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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Microsoft's management shakeup should start with CEO

By | February 8, 2011, 12:09pm PST

Summary: Microsoft CEO Steve Ballmer is reportedly looking to shake things up at the top by bringing in senior managers with more tech and engineering backgrounds, according to a Bloomberg report citing unnamed sources. The move, on the surface, is supposed to accelerate Microsoft’s push into tablets, smartphones and other categories where the company has fallen [...]

Microsoft CEO Steve Ballmer is reportedly looking to shake things up at the top by bringing in senior managers with more tech and engineering backgrounds, according to a Bloomberg report citing unnamed sources. The move, on the surface, is supposed to accelerate Microsoft’s push into tablets, smartphones and other categories where the company has fallen behind.

But dare I say again that the problems with Microsoft have more to do with senior managers not having the technology and engineering know-how that’s needed to keep one of the pioneers of technology ahead of the game? You see, the root of the problem is not product managers. The root of the problem goes much higher than that - all the way to the CEO’s office.

It’s Ballmer’s job to steer that massive ship known as Microsoft. But Ballmer is a business guy, not so much a techie the way Bill Gates was. Sure, the company continues to perform well financially as it rides the wave of Windows, Office and even XBox. But where’s the plan of attack for business segments that are growing leaps and bounds without Microsoft?

Mary Jo Foley: More engineers at the top: Just what the doctor ordered for Microsoft?

It took forever and a day to get a competitive smartphone OS launched - but the headstart that Apple and Google had in gaining ground has largely left Microsoft on the sidelines of what’s perceived to be a two-man race (OK, maybe three if you count Blackberry.)  The same goes for the tablet strategy, the cloud strategy and so on.

Microsoft, once a leader in technology innovation, has fallen far behind on those fronts - and it will take something out-of-this-world to push Microsoft back into the forefront. Sure, maybe there’s plenty of blame to go around - and once you realize that, you start shaking things up, just as Ballmer is reportedly about to do. But if we’re pointing fingers, let’s place blame where blame is due. After all, Ballmer is the guy at the top, the exec who’s sitting in that big office where the buck finally stops.

I blasted Microsoft after Ballmer’s pathetic keynote speech at the Consumer Electronics Show in Las Vegas last month. Thanks to a presentation that offered nothing new and only seemed to recap last year’s products and technologies that the company hawked, it was clear that change is needed at Microsoft.

A shake-up at the top is certainly overdue. Perhaps the board should be taking over the reins of the shake-up and kick it up a notch to the top rung of the ladder.

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Sam has been a technology and business blogger for more than 18 years.

Disclosure

Sam Diaz

Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

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RE: Microsoft's management shakeup should start with CEO
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
"Microsoft, once a leader in technology innovation, has fallen far behind?
Thanks for the good laugh, Microsoft has never been a leader in technology innovation. only a leader in stealing other?s IP
@Rick_K Not an argument. Stealing the right IP at the right time is innovation. Don't confuse innovation with invention.
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theft is not a new idea
sportmac 8th Feb 2011
@haraldf
Definition of INNOVATION

1
: the introduction of something new
2
: a new idea, method, or device

i could be wrong but i believe theft goes back quite a few years.
@haraldf So you define innovation as taking others? work and claiming it to be your own? Here?s an innovation, sign a contract, do not live up to your part, and then change the terms unilaterally. That has been the Microsoft way for over 30 years.
@Rick_K hear, hear. MSFT has NEVER been a technology company. It was and is a MARKETING company. And if you actually talk to the insiders, off the record, they'll tell you the same thing - I've had that talk in the past. Their part in the word innovation, is innovating ways to package and sell the stuff they beg/borrow/steal/buy from others.
And while Gates is more attuned to (I'd hate to say knowledgeable about) technology, he's definitely orders of magnitude better at it than Balmer.
@Rick_K

You mean like how Apple ripped off Xerox and PARC for the Macintosh? Both the interface and the mouse came from PARC.

As someone else has already said, knowing what to do with what is currently available is innovation.
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@dcristof

I was at the bleedimg edge of trying to pay and but the XEROX stuff for a paid project to no avail, because they were not interested in selling it. The fact that Apple has borrowed the technology is a tribute to Apple and not Xerox.
The XEROX stuff has now been passed over and become irrelevant and so to go back and weigh down Apple with a guilt trip it pretty pathetic.

GROW UP
@dcristof is true. ORacle ripped-off IBM for it's great RDBMS !
so rip-off is name of the game.
@Rick_K You got that right starting with stealing the DOS code that got him started and in Albuquerque NM. Where he ripped off some of the businesses there with false claims. Also things like their first Defrag tool that he stole from a company. I could go on and on having lived through all those days when he was "developing" DOS and Windows. If any of us had done the same thing we would have been bankrupted or in jail.
@tj243025@...
Not to forget that MS stole the 'Windows' idea from Apple.
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@dickseng

That's OK, Apple ripped Preemptive multitasking from everyone else in the world...

What would you have had microsoft do, rather than stealing the idea of windows? Just not build a GUI? Nearly every GUI for a large screen is windowing, with the exception of a few tiling ones (which is an inferior technique).

When we're talking about concepts like windowing, preemptive multitasking, big picture things, I think it's difficult to say it was "stolen". It's more like it was invented somewhere, and the world adopted it rather than simply stand still. The alternative to using that would have been only Apple having a window-based GUI, which they didn't patent anyhow. I think with the big picture ideas like a window based GUI can't really be stolen.
@Rick_K There was a show several years ago with a tell all of how he ripped off and stole from everyone, but somehow after it aired one time it disappeared and can't be found anywhere. If anyone knows what happened to it I would love to get my hands on it.
@tj243025@...

Check out the PBS show "Triumph of the Nerds"...all your misconception of Microsoft stealing Apples GUI which was stolen by Xerox PARC will be cleared.
http://www.amazon.com/Triumph-Nerds-Bob-Cringely/dp/B00006FXQO/ref=sr_1_1?ie=UTF8&qid=1306476577&sr=8-1
Gawd...Zdnet's talkback app sucks.
He has caused Microsoft to loose over 10,000,000 users because of his fud. happy
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(Donald Trump) OK that's it. Sam Diaz. I'm sorrry. You're fired.
Dietrich T. Schmitz, ~ Your Linux Advocate 8th Feb 2011
That's the last time he'll bad mouth MS. He'll never work in this town again...
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Bad mouthing Windows is one thing
Michael Alan Goff 8th Feb 2011
But I'm getting tired of the whole "Ballmer sucks" type of crap that happens so often on this site. They changed office software with the ribbon, they changed their OS to a more stable base, they're going to move to ARM, they made a good UI for a phone, there's the Kinect.

All of these things under Ballmer's reign.

This guy even goes on to say that the CES showed nothing new. Real Windows and Office running on ARM isn't new? The announcement for the soon-coming WP7 improvement isn't something new? I really did respect Diaz, but I'm starting to respect him less.
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Contributr
@goff256
For what it's worth, I was at the CES keynote. That demo of running Windows and Office on ARM was a major "Oh, by the way..." at that speech. Clearly, Ballmer was more interested in avatars for Kinect and a big-stage sales pitch for Windows Phone 7. Sharing news about running Windows and Office on ARM came across as one of those "Oh wait. We forgot to tell you something else" kind of announcements.
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That's more of a problem with him
Michael Alan Goff 8th Feb 2011
not being a very good speaker than the direction of Microsoft itself. Now, if you were to say that Microsoft needs to have somebody better give the speeches? I'd be behind you 110%.
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He has made some leaps and bounds, yes.
Cylon Centurion 8th Feb 2011
@goff256

But I am in agreement. Ballmer needs to go. Plain and simple.
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And there it is
Richard Flude 8th Feb 2011
For USD8+ BILLION a year in R&D they've produced a ribbon interface (bizarrely unusable), a version of Office that worked under a cross compiler, an extremely late to market and unpopular mobile UI and a game controller.

The later being the company's big product for 2010!

Sure goff256, everything's just fine at MS;-)
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@Richard Flude

I disagree on the Ribbon. It's only unusable if you make it out to be.
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-Unusable? Ribbon? You're on something.
-Unpopular UI? That's a laugh, almost everybody who has ACTUALLY USED IT has liked it.
-If Microsoft is late now, what about Android?
-Kinect is more than just a game controller, it will be used with the entire media experience.

But if you guys think that there should be a new CEO... who do you think would really be able to turn them in the "right direction"? What is this mystic direction? Come on, come up with some ideas.
@goff256 I believe it?s Microsoft inability to see beyond Windows that is its biggest problem. The insistence of One world, One OS, One company (windows everywhere), is not a viable reality. Yet the company keeps plodding through the murky waters, insisting it is the wave of the future.
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Which OS will prevail?
VRSpock Updated - 8th Feb 2011
@Rick_K
Microsoft is stuck on Windows. Google is stuck on Android. And Apple....well...they were the ones who had to write a whole new OS from scratch because OS/X was not scalable....if it was, they'd be using it instead rather than re-inventing the wheel (not trying to knock iOS or anything).

Windows 8 may have something very strong going for it that no other tablet OS has.....experience.....and lots of it.

Both iOS and Android are sitting targets, just waiting for the onslaught of potential exploits and both having market shares big enough to warrant them being targeted.

Also, there is an understandable beneift of having an OS that is universal across platforms....so perhaps they do see beyond the world of desktops.
@goff256 please don't forget Surface 2.0 and pixelsense..seems that it's convienient to forget that for some reason when someone wants to argue that MS doesn't innovate wink
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C'mon
Richard Flude 8th Feb 2011
You've introduced ribbon based apps and not experienced significant user resistance?

Where are the glowing reviews of WP7 UI?

Android later than WP7?

A game controller is "more than just a game controller". I'm sorry it IS just a game controller.
@VRSpock
Microsoft is stuck in the 80s (and early 90s), where they could dictate to the OEMs. If it were any other industry, this would not happen. Yes, I do realize it was a bad decision made by IBM. But you?re not going to try and say that Microsoft?s business practices have been above board? The UI on xp was silly, Vista is a complete joke, and windows 7 is only a service pack for Vista. There is still a lot of stuff on windows 7 that you cannot delete (IE, WMP, etc.) Why is it that Wondows is the only OS that you are stuck with unwanted middleware that is welded to the OS?
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Hilarious
search & destroy 8th Feb 2011
But I'm getting tired of the whole "Ballmer sucks" type of crap that happens so often on this site. They changed office software with the ribbon, they changed their OS to a more stable base, they're going to move to ARM, they made a good UI for a phone, there's the Kinect.

Tell me, @goob256. Do you kiss_ass a lot?

lol...
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@goff256 please don't forget Surface 2.0 and pixelsense..seems that it's convienient to forget that for some reason when someone wants to argue that MS doesn't innovate

Oh yes, the Surface. Isn't that the $12,000 table that showed up in a few video arcades a couple of years back?

Han Solo, where art thou...
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Are you serious?
dcristof 9th Feb 2011
@goff256,

There are too many things that MS is missing here, and most of it is really straightforward. Their issue is they are afraid to tamper with their Windows base.

1. Smartphones - While they are way late, they have a great OS with WP7. What it lacks currently is multitasking, cut and paste and a few other smaller enhancements that will come with time. Mostly they need a solid set of hardware options that include 4G and Verizon.

2. Tablets - The lack of a tablet version of WP7 is unacceptable at this point. I know they are working on embedded, and the ARM port is going to be important, but they need something out there NOW.

There are too many people there with power that just aren't paying attention. I have seen it too many times; execs at companies that have had strong share for many years begin to think they are the center of the universe and think they can move the clouds by staring at them (like Elvis toward the end of his life).

3. TV integration - Why is there not a stripped down XBox 360 that has everything but the gaming? This is an excellent UI, a great dev environment, and could be a great whole house strategy that could link multiple thin XBoxes around the house to a main XBox 360, or a la Apple TV. This should be easy for Redmond. Again they don't seem to be paying attention.

4. Just Fast Follow Apple? - Even if they didn't have all of their own products worked out, they could fast follow Apple and deliver a cogent strategy that includes WP7, XBox 360 and Thin XBoxes and Zune, and market it the way they did XBox 360.

I honestly really like MS (have been using their software since DOS 3.0) and believe they can still remain a leader. But saying Ballmer has been doing a good job is just not being honest.
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Ballmer just has no charisma
BillDem 9th Feb 2011
@goff256 I think the problem isn't the content of the message. It's the messenger. Ballmer just has no charisma. They need leadership that knows how to work a crowd when introducing something exciting.

That said, I also feel like Microsoft has beat "Windows on Everything" to death. The success of iPhones, iPads, and Android devices has clearly demonstrated that most people don't want or NEED Windows on everything. What they want are fun, intuitive, secure devices that are instant-on and responsive enough to perform everyday tasks in minimal time.

It's time Microsoft actually put engineers to work on creating a 21st century operating system from scratch, rather than patching up a 1980's OS forever. We want instant-on. We want a truly secure kernel. We want sand-boxed processes. We want self-repairing file systems. We don't want to have to screw with drivers for devices ever again. When people say there is no innovation at Microsoft, this is what they mean. Microsoft keeps introducing yet another Windows.

To us, "Windows on Everything" means slower boot times with every release even though our hardware is now 10,000 times faster than when we first started using Windows. To us, it means more years of driver headaches. To us, it means more poorly written software hanging our systems. To us, it means more viruses infecting our systems. It means having to think about the operating system far more than we ever wanted.

Consumers have jumped at iOS and Android devices specifically because they aren't Windows, in nearly every way that matters. They just turn them on and use them.
@goff256
Everything that MS has done has been initially developed by or stolen from someone else. They have nothing that the've done on their own.
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Contributr
@Dietrich T. Schmitz, Your Linux Advocate
If "Trump" fires me for speaking the truth about Microsoft, then I don't want to work for "Trump." The truth hurts - but if that company is going to pull itself out of the funk it's in now, then Ballmer is the one who needs to be fired.
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Except
Michael Alan Goff 8th Feb 2011
They're doing better and are innovating now more than ever.

What are they "doing wrong"?

-More money
-Better Products
-Widening their reach
-Diaz says they're doing it wrong
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Maybe I'm being too combative.
Michael Alan Goff 8th Feb 2011
What are they doing wrong specifically, other than not having a marketer on the level of Jobs.
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and "just speaking". The second one meens you're talking, but not saying anything worthwild.

Now, don't take this the wrong way, but you're just a senior editor , not to big a step up from a head waiter.

In refernce to your job here, under you many of the better bloggers are gone, the blogs are less informative, geared more towards these "flame bait" type articles you write, and the web site itself is a FPOS! It hardly works.

Yet, you'll second guess a CEO at every turn, even with the shambles you've turned this site into?

Fix your problems here first, then worry about Ballmer.
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Contributr
@AllKnowingAllSeeing

OK, I won't "take it the wrong way" - but was the jab against head waiters everywhere really necessary? And please don't take this wrong way but, given your creative use of punctuation, I didn't completely follow what you were trying to say...

Still... point taken.
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Tell it like it is Sam.
Dietrich T. Schmitz, ~ Your Linux Advocate Updated - 8th Feb 2011
@sldiaz
You are doing fine, kidding aside.
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Ballmer....
Economister Updated - 8th Feb 2011
does not seem to be able to develop and articulate a vision going forward. Promoting engineers will do little if he cannot lead. What prevented him from talking to all his senior technical people regularly to develop his vision and then make sure everybody understood and bought in?

He still sets the direction for the company. What difference does shuffling the chairs underneath him really make. Pathetic.
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You say that until they start flying at you
Richard Flude 8th Feb 2011
"What difference does shuffling the chairs underneath him really make".

wink
Sam

To some degree I completely agree with your challenge "A shake-up at the top is certainly overdue." - cp the title slide of my pre-CES presentation http://www.slideshare.net/haraldf/business-quotes-for-2011 - on the other side I tend to conclude that the root of the problem is at the basis: Microsoft is attracting/ keeping employees who are merely maintaining and/ or marketing a technology they no longer live for themselves. Maybe never lived ...
One of the big problems since Ballmer took charge, is that they are slowly ignoring the small firms that partnered with them. Many of the inovations that Bill Gates showed came from firms with less than 200 people, with Ballmer the policy is only talk to the large OEM partners and then only VP level and higher.
In earlier versions of Windows by now the small firms and consultants in the community would have some idea of where the product is going, with Windows 8 nothing is being provided unless you are a Platinum partner.
ZDnet - the "everything sucks!" network. How about giving everyone a break and talking about what works, what's cool, and what we need to make smart decisions?
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I am in agreement
Cylon Centurion 8th Feb 2011
Microsoft, if they are going to "Be What's Next", needs a new leader.

Someone charismatic, who can re-ignite Microsoft's lagging position.
I may be connecting too many dots, but...
MS is recommitted to the phone.
MS is able to run full Windows on ARM
MS is developing a more cloud focused Windows OS
MS continues to state that scaling down an OS for a tablet is wrong

So, what if the direction is that WP7 is a stepping stone to a full OS running on a multi-core phone platform? That same phone take the Atrix's concept much further and becomes your primary PC via an industry standard interface (something akin to Lightwave). One OS for Desktops, Laptops, Pads, and Phones.

I would think that would be pretty forward thinking.
@OrlandoHatch Seriously? We've been hearing that was coming from a dozen others for a year or more. How is that innovative.
The problem, as I see it, is it used to be 1 trick ponies. MS had Windows, IBM- servers, Dell- pc's, apple- Mac's. The companies that are innovating now are filling needs, not trying to fit a round peg in a square hole. MS is a great company with great minds but if Kinect and ARM are what they are hanging their hat on, their late to the game. Both have been done before. They may have done it better but they did it second. For the average Joe like me who doesn't follow MS that close, I couldn't tell you one new thing they have come out with that was innovative. When you think of innovation, it's Google, Apple, HP. I do have to hand it to them on Sync. That is really cool but not advertised enough. Ask 10 people who don't own a Ford and 9 of them will say it's where you wash your dishes.
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RE: Microsoft's management shakeup should start with CEO
j-mccurdy@... Updated - 9th Feb 2011
@20kwfence, So Google innovates by copying Apple with an inferior version of the iPhone? People come out on top by doing it second, and better all the time. Microsoft has been around for a long time, they're not going anywhere. And neither are Intel. They have plenty of money to get on track, and compete in the mobile market.
@20kwfence

"Kinect and ARM are what they are hanging their hat on, their late to the game. Both have been done before"

Kinect has been done before, where?
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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