A Challenge to the Zune Advocates

October 3, 2007 By

OK, I’m taking quite a bit of heat from the Zune advocates in my comments — lots of them think I’m an idiot for bagging on Microsoft. So, here’s a challenge.

I’ll give you one hour of airtime on ScobleShow.com to make the case for the Zune. You gotta come to my house in Half Moon Bay, CA to do the filming. I’ll treat it just the same as I do any other demos out there. You just bring your devices and explain to the world why these are so cool and why I need to buy one. I’ll even have Patrick bring all his iPods and iPhones so you can have those to compare with, if you’d like.

Call me if you’re interested and have access to one of the new Zunes. If you’re a Microsoft employee or a PR representative even better. I always leave my cell phone on my blog, by the way. It’s over there on the right side of my blog, but my number is 425-205-1921 (local call from Microsoft headquarters! Heh!)

Filed Under: Microsoft Office, Zune

Microsoft: releasing source after everyone else?

October 3, 2007 By

Another defensive move on part of Microsoft? Protect the tools business!

So, Sun Microsystems open sourced Java.
Adobe open sourced Flex.

Now Microsoft is releasing the source of .NET. UPDATE: Krish points out that this isn’t open sourcing .NET, just releasing the source. That’s even lamer cause the other two have actually open sourced and are accepting submissions from the community.

Cool, but when you’re last to do something does it really matter anymore? This is a good move, though, and will help many of Microsoft’s developer community stay on Microsoft’s tools.

Filed Under: Developer Evangelism, Microsoft Office

Is Microsoft in Zune to win?

October 3, 2007 By

When I interviewed Steve Ballmer a few years back he said Microsoft is in the game to win.

But when you’re inside Microsoft the employees use different language. Many projects there are simply defensive ones. To keep a competitor from getting more inroads into one of its businesses. iPod, for instance, isn’t threatening to Microsoft directly, but they started the Zune project up when they noticed that a decent percentage of people, after buying an iPod, would switch their computers from Windows to Macs. THAT threatens Microsoft’s core business.

The problem is that whenever you do something just to defend another business you don’t do it from a position of love. Or a position of strength.

Now, look at the new Zunes and the reaction they are getting from journalists and bloggers.

I’m totally uninspired. Yawn.

Where’s the 16:9 wide screen? Where’s the super-dooper-podcasting features (and why weren’t these announced last week at the Podcasting Expo? Talk about a blown opportunity)?

Michael Gartenberg says that the features are actually pretty good but the marketing/messaging sucks. Again, this is a defensive product. It’s not a visionary one like the Tablet PC that Gates came up with on his own. The execs probably told the Zune team “stop the bleeding” or something metaphorically equivilent and the fact that they did a good job is surprising to Gates.

On the other hand, Apple HAS pissed off many of its most rabid evangelists lately. This Gizmodo post is one artifact of that. Apple’s treatment of developers and early adopters has opened up a marketing hole that Microsoft COULD take advantage of.

But only if Microsoft is in this game to win. It’s not. So we get uninspired product. Uninspired messaging. Uninspired launch dates.

Yawn. Wake me up when Macworld is here in January.

Filed Under: Microsoft Office, Zune

Steve Ballmer still doesn’t understand social networking

October 2, 2007 By

A few years ago I wrote to Microsoft’s leadership and asked them why they weren’t involved in the new Web 2.0 space. I got an answer back that was about 2,000 words long and included the words “business value” 13 times. Translation: Microsoft’s leadership thought that Web 2.0 and social software like Flickr didn’t have business value and was too much of a potential fad to invest in.

Glad to see that Steve Ballmer, Microsoft’s CEO, is consistent. Notes that Geocities lost most of its value after being acquired by Yahoo and says “it had most of what Facebook has.” Let’s come back to that point in a second.

The thing is that Ballmer has bought into the advertising hype too. I remember when Microsoft’s President, Kevin Johnson, came to our group when I worked at Microsoft and explained that the advertising industry is 10x the size of the software industry and that he was going to steer Microsoft more into an advertising-driven business rather than just one that made its revenues from selling software. Translation: Microsoft was going to compete more with Google, Yahoo, and other companies going after the advertising pie.

Don’t miss this quote. It’s demonstrates everything that is wrong with Microsoft’s approach:

“There can’t be any more deep technology in Facebook than what dozens of people could write in a couple of years. That’s for sure,” Ballmer said.

When I worked at Microsoft I heard this over and over and over again from various engineers and program managers who STILL haven’t competed effectively with WordPress, Flickr, Skype, YouTube, or any of the other things over the years I’ve heard this “we can build that in a few weeks” kind of arrogant attitude attached to.

But, remember eBay? Remember how dozens of competitors tried to get into the eBay space? (and still are?)

Why aren’t they succeeding? Because eBay is NOT about the technology. It’s about the community and unless you have something that’ll convince the buyers and sellers all to switch all at one moment you’ll never be able to take eBay’s market away. Translation: it’s too late and eBay has huge defensibility around its business because people won’t move away from it even if you demonstrate 5x better technology.

Same with Facebook. I’m not moving away from it. Why? I have 5,000 reasons why (and another 500 already who want to be included in my Facebook network). Unless you can convince them all to move I’m not moving. This is why LinkedIn isn’t going to disappear anytime soon, even though I like Facebook’s approach a lot better. It’s also why MySpace isn’t going anywhere. My son says his friends are all on MySpace. My brother’s bar is on MySpace. They aren’t moving no matter how hard I evangelize Facebook.

Which gets us back to Ballmer’s quotes.

First, let’s share this one: “I think these things [social networks] are going to have some legs, and yet there’s a faddishness, a faddish nature about anything that basically appeals to younger people,” Mr Ballmer told Times Online yesterday.

I’m 42. Hardly young. And Facebook is appealing a lot to people in my social network and age group lately (and so is Twitter and other social tools like Pownce, LinkedIn, and sites that use social groups like Yelp, Flickr, Upcoming.org). I guess Ballmer missed that. This is what happens when Microsoft executives don’t get outside of their ivory towers very often. Steve, you really need to go to any tech industry conference and hang out in the hallways. Don’t come to San Francisco, you won’t believe anything you hear here anyway. But go to, say, LeWeb3 in Paris and hear what they say about social networks. You’ll probably hear Bebo. Facebook. And a few others. From even the old folks. Last night I was at a National Geographic event and lots of people were talking about Facebook.

Here’s another quote:

Mr Ballmer also noted that sites such as Geocities, an online community that was bought for $3 billion by Yahoo! in 1999, at the height of the dot-com boom, “had most of what Facebook has.”

Oh, boy. No way, no how.

First of all, I never joined Geocities. It never had utility for me. It was a place to build free Web sites. I found it had all the disadvantages to me that MySpace has and NONE of the advantages of Facebook. It was NOT a social network that exerted the kind of social pressure on me to join the way that Facebook did. I tried to ignore Facebook for years. Same with MySpace. But people I kept meeting kept begging me to join. Kevin Rose, when we had dinner, told me I was blowing it by not being on Facebook. That NEVER happened with Geocities.

Also, Facebook is now a business card collection. A rolodex. That has real utility that’ll keep me using it long after it joins the “old fad bin.”

Oh, and anytime people say “this thing is a fad?” I think of blogging. Lots of people told me that when I started it too. It wasn’t. Neither is Facebook.

But all this makes me think that Ballmer is trying to send signals to Zuckerberg (Facebook’s CEO) that the price is too high and that this is just a negotiating ploy. Nice one! But it doesn’t give me confidence that Microsoft is going to figure out Web 2.0 or social networking strategies anytime soon.

It also makes me realize that Ballmer has no clue about the future of advertising. If he did he’d be talking about how Facebook’s ability to concentrate people into buckets in a new way should be copied and studied. That’s where Facebook’s real advertising value is and Microsoft hasn’t demonstrated ANY ability to see that yet. Of course, Facebook itself hasn’t shipped its advertising platform that’ll demonstrate its vision there either, but I hear it’s coming.

Will Microsoft get a clue before Facebook gets an entrenched advertising platform going?

Ballmer proved with Google and with these quotes today: no.

Filed Under: Facebook app, Google Calendar, Microsoft Office, Social Networks, Steve Gillmor, Web 2.0

Microsoft may buy part of Facebook

September 24, 2007 By

Wow, I go to lunch with my parents and the entire world shifts due to a Wall Street Journal report that Microsoft may buy part of Facebook which would value Facebook at $10 billion or so.

Too bad that Microsoft’s management didn’t listen to Jeff Sandquist and others two years ago.

Funny, you know Dave Morin? He works at Facebook on the app platform now but used to work at Apple. He told me that he tried to get Apple to pay attention too. But got frustrated with Apple’s inability to get Facebook. So, he left to join Facebook.

What’s funny, he told me, is now a good percentage of Apple employees are on Facebook. At the latest Apple press conference I noticed that Steve Jobs even showed off the iPhone Facebook app on stage.

Filed Under: Facebook app, Microsoft Office

Why doesn’t Microsoft get the love?

September 23, 2007 By

Let’s leave Halo 3 out of this, for now.

Yesterday Hugh Macleod wrote up his thoughts on Microsoft.

He puts out a theory that Microsoft would be more loved if it told a better story.

I’ve been studying my own reactions to Microsoft lately and I think it’s a lot deeper than that.

I have a REASON to love Microsoft. It propelled my career into a whole nother level. But lately even that hasn’t been enough.

I’ve been asking myself why?

To me it comes down to expectations. Microsoft is like the genius child who has rich and smart parents. Society holds huge expections for such people. If they don’t succeed the story is it’s a child who hasn’t lived up to his/her potential.

Microsoft is much the same way.

We see Google having fun with docs and spreadsheets.

We see Facebook and Plaxo and LinkedIn (not to mention Ning and Broadband Mechanics) having fun with social networking.

We see Flickr, Zooomr (one developer!), SmugMug, Photobucket, and a raft of others having fun with photography.

We see Apple having fun with all sorts of stuff.

We see Amazon having fun with datacenters.

And on, and on.

But where is the kid who has rich and smart parents? Yeah, Microsoft brought us the “Demo of the Year” last year: Photosynth. But what you didn’t read on TechCrunch is that it takes up to nine hours to process one set of images so, while it is a killer demo, it won’t be a product you and I can use anytime soon.

This week we learned that Google is struggling to stay relevant to the new conversation: one that was taken over this year by Facebook. But what is Microsoft doing to stay relevant? It’s like Microsoft has decided to go and spend the inheritance and not do any more work to stay on the bleeding edge. This is a much less interesting Microsoft than it was back in the 1990s, where it seemed every week Microsoft would announce something new and interesting. I remember being a subscriber to eWeek and other trade magazines and it was a rare week that Microsoft didn’t have the most important story. (TechMeme has taken over that role, and this summer how often have we seen Microsoft at the top of TechMeme? Not very often.

This week I learned another Microsoft employee is leaving to start his own company. This guy has asked me to keep it quiet until he can let all his managers know, but he’s someone who is liked and trusted both in Silicon Valley and up in Redmond. He’s a connector. An innovator. A guy who wants to SHIP innovative products.

These kinds of people keep leaving Microsoft because they see it isn’t living up to its potential and is frustrating to work inside of. It’s more fun to go join a small startup, or even one that’s fairly well along its path, like Facebook (everytime I go to Facebook I see more of the people I used to work with).

It’s been more than a year now since I left Microsoft. I really expected Ray Ozzie to come out and do lots of cool stuff for the Internet. But what did we get? A new design on live.com? Please.

The interesting thing is that Microsoft’s bench is so deep that even with the people they’ve lost over the years there still are huge numbers of amazing people working there and they still have advantages that no other company has. Deep, deep pockets. Massive numbers of customers. Profits that keep arriving everyday. A salesforce that’s well run and has its fingers in almost every country in the world.

So, back to Hugh’s post. Microsoft needs a new story. If I were on the management team I’d be looking hard at the Bungie team, the folks who brought us Halo 3.

What did they do right?

1. They stayed away from Microsoft’s politics. They work in a small ex-hardware store in Kirkland, Washington, USA. About 10 miles from the main campus.
2. They kept their own identity. They have their own security. No Microsoft signs outside. A very different feel internally (much more akin to Facebook than how the Office team works together). Each team works in open seating, focused around little pods where everyone can see everyone else and work with them.
3. They put their artists and designers front and center and obviously listen to them. The Windows team, however, fights with their artists and designers.
4. They keep the story up front and center. They work across the group to make sure they deliver that story everywhere. Translation: employees know what the story is, how to communicate it (or when not to), and they have great PR teams who work to make sure that story is shared with everyone.
5. The product thrills almost on every level. Hey, sounds like an iPhone!

The problem is that Bungie is a small exception in a sea of Microsoft.

Changing this company’s public story is going to prove very difficult. Maybe that’s why Hugh drew Microsoft a “Blue Monster” instead of something a little more friendly.

I’m sure some of my friends at Microsoft will misread this and think I’m “a hater.” You can think that if you want. It is intellectually lazy, though.

It’s interesting that since leaving Microsoft only Kevin Schofield (he’s one of the great connectors the company has over in Microsoft Research) has really done a good job of reaching out to me and tried to tell me a “new Microsoft” story.

One thing I did at Microsoft was reach out to the haters and see if I could tell them a new story.

So, I’m game. On Monday night I’ll be at the Halo 3 launch party. I’ll be looking to show my video camera a new Microsoft story.

But until I find it so far it just seems like that rich and smart kid who hasn’t lived up to the potential that we all see in her.

Am I missing something?

Filed Under: Microsoft Office, Scoble family
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