At Microsoft a lot more positions still need to go to achieve efficiency and focus. 15,000 more is my magic number. It’s not personal. But to achieve efficiency and resolution of what to focus on with determination, we need a whole lot less people and to publicly admit there are opportunities we will focus on and others we are okay walking away from.

via Mini-Microsoft: Microsoft Has Turned The Corner

Interesting. And sort of goes along with some of the feelings I’ve had recently about Microsoft. Sort of.

Over the past few months I’ve talked with many, many MSFT employees. On a one-on-one level all of them seem to say the right things, admit problems the company has on the consumer front, and have good ideas for the future.

But at the same time, most admit that on the macro level, things still take way too long to get done. Perhaps a huge 15,000 job cut, while drastic, would help resolve some of the bureaucracy issues that have long plagued the company.

But you still have situations such as MSFT’s Vice President of Developer and Platform Evangelism, Walid Abu-Hadba, saying things like “Most of what Google does is defensive.”

That’s just a pretty pathetic thing to say. And does not seem like something a company who has turned any kind of corner would resort to. And it’s hilarious because it’s obviously Microsoft being defensive.

Sure, some of what Google does is defensive, just like any other company. But if VPs at Microsoft really try to dismiss Google like that, just like in the past, that’s a problem.

Hopefully, the guy was just caught talking out of his ass for a second. But he went on to talk more nonsense. Like how when Google does Android, it’s simply meant to distract competitors from attacking it in search. But when Microsoft does Silverlight, that’s them extending their overall goals. What a truly awful attempt at spin.

But the last part of the quote at the top is key, I think. Microsoft needs to realize it doesn’t need to be in every game. For example, Zune. Sure, the new Zune HD looks cooler, but what the hell is the point? It’s a iPod touch competitor that is 2 years too late. The new iPod touches are going to add cameras and then where will the Zune HD be? Nowhere, again.

A cloud version of Office is obviously the right move. It’s Microsoft thinking about the future, rather than resting on its money-making laurels. It will be very interesting to see what the business-model is around that.

Some people get so pissed off when we in the media trash Microsoft. And those people love to point out how successful their business still is. That’s absolutely true — for now. But computing will transition, and if Microsoft just sits there and doesn’t evolve the same thing will happen to the company overall that is happening to Internet Explorer. A long, slow decay.

Microsoft basically stopped development of IE after IE6, and really fucked itself (well that and trying to force its own proprietary bullshit view of the web with its browser). By the time IE7 came out, the competitors had the knife already inserted, and just kept pushing. And they’re still pushing. And IE is still bleeding.

It cannot allow that to happen to its core businesses. We’re talking Windows. We’re talking Office.

Indications are that Microsoft does have some interesting plans for the future. But it still needs to execute. Which is far from a sure thing, as Mini-Microsoft points out.

So is Microsoft turning the corner? Maybe. But instead of being a car, Microsoft is a big fucking boat. And turns are very, very slow.

  • Good post. I was running with some tech people earlier this week and we were talking about almost the same thing. Specifically, how MS really needs to get its act together and start thinking about the future, instead of trying to simply extend the past. I hope for MS's sake that they're working feverishly on moving everything to the cloud, improving their browser & OS, and generally sucking less at executing than they have historically.

    They definitely still have potential to continue to be a great company, but sometimes it feels like they're just trying to do themselves in. Your cargo vessel analogy is great. Everything they put out feels slow, heavy, and difficult to redirect. I really hope they see the light before it's too late, because as awesome as Google is and as much as I prefer to use its products over MS, I'd hate to see the rivalry disappear altogether.
  • Agreed. The consumer loses when one company dominates. That's one reason why I'm excited to see what Google does with Chrome OS. Too long as MSFT had the OS market locked down. Love the rivalry between those two.
  • I'm wary of "magic numbers". I'd rather see a breakdown of what ballast MSFT needs to keep relevant in the future. It's not a profitability problem usually handled by cutting head count, it's a strategic and innovation gap.

    With their current pool of talent MSFT seems to have grown their legacy businesses on the client and enterprise side of things. The risk people point to is the paradigm shift in computing (finally) toward thin clients that don't care about those high margin software packages. That requires hiring more people (the right people) to build a business that will keep microsoft relevant five years from now.
  • Good points, but in hiring the new ones, some of the old ones that would essentially be doing nothing (of importance for the future anyway) would have to go.
  • MG, I'm glad to see that you focus on the main beneficiary - the customers. Microsoft is indeed turning the corner, and even if it takes us a little longer than a smaller, nimbler company, these are going to be exciting times for everyone. I do think, as I blogged about it earlier (http://www.manyniches.com/entrepreneurs/microso...) that pre-announcing Chrome is going to act as a galvanizing event for Microsoft in a much more significant way than share gains with Bing.
  • Taylor
    @Zune comment.
    To be honest, I can't think of any reason for Microsoft to stop with the Zune. Where have they failed? They were just getting their feet wet with the first generation 30GB hard-drive based models to get the name out there, and started building on that, adding new features, and upgrading the marketplace, and now they're really ready to jump in. You can't expect them to take the market with the very first release. Now they have a fairly large following, not quite like the iPod, sure, but there is always room for competition. And they will bring in a lot more people when they really start integrating the Xbox 360. As for the Zune HD, I think you are underestimating what a great device the Zune HD will be. Let's just look at the hardware of the Zune HD, since they haven't released very much information on software. First of all, it has the Nvidia Tegra chipset, which is going to bring ridiculously long battery life, amazing 3D modeling as well as an awesome UI with help from the touchscreen. The Tegra is better than the CPU/GPU combo in the laptop I'm typing this on! Hmm, what else, oh yes, the OLED screen is a perfect choice for the Zune HD it's going to further increase battery life and it will look amazing. The iPod touch is going to add a camera and the Zune HD will be nowhere? I don't know about that, I mean sure the iPod is the "cooler" product, and the Zune HD probably won't "kill" the iPod touch, but with the above listed features it is a very worthy competitor, and I think it will further widen the Zune's consumer base. Cameras in mobile devices have always been gimmicky, I have yet to see a camera that is worthy of replacing a point-and-shoot, and until that day comes I'm not going to consider a camera as a worthy feature, for me anyways. They always claim "#.# megapixels" yet the picture quality is always horrible, and grainy. The only time I ever use the camera in my phone is when I need to send a picture to someone, which you won't be able to do on the iPod touch, unless you are in a Wi-Fi hotspot and take the time to send it through email or something. Would you rather have a gimmicky camera, or an OLED touchscreen/Nvidia Tegra? Pretty easy to answer that one.
  • "But the last part of the quote at the top is key, I think. Microsoft needs to realize it doesn’t need to be in every game."

    This is something I fundamentally disagree with. It maybe that "Jordan didn't need to try to be good at Baseball", but Microsoft relies on
    1. what its customers and partners tell it (Microsoft) that they need for their lives, and
    2. areas that NEED competition.

    Did we need to get into the gaming console business? A few years ago, I'm sure someone would've made the same comments that you've made here about our foray into this space with the Xbox. I remember speaking to a high profile analyst last year about Search, and he had the *exact* same comment about Live Search back then. Would you say our investment in search was not a good one?

    The bottom-line is that Microsoft will make the investments it needs to drive competition in the market where and when it feels it is necessary. The Zune maybe behind now in terms of market share and features, but give it some time.

    On the flip side, I wish we weren't so reactive sometimes, but it takes a long time to turn a big wheel. Occasionally, we don't realize market potential till someone else is doing well at it first.

    ai
  • But there's a key difference there Anand. The Xbox is the gaming market which Microsoft (rightly) saw as a huge opportunity. The MP3 player is a dying market. It's only a matter of time before it gets swallowed by the phone/portable device market. Sure, if it does gaming well that could possibly work, but that's a big if and still would eventually be something that moves to devices.

    Agree with being slow to judge markets, thats where I think Microsoft should be investing me. Like Surface. Still too expensive, could use more push behind it.
  • Taylor
    Well, the MP3 player might be a dying market, but now Microsoft can use the Zune brand as more than an MP3 player. After all, the Zune HD has a web browser, and is speculated to have games similar to that of Xbox Live Arcade, so it is in a way, more than an MP3 player. There is also speculation that some form of the Zune UI is coming to Windows Mobile 7. The iPhone was Apple's response to all the buzz in the cell phone/portable device market, which is basically an iPod turned into a cell phone, right? Who's to say Microsoft can't adapt the Zune brand to be the Xbox Portable, or a media player for Windows Mobile cell phone or all of the above?
  • Fair enough - it's always hard to compare with prior examples. But I think it's a little far fetched to say that the "MP3 player is a dying market". I can't imagine 6-10 year olds, for example, carrying around a phone, but I can see them carrying around a PSP or an iPod touch.
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