That's the biggest blunder they've ever had.
Under Ballmer, Microsoft focused on core business and reached into cloud - successfully. As a result, Microsoft is now stronger than Apple. Microsoft doesn't depend on people buying luxury cellphones, a market which is reaching saturation.
That's not a "sexy" story, but it's the truth. A more "proactive" CEO would've just blown more money on Zunes and Kinects to fail in the market.
That was the change in administration. "Microsoft is a monopoly" came under judges appointed by Clinton. "The punishment is Microsoft has to give free Windows licenses to schools" was under judges appointed by the GW Bush administration.
As old timer insiders said to me prior to that time “You wouldn’t believe just how committed Microsoft is on this. I’ve never seen anything like it.”
(But Satya has made it really work.)
So if Microsoft fails in one market segment it's his fault, but if Microsoft succeeds, it's solely the success of the people doing the work?
That's not how it works when you're CEO. You might have a point if Nadella pushed for cloud against Ballmer, but that wasn't the case. To the contrary. In any event, Ballmer ultimately called those shots, not Nadella. That's his job as a CEO.
I believe they would have been fine if they focused on the European and Asian markets instead of the US.
Back when the iPhone, HTC G1 and Motorola Droid ads were saturating TV around 2008/9, I couldn't recall seeing a single ad for Nokia. Nokia's only real sales outlet were 3(!) retail stores in the entire US. And even those shuttered well before 2011.
The idea that focusing away from the US might have saved them as an independent entity doesn't hold up because their average selling price (ASP) was falling due to low-end models selling better than their more expensive smartphone line. Eventually it reached a turning point where the brand was more closely associated with super-durable and super cheap "burner" phones than upscale smartphones.
Finally, their smartphone line was a mess because like Windows Mobile 6.x, the OS appeared on a variety of screens, both touch and non-touch. The Ovi app store was deeply fragmented as a result, because old apps scaled badly on larger touch devices, and newer apps didn't work at all on the non-touch phones.
How much per unit profit were they making with their low-end models compared to the expensive smartphone models? As I recall, I spent roughly $300 to $350 per phone when I purchased models like the N95 8GB, N8, N9, and 808 (which isn't that expensive compared to certain smartphone models).
Most people I know/knew, before they switched to Android and iPhone, were using the higher end model Nokia and Blackberry phones. In fact, they had features that early models of the iPhone lacked (IIRC, the ability to copy and paste text).
As much of a problem I might have with some of Ballmer's ideas and actions, this is simply amazing. It completely saved the whole company.
Microsoft looked at what AWS was doing and realized they were getting left in the dust and they are still playing catch up, albeit in very good shape.
Nadella discusses having to catch up to AWS in his book.
Ballmer's major contribution was finally allowing the company to follow Amazon's playbook.
I think one difference is that BB, Motorola and Nokia dropped the ball technically; Microsoft had a technical solution that was ahead of its time, but failed on the business side.
Belatedly. I mean, they’re the largest software vendor on Earth, and they’re still miles behind a book retailer.
- Wikipedia's "reception" section: https://en.wikipedia.org/wiki/Windows_Me#Reception
- An XKCD comic: https://xkcd.com/323/
In any case, it's not meant to be an exhaustive list ...
Maybe I just hot lucky with my hardware choices at the time.
That might have been (in part) due to all of the underpowered PCs sold with "Windows Vista Capable" badges, IIRC there was a class-action lawsuit because of it.
I agree, Vista was boring, in the sense that it just worked and didn't get in the way. Now that I think about it, the built in Start Menu search bar made it awesome.
Every install behaved differently and had random failures which were gone without a trace after a reboot, never to appear again. Troubleshooting a non-booting WinME box was a nightmare compared to troubleshooting a Win98 box with similar issues, which had all kinds of emergency "shell" with dozens of useful utilities (which were absent in WinME, with no replacement), and a "safe mode" which was actually useful and predictable.
The Control Panel, and all the GUI around configuration was a difficult to use abomination, stuck somewhere halfway between utilitarian look&feel of Win98 and sleek look of WinXP, with all the disadvantages and none of the advantages of either.
Of course, I was used to reimaging my Windows machines at the time anyway. That's something that's mostly gone away, and I think one of the better (but mostly invisible) advances in Windows.
The "bad" OSs weren't really that bad, but they were attempts to force a big change on people without too much choice, and people absolutely hate that. Note how the successors kept most of the same underlying features while dialling back the UI redesign.
Although you are correct, these were the worst strategy moves, I don't think we are not talking about that. This is about fiendish corporate behaviour towards friends and partners.
Still are. Even better with Android.