly motivated people," and that the product pipeline remains strong.

"The new product flow and innovation is impressive and increases our conviction that there are robust new product cycles upcoming that will be beneficial to the stock and a boost to morale," Goldman said.

So, all will be well when MicroSoft will have played all its cards (i.e. products on the pipeline). Until then, a cautious "outperform"...