Google this week ousted CEO Eric Schmidt, giving the largely figurehead role of executive chairman. Co-founder Larry Page essentially gave himself the CEO title, as he and the board apparently believe Page has added business chops to his already obvious technical skills.
The company isn't commenting -- so it is up to us to speculate on the whys. Part of it could be a pure power play. Page is enjoying his wealth. He lives in a Palo Alto mansion and just bought a $45 million used yacht (is this a Larry Ellison in the making?). Another issue? While Eric Schmidt is immensely technical, he doesn't have a huge history of inventing. And invention is Google's lifeblood.
Or maybe Schmidt is the fall guy for the company's missteps, as chronicled in my next item. Or perhaps Eric is an embarrassment, having put his foot in his mouth as often as Rosie O'Donnell put a Twinkie in hers.
Posted by Doug Barney on 01/21/2011 at 1:18 PM2 comments
There's one thing I know about New England: Once a year Winter comes, and all my excess cash goes to the plow guy so he can pay for his brand new F350!
Something else seems to happen annually -- pundits question Steve Ballmer's leadership. It happens every time there is some hot invention that Microsoft didn't invent.
Linux is gonna kill Windows, the Zune stinks, Microsoft has no iPad, Google is the final straw, blah blah blah.
This time pundits point to opportunities lost, which is not entirely unfair, just mostly. But the latest wave is truly odd. Ballmer recently released Bob Muglia, who ran (and will still run it 'til the summer) the Server and Tools division, which includes Visual Studio, all the major server products and Azure.
Somehow the fact that Ballmer thinks he can do better is evidence that Ballmer's job ain't going to be around for long.
So how are we to judge Microsoft and Mr. Ballmer? They set earning records after earning records and have succeeded in a ton of new businesses: ERP, Xbox, security. In that regard, the pairing is a monster success.
On the other hand, innovation seems to be coming from elsewhere. But instead of being clobbered by a single company, Redmond is getting beating up by a veritable mob: Google, Apple, FaceBook, Oracle, the list goes on. Is it fair to expect one company to outpace the entire industry? Is IBM faulted for not inventing the iPhone?
Am I too kind to the Redmond giant, or are the critics too mean? You tell me at [email protected].
Posted by Doug Barney on 01/21/2011 at 1:18 PM3 comments
Here are your praise and horror stories for wireless carriers:
I've been with AT&T since it was Cingular and haven't had any real issues with service, call or customers. I've had an iPhone for about 8 months now and really enjoy it, although I probably only use a tenth of its potential. I constantly read about how bad AT&T's service is, but I very rarely have dropped calls and even have coverage when I go to my Mom's house in rural South Texas (although, to be fair, her small town does have I-35 running through it). So I can't tell you any horror stories about AT&T.
-Ken
I never tried AT&T because everyone told me the Verizon network is better. Six years now and I am still happy!
I work for "a major Midwestern university" and all too often I see AT&T customers standing at windows and doorways looking for a signal -- while other people swear by AT&T.
I am a BlackBerry user who recently tried ActiveSync on my WiFi iPad. I will not be upgrading to the iPhone when my contract comes up this Summer. Bottom line? ActiveSync cannot hold a candle to the BlackBerry Enterprise Server. Further, the iPad e-mail client leaves a lot to be desired. For these reasons, RIM has nothing to fear from the road-warrior 'jumping ship.'
-Marc
You use a BlackBerry? I thought you'd be more of a droid guy, with its native Exchange support.
-Doug
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Posted by Doug Barney on 01/21/2011 at 1:18 PM1 comments
If you've been following this newsletter for any length of time you know I like to tweak Google's nose. The fact is, anytime a person or company amasses massive power, they come up against scrutiny and criticism. You have to have a thick skin to be a politician or big company president.
In Google's case, the criticism isn't just due to size, power and influence. This company does a lot of sketchy things.
In a recent Barney's Rubble (clever, eh?) I gathered together Google's most egregious actions and statements. When you put 'em all together it paints a picture of a company that just doesn't care about its users. It doesn't care about privacy, it feels free to invade our homes and MAC addresses through StreetView and parses our Gmail for keywords to sell.
And Google is wholly unrepentant. Newly ex-CEO Eric Schmidt said the Internet simply isn't private -- we should change our names if we are ashamed of what we've done on the 'Net. He also feels no guilt selling ads around content he had no hand in creating. Oh, and his company pays a tax rate that an indigent family would die for!
It seems that Facebook is taking Google's lead: It was recently caught ready to sell all our personal data to the highest bidder.
Do we need new privacy laws or just a government with enough moxie to enforce the ones we have? Make your vote at [email protected].
Posted by Doug Barney on 01/21/2011 at 1:18 PM5 comments
Microsoft made a bit of a stir announcing that Windows 8, or whatever it's called, will run as a system on chip (the OS is embedded) on the tablet and phone-friendly ARM chip family.
Intel wants it known that is won't give up this market easily, and likewise announced plans to build phones using Windows 8.
There are various conspiracy theories floating around, including the notion that Microsoft isn't happy with the Intel disclosure. But who wouldn't want two chip giants fighting over you?
Of course all this is just talk. Windows 7 is still just a toddler and Windows Phone 7 is an infant. It's going to be a while till we see this battle develop.
Posted by Doug Barney on 01/19/2011 at 1:18 PM2 comments
For Steve Jobs the news lately is really good and really bad. On the very bad side is his health. He won't say exactly what's wrong but he is taking a leave while he (hopefully) fully recovers.
Jobs is one of kind. The man isn't perfect, and nor are his products. But they are damn good and truly remarkable. He brought Apple back from the very precipice and now the company is doing stunningly well.
Look at the latest quarter where the company brought in nearly $27 billion, netting a clean $6 billion profit. That's over a 71 percent increase of the same quarter a year ago. Keep in mind, the last quarter included the holidays, and Apple products are the ultimate stocking stuffers, with the iPhone and iPad leading the charge.
The Mac, without the benefit of any enterprise push whatsoever, cleaned up with sales up almost 25 percent compared to the same quarter a year ago.
Microsoft is used to setting records quarter after quarter, but it ain't nuthin' like this!
Many are worried about how Apple will do with Jobs gone for a bit. In the short term I see no problems. In fact, many loyalists may buy stuff in honor of Steve.
Who is your favorite and least favorite tech exec? Do you have any wishes for Mr. Jobs? Tell us all at [email protected].
Posted by Doug Barney on 01/19/2011 at 1:18 PM3 comments
Josh Greenbaum has been covering ERP and manufacturing for years and has a gift for writing and analyzing. Now Josh has an interesting ERP-centric view of the future of Microsoft: "The new tack will be Microsoft's own version of the stack wars, in which Azure, fueled by the Dynamics ERP products and partners' enterprise software and services, becomes the leading edge of an increasing focus on direct sales to the enterprise," he wrote recently.
Intriguing idea, and if we take a decades-long view, it may be right. Here is where I see the problems: Microsoft has essentially four lines of ERP-style products and spent years trying to turn them into one single offering. The software challenge was too much and Redmond gave up. Re-engineering ERP apps is very, very difficult.
The bigger issue is that Microsoft ERP is almost 100 percent aimed at small- and medium-size businesses. Last time I checked, Microsoft still uses SAP. Josh may be right... I hope we find out before either of us retires!
Posted by Doug Barney on 01/19/2011 at 1:18 PM1 comments
Here are your responses to the whole tablet craze:
I expect Microsoft to continue down the expense, wasteful, destructive road it has been on for the last 10 years. Instead of finding something it is good at and doing that, it will continue to jump on every bandwagon that rolls by and do a mediocre job of whatever that one was. Look at the history of all market monopoly companies. They ultimately attain total mediocrity. Sad but historically correct.
-Anonymous
Personally, I can't think of reason to even own a tablet, e-reader or any other mobile device that doesn't have the full functionality of my laptop. The ultimate for me would be a tablet PC, but they need to come down in price and have larger screens before I will purchase one. People buy a tablet for performing light tasks such as Web browsing or social networking, and prefer it because it has a touch screen and it's lighter than a laptop. But I prefer to carry a few more pounds (what are we, men or mice?) that can do all of that and so much more. And laptops keep getting thinner and lighter every year. Now find a way to give them an all-day battery life or to charge them wirelessly and I'll be ecstatic.
-Scott
I saw your request for feedback on tablets. I have been using a Dell Duo for the last several weeks after trying many tablet PCs through the years. Although I carry an iPhone, I was not willing to go for the iPad which is pretty much limited to reading, music, photos and really doesn't help me with the business side. The Duo is the first device that I believe bridges the gap. It is a fully functional touch screen enabled iPad device in one mode and then you flip the screen and it becomes a fully functional netbook with a nice keyboard. It runs Microsoft Office 2010 just fine along with any other PC app that runs on Windows 7. It is not a speed demon but seems to do the job. I believe for our internal users looking at iPads, this device is more suitable for productive work and still has a slick consumer side.
Pros: Tablet touch screen with gestures works well. Seems to be built with a nice, solid chassis and the flip screen is weighted for easy conversion. Finger writing for a quick note or two is pretty darn good -- even with my scribbles. Built-in speakers are pretty good for the size. Add the docking station with JBL speakers and it takes it up a notch. It has SIM card slot for cell hookup, if desired. 350 GB internal hard drive. High def accelerator for video (Netflix streaming looks great!). eReader functionality with the Kindle or other software works great with gestures. Minor, but you can open it up to create a stand for media, no need to buy a stand like you do for the iPad. And it is just cool to see the reaction after someone sees you using it like an iPad and in seconds open it up and flip the screen to become a netbook! Price point is comparable to the iPad.
Cons: Limited battery life 3.5 – 4 hrs. Screen is nice and clear, but is not viewable at angles. No built-in DVD/CD writer. Performance is acceptable, but not a speed demon. A little bit heavier than an iPad, but considering it is also a Netbook, it doesn't feel too heavy.
Bottom line: If you are interested in an iPad but want compatibility with the workplace and more functionality, this is a device worth considering. I suspect the next generation will be based on a faster processor with better battery life.
-Rick
Share your thoughts with the editors of this newsletter! Write to [email protected]. Letters printed in this newsletter may be edited for length and clarity, and will be credited by first name only (we do NOT print last names or e-mail addresses).
Posted by Doug Barney on 01/19/2011 at 1:18 PM1 comments
Do you remember when your IT job was supposedly going to be outsourced to India? Chances are that if you are reading this, you survived.
Now comes the cloud where IT jobs may be outsourced to, well, just about anywhere a cloud service provider keeps its servers and arrays.
Has the cloud already impacted your job, or do you see the cloud, in the future, changing the face of IT jobs? I'd like to do a cover story based on your experiences and predictions. E-mail me [email protected] and I'll be in touch.
Posted by Doug Barney on 01/19/2011 at 1:18 PM32 comments
If you are a MultiPoint fan, and according to my mail, many of you are, the next release is due this March. For those who have not had the pleasure, MultiPoint is a virtualization tool that support thin clients. But instead of thin clients/dumb terminals driven by a Windows Server, MultiPoint lets you have up to 15 dumb terminals powered by a single PC. By dumb I mean dumb -- we are talking just a keyboard, mouse and monitor hooked to the PC through a video or USB port.
While this sounds cool, and many of you dig the MultiPoint scene, IBM proposed the exact same idea for OS/2 in the late 80s.
The new MultiPoint Server 2011 supports either pure dumb terminals or more modern thin client devices. Even legacy PCs can be used as terminals, allowing older machines to run more modern software.
What is your main interest in virtualization? Storage, servers, apps, desktops? You tell me at [email protected].
Posted by Doug Barney on 01/14/2011 at 1:18 PM2 comments
Chances are you've been suffering through budgets that are flat or smaller than they once were. Relief may in sight, as Gartner predicts that IT budgets will grow on average more than 5 percent worldwide. Gartner previously predicted an increase of 3.5 percent, so I'm assuming more recent research led to the rosier outlook.
Now here's the weird part: Because the research is worldwide, one has to look at the values of the various currencies. Because the U.S. dollar has fallen, IT spending here in the states may actually be less. When you show this research to the boss, you might want to leave that part out!
How does your budget look for 2011? Good news and bad news equally accepted at [email protected].
Posted by Doug Barney on 01/14/2011 at 1:18 PM0 comments
Will the ARM-Microsoft deal change the landscape of PCs? Here's a couple of your responses:
I doubt it Doug.
No matter how you shake it out, tablets/slates are low-end devices -- just like netbooks. The difference is that Windows 7 Starter edition with 1GB of RAM really can do whatever you want it to do -- IF you can tolerate the sluggishness of Windows 7 on a single-core Atom processor with 1GB of RAM!
That said, for $499 you can get a dual-core 4GB Win 7 (x64) with a 160GB HDD which really can do everything you want (though not necessarily swiftly). Not even a $699 iPad can do that. It takes a $999 Macbook to get you there! Microsoft is certainly prudent to look at porting Windows 7 to ARM -- if for no other reason than to hedge their bets that Intel may not be able to keep up with ARM.
Frankly, readers and pundits alike are making way too big a deal of Apple's dominance of the "appliance" market. After all, that is what they do. (Apple makes really slick -- sexy-looking, if you will -- gadgets for which consumers are willing to pay premium prices. These are simply appliances for consuming media. They cannot replace the consumer's MacBook and they will not replace the consumer's PC.
The iPad is really nothing more than the latest generation of the iPod Touch -- but with a large screen. If you are willing to pay a premium for a simple, but powerful appliance (which still needs a desktop computer for syncing) then the iPad is fine. But it is not a Macintosh or Windows personal computer -- nor will it ever be.
I agree with others who point out that Windows needs a tablet-centric UI. That will come soon enough. Ported to ARM or not, Windows "8" will certainly benefit from better kernel modularization but that isn't the key. The key is the System-on-a-chip concept -- which would allow Microsoft to boot Windows 7 using a device as compact as the 64GB iPad. As fast as memory is coming down in price, there is little reason to assume that Microsoft will not be able to deliver such a device -- and sooner than you think.
-Marc
Microsoft has been supporting ARM processors for years. EVERY Windows mobile phone from 2000 to present runs on ARM architecture. Windows CE, in all of its many forms (appliances, mobile phones, consumer GPS devices), run on ARM architecture. The only "new" thing coming out of this announcement is Microsoft stating that their "main" OS (Windows 8+), their bread-and-butter, will run on ARM.
-Anonymous
Share your thoughts with the editors of this newsletter! Write to [email protected]. Letters printed in this newsletter may be edited for length and clarity, and will be credited by first name only (we do NOT print last names or e-mail addresses).
Posted by Doug Barney on 01/14/2011 at 1:18 PM1 comments