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Microsoft is Dead (2007)

111 pointsby WisNorCanover 6 years ago

25 comments

WisNorCanover 6 years ago
It&#x27;s probably a good thing that Microsoft did not follow the advice:<p>&gt; They can&#x27;t hire smart people anymore, but they could buy as many as they wanted.<p>&gt; Buy all the good &quot;Web 2.0&quot; startups. They could get substantially all of them for less than they&#x27;d have to pay for Facebook.<p>&gt; Put them all in a building in Silicon Valley, surrounded by lead shielding to protect them from any contact with Redmond.<p>Instead, Microsoft did the exact opposite. They picked Satya Nadella who had worked there since 1992. He has driven the innovation right out of Redmond, WA with no lead shielding required.
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theonemindover 6 years ago
It seems like Big Tech has switched over to amassing data and behavior manipulation (&quot;engagement&quot;, etc.) as their main business model. I think that Microsoft didn&#x27;t feel threatening because they still mostly just <i>sold a product</i>.<p>I feel like we as a society haven&#x27;t really entirely got a handle on this yet. Things emerge, like trusts, and it takes a while for people to understand what has happened.<p>But, with things like Windows 10 telemetry you can&#x27;t turn off, and Windows turning into a service, they&#x27;ve gotten back on board with how Big Tech runs these days.<p>This pattern seems to hold really well. The giants mostly amass data and manipulate people. If they don&#x27;t do this sort of thing, they don&#x27;t really seem that threatening, regardless of their size. HP, IBM, Dell. Apple seems interesting, as a hold-out on just selling a product, but in the meta game, just direct manipulation of people really looks like a step up, and I don&#x27;t predict they&#x27;ll continue as anything approaching a &quot;scary tech giant&quot; in coming decades unless they change like Microsoft did.
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Digit-Alover 6 years ago
I think this paragraph really sums up the whole article for me:<p>&gt; The last nail in the coffin came, of all places, from Apple. Thanks to OS X, Apple has come back from the dead in a way that is extremely rare in technology. [2] Their victory is so complete that I&#x27;m now surprised when I come across a computer running Windows. Nearly all the people we fund at Y Combinator use Apple laptops. It was the same in the audience at startup school. All the computer people use Macs or Linux now. Windows is for grandmas, like Macs used to be in the 90s. So not only does the desktop no longer matter, no one who cares about computers uses Microsoft&#x27;s anyway.<p>If you live in a forest you&#x27;ll think the world is made of trees.<p>Paul Graham is a very clever man, and I have a lot of respect for him, but he lives in a high tech bubble. People in high-tech start-ups use apple; people who work in creative industries (mostly) use apple; most of the rest of the world use Windows PCs. So to declare the desktop (does this include laptop?) &quot;dead&quot;, especially back in 2005, is most definitely premature.<p>Question: has anyone out there come across a non-high-tech multinational corporation that uses apples instead of PCs?
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jmartricanover 6 years ago
&gt; Windows is for grandmas, like Macs used to be in the 90s. So not only does the desktop no longer matter, no one who cares about computers uses Microsoft&#x27;s anyway.<p>This sounds like a very ignorant thing to state. Wherever I worked, the best programmers used Windows and Linux desktops. Why? Because they too busy coding to get caught up in the Apple hype is my best guess. You know just like he talks about being ignorant to what was going on in Microsoft world, many coders I worked with did not know or care about what was going on in Apple world. There was one group of people who I did notice flock to Apple OS&#x27;s, wannabe developers. The type that talk a lot about new tech but never wrote code that got deployed to production.
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cronixover 6 years ago
&gt; The last nail in the coffin came, of all places, from Apple. Thanks to OS X, Apple has come back from the dead in a way that is extremely rare in technology.<p>The last sentence is ironically funny now that MS is back on top and Apple is slipping, and the article is about the &quot;death&quot; of MS.<p>&gt; Microsoft closed Friday with a larger market cap than Apple’s, making the Redmond software giant the most valuable U.S. stock.<p><a href="http:&#x2F;&#x2F;fortune.com&#x2F;2018&#x2F;11&#x2F;30&#x2F;microsoft-bumping-apple-is-now-the-most-valuable-u-s-company&#x2F;" rel="nofollow">http:&#x2F;&#x2F;fortune.com&#x2F;2018&#x2F;11&#x2F;30&#x2F;microsoft-bumping-apple-is-now...</a>
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curiousDogover 6 years ago
The funny thing is Google is the new Microsoft for precisely most of the reasons he mentions. The worst part of Microsoft&#x27;s culture (empire building by middle managers) has now infected Google as well. Amazon is the only one that has been able to stave it off which seems partly due to their insanely customer obsessed culture.
yholioover 6 years ago
The analysis fails because it looks only at technical and cultural determinants for what is primarily an economic process.<p>To counter this with my own dubious and oversimplified explanation, Microsoft did not fail because it has created a monopoly, a walled-off ecosystem they control, and they managed to protect it in most desktop segments. Google has it&#x27;s own monopolies, as do all of the successful companies that are still around. Microsoft&#x27;s failure to extend their monopolies into mobile and web costed them the crown of the tech industry, but they&#x27;re far from dead.<p>Apple rebooted solley on it&#x27;s iPhone walled garden - their desktop was moribund and the iPod, while an inovative product and short term cash cow, was not conducive to a monopoly, so it was quickly duplicated and made obsolete. Yahoo was not able to create and maintain its monopolies, so it&#x27;s dead.
nafizhover 6 years ago
How time changes. It seems Microsoft is back from the dead. And what Microsoft used to be, Google is trying their best to become.
gjmvelosoover 6 years ago
Microsoft was dead until 2014, when Satya Nadella becomes CEO and bring company back to life, almost how Steve Jobs revamped Apple in the late 90’s
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tzuryover 6 years ago
When PG wrote this down, perhaps the vast majority of Microsoft board agreed with him. It was a giant company without a roadmap. A company that <i>always behind</i>.<p>Microsoft has changed a lot since, and still putting much of an effort and money to gain trust amongst the community. Just remind yourself the reaction when GitHub acquisition announced. For three weeks I read blog posts filled broadcasting fear and loathing as if the government of China has bought Facebook, Twitter and Slack altogether.
WalterBrightover 6 years ago
I recall seeing a book in the cutout bin of a bookstore that made the case that IBM was an unstoppable juggernaut that would inevitably take over the world. It was written in the mid 80&#x27;s. The irony was it was in the cutout bin because it wasn&#x27;t long after that IBM was well on its way in its slide to irrelevancy.<p>I wish I&#x27;d bought the book, or at least remembered its title.
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godelmachineover 6 years ago
Satya Nadella once said, “Microsoft loves Linux”, the three most improbable words that could be unfathomably put together.<p>Maybe that’s when Microsoft started gaining traction.
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shadowmintover 6 years ago
It&#x27;s easy to laugh now, but in 2007 this was spot on.<p>It was 10 years before Microsoft managed to drag itself up and do something useful with itself.<p>It&#x27;s really remarkable that Microsoft managed such a big turn around after such epic failures (like mobile); others (like IBM...) are still struggling to do it.<p>Just goes to show, competitive pressure is a good thing. :)
wvenableover 6 years ago
In addition to other comments about Microsoft&#x27;s current market cap and new CEO, this article was posted also posted before Windows 7 was released; arguably the best version of Windows ever made. In fact, that era of software including Office and their server products was very solid.
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consultutahover 6 years ago
I would argue that MS WAS dead under Balmer, but not only for the reasons that PG mentions. However, it has been resurrected under Satya.
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ChuckMcMover 6 years ago
I really enjoyed re-reading that. It captures the very essence of &quot;instant in time&quot; incorrectness, it is why I stopped believing anything I thought was &quot;definitely true&quot; in the tech business actually was what I thought it was.<p>I felt the same way that Paul did, Microsoft had calcified into this Office&#x2F;Enterprise crust, living off their contracts with big businesses, while the real world was cruising to a new, agile, and open source beat. I had also been at Sun when it was still small, and cringed when bad news from IBM put a big negative impact on Sun&#x27;s nascent stock price, even though, at the time, IBM&#x27;s pain was coming from Sun not that we&#x27;d share in it.<p>But the trap that I had fallen into, and this essay expresses, is that &quot;Today is every day&quot; or more precisely, now that the world is to my liking, it will cease changing in ways that I disapprove. :-) I felt like the puzzle is figured out, I &quot;get it&quot; now, I can see the strings going from the puppets to the puppeteers and now I can see how the world is working.<p>But the cruel trick is that in systems, the puppets are recursive, or in mathematical terms, the forces influencing the future direction of technology are nonlinear at best, and likely chaotic. Everyone is changing in response to the changes they perceive around them, and in response some of their changes change those around them. Like the traffic analyst who figured out you could stomp your brakes going West on Interstate 10, and have the &#x27;wave&#x27; of your braking effect roll south on the Harbor, get picked up going north on the 405, only to have it come back and hit you from the front as its echo headed east back along the 10. Sun made <i>Workstations</i> and Microsoft only cared about <i>PCs</i> except the echo of what a workstation was suddenly came back and hit Sun in the face as a big PC. Or Sun&#x27;s prophetic, if ill fated slogan that &quot;The Network is the Computer&quot;, which turned out to be literally true as clusters of Linux machines took out big iron symmetric multiprocessing systems. And then again, as Paul points out, when the Web browser ran its &quot;programs&quot; on the &quot;network.&quot; Where did the computer start and the network end? It was no longer possible to tell.<p>Take away from this the certain knowledge that Google, Facebook, and Apple will all &quot;die&quot; (Apple for the second time :-)) at some point in the next 5 to 20 years. What we care about today will seem silly in the future, and the there will be technologies that enable completely different things to consume our time and resources than the things that do so today.<p>People create startups and dream new dreams for the same reason a surfer starts paddling their board toward shore, waves come up, and you have to be in position to get a good ride.
mamcxover 6 years ago
Maybe death is good for a company.<p>Maybe Apple, MS, Google, etc already die several times.<p>Is just that enough of it survive and learn from the past, even a little.<p>Maybe is easier to present the new king as the same old king, long live the king.
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plinkplonkover 6 years ago
Iirc (it&#x27;s been a while since I read the article) I thought &#x27;dead&#x27; was used to mean &quot;they are not the dominant power in the world of software (in terms of tools, languages, leadership, driving change) etc, like they used to be in the nineties&quot; not in the sense of &quot;they are a declining company in terms of revenue or market value&quot;<p>The present news just says Microsoft&#x27;s market valuation is higher than apple&#x27;s (today). Not sure if it really affects the central thesis of the article.<p>EDIT: literally the first paragraph of the article<p>&quot;I was talking to a young startup founder about how Google was different from Yahoo. I said that Yahoo had been warped from the start by their fear of Microsoft. That was why they&#x27;d positioned themselves as a &quot;media company&quot; instead of a technology company. Then I looked at his face and realized he didn&#x27;t understand. It was as if I&#x27;d told him how much girls liked Barry Manilow in the mid 80s. Barry who?<p>Microsoft? He didn&#x27;t say anything, but I could tell he didn&#x27;t quite believe anyone would be frightened of them.&quot;<p>People fear Facebook and Google and Amazon, if only for the immense amounts of damage they do to societies and polities. Who is afraid of MS (or IBM)? Do startup founders even think of MS as a factor in their plans (which seems to be what the article is about)
gwbas1cover 6 years ago
Ironically, Azure is doing better than Google cloud services.
marcellover 6 years ago
I assume this was posted in response to Microsoft passing Apple as the most valuable tech company.<p>Ironically, In 2007 Microsoft’s market cap was more than twice that of Apple’s ($270B vs $100B). That company’s staying power is truly amazing.
simonblackover 6 years ago
Not dead. Just irrelevant and&#x2F;or non-essential.<p>Microsoft is to computing as Ford is to automobiles. Both are still there if you want them to be your choice, but by the same token, if you don&#x27;t need them in your life, they aren&#x27;t forced upon you.<p>Me? I haven&#x27;t owned a Ford since 1985. I switched to Unix&#x2F;Linux in 1991.
xg15over 6 years ago
<i>Narrator: Microsoft was not dead.</i>
gmosxover 6 years ago
It&#x27;s difficult to make predictions, especially about the future...
Ice_cream_suitover 6 years ago
Satya Nadela was the primary agent, for transforming Microsoft into the profitable and successful business that it is now.
21over 6 years ago
&gt; <i>Nearly all the people we fund at Y Combinator use Apple laptops. It was the same in the audience at startup school. All the computer people use Macs or Linux now. Windows is for grandmas.</i><p>&gt; <i>They still think they can write software in house. Maybe they can, by the standards of the desktop world. But that world ended a few years ago.</i><p>And now, I bet a vast majority of people funded by YC use VS Code. Maybe even Azure.
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