Thursday, August 11, 2011

Chart: Microsoft's performance under Gates vs. Ballmer




Summary: Microsoft has been treading water for a decade, but here is a chart that provides a great visual of how the company’s value skyrocketed under Bill Gates and then flattened when Steve Ballmer took over.

Honestly, it’s surprising that Steve Ballmer hasn’t come under more fire during the past decade for Microsoft’s lack of innovation, dearth of new hit products, and a stock price that has continued to tread water.
However, those issues and Ballmer’s plan to keep milking Windows and Office rather than push forward and look for the next big advances in personal computing may finally be catching up with him.
The graphic below (created by Erik Pukinskis) charts the market value of Microsoft during the past two decades, comparing the CEO reigns of Bill Gates and Steve Ballmer. You have to be a little bit careful with this chart. It’s not completely to scale. Notice that the areas between 0 and 5 and 5 and 20 are much larger than the ones between 20 and 40 (and even this between 40 and 60). This gives a little bit of an exaggerated sense of how much Microsoft grew under Gates.
Nevertheless, it’s pretty amazing how all of the growth happened while Gates was CEO and then things stagnated as soon as Ballmer grabbed the reigns. Of course, it’s also important to keep in mind that the Gates-Ballmer hand-off coincided with Microsoft’s big antitrust case with the U.S. government. However, even after the dust settled from that, Microsoft has continued to struggle.

Microsoft’s Success: Bill Gates vs. Steve Ballmer

In the most recent print issue (June) of Fast Company, columnist Farhad Manjoo had an article on why Bill Gates needs to replace Steve Ballmer at Microsoft, where the general idea was that Ballmer is too polarizing and without the vision that guided the company to their current position of domination. While the idea for the return of Gates to Microsoft is great, Manjoo’s reasoning, however, is faulty.

Steve Ballmer is known for being a Microsoft fanatic and having a temper – both traits also famously held by Bill Gates, but apparently implemented better for Gates than Ballmer. Since Ballmer began his transition to Supreme Leader (CEO) of Microsoft, a number of things have gone wrong for the company: an almost complete failure to be relevant in the online world, the disaster known as Windows Vista, the various Windows-based devices that failed to garner any market share, and a number of smaller programs that made little-to-no difference to customers. That’s not to say that Microsoft hasn’t seen success under his leadership, because there’s also been the XBOX, XBOX 360, smartphones with Windows Mobile, and, most importantly, Windows 7.

The problem, though, is the time it takes Microsoft-by-Ballmer to come to the proper conclusions. XBOX and its iterative child were both successful immediately, but this is due in large part to its segregation from the rest of the company and the large freedom the development teams have – almost all other Microsoft successes take far too long or are far too painful to win customers over in the initial launch. Windows 7 is a perfect example: Windows XP was released in 2001, and generally loved, but it wasn’t until 2006 that Windows Vista launched, and was immediately hated.
It took Microsoft five years of both development and grand public statements to transition from XP to Vista, and the result was an operating system that was essentially XP with a visual refresh, some faux-security measures, and features no-one wanted. Most importantly, Vista was unbelievably slow, almost to the point of being unusable. Fast forward three years to 2009 where Windows 7 is released, and quickly became one of the most loved and respected Microsoft products in memory.
The key that makes Windows 7 great is its focus on performance, usability, and changes central to the way the operating system works, rather than layering new features and GUIs on top of an already shaky codebase. If Bill Gates had still been at the helm, it seems unlikely this misstep would have happened, or been executed so poorly, for one simple reason: Bill Gates is a programmer, and Steve Ballmer is not.
To people like Ballmer, code is confusing and sometimes scary, so visual details and tangible evidence become more important than what’s “under the hood” – the GUI refresh of Vista is, in all probability, a direct result of this syndrome. Ballmer may have the vision and the manhandling attitude, but he simply doesn’t have the technical knowledge to deeply question the technical aspects of products, as Gates was so famous for doing. Whether or not the current CEO understands his shortcomings is unclear, so it remains to be seen if Windows 7 was more of an accident than a moment of brilliance.
The simple truth is that even without Bill Gates, the man who essentially created the world of modern computing, Microsoft is regaining steam and is looking ever-more like it’s 1990’s self, where it dominated every facet of life: they’re once again hiring all the best programming talent they possibly can, rumors circulate about the new life breathed into the company and its employees, their R&D departments are hyperactive, and their clout is being thrown around with the confidence and swagger of a previous decade. Ballmer may be no Gates, but he’ll continue to navigate the company to a point of dominance as long as he asks himself “What would Bill do?” and doesn’t engage in the ultimately futile act of micromanaging programmers.
Bill Gates is gone from Microsoft, and probably for good, but it’s not a stretch to imagine how the last decade might have been different, possibly better, had he still been in full control. He picked Steve Ballmer for reasons of similarity and confidence, so the world now must look to Ballmer for monolithic Microsoft power and leave Gates to his valiant attempts to save the world.

Microsoft vs. Apple: The History Of Computing [Infographic]

It’s the epic battle of the century, or was rather. Now that Bill Gates is no longer there, the battle for the thrown is no longer on an epic scale if you ask me. Now when Apple surpassed Microsoft (if I am not misinformed), it’s like it’s all about Apple ALL the time. You know, the keynotes, the gadgets and god knows what. Whatever they do, they call it groundbreaking, sexy or innovative. They might have some pretty cool products, but it’s just a matter of time before someone in a garage somewhere will come out of their dungeon and release something that even Apple can’t rival. What that will be I have no idea.
However, to look back on the rivalry between Apple and Microsoft is quite an experience since there have been some controversies over the years. The guys behind Manolution put together a quite impressive infographic that will take you through the years of their rivalry. If you think it will be one of those small, sparse and boring infographics, you are totally wrong. This is what I would call an epic sized infographic.
It’s inspirational to see a company, in this case Apple, come back from an almost certain collapse and then be built up again to one of the world’s largest and most successful corporations. Looking at the market capital and comparing the two companies will show you exactly why Apple is being somewhat cocky about their position. Their share price has been sky rocketing for the last couple of years, and it is all thanks to the new gadgets they release. It’s mostly because of the iPhone and the MacPro computers, and of course, the iTunes store. And, possibly everything else they are doing…

History Of Computing Apple Microsoft