On Carl Ichan

5 06 2008

The more I read about this dude the more I like him. Eschewing the usual corporate bromides he writes:

Until now I naively believed that self-destructive doomsday machines were fictional devices found only in James Bond movies. I never believed that anyone would actually create and activate one in real life. I guess I never knew about Yang and the Yahoo Board.

What a card! I also reverse my view that MS is wasting its money, we have had at least $45bn of entertainment. Cheers Jerry!

Pic: Boston Globe





On breaking up Microsoft

22 05 2008

I’m always interested in the psyche of a company, it’s like a rhythm the company moves to and runs subconsciously through everything they do. I think it’s why some people do brilliantly at one company and disastrously at another. One of the reasons I want to work in my own start-up is to have a corporate culture which suits me well. I have experienced this when I was at Orange and I did my best work there.

There is something deeply embedded in Microsoft that seems unable to keep things simple. So even when they have a good idea like the Xbox they can’t resist putting out four different versions of it. Apple has parodied this trait in its commercials, some have speculated how a MS iPod would have turned out and others have pointed out its muddled branding. MS has recently hired marketing guru Alex Bogusky to help them turn things around but I think the problem lies deeper than simply changing the marketing.

Vista is so heavy that users are baulking at the basic requirements needed to run it and sticking with XP. I’ve said before I think the future lies in much lighter operating systems. MS really needs to forget about building an even bulkier Windows 7, throw out the entire code base which is giving it such problems and set off an internal competition to build a new OS. Pick five of the most creative programmers give them all their own company, a stack of cash and let them get on with it. No rules – let them build it on top of Linux if they want to – and see who wins. Let Windows and Office lumber on if they like but get some fresh air into the company.

WL Gore and Associates is a uniquely well run company. One of the principles it employs is to break up any business unit once it gets bigger than 250 people. It does this to maintain a start-up atmosphere and to avoid stifling creativity. This is the road Microsoft needs to take – ironically this is to impose the anti-trust ruling on itself. Microsoft itself could become the holding company and take its history of muddled brands into the past. In its place Xbox, Live Search, (ahem) Zune, and what ever other brands it decides to develop would then be separate companies with only a parent in common. It is no coincidence that its only post-Windows success, the Xbox, is run as autonomous unit. Ballmer is apparently moving in this direction by trying to develop more internal autonomy. He should go the whole hog and break the company up.





On Microhoo

19 05 2008

As predicted Microsoft is back in for Yahoo although this time it is not a takeover which is proposed, rather a search deal. I can see two explanations for this, one is that MS wants to spike Google’s guns and the other is that they are pulling the classic estate agent’s trick of showing you a shocking house then taking you to a reasonable one. The mistake Ballmer made last time was to show Jerry the nice $33 per share house first, before taking him to the crappy search deal shack.

Even better from Ballmer’s point of view is that this time a host of angry shareholders have reddened Jerry’s cheeks after the last deal fell through. What Yahoo’s shareholders really want is perfectly simple: money. The current Yahoo board may have some philosophical objection to Microsoft money but the shareholders don’t care. They have had enough of Yang, Bostock et al farting around and now they want the cash. To them a search deal is worthless. As Wesley Snipes said in New Jack City, money talks and bullshit runs the marathon.

Microsoft will play them around for a while longer with this nonsense then put the $33 offer back on the table (or the $31 if they are feeling cruel) then let the Yahoo shareholders’ hungry bellies do the rest.