Ballmer Led Microsoft Into The Ground

Steve Ballmer, one of the forefathers of Microsoft (with a career spanning 3 decades there) and its CEO since 2000, is finally retiring.

Well what can we say except, Thank G-d!

The Wall Street Journal reports how the markets cheered yesterday with Microsoft stock rising 7% at his exit and that’s with no successor identified.

In other words, better nobody, than Steve Ballmer somebody!

Ballmer managed to take the genius of Gates and a company stock valuation of $603 billion in 2000 and turn it into less than half–$290 billion–by the time he announced he was going.

Not bad destroying over $313 billion of value in a little more than a decade.

Gates was the visionary–the inventor (with the help of Apple) of Windows and Microsoft Office.

He was brilliant and he left us with products that still today dominate desktop computing, which was predominantly what existed up until he handed the reins to Ballmer.

But since 2000–we have smartphones and tablets–bringing Microsofts’s share of market to just 15% today.

Ballmer was an operations guy (not what you need in a fast-changing technology market), while Gates was a innovator (who could spearhead the change itself).

Ballmer was the wrong man for the right job.

A technology guru could’ve taken the lofty perch Microsoft sat on in 2000 and used it as a springboard to the technology stars and beyond, but an operations nerd could only run it into the ground.

Yes, Microsoft is still highly profitable at almost $22 billion last year on sales of $78 billion–nothing to sneeze at–but the problem is they are fighting last decades technology war.

That’s why Apple, Google, and Amazon eclipse Microsoft in prestige and excitement, if not all by market share (yet).

In almost 14 years, Ballmer couldn’t manage one major fully new product innovation–except Xbox in 2001 (let’s cough that one up to Gates), Bing in 2009 (a Google look-alike), and Kinect in 2010 (Ok, maybe one cool thing).

Ballmer couldn’t even put in a place a viable succession plan and is leaving the company in a chaotic leadership void for the top spot.

Gates was smart to sell the vast majority of his stake in Microsoft–not because they are not a great company with lots of talented people, but because without a true leader at the helm, they are lost in the vast technology sea of change without direction or innovation of their own.

Ballmer, it was 14 years too long, maybe now there is still hope for Microsoft to rise and be great again. 😉

(Source Photo: Andy Blumenthal)

Challenging The Dunbar 150

Today, Facebook announced it’s new search tool called Graph Search for locating information on people, places, interests, photos, music, restaurants, and more. 

Graph Search is still in beta, so you have to sign up in Facebook to get on the waiting list to use it. 

But Facebook is throwing down the gauntlet to Google by using natural language queries to search by just asking the question in plain language like: “my friends that like Rocky” and up comes those smart ladies and gents. 

But Graph Search is not just a challenge to Google, but to other social media tools and recommendation engines like Yelp and Foursquare, and even LinkedIn, which is now widely used for corporate recruiting. 

Graph Search uses the Bing search engine and it’s secret sauce according to CNN is that is culls information from over 1 billion Facebook accounts, 24 billion photos, and 1 trillion connections–so there is an enormous and growing database to pull from. 

So while the average Facebook user has about 190 connections, some people have as many as 5,000 and like the now antiquated business card file or Rolodex, all the people in your social network can provide important opportunities to learn and share. And while in the aggregate six degrees of separation, none of us are too far removed from everyone else anyway, we can still only Graph Search people and content in our network.

Interestingly enough, while Facebook rolls out Graph Search to try to capitalize on its treasure trove personal data and seemingly infinite connections, Bloomberg BusinessWeek (10 January 2013) ran an article called “The Dunbar Number” about how the human brain can only handle up to “150 meaningful relationships.”

Whether hunter-gather clans, military units, corporate divisions, or an individual’s network of family, friends, and colleagues–our brain “has limits” and 150 is it when it comes to substantial real world or virtual relationships–our brains have to process all the facets involved in social interactions from working together against outside “predators” to guarding against “bullies and cheats” from within the network. 

According to Dunbar, digital technologies like the Internet and social media, while enabling people to grow their virtual Rolodex, does not really increase our social relationships in the real meaning of the word. 

So with Graph Search, while you can mine your network for great talent, interesting places to visit, or restaurants to eat at, you are still fundamentally interacting with your core 150 when it comes to sharing the joys and challenges of everyday life. 😉

(Source Photo: Andy Blumenthal)

Autocomplete: Do Zombies (What)?

The autocomplete feature in search engines can tell us a lot about what people are thinking and asking about.

According to the New York Times (21 November 2012) “sites like Google and Bing are showing the precise questions that are most frequently asked.”

Autocomplete suggests the rest of your search term based on the most popular things that others have asked for, so it speeds up your search selection by anticipating what you are looking for and by reducing spelling errors in your search terms.

Another advantage to seeing popular searches is to understand what the larger population is thinking about and looking for–this gives us insight into culture, norms, values, and issues of the time.

I did a simple google search of “do zombies” and as you can see the most popular searches are about whether zombies: poop, exist, sleep, “really exist,” and have brains. 

Even more disappointing than people asking whether zombies really exist is that the #1 search on zombies is about whether they poop–what does that say about our lagging educational system?

I would at least have imagined that the preppers–those infatuated with the end of the world and with preparation for survival–would at least be searching for terms like:

Do zombies…

pose a real threat to human survival?

have (certain) vulnerabilities?

ever die?

have feelings?

have children?

beat vampires (or vice versa)?

I suppose autocomplete is good at crowdsourcing search terms of what others are thinking about, but it is only as good as those doing the ultimate searching–our collection intelligence at work. 😉

(Source Photo: Andy Blumenthal)

I’ll Take The Stairs

Woke up this morning to the elevator being out of service–again (and this was the sign that was up)!

Thank G-d our automobiles and airplanes aren’t as unreliable (generally).

Anyway, I didn’t mind walking a little more, and I got a chuckle out of this sign.

Of course, less funny this morning was news of Microsoft’s $6.2 billion! dollar writedown on their Internet division.

For a long time, Microsoft has been waiting for the elevator to pick them up and take them to virtual heaven, but instead everyday they try to buy (e.g. aQuantive for $6.3 billion all cash in 2007) their way there, and they end up in a place a lot hotter and nastier.

Microsoft can still make a comeback, but it’s past time for them to unleash their creative juices again.

What type of name is Bing (bing-bong) for a search engine, anyway? 😉