The decade since Steve Ballmer took over as CEO of Microsoft from his friend at Harvard Bill Gates has not been kind to the company: its share price plummeted, it was imprudent acquisitions, shows mismanagement of capital and suffered a significant loss of market share. The software giant dominant, once lost his way.
It was not just the existing software. Microsoft did not take into account the impact of development of almost all useful. No 'the rise of the touchscreen technology and the mass appeal of social networking sites (such as Facebook and Twitter). Intrigued by the tablets, has lost more than U.S. $ 1 billion in the company. Late for user generated content and blogs, MSN Spaces is built - Windows only ghetto that has failed to become popular or a benefit. She blew the lead in smartphones do not understand their meaning. And it certainly does not have the same weight thrown behind them, like its PC business pillar.
In fact, it is hard to think of new technologies since 2000 that Microsoft has played an important role for the development, marketing and monetization - the device Kinect for Xbox 360.
Much of the debate on his misfortune focuses on two factors: the analysts have argued that his fainting was part of the natural progression for all companies. The life cycle of innovation, adoption, missteps and irrelevance is the inevitable fate of all companies. He suffered "Innovator's Dilemma", the greater emphasis on its current business lines. This has led to a lack of development of new technologies and profitable business. In the end, the thinking goes, was a victim of its own success. (This is true for many high-tech companies, but IBM is an exception, but that has become a consulting company).
The argument against is that an average CEO has allowed the company to slip into decline. Ballmer reckless oversaw acquisitions. He lost the tectonic shifts in technology. And even if the number of employees has tripled in the last ten years, many software engineers with more talent left the company rivals,
Consider huge cash flow Microsoft : The former monopoly throws away about $ US78 billion in revenue and earn about $ US27 billion profit each year. Its three main product lines - Office and Server Tools (now falling into third place ) Windows - account for three quarters of its revenues and most of its profits . It is no coincidence that these lines of business were the direct beneficiaries of the monopoly of Microsoft . In fact , none of the other companies Microsoft has achieved success owned monopoly . Online Service loses money every year. Despite the huge investment , the Entertainment and Devices Division still earn less than U.S. $ 1 billion a year.
True genius Gates was not a technology visionary . It was his business sense in taking advantage of a monopoly position in operating systems to become the dominant U.S. technology. IBM gave the world its first PC in 1980. The giant mainframe contemplated the idea of a personal computer for home or office use . It was thought that the PC insignificant - never replace the great iron did. In 1981 , he happily outsource the operating system to the "team" Gates of geeks , which subcontracts writing operating system code . In 1982, the MS -DOS was released.
Integrated into the original agreement IBM was the seed of the great fortunes of Microsoft . Microsoft's real genius was in their license agreements for MS -DOS ( and possibly Windows) with PC manufacturers . It offers a variety of licenses, but the version that pays less per copy includes an intelligent footballer : Microsoft had to be paid for each car sold - if MS- DOS was the operating system . This bright , if evil , according to computer manufacturers is to block any operating system competition. Microsoft has become the standard adopted by U.S. companies .
Microsoft had its pact with the devil : his lightning in a bottle was not the incredible technology and ingenious discovery - it was a clause in a contract which resulted in an extremely profitable monopoly . Then the ' Office pre-installed on new computers , creating a second monopoly and billions more in profits. Since then, the Office suite of productivity software had become dominant . Over time , the division of Microsoft server and tools - which includes Windows Server and Microsoft SQL databases - even become a de facto standard .
Google 's motto " Do not be evil " , was a blow not so subtle about how Microsoft had reached its domain.
Most monopoles eventually break . Microsoft is no exception. Once the Department of Justice and European Commission found the company in violation of antitrust laws , was forced to compete fairly . It is no coincidence that, as the company lost its grip on the desk , his mastery vanished. It shows up as a dinosaur , I was not able to compete with small mammals, more agile - .
And here lay her current problems. In a fair and balanced playing field , the software giant once feared has emerged as a mediocre writer and a mediocre competitor software .
Ballmer oversaw a decade of missed opportunities, and very well could have accelerated the decline of Microsoft . But it may have been inevitable. The truth is that for all their claims of innovation , Microsoft has not generated a lot of advantages in terms of innovation. This, then , a story of the long, slow death of a huge source of income.
To quote the London-based analyst Benedict Evans : " Just as overnight success can take a lifetime , so a fall night can also take a long time . "
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The company, considered the Mac Daddy of technology at the time, lost all important innovation technologies of the new millennium. its foray into music players, which was a shame. And let Apple put a dent in consumer desktop, then Steve Jobs used to show consumers a superior alternative to kludgy software for Windows. Microsoft was late to search the web and not to monetize online properties. A belated attempt to acquire aQuantive advertising jump by $ US6.2 billion has led to its first quarterly loss in 2012.
It was not just the existing software. Microsoft did not take into account the impact of development of almost all useful. No 'the rise of the touchscreen technology and the mass appeal of social networking sites (such as Facebook and Twitter). Intrigued by the tablets, has lost more than U.S. $ 1 billion in the company. Late for user generated content and blogs, MSN Spaces is built - Windows only ghetto that has failed to become popular or a benefit. She blew the lead in smartphones do not understand their meaning. And it certainly does not have the same weight thrown behind them, like its PC business pillar.
In fact, it is hard to think of new technologies since 2000 that Microsoft has played an important role for the development, marketing and monetization - the device Kinect for Xbox 360.
Much of the debate on his misfortune focuses on two factors: the analysts have argued that his fainting was part of the natural progression for all companies. The life cycle of innovation, adoption, missteps and irrelevance is the inevitable fate of all companies. He suffered "Innovator's Dilemma", the greater emphasis on its current business lines. This has led to a lack of development of new technologies and profitable business. In the end, the thinking goes, was a victim of its own success. (This is true for many high-tech companies, but IBM is an exception, but that has become a consulting company).
The argument against is that an average CEO has allowed the company to slip into decline. Ballmer reckless oversaw acquisitions. He lost the tectonic shifts in technology. And even if the number of employees has tripled in the last ten years, many software engineers with more talent left the company rivals,
Microsoft 's greatest strength has always been its monopoly position in PC chain . Your license agreement with the exclusion of PC manufacturers has commissioned a license fee to MS- DOS if you are using a Microsoft operating system . Why not make sense to pay for two operating systems , it has created a huge barrier to entry for any other software company . No other operating system vendor could get a foothold in the PC market . By the time the company was established in the Department of Justice of the United States in 1994 , most of this illegal agreement , Microsoft had acquired a stake in all operating systems dominant sellers . He has held a power bloc in the market until 2008 , when it fell below 90 percent share of the desktop operating system for the first time .
Consider huge cash flow Microsoft : The former monopoly throws away about $ US78 billion in revenue and earn about $ US27 billion profit each year. Its three main product lines - Office and Server Tools (now falling into third place ) Windows - account for three quarters of its revenues and most of its profits . It is no coincidence that these lines of business were the direct beneficiaries of the monopoly of Microsoft . In fact , none of the other companies Microsoft has achieved success owned monopoly . Online Service loses money every year. Despite the huge investment , the Entertainment and Devices Division still earn less than U.S. $ 1 billion a year.
True genius Gates was not a technology visionary . It was his business sense in taking advantage of a monopoly position in operating systems to become the dominant U.S. technology. IBM gave the world its first PC in 1980. The giant mainframe contemplated the idea of a personal computer for home or office use . It was thought that the PC insignificant - never replace the great iron did. In 1981 , he happily outsource the operating system to the "team" Gates of geeks , which subcontracts writing operating system code . In 1982, the MS -DOS was released.
Integrated into the original agreement IBM was the seed of the great fortunes of Microsoft . Microsoft's real genius was in their license agreements for MS -DOS ( and possibly Windows) with PC manufacturers . It offers a variety of licenses, but the version that pays less per copy includes an intelligent footballer : Microsoft had to be paid for each car sold - if MS- DOS was the operating system . This bright , if evil , according to computer manufacturers is to block any operating system competition. Microsoft has become the standard adopted by U.S. companies .
Microsoft had its pact with the devil : his lightning in a bottle was not the incredible technology and ingenious discovery - it was a clause in a contract which resulted in an extremely profitable monopoly . Then the ' Office pre-installed on new computers , creating a second monopoly and billions more in profits. Since then, the Office suite of productivity software had become dominant . Over time , the division of Microsoft server and tools - which includes Windows Server and Microsoft SQL databases - even become a de facto standard .
Google 's motto " Do not be evil " , was a blow not so subtle about how Microsoft had reached its domain.
Most monopoles eventually break . Microsoft is no exception. Once the Department of Justice and European Commission found the company in violation of antitrust laws , was forced to compete fairly . It is no coincidence that, as the company lost its grip on the desk , his mastery vanished. It shows up as a dinosaur , I was not able to compete with small mammals, more agile - .
And here lay her current problems. In a fair and balanced playing field , the software giant once feared has emerged as a mediocre writer and a mediocre competitor software .
Ballmer oversaw a decade of missed opportunities, and very well could have accelerated the decline of Microsoft . But it may have been inevitable. The truth is that for all their claims of innovation , Microsoft has not generated a lot of advantages in terms of innovation. This, then , a story of the long, slow death of a huge source of income.
To quote the London-based analyst Benedict Evans : " Just as overnight success can take a lifetime , so a fall night can also take a long time . "
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