Windows Media Center RSS 2.0
 Friday, March 09, 2007

More stuff from Thomas to chew on in How To Turn Microsoft Around. I'm glad he caveated the post at the beginning and end with the note about armchair quarterbacking. I'm glad to see some folks setting the record straight in the comments over on his blog, so I would encourage you to go read those. Anywho, my two cents about what Thomas wrote follows -- please go read his entire post -- I'm just going to try and boil it down to the action items he recommends in summary.

1) "...create a Microsoft certification whereby thoroughly tested systems receive a special Microsoft seal of approval. This would be reserved only for PCs that met the most rigorous testing requirements."

Done -- see http://www.microsoft.com/whdc/winlogo/hwrequirements.mspx. I expect Thomas' answer will be 'that's broke, you need something better'. My belief: Our ecosystem of partnerships (Chris loves it when I use that particular group think Microsoft-ism) isn't broke, and in many ways is quite healthy.

2) "Microsoft should spend $3 billion buying everything cool that it can get it's hands on irrespective of the busness outlooks of the individual internet properties. By combining these properties into something cool they *can* build a presence yet on the net."

Yikes. Throwing money around 'irrespective of the business outlook' is absolutely irresponsible, both to our employees and shareholders. The logic here doesn't make sense to me at all: Ignore the business fundamentals and make a decision solely on a nebulous perception of 'cool'. Friendster used to be cool, and now seems to be a footnote in the annals of Web 2.0 supplanted by MySpace and Facebook. Let's chat in 10-20 years and see how sound an investment it was to shell out $1.65 billion for YouTube or $35 million for Flickr -- I for one largely think the jury is still out on those. Anyone remember the dotcom bust around 2000? That was largely fueled by just this sort of approach in regards to investment. No thanks -- been there, done that, got the t-shirt (which is the only thing left for my personal 10 grand -- ouch).

3) "Open an incubator in San Francisco."

Done. How about Redmond, Cambridge, Bangalore and Beijing as well. Don't forget our university partnerships either. Not to mention we fund more 'startups' than you can imagine outside of these research groups in product groups themselves. In fact, Windows Media Center (itself a internal startup which has been highly sucessful, shipping 5 great versions in 5 years) just recently spun off its own startup group (can't say more, sorry). Heck, why limit it to only what we can do ourselves -- we should think about how we invest in others. Oh, wait -- that's done too: http://microsoftstartupzone.com/. Don't get me wrong: San Francisco is a lovely place -- but not the only place -- for great ideas and startups.

4) "Rather than one or two top evangelists though they should hire about 30 of these connectors and also give them direct access to the executives making the business decisions at Microsoft."

Evangelism works best when it's grass roots (I think Robert would tend to agree with me here). I think the answer here is not bringing in folks from outside as high profile connectors but rather encouraging and increasing the profile of folks from within. (I'm pretty sure MiniMicrosoft would agree.)

Thomas, you should seriously think about joining Microsoft personally -- you've got the right mindset that change is good -- come and work for a company that really believes that and empowers you to make it happen.

Categories: Microsoft | Comments [1] | # | Posted on Friday, March 09, 2007 6:21:25 AM (GMT Standard Time, UTC+00:00)   
Tuesday, March 13, 2007 3:50:07 AM (GMT Standard Time, UTC+00:00)
Hi Charlie, thanks for responding. A few points here:

<i>I expect Thomas' answer will be 'that's broke, you need something better'. My belief: Our ecosystem of partnerships (Chris loves it when I use that particular group think Microsoft-ism) isn't broke, and in many ways is quite healthy.</i>

I think Microsoft has to come to terms with the fact that users in general find the software frequently buggy. I am not alone in this view. It is not simply PR. The stories that you see and hear about people switching from PCs to Macs are pretty consistent on this point. It is a fact that my Dell Inspiron notebook cannot disable tap to click. This is a bug. This computer should not have shipped with this bug. It should not be incumbent on me to find updated drivers and firmware after the fact. I've been using PCs of various brands for 16 years. I have had literally thousands of things go wrong. I don't believe that you have never had errors with your PCs. I think you have to consider the fact that your view might be clouded by the fact that you are emotionally and physically invested in Microsoft at present. Jim Allchin said that his comment reported last year that he would use a Mac if he didn't work for Microsoft was taken out of context. But there is a kernal of truth in it and I'd encourage you to consider this. Self criticism is critical to improvement. When I can't install a legitimate copy of Outlook that I bought and have the key for this is a problem. I don't have these problems with my Mac. I've only used the Mac for 5 months or so recently but in general it's a far more error free experience.

Could this all be in my mind, a self fulfilling prophecy of sorts? Maybe, but I doubt it.

<i>Yikes. Throwing money around 'irrespective of the business outlook' is absolutely irresponsible, both to our employees and shareholders... Let's chat in 10-20 years and see how sound an investment it was to shell out $1.65 billion for YouTube or $35 million for Flickr</i>

What's irresponsible is sitting on $29 *billion* in cash now for (how long?) and doing nothing with it but earning maybe 4.5% in short term corporate paper. If Microsoft is not going to do anything with their cash then they should consider a special dividend like they previously issued and give this money back to their shareholders. Alternatively they could buy their own stock back. But to sit on this cash and do nothing with it is not in the best interest of shareholders.

In terms of Flickr I'd suspect that Yahoo would disagree with you regarding the value of their investment. Flickr now claims 22 million uniques a month and 7.2 million registered users. Yahoo also now possesses the largest organized library of images in the world. This has huge potential for both the image search market as well as the $2 billion stock photography market. Of Flickr's active members about half are Pro paying $25 a year. This is a tremendous annuity. If Yahoo wanted to spin off Flickr right now they could likely get more than $120 million for this as a stand alone service. Almost 4x their invested money.

Similarly YouTube investment essentially paid for itself. On the day that Google announced the deal their stock rose more than the $1.6 billion in value. The rise in market cap actually more than paid for the acquisition on day one. Granted a companies stock price on any given day is not necessarily an indication of it's real value, certainly Wall Street and investors at least felt the deal was worthwhile.

Meanwhile, while Google buys YouTube Microsoft builds... Soapbox? Which actually is really cool, but has no traction.

<i>Don't get me wrong: San Francisco is a lovely place -- but not the only place -- for great ideas and startups.</i>

You miss my point about an incubator in San Francisco. There are enormously successful, interesting and amazing startups popping up in and around SF right now. Fantastic internet properties which could breath potential life into live.com. Companies that could help live.com realize the vision that Ray Ozzie and Bill Gates tried to articulate when they launched live.com in San Francisco last year. Stock quotes, the weather and RSS are not enough. live.com needs compelling content. The problem is that getting fantastic interesting internet technology through Microsoft is not so easy. By segregating a group of these creative individuals in a place like San Francisco and creating an alternative culture to the Enterprise/Windows culture that dominates Redmond *and* most importantly empowering these individuals to ship software on their own you *might be able to attract them. As it stands now though Microsoft's reputation is not strong in this world. It might be tempting to say who cares, after all it's Windows and Enterprise that pays the bills, but having a presence in this world might come in handy when Microsoft does need it 2, 3, 5, 10 years into the future.

<i>Evangelism works best when it's grass roots (I think Robert would tend to agree with me here). I think the answer here is not bringing in folks from outside as high profile connectors but rather encouraging and increasing the profile of folks from within. (I'm pretty sure MiniMicrosoft would agree.)</i>

In an ideal world, yes, but I don't see this happening at Microsoft in large part today. Certainly your blogging efforts are appreciated though and are a good example for what others at Microsoft should be doing today.

<i>Thomas, you should seriously think about joining Microsoft personally </i>

Maybe someday. But right now I'm most interested in building the world's most amazing social photo sharing site and in the process redefining the $2 billion stock photography market. It may or may not work but I'm working with the the most talented developer that I've ever met and I think we've got a shot at it.

Thanks again Charlie for your post and your ongoing commitment to blogging from Microsoft.
Comments are closed.
ZuneCard
GamerTag
About

Disclaimer
The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.

© Copyright 2008 Charlie Owen

Sign In
All Content © 2008, Charlie Owen