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Microsoft facing a technology gap?
CNBC Financial Times via Slashdot ^ | June 4 | Richard Waters

Posted on 06/05/2003 8:54:59 AM PDT by Dominic Harr

SAN FRANCISCO, June 4 ? Is the world?s biggest software company facing a technology gap? Steve Ballmer, chief executive officer of Microsoft, addressed that question directly Wednesday in a memo to the company?s rank and file that laid out the challenges of the next two or three years in stark detail.

HIS MESSAGE: With no immediate breakthroughs in technology coming, and with the Linux computer operating system and a batch of other open-source programs biting at its heels, Microsoft will have to do a better job of persuading customers it has something they need.

(MSNBC is a Microsoft - NBC joint venture.)

Some way off in the future lies a generation of technology that Microsoft promises will change the lives of every computer user. Codenamed Longhorn, it involves a complete revamp of the company?s two core product lines ? the Windows operating system and Office productivity suite. It promises to bring greater ease, reliability and security. In short, it will be ?the next quantum leap in computing, which will put us years ahead of any other product on the market,? wrote Ballmer.

When that day will come, however, noone is saying. In an interview, the Microsoft CEO would only say that ?Longhorn will come when we think it?s really ready.? Some industry analysts have pencilled in 2005, but the company is not prepared to endorse that view. Also, following its recent commitment to delaying software releases until it has ironed out all the bugs ? a marked departure from the company?s earlier practice ? Microsoft seems more than prepared to wait.

What, in the meantime, will business look like?

The picture painted on Wednesday by Ballmer is certainly a challenging one. There is a general disenchantment with technology spending. Companies ?have not yet seen a tangible return on dotcom investments.? Add in the weak economy, and ?there is less passion and enthusiasm for technology, and greater focus on doing more for less.?

In that environment, companies have turned to Linux and other open-source software programs, seeing them as cheap but adequate alternatives. Around half of the 1 million corporate computers in the United States that run the Unix operating system are candidates for migration to Linux, according to Ballmer ? a significant challenge to Microsoft, which has set its own sights on winning over those customers for its Windows operating system.

The Ballmer response: Microsoft will have to do a better job of producing software whose benefits are clearly apparent to customers. And it will have to do a better job, in particular, of gearing its development and sales organizations to what its customers want.

?There?s a set of things I highlight that I want us to do better,? says Ballmer in an interview.

These include redoubling its efforts to make its software more secure ? an initiative begun by Bill Gates early last year under the banner of ?trustworthy computing.? Despite the headway made since then, Microsoft still suffered the embarrassment of seeing some of its own computers succumb earlier this year to the Slammer worm, a malicious bug that crippled computers around the world.

?Our customers are still hit with security vulnerabilities and we have spent a lot of time learning from Slammer what we need to do better,? wrote Ballmer in his memo to staff.

Equally importantly, Microsoft must ?improve business consistency? so that customers are not hit with unexpected ? and unwanted ? changes. That is a lesson learned from last year, when the company?s overhaul of its software licensing terms antagonized many of its customers.

It must also get better at segmenting the markets its serves and turning out the products that different customers want. ?Our ability to hear is quite good. We have to know how to respond,? says Ballmer. To back up this new push to promote a more customer-friendly Microsoft, Ballmer promised that the company would ?increase our advertising budget significantly for all our audiences.?

© The Financial Times Ltd 2003. "FT" and "Financial Times" are trademarks of the Financial Times.

(Excerpt) Read more at slashdot.org ...


TOPICS: Technical
KEYWORDS: microsoft; techindex
*Ahem*.

F.Y.I.

1 posted on 06/05/2003 8:54:59 AM PDT by Dominic Harr
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To: Dominic Harr
A tangential FYI:

Packet tracking promises ultrafast internet

Imagine an internet connection so fast it will let you download a whole movie in just five seconds, or access TV-quality video servers in real time. That is the promise from a team at the California Institute of Technology in Pasadena, who have developed a system called Fast TCP.

2 posted on 06/05/2003 8:59:58 AM PDT by AntiGuv (™)
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To: Dominic Harr
to promote a more customer-friendly Microsoft, Ballmer promised that the company would 'increase our advertising budget significantly for all our audiences.' God this is funny. Just like the cardboard cutouts in the Computer Associates commercial, "Goooood! 500 it is then!"

Microsoft's idea of being more customer friendly is getting a bigger megaphone to tell people how great they are.

3 posted on 06/05/2003 9:05:28 AM PDT by sam_paine
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To: Dominic Harr
seeing them as cheap but adequate alternatives

Sometimes more stable and secure alternatives Steve!

4 posted on 06/05/2003 9:06:59 AM PDT by milan
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To: *tech_index; *Microsoft
ping
5 posted on 06/05/2003 9:08:04 AM PDT by Dominic Harr
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To: sam_paine
Oh, I know!

They percieve a technical problem, so intend to fix it with more marketing!!!

Geez. You just can't make this stuff up.

6 posted on 06/05/2003 9:09:59 AM PDT by Dominic Harr
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To: Dominic Harr
HEY MICROSOFT

TAKE AN

"S" AND SHOVE IT WHERE YOU CAN FIND ANYTHING CLOSE TO BRAIN CELLS

THEN

TAKE AN "E" AND AN "R", A "V", "I", "C" AND ANOTHER "E"

SERVICE

IS NOT REALLY A DIRTY WORD EXCEPT AT MICROSOFT!!!!

Even your automated site based stuff is impossibly clunky, insulting and infuriating--and usually of minimal to 0.00% help.

GRRRR
7 posted on 06/05/2003 9:23:25 AM PDT by Quix (HEBREW VOWEL ISSUE DISCUSSED, SCHOLARS N JUNE BCD search for TRUE HEAD TO HEAD COMPARISON CONTINUES)
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To: Dominic Harr
My computing needs operate over a mix of Windows 2000, QNX 6.2 and Linux 8. None of them cover 100%. Windows 2000 has more COTS software, better development environments and the best browser, but it is too damn big for my embedded work. Linux offers me better ssh and vnc packages...so I can connect to my Windows 2000 machines remotely. Linux has an adequate e-mail client and isn't subject to pollution by Windows PE viruses. It's a safe place to browse and read e-mail. Not a bad alternative to conventional UNIX. QNX 6.2 get the nod for my PC104 embedded stuff. Great virtual memory protection for each process. Easy access to the hardware for writing drivers. Good networking and interprocess messaging.

All I really want from Microsoft at this point is a stable, secure OS that tracks the evolving Intel hardware market for better performance. The bells and whistles promised in Longhorn sound like CPU eaters. I don't need or want something that indexes every keyword in every file and presents it in a single directory. That reminds me of the damn "findfast" CPU eater that ships with Office. No thanks. If I really need that information, I can use the standard search tool or "find + grep". The .Net environment is a nice improvement...especially C# and managed C++. A good garbage collected C++ is a fine alternative to spendy tools like NuMega BoundsChecker. I'm really disappointed in my latest copy of BoundsChecker. It was a great product in 1997. What happened?

8 posted on 06/05/2003 9:23:33 AM PDT by Myrddin
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To: Dominic Harr
They percieve a technical problem, so intend to fix it with more marketing!!!

Not just more marketing, but lame marketing. Just look at the MSN butterfly and try not to think "A bug. A very big bug from Microsoft."

9 posted on 06/05/2003 9:55:25 AM PDT by KarlInOhio (Paranoia is when you realize that tin foil hats just focus the mind control beams.)
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To: Dominic Harr
That's funny. Microsoft has never been a technology leader. They always jump into applications after others have developed perfectly usable products.
10 posted on 06/05/2003 9:58:09 AM PDT by RightWhale (gazing at shadows)
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To: Dominic Harr
Translation: MS has nothing in the immediate pipeline, so it's time for theme to start FUDding with their Longhorn vaporware.
11 posted on 06/05/2003 9:58:47 AM PDT by Frumious Bandersnatch
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To: Dominic Harr
The article doesn't say much. Just "Microsoft this...Microsoft that."

Harr, if you are bored again and are looking to beat on Microsoft, find something with a little more substance and interest.
12 posted on 06/05/2003 10:20:42 AM PDT by PatrioticAmerican (If the only way an American can get elected is through Mexican votes, we have a war to be waged.)
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To: PatrioticAmerican
Well, I'm not bored, I'm angry. Here's some substance:
GO LINUX!

OUT WITH OUTSOURCING and the corps like Microsoft who blatantly prefer it; they earned this "gap in technology":
http://www.washtech.org/wt/news/industry/display.php?ID_Content=443
from the above article
[Today, Microsoft and Hewlett-Packard executives are embracing the new strategy of moving work overseas as a religious calling. At Microsoft, one senior executive issued a call to action encouraging company managers to “pick a project and outsource today.” Hewlett-Packard has told the press that it is aggressively realigning its resources and “trying to move everything we can offshore.”

But they are not the only two tech stalwarts joining the crusade. According to a recent study by Forrester Research, Inc. other names include Oracle, I2 and NEC. Forrester predicts that all of this job shift could cost 3.3 million jobs and more than $100 billion in wages in the next ten years.]

I'm not trying to hijack this thread, just seeing a possible link between this "gap in technology" and a look at who has lately been and will now be creating Microsoft's technology.
13 posted on 06/05/2003 10:35:19 AM PDT by LibertyAndJusticeForAll
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To: Dominic Harr
Clearly Microdoft is facing competition taht is biting into its market share and with much of their deveopment offshore they just do not seem to be coming out withsomething that is good enough to increase market share. There have been lots of critics of Microsoft and I am not defending the company merely aobserving that they do not expect a new product online within the next two years.
14 posted on 06/05/2003 11:33:48 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: Dominic Harr
They percieve a technical problem, so intend to fix it with more marketing!!!

Sounds tacky and is tacky, but that's why MS survives and grows, they like money and are not ashamed of making it. OS and office products that aren't making money will never win the trust of the big boardrooms.

15 posted on 06/05/2003 11:40:43 AM PDT by js1138
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To: Dominic Harr
When you own the entire consumer market the only thing left is the business market. I don't forsee a new and better word processor fueling growth in the future. The only reason anyone upgrades anymore is so they can be compatible with the new file formats.
16 posted on 06/05/2003 11:46:18 AM PDT by RockyMtnMan
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To: Dominic Harr
RedHat is up 6.96% today at $8.47, a 52 week high!
17 posted on 06/05/2003 11:59:59 AM PDT by the_devils_advocate_666
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To: Dominic Harr
Is the world?s biggest software company facing a technology gap?

Megasloth has faced a technology gap since Day One. They'll plug this gap the same way as always - by stealing somebody else's idea and marketing it as their own.

DELENDA EST MICROSOFT.

18 posted on 06/05/2003 11:22:54 PM PDT by John Locke
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To: KarlInOhio
never thought of that...hahaha i wll point that out to some folks ;)
19 posted on 06/05/2003 11:26:38 PM PDT by chasio649
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