Gates tried to buy the rights to various artworks, thinking that he could make money by licensing them. First, he overestimated the public's taste. Second, that shows how out of step he really is with the information age. Napster and the Internet proved that you can't hold information hostage.
Microsoft made a killing in the 1990s by running on IBM PC clones. They showed that the software eclipsed the hardware. But the story doesn't stop there. The Internet brought information, and information eclipses software. Who cares whether it's Windows or Linux or Mac that gets me to the Internet, as long as I get there?
The wild mess of free information that is the Internet must irritate Bill Gates to no end. I'm sure that if he had his way, it wouldn't look anything like this. He'd want the Internet to be a Windows add-on, so that it looked like Windows was leaking out of your computer and absorbing the world. Boy, isn't it great that he missed his chance to make that happen?
Daniel Lyons
The Lost Decade
Why Steve Ballmer is no Bill Gates.
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Last month Microsoft rolled out Windows 7 and opened the first of a chain of new retail stores. As usual with such announcements, there's been loads of hoopla and ginned-up excitement. But mostly people are just relieved. Windows 7 replaces Vista, one of the most disastrous tech products ever. It also caps the end of a decade in which Microsoft's founder, Bill Gates, stepped aside, and the company lost its edge. (Click here to follow Daniel Lyons).
Ten years ago, when Gates appointed his longtime second in command, Steve Ballmer, as his replacement as CEO, Microsoft was still the meanest, mightiest tech company in the world, a juggernaut that bullied friends and foes alike and which possessed an operating-system franchise that was practically a license to print money. Techies likened Microsoft to the Borg on Star Trek, the evil collective that insatiably assimilates everything around it, with the slogan, "Resistance is futile."
That was then. Now, instead of being scary, Microsoft has become a bit of a joke. Yes, its Windows operating system still runs on more than 90 percent of PCs, and the Office application suite rules the desktop. But those are old markets. In new areas, Microsoft has stumbled. Apple created the iPod, and the iTunes store, and the iPhone. Google dominates Internet search, operates arguably the best e-mail system (Gmail) and represents a growing threat in mobile devices with Android. Amazon has grown to dominate online retail, then launched a thriving cloud-computing business (it rents out computer power and data storage), and capped it off with the Kindle e-reader. Microsoft's answers to these market leaders include the Zune music player, a dud; the Bing search engine, which is cool but won't kill Google; Windows Mobile, a smart-phone software platform that has been surpassed by others; and Azure, Microsoft's cloud-computing service, which arrives next year—four years behind Amazon.
How did this happen? How did Microsoft let tens of billions in revenue (and hundreds of billions in market capitalization) slip through its fingers? Hassles with antitrust regulators distracted Microsoft's management and made the company more timid. But the bigger reason seems to be that in January 2000, Gates stepped down as CEO. It's been downhill ever since.
Ballmer is by all accounts an incredibly bright and intensely competitive guy. But he's no Bill Gates. Gates was a software geek. He understood technology. Ballmer is a business guy. To Ballmer's credit, in his decade at the helm Microsoft's revenues have nearly tripled, from $23 billion to $58 billion. The company has built a huge new business selling "enterprise" software—programs that run corporate data centers. Microsoft has also done well in videogames with its Xbox player.
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