Hypercritical

00:00:00 ◼   ► [Music] [TS]

00:00:02 ◼   ► you're listening to hypercritical a [TS]

00:00:04 ◼   ► weekly talkshow ruminating on exactly [TS]

00:00:06 ◼   ► what is wrong in the world of Apple and [TS]

00:00:08 ◼   ► related technologies and businesses [TS]

00:00:10 ◼   ► nothing is so perfect that it can't be [TS]

00:00:12 ◼   ► complained about by my co-host John [TS]

00:00:14 ◼   ► siracusa I'm Dan benjamin today is [TS]

00:00:17 ◼   ► november 25th 2011 this is episode [TS]

00:00:20 ◼   ► number 44 we want to say thanks to [TS]

00:00:22 ◼   ► united pixel workers calm mailchimp.com [TS]

00:00:26 ◼   ► and reinvigorate reinvigorate by the way [TS]

00:00:29 ◼   ► is providing our bandwidth for this [TS]

00:00:31 ◼   ► episode simple affordable heat maps and [TS]

00:00:34 ◼   ► web stats check them out at reinvigorate [TS]

00:00:36 ◼   ► net use coupon code 5x5 and you had 10% [TS]

00:00:39 ◼   ► off life of your order how you been [TS]

00:00:43 ◼   ► just dandy dandy huh how was your [TS]

00:00:46 ◼   ► Thanksgiving this is the day after [TS]

00:00:48 ◼   ► Thanksgiving 2011 it's November 25th [TS]

00:00:51 ◼   ► mm-hmm [TS]

00:00:52 ◼   ► special days going for a run four people [TS]

00:00:54 ◼   ► here in the united states america they [TS]

00:00:57 ◼   ► abreast are you are you resting yeah i'm [TS]

00:01:01 ◼   ► not going to work well that's good yeah [TS]

00:01:05 ◼   ► I mean that's something mm-hmm is [TS]

00:01:08 ◼   ► usually what I don't know people know [TS]

00:01:09 ◼   ► this or not but you are you're [TS]

00:01:12 ◼   ► frequently taking you know your lunch [TS]

00:01:15 ◼   ► break here you're away from work and [TS]

00:01:18 ◼   ► you're here to record and that's usually [TS]

00:01:21 ◼   ► that's your mo that's right run the [TS]

00:01:25 ◼   ► middle of a workday crazy would you do [TS]

00:01:31 ◼   ► for Thanksgiving anything exciting [TS]

00:01:33 ◼   ► anything special no just the usual what [TS]

00:01:36 ◼   ► is the usual stuffing mashed potatoes oh [TS]

00:01:41 ◼   ► sweet potatoes pies you know whole nine [TS]

00:01:44 ◼   ► yards [TS]

00:01:44 ◼   ► I didn't host it myself this year Oh [TS]

00:01:48 ◼   ► where'd you go kind of just went to a [TS]

00:01:50 ◼   ► friend's house it's kind of a relief not [TS]

00:01:52 ◼   ► that at all that cooking but the [TS]

00:01:53 ◼   ► downside is that you don't have all the [TS]

00:01:56 ◼   ► leftovers also you're you you've got [TS]

00:01:59 ◼   ► nothing to eat today nothing special [TS]

00:02:00 ◼   ► other than I guess I got some month or [TS]

00:02:02 ◼   ► is like you know that the shared here's [TS]

00:02:04 ◼   ► some leftovers here to take home kind of [TS]

00:02:06 ◼   ► leftovers but it's not the same as when [TS]

00:02:07 ◼   ► you make it yourself and you have all [TS]

00:02:08 ◼   ► the leftovers are the majority of the [TS]

00:02:10 ◼   ► leftovers [TS]

00:02:13 ◼   ► what did you guys do uh we we had out of [TS]

00:02:17 ◼   ► here [TS]

00:02:18 ◼   ► we had one guest my brother-in-law was a [TS]

00:02:20 ◼   ► guest and of course we've got the the [TS]

00:02:22 ◼   ► two kids one of whom is not you know [TS]

00:02:25 ◼   ► eating solid food because she's a little [TS]

00:02:27 ◼   ► tiny baby but they was still quite you [TS]

00:02:30 ◼   ► know quite equating quite an ordeal [TS]

00:02:31 ◼   ► trying to you know because you've got [TS]

00:02:33 ◼   ► you've got a kid you get a guest you've [TS]

00:02:36 ◼   ► got lots of different items to prepare [TS]

00:02:39 ◼   ► it was a production it's enough you know [TS]

00:02:44 ◼   ► once a year or doing that but then you [TS]

00:02:48 ◼   ► kind of got to do it again at Christmas [TS]

00:02:52 ◼   ► right yeah not as bad as the turkey [TS]

00:02:56 ◼   ► though the turkeys always a big thing [TS]

00:02:58 ◼   ► because you have more options for [TS]

00:02:59 ◼   ► Christmas dinner like you could do a ham [TS]

00:03:02 ◼   ► I guess yeah much easier no to cook the [TS]

00:03:04 ◼   ► turkey what do you do with a hand how [TS]

00:03:06 ◼   ► does that work usually you buy the ones [TS]

00:03:08 ◼   ► that already cooked in you just [TS]

00:03:08 ◼   ► basically heating it up nothing you can [TS]

00:03:11 ◼   ► do that with a turkey no come on now you [TS]

00:03:14 ◼   ► go to Whole Foods you get there they're [TS]

00:03:16 ◼   ► you know free-range pasture turkey and [TS]

00:03:19 ◼   ► that's all or anything it's already [TS]

00:03:21 ◼   ► cooked well it's it's what they call [TS]

00:03:23 ◼   ► pre-roasted so it's not like it's it's [TS]

00:03:24 ◼   ► like you're getting it in a you know [TS]

00:03:26 ◼   ► like a heated thing like a take at it [TS]

00:03:29 ◼   ► you know a drive-thru or something you [TS]

00:03:30 ◼   ► still have to heat it up and that's not [TS]

00:03:32 ◼   ► good oh it's very good big thumbs down [TS]

00:03:34 ◼   ► on that take my word for a big huge [TS]

00:03:36 ◼   ► thumbs up in fact the thumb that is [TS]

00:03:38 ◼   ► doing the thumbs up is so supreme that [TS]

00:03:42 ◼   ► it just destroyed your entire thumb [TS]

00:03:44 ◼   ► that's how that's how much of a thumbs [TS]

00:03:46 ◼   ► up that I'm giving this you go to Whole [TS]

00:03:49 ◼   ► Foods and you get one of their [TS]

00:03:50 ◼   ► pre-roasted turkeys it will be the best [TS]

00:03:52 ◼   ► turkey you've ever had how do you feel [TS]

00:03:54 ◼   ► about tofurkey I don't even get me [TS]

00:03:57 ◼   ► started [TS]

00:03:58 ◼   ► all right and keep in mind keep in mind [TS]

00:04:01 ◼   ► that was Leo I was of no it's not that [TS]

00:04:03 ◼   ► because it's made from tofu which is [TS]

00:04:06 ◼   ► made from soy which is not paleo that's [TS]

00:04:07 ◼   ► not paleo no soy is the antithesis of [TS]

00:04:10 ◼   ► paleo maybe second to gluten and sugar [TS]

00:04:12 ◼   ► um but no and keep in mind I was a [TS]

00:04:15 ◼   ► vegetarian for many years and I would I [TS]

00:04:17 ◼   ► still never ate a Tofurky alright me [TS]

00:04:20 ◼   ► neither but alright just trying to put [TS]

00:04:23 ◼   ► some boundaries on your mm-hmm food [TS]

00:04:26 ◼   ► tastes good free [TS]

00:04:27 ◼   ► so you're ready to start I thought we [TS]

00:04:29 ◼   ► had well you know start start yeah so [TS]

00:04:33 ◼   ► well I'm definitely ready then all right [TS]

00:04:35 ◼   ► considering I thought that we had [TS]

00:04:36 ◼   ► started and in fact we had not started [TS]

00:04:38 ◼   ► then I would definitely say Murray this [TS]

00:04:40 ◼   ► this ain't no back to work [TS]

00:04:41 ◼   ► it's not like we start and then we [TS]

00:04:42 ◼   ► started and we really start the show [TS]

00:04:44 ◼   ► gets better as that show goes on and we [TS]

00:04:46 ◼   ► need the problem is you get a warm [TS]

00:04:47 ◼   ► Merlin up he ki he starts cold and he [TS]

00:04:49 ◼   ► thinks he's doing you know he thinks [TS]

00:04:51 ◼   ► he's doing all right and then you [TS]

00:04:53 ◼   ► compare that to 20 minutes later he's on [TS]

00:04:55 ◼   ► fire you start out and you're pretty [TS]

00:04:58 ◼   ► much level-headed the whole way through [TS]

00:04:59 ◼   ► or whatever the equivalent of that is [TS]

00:05:01 ◼   ► for you all right [TS]

00:05:03 ◼   ► then we have two small items that follow [TS]

00:05:06 ◼   ► up the best and worst kind of follow up [TS]

00:05:09 ◼   ► what is the best numbers kind of follow [TS]

00:05:10 ◼   ► it was the best of follow ups it was the [TS]

00:05:12 ◼   ► worst of follow ups yeah [TS]

00:05:14 ◼   ► it's pronunciation follow up oh it is [TS]

00:05:17 ◼   ► the worst probably it's always the worst [TS]

00:05:19 ◼   ► if you don't care about these things but [TS]

00:05:20 ◼   ► it's also the best okay all right so I [TS]

00:05:24 ◼   ► don't even know why this is in my notes [TS]

00:05:25 ◼   ► here but it is so I assume I said the [TS]

00:05:27 ◼   ► name of a burner VI ng e the science [TS]

00:05:32 ◼   ► fiction author that I say that on the [TS]

00:05:33 ◼   ► show at any point hmm it seems like the [TS]

00:05:39 ◼   ► only reason I can imagine it would be in [TS]

00:05:41 ◼   ► my notes is that I settled on this show [TS]

00:05:43 ◼   ► well anyway it's in my notes so I'm [TS]

00:05:45 ◼   ► going to go to so that science fiction [TS]

00:05:47 ◼   ► author girl in a fan of his last name [TS]

00:05:49 ◼   ► spelled VI ng E is apparently pronounced [TS]

00:05:52 ◼   ► vinji and not Vinge Blanche said in my [TS]

00:05:58 ◼   ► head through my entire life and many [TS]

00:06:00 ◼   ► times out loud VI ng is VIN G I've got [TS]

00:06:04 ◼   ► that like secondhand from people who [TS]

00:06:07 ◼   ► have talked to the man himself and [TS]

00:06:09 ◼   ► millions all the people who are also [TS]

00:06:11 ◼   ► convinced that's the way you say his [TS]

00:06:12 ◼   ► name because they probably heard him [TS]

00:06:13 ◼   ► talk or seen a pronunciation guide or [TS]

00:06:15 ◼   ► read it on Wikipedia but ever vinji that [TS]

00:06:17 ◼   ► kind of blew my mind because it was a [TS]

00:06:19 ◼   ► one name I didn't think I was [TS]

00:06:20 ◼   ► mispronouncing but apparently I was and [TS]

00:06:23 ◼   ► the next one that I know I did mention [TS]

00:06:25 ◼   ► on this show a couple of times and [TS]

00:06:27 ◼   ► someone I felt compelled to write in [TS]

00:06:30 ◼   ► after hearing it on multiple shows marry [TS]

00:06:31 ◼   ► me mangle it is the video game [TS]

00:06:33 ◼   ► originally a PlayStation 2 video game [TS]

00:06:35 ◼   ► and now remastered for the PlayStation 3 [TS]

00:06:37 ◼   ► the name of the game is spelled ICO [TS]

00:06:40 ◼   ► and I've always been pronouncing that as [TS]

00:06:43 ◼   ► ICO I don't know why I've chosen to [TS]

00:06:46 ◼   ► pronounce it that way but that's just [TS]

00:06:47 ◼   ► the way keep No [TS]

00:06:50 ◼   ► I've been saying it apparently that's [TS]

00:06:51 ◼   ► wrong well this is from Alex montine I'm [TS]

00:06:56 ◼   ► sorry Alex if I'm mispronouncing your [TS]

00:06:57 ◼   ► name mu n tean and he didn't really [TS]

00:07:01 ◼   ► clarify if he lives in Japan speaks [TS]

00:07:04 ◼   ► Japanese or just learned it or whatever [TS]

00:07:06 ◼   ► but apparently the name in on the [TS]

00:07:10 ◼   ► Japanese game is two characters and [TS]

00:07:11 ◼   ► first character is pronounced like a [TS]

00:07:14 ◼   ► like the letter e like E and the second [TS]

00:07:16 ◼   ► character is pronounced ko so it should [TS]

00:07:18 ◼   ► be eco not Aiko and what he says about [TS]

00:07:22 ◼   ► it is uh in Japanese it's a made-up word [TS]

00:07:24 ◼   ► as far as he knows it says it doesn't [TS]

00:07:26 ◼   ► have any meaning that's why it's written [TS]

00:07:27 ◼   ► in katakana which is the sole very used [TS]

00:07:30 ◼   ► for most foreign names or loan words and [TS]

00:07:33 ◼   ► Japanese this I think is a couple of [TS]

00:07:34 ◼   ► phonetic alphabets but katakana is one [TS]

00:07:36 ◼   ► of them and there's one pronunciation [TS]

00:07:37 ◼   ► for each symbol no matter what the [TS]

00:07:39 ◼   ► context so it's not like English where [TS]

00:07:41 ◼   ► the same letters can be pronounced [TS]

00:07:42 ◼   ► twenty different ways depending on where [TS]

00:07:44 ◼   ► they are completely silent or whatever [TS]

00:07:45 ◼   ► it's so it's very clear in Japanese [TS]

00:07:47 ◼   ► these doing ours it's eco instead of [TS]

00:07:48 ◼   ► Eiko now I still am unsure what the game [TS]

00:07:54 ◼   ► manufacturer Sony or whatever intends [TS]

00:07:56 ◼   ► for the American pronunciation of this [TS]

00:07:58 ◼   ► game today clearly this is what the game [TS]

00:07:59 ◼   ► should be called in Japanese but there [TS]

00:08:00 ◼   ► are many cases where words in English [TS]

00:08:04 ◼   ► eventually have different pronunciations [TS]

00:08:06 ◼   ► in the words and other languages and [TS]

00:08:07 ◼   ► even for products they they will say [TS]

00:08:09 ◼   ► well you know even though this is how [TS]

00:08:11 ◼   ► you pronounce it if you're pronouncing [TS]

00:08:12 ◼   ► your name correctly in French or in [TS]

00:08:14 ◼   ► Japanese or whatever in English the [TS]

00:08:15 ◼   ► pronunciation is different [TS]

00:08:16 ◼   ► ah but it's really difficult to find an [TS]

00:08:19 ◼   ► authoritative source it like who'd you [TS]

00:08:20 ◼   ► ask would you ask the game developers [TS]

00:08:22 ◼   ► well they're all Japanese they don't [TS]

00:08:24 ◼   ► really care how the game is pronounced [TS]

00:08:25 ◼   ► in their country would you ask Sony [TS]

00:08:27 ◼   ► itself maybe they have an official [TS]

00:08:29 ◼   ► pronunciation I don't know uh so anyway [TS]

00:08:32 ◼   ► I I will assume that Eco is the correct [TS]

00:08:35 ◼   ► pronunciation I'm not sure I will be [TS]

00:08:37 ◼   ► able to stop myself from saying Aiko ah [TS]

00:08:39 ◼   ► I'll have to help to sleep on that for a [TS]

00:08:41 ◼   ► while and decide we're going to go [TS]

00:08:44 ◼   ► that's it for my follow-up to [TS]

00:08:47 ◼   ► pronunciation topics yeah I really [TS]

00:08:52 ◼   ► looked through them like this is really [TS]

00:08:53 ◼   ► all to follow up I have I [TS]

00:08:54 ◼   ► really have I think these thieves AUB's [TS]

00:08:56 ◼   ► bio life discussion expunged a lot of [TS]

00:09:00 ◼   ► fault I think maybe I have a few other [TS]

00:09:03 ◼   ► items that are related that aren't [TS]

00:09:04 ◼   ► really follow up but they're just like [TS]

00:09:05 ◼   ► reader mail or reader questions that I [TS]

00:09:07 ◼   ► could use to spawn other topics but [TS]

00:09:10 ◼   ► that's not gonna be today today do [TS]

00:09:12 ◼   ► remember what our topic is going to be [TS]

00:09:13 ◼   ► today can you have any guesses hmm nope [TS]

00:09:19 ◼   ► from a long time ago Microsoft again [TS]

00:09:24 ◼   ► yeah I'll talk about what else Microsoft [TS]

00:09:26 ◼   ► those how did we get off of that I think [TS]

00:09:29 ◼   ► the bio came a bio cannon I was there [TS]

00:09:31 ◼   ► was two episodes honey before that we [TS]

00:09:34 ◼   ► were off track on something anyway we're [TS]

00:09:38 ◼   ► finally wrapping around to it my notes [TS]

00:09:39 ◼   ► from a month ago are still here uh and [TS]

00:09:43 ◼   ► interestingly when I was gathering stuff [TS]

00:09:46 ◼   ► up for it I was reading an article [TS]

00:09:47 ◼   ► yesterday there was a article that was [TS]

00:09:50 ◼   ► published on the 19th that is a good way [TS]

00:09:53 ◼   ► to sort of enter in on this topic an [TS]

00:09:56 ◼   ► article didn't exist when I originally [TS]

00:09:57 ◼   ► made my notes but I just add to them so [TS]

00:09:59 ◼   ► this is an article in Forbes magazine by [TS]

00:10:01 ◼   ► Steve Denning and it's an article about [TS]

00:10:05 ◼   ► why companies die and it yeah it's a [TS]

00:10:09 ◼   ► quote it's quoting from Peggy Noonan who [TS]

00:10:12 ◼   ► I don't know but uh and then she's [TS]

00:10:15 ◼   ► quoting from the jobs bio and then Steve [TS]

00:10:17 ◼   ► Denning the author of this article is [TS]

00:10:19 ◼   ► talking about both of those things and I [TS]

00:10:21 ◼   ► assume also promoting his book which is [TS]

00:10:24 ◼   ► called radical management which I'm [TS]

00:10:26 ◼   ► missioning ties into all this so the [TS]

00:10:29 ◼   ► quote from jobs this is from the bio I [TS]

00:10:32 ◼   ► know I know I said I'm a Microsoft we'll [TS]

00:10:33 ◼   ► get into the jobs bio but trust me as [TS]

00:10:35 ◼   ► well as we'll go somewhere this is a [TS]

00:10:38 ◼   ► quote from jobs from the bio it says how [TS]

00:10:40 ◼   ► companies die or how they decline or [TS]

00:10:42 ◼   ► whatever the company does a great job [TS]

00:10:44 ◼   ► innovates and becomes a monopoly or [TS]

00:10:45 ◼   ► close to it in some field and then the [TS]

00:10:47 ◼   ► quality of the product becomes less [TS]

00:10:48 ◼   ► important the company starts valuing [TS]

00:10:50 ◼   ► great salesmen because they're the ones [TS]

00:10:52 ◼   ► who can move the needle on revenues and [TS]

00:10:53 ◼   ► move the needle is CEO speak for you [TS]

00:10:58 ◼   ► know you say you've got a monopoly in [TS]

00:11:00 ◼   ► your field and what companies and wall [TS]

00:11:03 ◼   ► street want to see is you need to be [TS]

00:11:05 ◼   ► constantly growing so once you're [TS]

00:11:06 ◼   ► selling like 90 [TS]

00:11:07 ◼   ► five percent of the customers it's much [TS]

00:11:09 ◼   ► more difficult to have the next quarter [TS]

00:11:11 ◼   ► be like double this quarter or ten [TS]

00:11:13 ◼   ► percent of audience moving the needle is [TS]

00:11:14 ◼   ► like how can you how can you show an [TS]

00:11:17 ◼   ► improvement in our financial results how [TS]

00:11:19 ◼   ► can you show that our company is doing [TS]

00:11:20 ◼   ► better than it did last quarter once [TS]

00:11:22 ◼   ► you've saturated the market the way you [TS]

00:11:24 ◼   ► can get those last percent is you know [TS]

00:11:26 ◼   ► is the the company starts hinging on [TS]

00:11:29 ◼   ► sales people because then you need like [TS]

00:11:30 ◼   ► salesmen to sell those last percentages [TS]

00:11:32 ◼   ► you really just make sure you keep [TS]

00:11:33 ◼   ► reselling and re upping those contracts [TS]

00:11:35 ◼   ► for whatever it is that your company has [TS]

00:11:37 ◼   ► a monopoly for and Steve Denning [TS]

00:11:41 ◼   ► commenting on this he says in the [TS]

00:11:42 ◼   ► article it's not just the salesmen it's [TS]

00:11:44 ◼   ► also the accountants in the money men [TS]

00:11:45 ◼   ► who who searched the firm high and low [TS]

00:11:47 ◼   ► to find new and ingenious ways to cut [TS]

00:11:48 ◼   ► costs or even eliminate paying taxes the [TS]

00:11:51 ◼   ► activities of these people further [TS]

00:11:52 ◼   ► dispute the creators the product [TS]

00:11:54 ◼   ► engineers and designers and also crimps [TS]

00:11:55 ◼   ► the firm's ability to add value to its [TS]

00:11:57 ◼   ► customers but because the accountants [TS]

00:11:59 ◼   ► appear to be adding to the firm's short [TS]

00:12:00 ◼   ► term profitability as a class they're [TS]

00:12:02 ◼   ► also celebrated and well rewarded even [TS]

00:12:04 ◼   ► as their activities systematically kill [TS]

00:12:06 ◼   ► the firm's future so this is same the [TS]

00:12:07 ◼   ► money men like how can how can we show [TS]

00:12:09 ◼   ► better results well we're already [TS]

00:12:11 ◼   ► selling everybody we can possibly sell [TS]

00:12:12 ◼   ► to let CEO in cut costs let's say we can [TS]

00:12:14 ◼   ► cut corners on our manufacturing let's [TS]

00:12:16 ◼   ► see how we can find a way you know two [TS]

00:12:17 ◼   ► tax shelters for our income and the [TS]

00:12:19 ◼   ► people who do this end up being rewarded [TS]

00:12:22 ◼   ► if it's like oh you know the salesman [TS]

00:12:23 ◼   ► the guys who are you know increasing our [TS]

00:12:26 ◼   ► revenues each quarter and these money [TS]

00:12:29 ◼   ► guys and the accountants are finding [TS]

00:12:30 ◼   ► ways to increase our profits by lowering [TS]

00:12:31 ◼   ► our cost right so becomes like this [TS]

00:12:34 ◼   ► weird numbers game uh and Denning calls [TS]

00:12:36 ◼   ► this playing defense instead of playing [TS]

00:12:39 ◼   ► offense um and because he's saying any [TS]

00:12:42 ◼   ► article it's easier to milk the cash cow [TS]

00:12:43 ◼   ► than to add new value so you're saying [TS]

00:12:45 ◼   ► well why don't you know so say you get a [TS]

00:12:47 ◼   ► monopoly in one market why is the [TS]

00:12:48 ◼   ► strategy then to do all this stuff to [TS]

00:12:52 ◼   ► you know uh find get the sales people [TS]

00:12:55 ◼   ► really cranking to make sure you don't [TS]

00:12:56 ◼   ► lose any of the ground you have and [TS]

00:12:57 ◼   ► renew those contracts and try to get a [TS]

00:12:59 ◼   ► little bit more money out of each person [TS]

00:13:00 ◼   ► each contract and have the accountants [TS]

00:13:02 ◼   ► figure out how to lower your cost [TS]

00:13:03 ◼   ► because that'll increase your profit [TS]

00:13:04 ◼   ► margins just little by little and then [TS]

00:13:05 ◼   ► reward those people for doing it but [TS]

00:13:06 ◼   ► that's defense it saying you know oh we [TS]

00:13:08 ◼   ► got this we've got this thing we've got [TS]

00:13:09 ◼   ► a good thing going here we've got it a [TS]

00:13:10 ◼   ► near-monopoly in this market we just got [TS]

00:13:12 ◼   ► to hold on to it that's playing defense [TS]

00:13:14 ◼   ► instead of playing offense which is [TS]

00:13:15 ◼   ► alright that's great we did this thing [TS]

00:13:17 ◼   ► we're dominant and whatever what are we [TS]

00:13:18 ◼   ► gonna do next and that's much harder and [TS]

00:13:21 ◼   ► or scary I've talked about this before [TS]

00:13:22 ◼   ► as the most important lesson of Steve [TS]

00:13:24 ◼   ► Jobs that you know he showed the large [TS]

00:13:26 ◼   ► companies don't have to be you know [TS]

00:13:29 ◼   ► don't have to play defense don't have to [TS]

00:13:31 ◼   ► be beholding to shareholders in Wall [TS]

00:13:33 ◼   ► Street and just do the the defensive [TS]

00:13:35 ◼   ► things and at the very end of this thing [TS]

00:13:40 ◼   ► they were talking about why it's easier [TS]

00:13:42 ◼   ► to it's more difficult to add value than [TS]

00:13:44 ◼   ► to have cost another reason he lists is [TS]

00:13:47 ◼   ► that these executives have found ways to [TS]

00:13:49 ◼   ► reward themselves lavishly as Upton [TS]

00:13:52 ◼   ► Sinclair noted it's difficult to get a [TS]

00:13:53 ◼   ► man to understand something when his [TS]

00:13:54 ◼   ► salary depends on his not understanding [TS]

00:13:56 ◼   ► it so this is just the worst of the [TS]

00:13:58 ◼   ► worst where the company starts playing [TS]

00:14:00 ◼   ► defense the people who get rewarded our [TS]

00:14:02 ◼   ► salespeople and accountants and all the [TS]

00:14:05 ◼   ► rewards they reap instead of being [TS]

00:14:07 ◼   ► folded back into the company because I [TS]

00:14:08 ◼   ► wouldn't you know what if the company [TS]

00:14:09 ◼   ► need money for we already know we're [TS]

00:14:10 ◼   ► doing we have a monopoly in this market [TS]

00:14:11 ◼   ► or whatever we don't need any money on [TS]

00:14:13 ◼   ► R&D or to make new products or whatever [TS]

00:14:15 ◼   ► let's just reward ourselves big bonuses [TS]

00:14:17 ◼   ► pay off the salespeople you know it [TS]

00:14:19 ◼   ► becomes a little Club where this company [TS]

00:14:22 ◼   ► with a monopoly in a field becomes a way [TS]

00:14:23 ◼   ► to make a small number of people very [TS]

00:14:25 ◼   ► rich for simply maintaining that [TS]

00:14:27 ◼   ► monopoly but that's really the worst of [TS]

00:14:28 ◼   ► the worst [TS]

00:14:29 ◼   ► that's the ultimate sickness of a [TS]

00:14:31 ◼   ► corporation right so we're going to talk [TS]

00:14:34 ◼   ► about what what ails Microsoft obviously [TS]

00:14:39 ◼   ► I'm leading into this because I think [TS]

00:14:41 ◼   ► the what ails Microsoft is they well [TS]

00:14:44 ◼   ► it's not as simple as saying they start [TS]

00:14:45 ◼   ► playing defense but the similarities to [TS]

00:14:47 ◼   ► this article this article which by the [TS]

00:14:49 ◼   ► way I don't think even mentions [TS]

00:14:50 ◼   ► Microsoft it mentioned like Xerox and [TS]

00:14:52 ◼   ► IBM and other companies that as the [TS]

00:14:53 ◼   ► example set of companies this so [TS]

00:14:56 ◼   ► Microsoft did get a near monopoly on a [TS]

00:14:59 ◼   ► market or a government certified [TS]

00:15:00 ◼   ► monopoly if you want to put it that way [TS]

00:15:02 ◼   ► in the United States on the desktop [TS]

00:15:04 ◼   ► computing market but did they start [TS]

00:15:08 ◼   ► playing defense I it can be argued that [TS]

00:15:11 ◼   ► Microsoft has Microsoft could have [TS]

00:15:14 ◼   ► written this article and say yes we're [TS]

00:15:15 ◼   ► aware of all these things we know that [TS]

00:15:17 ◼   ► we can't just defend we have to play [TS]

00:15:19 ◼   ► offense we have to try to enter new [TS]

00:15:20 ◼   ► markets we have to do all these things [TS]

00:15:21 ◼   ► right so the internet tidal wave memo [TS]

00:15:25 ◼   ► where Gates it was it came to realize [TS]

00:15:30 ◼   ► through the input of his subordinates [TS]

00:15:32 ◼   ► and stuff and just looking around that [TS]

00:15:33 ◼   ► the internet was a big deal [TS]

00:15:34 ◼   ► we just really need to turn this whole [TS]

00:15:35 ◼   ► company around and and get on this [TS]

00:15:37 ◼   ► internet thing everything has to be [TS]

00:15:38 ◼   ► about the internet and just you know [TS]

00:15:40 ◼   ► let's take this big company and turn it [TS]

00:15:41 ◼   ► and he was the big CEO and he made it [TS]

00:15:43 ◼   ► happen and he crushed Netscape which I'm [TS]

00:15:45 ◼   ► assuming he considered a victory not [TS]

00:15:46 ◼   ► perhaps not understanding a crushing [TS]

00:15:48 ◼   ► Netscape is not the same as defeating [TS]

00:15:51 ◼   ► the internet or becoming savvy on the [TS]

00:15:53 ◼   ► internet they created msn which the [TS]

00:15:55 ◼   ► money-loser for years because i thought [TS]

00:15:56 ◼   ► they were fighting AOL AOL wasn't a real [TS]

00:15:58 ◼   ► enemy to fight like Microsoft has been [TS]

00:15:59 ◼   ► trying to it hasn't said oh we're not [TS]

00:16:02 ◼   ► going to endure the Internet we're not [TS]

00:16:04 ◼   ► going to try to have an online service [TS]

00:16:05 ◼   ► and we're not going to be into web [TS]

00:16:06 ◼   ► browsers they've been trying to not be [TS]

00:16:08 ◼   ► defensive so you can't pin the the [TS]

00:16:12 ◼   ► sickness describe nazar I'll go exactly [TS]

00:16:14 ◼   ► on them in that regard and the Xbox and [TS]

00:16:17 ◼   ► stuff like that someone inside the [TS]

00:16:18 ◼   ► company says hey I think we should make [TS]

00:16:19 ◼   ► game consoles because that might be the [TS]

00:16:20 ◼   ► future of computing because it's all [TS]

00:16:22 ◼   ► about owning the living room and we have [TS]

00:16:24 ◼   ► the technology to get into that business [TS]

00:16:26 ◼   ► and we have PC games let's see if we can [TS]

00:16:27 ◼   ► adapt that to the Xbox and they lost [TS]

00:16:29 ◼   ► billions of billions of dollars over [TS]

00:16:31 ◼   ► many years but certainly you can't say [TS]

00:16:32 ◼   ► the Xbox is the case of them playing [TS]

00:16:34 ◼   ► defense right they are playing offense [TS]

00:16:36 ◼   ► this is just not doing a good job of it [TS]

00:16:39 ◼   ► all right the in many cases they chose [TS]

00:16:42 ◼   ► the wrong enemy or they spent a lot of [TS]

00:16:44 ◼   ► money and were never successful in the [TS]

00:16:45 ◼   ► case of msn like that's combination they [TS]

00:16:48 ◼   ► all they chose the wrong enemy and they [TS]

00:16:49 ◼   ► never really defeated enemy the enemy [TS]

00:16:50 ◼   ► died of its own natural causes all the [TS]

00:16:53 ◼   ► while they just lost money trying to [TS]

00:16:55 ◼   ► attack it so how do I think this relates [TS]

00:16:59 ◼   ► to what what I think Microsoft problem [TS]

00:17:02 ◼   ► is the problem is not so much that they [TS]

00:17:06 ◼   ► were going to be on defense all the time [TS]

00:17:09 ◼   ► but guys just defend everything we have [TS]

00:17:11 ◼   ► the problem is that all their offensive [TS]

00:17:16 ◼   ► strategies in terms of like how we're [TS]

00:17:19 ◼   ► going to break into a new market how we [TS]

00:17:20 ◼   ► have to react to a threat so on and so [TS]

00:17:21 ◼   ► forth that was all well and good but [TS]

00:17:24 ◼   ► they were a big enough company they said [TS]

00:17:26 ◼   ► while we do these offensive things oh [TS]

00:17:28 ◼   ► and by the way we certainly can't do [TS]

00:17:30 ◼   ► anything to lose what we've built right [TS]

00:17:32 ◼   ► so they did all this offensive stuff but [TS]

00:17:35 ◼   ► it was just a given that we must also [TS]

00:17:37 ◼   ► protect windows in office which are [TS]

00:17:38 ◼   ► their two big moneymakers obviously we [TS]

00:17:41 ◼   ► will continue to protect them and we [TS]

00:17:42 ◼   ► will you know go off on these new [TS]

00:17:43 ◼   ► initiatives and try to do you know all [TS]

00:17:45 ◼   ► these different things and try to work [TS]

00:17:46 ◼   ► on a tablet computer and [TS]

00:17:47 ◼   ► you know get into the gaming market in [TS]

00:17:49 ◼   ► the online market and make a web browser [TS]

00:17:50 ◼   ► you know but of course you know windows [TS]

00:17:52 ◼   ► and office movie protected at all cost [TS]

00:17:55 ◼   ► and so that's that's different than the [TS]

00:18:00 ◼   ► Apple strategy which is go off and do [TS]

00:18:02 ◼   ► the new thing and if the new thing [TS]

00:18:04 ◼   ► totally destroys the old thing so be it [TS]

00:18:06 ◼   ► so the example that would be the iPhone [TS]

00:18:09 ◼   ► where the iPhone and iOS initiatives [TS]

00:18:13 ◼   ► were launched at a time when the iPod [TS]

00:18:16 ◼   ► was a huge percentage of Apple's [TS]

00:18:17 ◼   ► revenues and they were dominant in the [TS]

00:18:19 ◼   ► music player market and they didn't say [TS]

00:18:21 ◼   ► well we're going to make this new iOS [TS]

00:18:22 ◼   ► thing but of course we have to do [TS]

00:18:24 ◼   ► everything we can to defend our 70% or [TS]

00:18:26 ◼   ► whatever it was market share in the [TS]

00:18:28 ◼   ► music player market of course we need to [TS]

00:18:30 ◼   ► defend that they said look the our iPod [TS]

00:18:33 ◼   ► market share revenues profit everything [TS]

00:18:35 ◼   ► about it is going to start going down [TS]

00:18:36 ◼   ► and that's okay as long as we're the one [TS]

00:18:39 ◼   ► cannibalizing ourselves so they didn't [TS]

00:18:41 ◼   ► do all sorts of bending over backwards [TS]

00:18:43 ◼   ► and shenanigans to make sure their iPod [TS]

00:18:45 ◼   ► you know revenues and sales and market [TS]

00:18:47 ◼   ► share to stay exactly as it was and [TS]

00:18:49 ◼   ► tried to grow and just defend it to [TS]

00:18:50 ◼   ► death they said like if it dies dies of [TS]

00:18:52 ◼   ► natural causes so be it the world has [TS]

00:18:53 ◼   ► moved on it used to be the music players [TS]

00:18:56 ◼   ► where where it was at now that a lot of [TS]

00:18:57 ◼   ► that stuff is being subsumed into cell [TS]

00:18:59 ◼   ► phones and that's what we're going to be [TS]

00:19:00 ◼   ► next [TS]

00:19:01 ◼   ► Microsoft has never done that Microsoft [TS]

00:19:03 ◼   ► has never said we are going to do this [TS]

00:19:05 ◼   ► game console initiative and we think [TS]

00:19:09 ◼   ► that the game console is going to be the [TS]

00:19:11 ◼   ► platform of the future and the PC is not [TS]

00:19:13 ◼   ► so we expect game console revenue and [TS]

00:19:16 ◼   ► profits and sales and everything to go [TS]

00:19:18 ◼   ► up and we expect PC sales to go down so [TS]

00:19:21 ◼   ► we're going to start we're going to [TS]

00:19:22 ◼   ► start cannibalizing our own PC business [TS]

00:19:23 ◼   ► by like selling people Microsoft Word [TS]

00:19:25 ◼   ► and Xbox it's now this is a silly [TS]

00:19:26 ◼   ► example obviously but I'm just saying [TS]

00:19:27 ◼   ► like giving an example of a product that [TS]

00:19:29 ◼   ► that Microsoft did produce they would [TS]

00:19:33 ◼   ► never allow it to do things that hurt [TS]

00:19:36 ◼   ► its other businesses so that's what [TS]

00:19:39 ◼   ► that's the thing I have my notes here is [TS]

00:19:41 ◼   ► that Microsoft has been defined by the [TS]

00:19:42 ◼   ► fear of losing what it's built all right [TS]

00:19:45 ◼   ► they they are afraid of losing that big [TS]

00:19:49 ◼   ► thing they built which is dominant to [TS]

00:19:51 ◼   ► the desktop operating system ah [TS]

00:19:54 ◼   ► either that or they've never they've [TS]

00:19:56 ◼   ► never produced anything they thought [TS]

00:19:58 ◼   ► potentially could cannibalize their [TS]

00:20:00 ◼   ► existing [TS]

00:20:01 ◼   ► business-like you say well the Xbox's is [TS]

00:20:03 ◼   ► an example what do they make that could [TS]

00:20:05 ◼   ► possibly cannibalize their existing [TS]

00:20:07 ◼   ► business maybe they've only introduced [TS]

00:20:08 ◼   ► products which were not natural [TS]

00:20:09 ◼   ► replacements for this top pcs of course [TS]

00:20:11 ◼   ► the desktop PC has been defended because [TS]

00:20:13 ◼   ► they're defending against other [TS]

00:20:14 ◼   ► competitors not against themselves some [TS]

00:20:16 ◼   ► of the chatroom said that the Xbox [TS]

00:20:19 ◼   ► cannibalize the gaming PC Microsoft [TS]

00:20:23 ◼   ► never makes money on the gaming PC ATI [TS]

00:20:26 ◼   ► and NVIDIA perhaps made their money on [TS]

00:20:27 ◼   ► the gaming PC by selling high-end video [TS]

00:20:29 ◼   ► cards at large profit involvement [TS]

00:20:30 ◼   ► margins but that wasn't making Microsoft [TS]

00:20:32 ◼   ► any money if you played games on your PC [TS]

00:20:35 ◼   ► which you can continue to do so [TS]

00:20:36 ◼   ► Microsoft makes money on its windows [TS]

00:20:37 ◼   ► licenses and the next part I'm going to [TS]

00:20:39 ◼   ► get to is what Microsoft mostly makes [TS]

00:20:40 ◼   ► aware though I read no coming from it's [TS]

00:20:42 ◼   ► not coming from individual PC gamers [TS]

00:20:44 ◼   ► buying Windows computers for their house [TS]

00:20:47 ◼   ► Microsoft's cash cows very quickly got [TS]

00:20:49 ◼   ► tied up into what I call Enterprise [TS]

00:20:51 ◼   ► entanglements where you sign large [TS]

00:20:52 ◼   ► numbers of computers to corporations you [TS]

00:20:55 ◼   ► want to sell them licenses for exchange [TS]

00:20:57 ◼   ► server for sequel server you want to [TS]

00:20:58 ◼   ► sell them the dev tools over the making [TS]

00:20:59 ◼   ► stuff and you want to sell them a [TS]

00:21:00 ◼   ► license for Windows for every single [TS]

00:21:02 ◼   ► desktop in this huge thousand two [TS]

00:21:04 ◼   ► thousand three thousand person huge [TS]

00:21:06 ◼   ► company they thought they sold Windows [TS]

00:21:08 ◼   ► in office to corporations and yes home [TS]

00:21:11 ◼   ► users buy Windows in office too but [TS]

00:21:12 ◼   ► that's not really a regular recurring [TS]

00:21:15 ◼   ► revenue where you get subscriptions and [TS]

00:21:16 ◼   ► really like that server software with [TS]

00:21:18 ◼   ► the exchange licensing it used to be [TS]

00:21:19 ◼   ► Pursey licensing for like you know the [TS]

00:21:21 ◼   ► Windows NT server and the desktops and [TS]

00:21:23 ◼   ► all that stuff that's where the big [TS]

00:21:24 ◼   ► money is because then you get you know [TS]

00:21:26 ◼   ► that you you can't get that kind of [TS]

00:21:28 ◼   ► money out of interval consumers yes they [TS]

00:21:29 ◼   ► have that the scale for consumers and [TS]

00:21:32 ◼   ► they get this you know whatever they get [TS]

00:21:33 ◼   ► 10 20 30 bucks for each Windows license [TS]

00:21:36 ◼   ► attached to a PC that's sold but they [TS]

00:21:38 ◼   ► really want that that enterprise income [TS]

00:21:40 ◼   ► in that tight relationship between [TS]

00:21:42 ◼   ► Microsoft and the enterprise created the [TS]

00:21:45 ◼   ► situation where Microsoft was willing to [TS]

00:21:49 ◼   ► listen to what the enterprise wanted [TS]

00:21:50 ◼   ► that's why enterprise love them [TS]

00:21:51 ◼   ► enterprise love the fact that they could [TS]

00:21:52 ◼   ► buy soft hardware from different vendors [TS]

00:21:54 ◼   ► and pit them against each other and and [TS]

00:21:55 ◼   ► they would talk to microphone and say we [TS]

00:21:57 ◼   ► really want to know we really want this [TS]

00:21:59 ◼   ► feature and that feature and we want to [TS]

00:22:01 ◼   ► be able to do remote deployments is the [TS]

00:22:02 ◼   ► IT department talking to Microsoft not [TS]

00:22:04 ◼   ► the individual people using computers [TS]

00:22:06 ◼   ► and corporations obviously ID Department [TS]

00:22:08 ◼   ► we want centralized control of you know [TS]

00:22:11 ◼   ► software installation we want to be able [TS]

00:22:12 ◼   ► to control [TS]

00:22:14 ◼   ► the internet explorer installations and [TS]

00:22:16 ◼   ► say but this set the security policies [TS]

00:22:18 ◼   ► for them then we want to be able to [TS]

00:22:20 ◼   ► remote update them to new versions and [TS]

00:22:23 ◼   ► just everything the enterprise wanted [TS]

00:22:25 ◼   ► for them we want an exchange server with [TS]

00:22:26 ◼   ► centralized control over the the all the [TS]

00:22:28 ◼   ► phones we put out so that if someone [TS]

00:22:31 ◼   ► connects to an exchange server with [TS]

00:22:32 ◼   ► their mobile phone we want to force them [TS]

00:22:33 ◼   ► to have a keypad entry coded on their [TS]

00:22:36 ◼   ► phone so their phone is locked and all [TS]

00:22:37 ◼   ► that business that relationship between [TS]

00:22:40 ◼   ► Microsoft and the enterprise made it so [TS]

00:22:44 ◼   ► that the thing driving the development [TS]

00:22:47 ◼   ► of Windows wasn't individual consumers [TS]

00:22:50 ◼   ► at home and it wasn't even people [TS]

00:22:53 ◼   ► working in their desks and businesses [TS]

00:22:54 ◼   ► it was the IT department at the large [TS]

00:23:00 ◼   ► corporations right and so this is a [TS]

00:23:05 ◼   ► situation that Microsoft got itself into [TS]

00:23:06 ◼   ► its its most important cash cow is a [TS]

00:23:09 ◼   ► product being driven by someone other [TS]

00:23:13 ◼   ► than the end users and that that is [TS]

00:23:15 ◼   ► always death for your product quality if [TS]

00:23:18 ◼   ► your product is it you know what is [TS]

00:23:21 ◼   ► motivating your product development is [TS]

00:23:22 ◼   ► not the end users like what would the [TS]

00:23:24 ◼   ► end user like then right away you've got [TS]

00:23:26 ◼   ► a conflict of interest because you're [TS]

00:23:27 ◼   ► making things that people aren't going [TS]

00:23:28 ◼   ► to like but they're forced being forced [TS]

00:23:30 ◼   ► to use by the our IT department and now [TS]

00:23:34 ◼   ► Microsoft probably knew it was in this [TS]

00:23:37 ◼   ► situation what what the thing I want to [TS]

00:23:40 ◼   ► get into this the heart of what I'm [TS]

00:23:41 ◼   ► trying to get into in this podcast is [TS]

00:23:42 ◼   ► not so much where do they go wrong what [TS]

00:23:44 ◼   ► lessons do we can take for but like sort [TS]

00:23:47 ◼   ► of an alternate history [TS]

00:23:49 ◼   ► what could Microsoft's had done [TS]

00:23:50 ◼   ► differently what if you could go back in [TS]

00:23:53 ◼   ► time and explain to Microsoft how the [TS]

00:23:55 ◼   ► future is going to play out and they [TS]

00:23:58 ◼   ► believed you is all right well so what [TS]

00:24:00 ◼   ► do we do what do we do what could we do [TS]

00:24:02 ◼   ► that will prevent the present state of [TS]

00:24:05 ◼   ► Microsoft Word they've been knocked off [TS]

00:24:07 ◼   ► their perch is the biggest technology [TS]

00:24:08 ◼   ► company they say they're seemingly [TS]

00:24:10 ◼   ► irrelevant in so many businesses they're [TS]

00:24:12 ◼   ► the struggling to get into nubes you [TS]

00:24:14 ◼   ► know what can we do to prevent that from [TS]

00:24:16 ◼   ► happening and the thing I think about is [TS]

00:24:19 ◼   ► like well well how did Apple sort of [TS]

00:24:22 ◼   ► turn things around and it's not it's [TS]

00:24:25 ◼   ► nothing it's not a good scenario to [TS]

00:24:26 ◼   ► present to the market [TS]

00:24:27 ◼   ► I go back in time talk to the Microsoft [TS]

00:24:28 ◼   ► people and say well so here's what Apple [TS]

00:24:31 ◼   ► did Apple almost went out of business [TS]

00:24:34 ◼   ► laid off thousands of people lost tons [TS]

00:24:37 ◼   ► of money went through multiple CP o CEOs [TS]

00:24:40 ◼   ► uh em was supposedly 90 days from [TS]

00:24:43 ◼   ► bankruptcy all right and then they [TS]

00:24:46 ◼   ► brought back their old CEO or they [TS]

00:24:48 ◼   ► brought in this great guy Steve Jobs and [TS]

00:24:51 ◼   ► he fired more people and cut more [TS]

00:24:54 ◼   ► projects and and basically tore the [TS]

00:24:59 ◼   ► company down it's sort of like the [TS]

00:25:00 ◼   ► equivalent of an alcoholic hitting [TS]

00:25:01 ◼   ► bottom right and then he made it picked [TS]

00:25:05 ◼   ► like one or two you know simplified [TS]

00:25:07 ◼   ► everything removed tons of products [TS]

00:25:09 ◼   ► abandoned customers killed entire [TS]

00:25:11 ◼   ► platforms and then just picked one or [TS]

00:25:14 ◼   ► two special products he was going to pay [TS]

00:25:15 ◼   ► attention to like when sched with the [TS]

00:25:16 ◼   ► iMac and then I mentioned the iPod and [TS]

00:25:18 ◼   ► put all his is you know weight behind [TS]

00:25:20 ◼   ► those ah that doesn't sound like [TS]

00:25:23 ◼   ► something you could sell to Microsoft in [TS]

00:25:25 ◼   ► 1995 you know so but I think that was a [TS]

00:25:30 ◼   ► key to Apple success like Apple had the [TS]

00:25:32 ◼   ► luxury of slimming down to near death [TS]

00:25:35 ◼   ► sizes before Jobs came back and saved it [TS]

00:25:37 ◼   ► and he saved it by cutting even further [TS]

00:25:39 ◼   ► you can't tell Microsoft in 1995 what [TS]

00:25:44 ◼   ► you know what you have to do is destroy [TS]

00:25:46 ◼   ► your business and make it and make [TS]

00:25:49 ◼   ► yourself almost go bankrupt and destroy [TS]

00:25:51 ◼   ► all shareholder value and become like [TS]

00:25:53 ◼   ► falling off of the fortune 500 maybe [TS]

00:25:55 ◼   ► falling off the Fortune 1000 and then [TS]

00:25:57 ◼   ► finally you can you can get yourself in [TS]

00:25:59 ◼   ► position to be a success in a future [TS]

00:26:00 ◼   ► that's sort of a non-starter right ah [TS]

00:26:03 ◼   ► and I think I really do think that if [TS]

00:26:06 ◼   ► Jobs had come back to an Apple in like [TS]

00:26:11 ◼   ► 1990 or something where they were still [TS]

00:26:14 ◼   ► making lots of profits selling really [TS]

00:26:15 ◼   ► expensive Macintoshes it would have been [TS]

00:26:18 ◼   ► harder for him to have the success that [TS]

00:26:20 ◼   ► he had because you would have to then [TS]

00:26:21 ◼   ► convince everybody that we should stop [TS]

00:26:23 ◼   ► making all this money it's not hard to [TS]

00:26:24 ◼   ► convince everybody that we should stop [TS]

00:26:25 ◼   ► doing what we're doing because we're [TS]

00:26:26 ◼   ► having massive lawsuits if you come in [TS]

00:26:28 ◼   ► when the company's going down the tubes [TS]

00:26:29 ◼   ► and you're losing money left and right [TS]

00:26:31 ◼   ► if you have a strong idea what you [TS]

00:26:33 ◼   ► should do they'll be willing to do it [TS]

00:26:34 ◼   ► but if you're coming into a company [TS]

00:26:35 ◼   ► that's successful like a an apple in the [TS]

00:26:38 ◼   ► 90s or like a Microsoft in the mid-90s [TS]

00:26:41 ◼   ► still making tons of money you have to [TS]

00:26:43 ◼   ► be really convincing to come to to make [TS]

00:26:45 ◼   ► the company say I don't want to make [TS]

00:26:47 ◼   ► money that way I want to make money a [TS]

00:26:48 ◼   ► different way uh so here's here's the [TS]

00:26:54 ◼   ► key lack of will that I think Microsoft [TS]

00:26:57 ◼   ► the the key McKee mistaken reasoning [TS]

00:26:59 ◼   ► that Microsoft had no before before you [TS]

00:27:01 ◼   ► reveal that we get it I know I don't [TS]

00:27:03 ◼   ► like to interrupt you when you're on you [TS]

00:27:05 ◼   ► know you're on fire all right and if [TS]

00:27:06 ◼   ► we've got a do we get a pay some bills [TS]

00:27:08 ◼   ► are gonna do a sponsor but there's a [TS]

00:27:09 ◼   ► good one United pixel workers calm you [TS]

00:27:12 ◼   ► heard about this I have but I'm you need [TS]

00:27:15 ◼   ► to explain it to me because I don't know [TS]

00:27:16 ◼   ► what it is yet big name everywhere then [TS]

00:27:18 ◼   ► the name is everywhere and what these [TS]

00:27:20 ◼   ► guys do is periodically they come out [TS]

00:27:21 ◼   ► with some really cool t-shirts will get [TS]

00:27:23 ◼   ► you one I believe that they consider [TS]

00:27:26 ◼   ► Massachusetts to be a full-blown State [TS]

00:27:28 ◼   ► these days so they will they will make [TS]

00:27:31 ◼   ► one for this what it is is they have a [TS]

00:27:32 ◼   ► 50 states sale very very cool t-shirts [TS]

00:27:35 ◼   ► there they've done a special run all 50 [TS]

00:27:38 ◼   ► states and Washington DC and these are [TS]

00:27:41 ◼   ► really cool t-shirts that have the state [TS]

00:27:44 ◼   ► printed on them there are American [TS]

00:27:46 ◼   ► Apparel very high quality and they were [TS]

00:27:49 ◼   ► originally going to only do it through [TS]

00:27:51 ◼   ► this week and I said let's let's do a [TS]

00:27:53 ◼   ► special thing we'll do a discount for [TS]

00:27:56 ◼   ► 5x5 listeners and we'll extend the sale [TS]

00:28:00 ◼   ► for one more week they said well if we [TS]

00:28:01 ◼   ► do that we'll it'll be really stressful [TS]

00:28:03 ◼   ► for us to get it out for the holidays I [TS]

00:28:06 ◼   ► said well do you want to sell some [TS]

00:28:08 ◼   ► shirts or not and they said okay let's [TS]

00:28:09 ◼   ► do it so they're giving 10% off your [TS]

00:28:11 ◼   ► entire order use coupon code five by [TS]

00:28:13 ◼   ► five United pixel workers calm they also [TS]

00:28:16 ◼   ► have a hoodie but all these are printed [TS]

00:28:18 ◼   ► on the super soft American Apparel [TS]

00:28:20 ◼   ► things whatever your state is you go [TS]

00:28:22 ◼   ► there you pick Massachusetts and you [TS]

00:28:25 ◼   ► will get a Massachusetts shirt so that's [TS]

00:28:29 ◼   ► what it is United pixel workers calm 10% [TS]

00:28:31 ◼   ► off your order code five by five [TS]

00:28:33 ◼   ► don't be also have something where [TS]

00:28:36 ◼   ► internet celebrities like Mike Montero [TS]

00:28:39 ◼   ► do design their own shirts and yes yes [TS]

00:28:41 ◼   ► absolutely Mike Montero has done one I [TS]

00:28:44 ◼   ► think Zelda Minh has done one so people [TS]

00:28:45 ◼   ► like that [TS]

00:28:47 ◼   ► can can be recognized by their for their [TS]

00:28:50 ◼   ► talents and they will do special shirt [TS]

00:28:54 ◼   ► but right now they're on this bed but [TS]

00:28:55 ◼   ► here's the thing I should mention this [TS]

00:28:56 ◼   ► after this run the 50 states out there [TS]

00:28:59 ◼   ► gone that's what I was gonna say like if [TS]

00:29:00 ◼   ► you wanted to get the mic when Tara one [TS]

00:29:02 ◼   ► tough like that's gone right yeah that's [TS]

00:29:04 ◼   ► too bad so if you want if you want a 58 [TS]

00:29:07 ◼   ► shirt move now [TS]

00:29:08 ◼   ► it's not like they just have a stock of [TS]

00:29:10 ◼   ► these things and keep them around [TS]

00:29:11 ◼   ► forever right it is going to end [TS]

00:29:12 ◼   ► November 29 2011 that's a mere four days [TS]

00:29:15 ◼   ► from now at 11:00 a.m. is when it ends I [TS]

00:29:18 ◼   ► don't know why it it's 11:00 a.m. [TS]

00:29:19 ◼   ► Eastern Time but that's when it's over [TS]

00:29:21 ◼   ► so go get you go pick out your state and [TS]

00:29:23 ◼   ► if you want you can get all 50 states [TS]

00:29:26 ◼   ► and Washington DC and you'll still get [TS]

00:29:28 ◼   ► 10% a lot of t-shirts do you wear [TS]

00:29:32 ◼   ► t-shirts up there [TS]

00:29:33 ◼   ► I do we gotta get them to send you a [TS]

00:29:37 ◼   ► Massachusetts now here's the real [TS]

00:29:38 ◼   ► question I've asked everybody this this [TS]

00:29:39 ◼   ► this week but I want to ask you where [TS]

00:29:41 ◼   ► you were born and raised in is it Rhode [TS]

00:29:44 ◼   ► Island try again [TS]

00:29:46 ◼   ► not Massachusetts no it's not New York [TS]

00:29:50 ◼   ► State somewhere yes okay so would you [TS]

00:29:52 ◼   ► get New York State or would you get [TS]

00:29:54 ◼   ► Massachusetts or both if they had a Long [TS]

00:29:58 ◼   ► Island sure to get that just Long Island [TS]

00:30:00 ◼   ► you know the important part of New York [TS]

00:30:01 ◼   ► State but assuming they don't I mean I [TS]

00:30:03 ◼   ► had to get Massachusetts like that's [TS]

00:30:05 ◼   ► where I'm spending my adult life right [TS]

00:30:07 ◼   ► so even though I grew up in Long Island [TS]

00:30:09 ◼   ► in New York I would go with [TS]

00:30:11 ◼   ► Massachusetts shirt I think although [TS]

00:30:13 ◼   ► again having both wouldn't be bad either [TS]

00:30:14 ◼   ► well there is tempers enough but I'm [TS]

00:30:17 ◼   ► looking at the Massachusetts one it's [TS]

00:30:18 ◼   ► not bad [TS]

00:30:20 ◼   ► everybody loves pixels all right because [TS]

00:30:24 ◼   ► Marco was talking about something in his [TS]

00:30:25 ◼   ► show saying what upstate was and right [TS]

00:30:28 ◼   ► and he was saying that anything is north [TS]

00:30:31 ◼   ► of where you are in New York that's kind [TS]

00:30:33 ◼   ► of a a humorous way to describe it but I [TS]

00:30:37 ◼   ► think there's an actual definition of [TS]

00:30:38 ◼   ► what upstate is it does get fuzzy around [TS]

00:30:41 ◼   ► where he lives but basically it's easy [TS]

00:30:43 ◼   ► to find what upstate is not upstate is [TS]

00:30:45 ◼   ► not Long Island or the New York metro [TS]

00:30:47 ◼   ► area and where you draw the line at New [TS]

00:30:49 ◼   ► York metro area like how far north along [TS]

00:30:51 ◼   ► the Hudson do you go before you say okay [TS]

00:30:53 ◼   ► you're out of the New York metro area [TS]

00:30:54 ◼   ► there is some fuzz around there but it's [TS]

00:30:57 ◼   ► not that it's not that big of a fuzz [TS]

00:30:58 ◼   ► strip like [TS]

00:31:00 ◼   ► somewhere above Westchester around there [TS]

00:31:02 ◼   ► certain point that there's a lot the [TS]

00:31:04 ◼   ► line is somewhere in that fuzzy region [TS]

00:31:06 ◼   ► right but there's the whole rest of New [TS]

00:31:07 ◼   ► York and that's all upstate except for [TS]

00:31:10 ◼   ► Long Island and New York metro area so [TS]

00:31:13 ◼   ► here in Albany who says they're not [TS]

00:31:14 ◼   ► upstate that bed nation they're upstate [TS]

00:31:17 ◼   ► why is it bad to be upstate why's there [TS]

00:31:20 ◼   ► it's not bad it's just like you know [TS]

00:31:21 ◼   ► there is where is upstate upstate New [TS]

00:31:24 ◼   ► York or just saying upstate that's [TS]

00:31:26 ◼   ► that's where it is it seems like where [TS]

00:31:27 ◼   ► do you live I live in upstate New York [TS]

00:31:29 ◼   ► well we most people should know where [TS]

00:31:31 ◼   ► that is with some sort of fuzz around [TS]

00:31:33 ◼   ► you know where does the New York metro [TS]

00:31:35 ◼   ► area end as you go north Mountain Hudson [TS]

00:31:37 ◼   ► but certainly no one's going to think [TS]

00:31:39 ◼   ► you live in you know Staten Island Bronx [TS]

00:31:42 ◼   ► or Long Island if you live in upstate [TS]

00:31:44 ◼   ► New York but Albany is no ambiguity none [TS]

00:31:47 ◼   ► you know Buffalo anything like that's [TS]

00:31:49 ◼   ► upstate all right so where was I oh I [TS]

00:31:58 ◼   ► actually totally lost my train of [TS]

00:32:00 ◼   ► thought [TS]

00:32:00 ◼   ► I can even know where I wasn't a note [TS]

00:32:01 ◼   ► suppose what was I gonna say before the [TS]

00:32:03 ◼   ► break I was got so interested in these [TS]

00:32:05 ◼   ► t-shirts I did that's right nothing [TS]

00:32:07 ◼   ► they're distracted they're very [TS]

00:32:08 ◼   ► distracting uh well you were taught you [TS]

00:32:11 ◼   ► were about to reveal it was a big reveal [TS]

00:32:13 ◼   ► I remember that much there's a big [TS]

00:32:15 ◼   ► reveal you were gonna give it all away [TS]

00:32:16 ◼   ► this is the what you've been leading up [TS]

00:32:18 ◼   ► to for 25 minutes no pressure no [TS]

00:32:22 ◼   ► pressure all right so I think what what [TS]

00:32:26 ◼   ► I was getting at with it but the [TS]

00:32:29 ◼   ► slimming down to near-death sizes right [TS]

00:32:31 ◼   ► because you had just talked about Steve [TS]

00:32:32 ◼   ► Jobs coming in and completely beating [TS]

00:32:34 ◼   ► the beating your company into a [TS]

00:32:37 ◼   ► different shape than it was in before [TS]

00:32:38 ◼   ► but it was like almost dead at that [TS]

00:32:40 ◼   ► point right so the whole thing that room [TS]

00:32:43 ◼   ► is saying what what could Microsoft do [TS]

00:32:45 ◼   ► if you went back in Jesse yes that's on [TS]

00:32:46 ◼   ► another the overall thing with like the [TS]

00:32:47 ◼   ► individual part miles here so no one [TS]

00:32:51 ◼   ► wants to go into a company that's making [TS]

00:32:52 ◼   ► money like gangbusters and change the [TS]

00:32:54 ◼   ► way they do things but also here does [TS]

00:32:56 ◼   ► that for remember this the key decision [TS]

00:33:01 ◼   ► decision in Microsoft's mind like the [TS]

00:33:03 ◼   ► one thing that you need to change in [TS]

00:33:05 ◼   ► Microsoft's mind is the idea that then [TS]

00:33:11 ◼   ► not serving the enterprise IT market or [TS]

00:33:14 ◼   ► like home PC users or hardware [TS]

00:33:17 ◼   ► manufacturers everything like that being [TS]

00:33:19 ◼   ► being so afraid to do things differently [TS]

00:33:23 ◼   ► than the thing that brought them that [TS]

00:33:25 ◼   ► big monopoly and the thing that they [TS]

00:33:27 ◼   ► were afraid of and probably still are [TS]

00:33:30 ◼   ► afraid of was that if they didn't do [TS]

00:33:32 ◼   ► that if they didn't if they didn't talk [TS]

00:33:34 ◼   ► to those IT managers say what do you [TS]

00:33:35 ◼   ► guys want we'll work with you for the [TS]

00:33:36 ◼   ► next revision of Windows and you know [TS]

00:33:38 ◼   ► work with the PC manufacturers and the [TS]

00:33:40 ◼   ► hardware vendors and everybody you know [TS]

00:33:42 ◼   ► and Intel and AMD and just like beat [TS]

00:33:44 ◼   ► serve be the software component of the [TS]

00:33:48 ◼   ► PC platform and like work with those [TS]

00:33:49 ◼   ► guys the fear is if that they didn't do [TS]

00:33:52 ◼   ► that someone else would come and take [TS]

00:33:54 ◼   ► that and take that business away from [TS]

00:33:55 ◼   ► them remember when they were super [TS]

00:33:57 ◼   ► afraid of Linux like oh my god you know [TS]

00:33:59 ◼   ► we were making these money off Windows [TS]

00:34:00 ◼   ► license is what Linux is free [TS]

00:34:02 ◼   ► what if Dell or HP or something suddenly [TS]

00:34:05 ◼   ► start selling Linux machines and then [TS]

00:34:06 ◼   ► donate P would do these little dance [TS]

00:34:08 ◼   ► moves over to the Linux side of things [TS]

00:34:10 ◼   ► and be all oh yeah we're thinking of [TS]

00:34:13 ◼   ► making Linux pcs and Microsoft forget [TS]

00:34:14 ◼   ► all scared okay okay we'll give you a [TS]

00:34:16 ◼   ► break on one you know that's all this [TS]

00:34:17 ◼   ► break up the windows licenses this whole [TS]

00:34:19 ◼   ► dance around like they're always afraid [TS]

00:34:22 ◼   ► that someone else was going to take that [TS]

00:34:24 ◼   ► business from and that that fear that [TS]

00:34:27 ◼   ► fear that if we look if we need to keep [TS]

00:34:29 ◼   ► doing this Windows an office thing we [TS]

00:34:31 ◼   ► know what it takes we know what we had [TS]

00:34:32 ◼   ► to do to win this market we know what it [TS]

00:34:34 ◼   ► takes to keep this market we need to [TS]

00:34:36 ◼   ► continue to do what all the all the [TS]

00:34:37 ◼   ► people all our stakeholders in this [TS]

00:34:39 ◼   ► market want of us because if we let this [TS]

00:34:41 ◼   ► go someone else is going to get it and [TS]

00:34:43 ◼   ► someone else gets it them they're going [TS]

00:34:44 ◼   ► to be the new Microsoft and they're [TS]

00:34:45 ◼   ► going to have billions of dollars [TS]

00:34:47 ◼   ► they're going to have the windows and [TS]

00:34:48 ◼   ► office cash cows and we'll be nothing [TS]

00:34:51 ◼   ► right and that's that that fear that [TS]

00:34:56 ◼   ► that someone else was going to come and [TS]

00:34:57 ◼   ► eat their their lunch who is the thing [TS]

00:35:00 ◼   ► that most handicapped the company and [TS]

00:35:03 ◼   ► probably still continues to have [TS]

00:35:04 ◼   ► accounts company enough I was back at [TS]

00:35:06 ◼   ► Microsoft in those days I would have [TS]

00:35:07 ◼   ► tried to play this out a little bit and [TS]

00:35:09 ◼   ► say ah so if you don't do this you don't [TS]

00:35:12 ◼   ► do what this idea vendors want if you [TS]

00:35:14 ◼   ► don't make these hardware manufacturers [TS]

00:35:15 ◼   ► happy if you don't if you don't mold [TS]

00:35:17 ◼   ► your your company and your strategy and [TS]

00:35:19 ◼   ► all your products around these [TS]

00:35:21 ◼   ► stakeholders you're not your end [TS]

00:35:22 ◼   ► consumers [TS]

00:35:24 ◼   ► if you break we're backward [TS]

00:35:25 ◼   ► compatibility but the app vendors like [TS]

00:35:27 ◼   ► all the people who are how to stake in [TS]

00:35:29 ◼   ► Windows who you currently serve with [TS]

00:35:30 ◼   ► your things what are you afraid is going [TS]

00:35:32 ◼   ► to happen who is going to come and take [TS]

00:35:33 ◼   ► that market from you Linux if they said [TS]

00:35:37 ◼   ► well what about Linux is this new thing [TS]

00:35:38 ◼   ► maybe they didn't know or whatever I [TS]

00:35:39 ◼   ► guess I look I've seen the future Linux [TS]

00:35:40 ◼   ► is not a threat to you [TS]

00:35:41 ◼   ► Linux is not going to come in and steal [TS]

00:35:43 ◼   ► that marker from you because they are [TS]

00:35:44 ◼   ► just it Linux is not a company it is an [TS]

00:35:47 ◼   ► amorphous open-source thing yeah they're [TS]

00:35:49 ◼   ► going to eat your lunch in the server [TS]

00:35:50 ◼   ► space you're right to be afraid of that [TS]

00:35:52 ◼   ► but like the desktop where you one you [TS]

00:35:54 ◼   ► know we we own the desktop and corporate [TS]

00:35:56 ◼   ► IT and the mail servers know stuff like [TS]

00:35:58 ◼   ► that I'm actually amazed at how well [TS]

00:36:00 ◼   ► exchange is held up against the Linux [TS]

00:36:02 ◼   ► Mail service and for the same reason is [TS]

00:36:04 ◼   ► that you know it's that's not another [TS]

00:36:06 ◼   ► company with the strategies is an [TS]

00:36:08 ◼   ► amorphous group of people working on an [TS]

00:36:09 ◼   ► open-source product it has its place and [TS]

00:36:11 ◼   ► it's going to hurt you in business but [TS]

00:36:12 ◼   ► they're not going to come and take the [TS]

00:36:13 ◼   ► PC desktop from you they're just not [TS]

00:36:15 ◼   ► Linux on the desktop is the reason it [TS]

00:36:17 ◼   ► hasn't happened they are even less [TS]

00:36:19 ◼   ► capable than you are of doing what [TS]

00:36:22 ◼   ► customers want and they're also not as [TS]

00:36:24 ◼   ► capable of doing what the IT people want [TS]

00:36:25 ◼   ► so the IT bill like who the IT people [TS]

00:36:27 ◼   ► going to go to Red Hat like an [TS]

00:36:28 ◼   ► individual Linux company you know Linux [TS]

00:36:31 ◼   ► is bigger than Red Hat you can't just go [TS]

00:36:32 ◼   ► to Red Hat and say we're done with [TS]

00:36:35 ◼   ► Microsoft Microsoft has betrayed us [TS]

00:36:36 ◼   ► Linux you are our Savior and then just [TS]

00:36:38 ◼   ► talk to Red Hat and ran a bit like well [TS]

00:36:40 ◼   ► it's great and all but we don't write [TS]

00:36:41 ◼   ► Linux you know there's a lot of people [TS]

00:36:43 ◼   ► who contribute to Linux so like we like [TS]

00:36:45 ◼   ► to sell you something but you're not [TS]

00:36:46 ◼   ► talking to Linux now you're talking to [TS]

00:36:48 ◼   ► red hat and you know it's it so Linux is [TS]

00:36:51 ◼   ► not going to looks just cannot take that [TS]

00:36:55 ◼   ► market from you just constitutionally is [TS]

00:36:56 ◼   ► unable to take the the PC desktop and ID [TS]

00:36:59 ◼   ► market as you know it away from you [TS]

00:37:01 ◼   ► Apple Apple doesn't even want those [TS]

00:37:04 ◼   ► markets this I think is the killer one [TS]

00:37:06 ◼   ► they're like be OS or Apple or whatever [TS]

00:37:07 ◼   ► like oh they're going to take Apple [TS]

00:37:09 ◼   ► spent after Steve Jasper they don't even [TS]

00:37:11 ◼   ► want that market you keeping that market [TS]

00:37:13 ◼   ► is helping Apple because I would be [TS]

00:37:15 ◼   ► afraid if I was at Apple that Microsoft [TS]

00:37:17 ◼   ► would do moves that took it away from [TS]

00:37:20 ◼   ► the interests of that market and that [TS]

00:37:21 ◼   ► market would come to Apple and say where [TS]

00:37:23 ◼   ► Microsoft is doing things we don't like [TS]

00:37:25 ◼   ► they're not listening to us anymore [TS]

00:37:26 ◼   ► they're breaking compatibility they're [TS]

00:37:28 ◼   ► making our lives more difficult we're [TS]

00:37:30 ◼   ► looking around for alternatives can you [TS]

00:37:32 ◼   ► help us and I would be terribly afraid [TS]

00:37:34 ◼   ► that if Microsoft had been a polite bad [TS]

00:37:36 ◼   ► leadership the leadership would go [TS]

00:37:38 ◼   ► I don't know we haven't really been in [TS]

00:37:39 ◼   ► that market but cheese that's a whole [TS]

00:37:40 ◼   ► lot of money over there you know how [TS]

00:37:41 ◼   ► many units uh [TS]

00:37:42 ◼   ► you know Microsoft sells for software [TS]

00:37:44 ◼   ► licenses for that you know much they [TS]

00:37:45 ◼   ► make them at exchanged up you know how [TS]

00:37:47 ◼   ► many seats they have Windows PCs game I [TS]

00:37:49 ◼   ► know we're not really into that I know [TS]

00:37:51 ◼   ► we're doing this consumer digital hub [TS]

00:37:53 ◼   ► thing with the iMac but but geez we [TS]

00:37:55 ◼   ► can't we can't leave that money over [TS]

00:37:56 ◼   ► there we gotta go look at that now that [TS]

00:37:58 ◼   ► would happen if Steve Jobs was there [TS]

00:37:59 ◼   ► Steve Jobs oh that he would just tell [TS]

00:38:01 ◼   ► them look if you want to use your [TS]

00:38:02 ◼   ► computers fine here they are we'll do [TS]

00:38:04 ◼   ► some stuff to help you if you want but [TS]

00:38:05 ◼   ► we're not going to change the way we [TS]

00:38:06 ◼   ► make our products for your stupid needs [TS]

00:38:08 ◼   ► we're trying to make the best products [TS]

00:38:09 ◼   ► possible you know so they'll add all [TS]

00:38:11 ◼   ► that exchange stuff to iOS so you could [TS]

00:38:14 ◼   ► use your corporate email with it and [TS]

00:38:15 ◼   ► they'll do you know they'll do the [TS]

00:38:17 ◼   ► enterprise deployment for the App Store [TS]

00:38:19 ◼   ► and stuff but they're not gonna slap on [TS]

00:38:21 ◼   ► a hardware keyboard because you think [TS]

00:38:22 ◼   ► that's what all your you know your [TS]

00:38:24 ◼   ► corporate customers want they're not [TS]

00:38:26 ◼   ► going to make $200 desktop PCs that are [TS]

00:38:28 ◼   ► pieces of crap because that's what the [TS]

00:38:30 ◼   ► enterprise wants cuz they want like the [TS]

00:38:31 ◼   ► volume just count Dell black pizza box [TS]

00:38:33 ◼   ► thing to put all their people's desk [TS]

00:38:35 ◼   ► sitting up there is not going to do that [TS]

00:38:36 ◼   ► apples it was under Steve Jobs that said [TS]

00:38:38 ◼   ► this is what we make will meet you know [TS]

00:38:40 ◼   ► will help you a little bit but we're not [TS]

00:38:42 ◼   ► going to be like Microsoft so who who [TS]

00:38:46 ◼   ► was it that was going to take this [TS]

00:38:47 ◼   ► market from Microsoft nobody was going [TS]

00:38:50 ◼   ► to take it and the reason nobody was [TS]

00:38:51 ◼   ► going to take it is because either [TS]

00:38:52 ◼   ► they're incapable of it or in Apple's [TS]

00:38:54 ◼   ► case they don't they realize that like [TS]

00:38:56 ◼   ► who wants to be the king that's like [TS]

00:38:58 ◼   ► fighting the old war Microsoft won that [TS]

00:38:59 ◼   ► war he they are that King getting that [TS]

00:39:02 ◼   ► going back there and say huh we're king [TS]

00:39:03 ◼   ► of the desktop now that would hurt Apple [TS]

00:39:06 ◼   ► because suddenly Apple would be beholden [TS]

00:39:08 ◼   ► to all those different markets and that [TS]

00:39:11 ◼   ► that's the thing like a race Microsoft [TS]

00:39:13 ◼   ► from history right now like a the [TS]

00:39:15 ◼   ► company blips out of existence including [TS]

00:39:16 ◼   ► all their products and everyone is [TS]

00:39:17 ◼   ► scrambling oh my god I have a computer [TS]

00:39:19 ◼   ► at Microsoft flipped out of existence so [TS]

00:39:20 ◼   ► I need another computer are they all [TS]

00:39:22 ◼   ► gonna go out and buy Macs financially [TS]

00:39:24 ◼   ► they can't most of the time because like [TS]

00:39:25 ◼   ► I have to my I'm allowed $300 per seat [TS]

00:39:28 ◼   ► in my ten thousand person company for [TS]

00:39:30 ◼   ► PCs and I can't even get iPads of that [TS]

00:39:33 ◼   ► price and Apple just doesn't do that [TS]

00:39:35 ◼   ► kind of volume business they're just [TS]

00:39:36 ◼   ► there did not they're not a capable of [TS]

00:39:38 ◼   ► doing that it would bankrupt me to do [TS]

00:39:40 ◼   ► that and if you did buy all those things [TS]

00:39:42 ◼   ► that's just Apple doesn't have products [TS]

00:39:44 ◼   ► or services that serve that market and [TS]

00:39:46 ◼   ► they simply don't want it which is part [TS]

00:39:47 ◼   ► of the big reason why Apple's products [TS]

00:39:49 ◼   ► are so much better than Microsoft's is [TS]

00:39:50 ◼   ► because they are there [TS]

00:39:51 ◼   ► for consumers to satisfy the needs of [TS]

00:39:53 ◼   ► individual people first and corporate IT [TS]

00:39:56 ◼   ► departments xx if at all right so this [TS]

00:40:01 ◼   ► big fear that Microsoft had that they do [TS]

00:40:03 ◼   ► something to anger their constituents [TS]

00:40:06 ◼   ► someone else will eat their lunch uh was [TS]

00:40:09 ◼   ► unfounded there was no one no one who [TS]

00:40:12 ◼   ► could or wanted to take that market from [TS]

00:40:14 ◼   ► them so that's why I said if I was going [TS]

00:40:16 ◼   ► to tell Microsoft that some of the [TS]

00:40:19 ◼   ► chatter Briggs opposed to warp that's [TS]

00:40:21 ◼   ► that's another example of like you're a [TS]

00:40:23 ◼   ► pig war Peter no so IBM was going to [TS]

00:40:26 ◼   ► take that marker from you like this that [TS]

00:40:28 ◼   ► Microsoft didn't quite understand how [TS]

00:40:32 ◼   ► strong their position was which is [TS]

00:40:33 ◼   ► strange to think like always to warp was [TS]

00:40:36 ◼   ► gonna come and take their market IBM was [TS]

00:40:39 ◼   ► was even older King than Microsoft no [TS]

00:40:41 ◼   ► one was going to say well Microsoft is [TS]

00:40:42 ◼   ► gone let's go back to IBM they'll serve [TS]

00:40:44 ◼   ► our needs IBM wants to sell you its own [TS]

00:40:47 ◼   ► Hardware wanted to back then and that's [TS]

00:40:49 ◼   ► corporate he doesn't like that they'd [TS]

00:40:50 ◼   ► rather buy from Dell or Gateway Rover [TS]

00:40:52 ◼   ► that crap boxes they're buying right uh [TS]

00:40:55 ◼   ► and they wanted windows compatibility [TS]

00:40:57 ◼   ► with all your software and always to had [TS]

00:40:59 ◼   ► did have windows compatibility but it [TS]

00:41:00 ◼   ► was still you know tied to Microsoft on [TS]

00:41:02 ◼   ► that and Microsoft could slowly change [TS]

00:41:03 ◼   ► things to make you know os/2 is you know [TS]

00:41:06 ◼   ► that the whole has two windows thing [TS]

00:41:07 ◼   ► like that that battle was done and [TS]

00:41:08 ◼   ► settled so this what I'm talking about [TS]

00:41:10 ◼   ► is the point after that where Microsoft [TS]

00:41:12 ◼   ► which is clearly dominant os/2 was [TS]

00:41:13 ◼   ► basically dead and it was not coming [TS]

00:41:15 ◼   ► back and people had settled into the [TS]

00:41:18 ◼   ► routine of Microsoft gives us the [TS]

00:41:19 ◼   ► software licenses and we could buy [TS]

00:41:20 ◼   ► Hardware from whoever we want right so [TS]

00:41:24 ◼   ► what I would tell Microsoft to do during [TS]

00:41:27 ◼   ► this phase is look at your products and [TS]

00:41:30 ◼   ► decide what about them people don't like [TS]

00:41:32 ◼   ► they're too complicated they've got lots [TS]

00:41:35 ◼   ► of all legacy crap that's in there from [TS]

00:41:37 ◼   ► before that you were afraid you couldn't [TS]

00:41:38 ◼   ► take out these we take this out of a [TS]

00:41:40 ◼   ► break a bunch of stuff all the things [TS]

00:41:41 ◼   ► that Apple did like abandon legacy ports [TS]

00:41:43 ◼   ► break backwards compatibility radically [TS]

00:41:46 ◼   ► simplify your operating system sort of [TS]

00:41:49 ◼   ► kind of like what they're doing with [TS]

00:41:50 ◼   ► Metro where you know just throw [TS]

00:41:52 ◼   ► everything out and anytime anyone [TS]

00:41:55 ◼   ► proposed that a Microsoft during like [TS]

00:41:57 ◼   ► the mid 90s and late 90s when they were [TS]

00:41:59 ◼   ► so down people's hell we can't do that [TS]

00:42:00 ◼   ► will you know we will lose it if we tell [TS]

00:42:03 ◼   ► the corporate IT [TS]

00:42:04 ◼   ► but yeah the next version will break a [TS]

00:42:07 ◼   ► bunch of your applications but and [TS]

00:42:09 ◼   ► change where everything is and radically [TS]

00:42:11 ◼   ► simplify the operating system but just [TS]

00:42:12 ◼   ► gonna have to deal with it because we [TS]

00:42:13 ◼   ► think this is better in a long term for [TS]

00:42:14 ◼   ► everybody involved [TS]

00:42:16 ◼   ► then there's oh no they'll they'll go to [TS]

00:42:18 ◼   ► someone else they'll all deploy Linux [TS]

00:42:20 ◼   ► they'll they'll just play max instead [TS]

00:42:22 ◼   ► they wouldn't or couldn't you Microsoft [TS]

00:42:24 ◼   ► didn't understand the power in the [TS]

00:42:26 ◼   ► position that it had there was no [TS]

00:42:28 ◼   ► alternative to them they had enough [TS]

00:42:29 ◼   ► power to that they had to be confident [TS]

00:42:32 ◼   ► enough in their position to say at the [TS]

00:42:35 ◼   ► peak of our power now is the time when [TS]

00:42:37 ◼   ► we can make radical changes to our [TS]

00:42:38 ◼   ► operating system that make it more [TS]

00:42:41 ◼   ► attractive to the people who have to use [TS]

00:42:43 ◼   ► it to prevent you know Mac OS 10 or iOS [TS]

00:42:47 ◼   ► from coming and looking like such a [TS]

00:42:48 ◼   ► breath of fresh air compared to the [TS]

00:42:49 ◼   ► ridiculously complicated windows [TS]

00:42:51 ◼   ► everything microsoft did with windows so [TS]

00:42:54 ◼   ► it's like well we'll try to make a [TS]

00:42:55 ◼   ► simple I diversion but if you want the [TS]

00:42:56 ◼   ► classic view you can get that back and [TS]

00:42:57 ◼   ► if you want see the classic control [TS]

00:42:58 ◼   ► panel you can see that again you know [TS]

00:43:00 ◼   ► all those kind of hedging your bets and [TS]

00:43:03 ◼   ► all that stuff even Metro you can say [TS]

00:43:05 ◼   ► like well Windows 8 it's totally nude [TS]

00:43:07 ◼   ► unrelated but if you want to go back to [TS]

00:43:09 ◼   ► the old desktop it's back there to [TS]

00:43:10 ◼   ► switch to the other you know they never [TS]

00:43:12 ◼   ► did the any transition there was [TS]

00:43:15 ◼   ► equivalent to Mac OS 10 as compared to [TS]

00:43:18 ◼   ► classic Mac OS they did it with the core [TS]

00:43:19 ◼   ► OS the Windows NT core that eventually [TS]

00:43:21 ◼   ► became quote-unquote mainstream in [TS]

00:43:24 ◼   ► Windows 2000 ish that was a big internal [TS]

00:43:26 ◼   ► reshuffle albeit with maintaining as [TS]

00:43:29 ◼   ► much backward compatibility as they [TS]

00:43:30 ◼   ► could possibly keep but I think they [TS]

00:43:31 ◼   ► abandon like old 16-bit apps and some [TS]

00:43:35 ◼   ► old da stuff that had to run in a VM or [TS]

00:43:37 ◼   ► whatever but they never made that hard [TS]

00:43:40 ◼   ► split that Mac OS end and they certainly [TS]

00:43:42 ◼   ► never made the hard jump that that iOS [TS]

00:43:44 ◼   ► is there's no no Mac apps whatever no [TS]

00:43:46 ◼   ► backward compatibility completely new [TS]

00:43:47 ◼   ► platform because they were afraid and [TS]

00:43:49 ◼   ► they didn't think they could do it and [TS]

00:43:50 ◼   ► what the time that they could have done [TS]

00:43:52 ◼   ► that was one that they were at the peak [TS]

00:43:53 ◼   ► of their power because nobody was [TS]

00:43:54 ◼   ► willing or able to take that market from [TS]

00:43:56 ◼   ► so even though everyone would have [TS]

00:43:57 ◼   ► screamed and complained and people to [TS]

00:43:59 ◼   ► say their stock value would have been [TS]

00:44:02 ◼   ► punished and their profits wouldn't gone [TS]

00:44:04 ◼   ► down or whatever it's not like that [TS]

00:44:06 ◼   ► business would have gone elsewhere and [TS]

00:44:07 ◼   ► eventually they could have fielded a [TS]

00:44:09 ◼   ► product it was so much better than the [TS]

00:44:11 ◼   ► ones that they had you know killed and [TS]

00:44:13 ◼   ► those corporate IT people had probably [TS]

00:44:16 ◼   ► maybe had some bad experiences trying to [TS]

00:44:17 ◼   ► deploy Linux and [TS]

00:44:18 ◼   ► and fault with a bond realized Apple is [TS]

00:44:20 ◼   ► just not interested in them and want to [TS]

00:44:22 ◼   ► come back to Microsoft and but they [TS]

00:44:23 ◼   ► would have eventually come out of winter [TS]

00:44:24 ◼   ► so this I think it is the main thing [TS]

00:44:29 ◼   ► that that Microsoft did wrong in the [TS]

00:44:32 ◼   ► past few decades the idea that it had to [TS]

00:44:36 ◼   ► maintain this market because if it [TS]

00:44:38 ◼   ► didn't someone else would take it they [TS]

00:44:39 ◼   ► under played their hand their hand was [TS]

00:44:41 ◼   ► much stronger than they thought it would [TS]

00:44:43 ◼   ► may be an obviously it's easy with [TS]

00:44:44 ◼   ► hindsight to say well how do they know [TS]

00:44:46 ◼   ► Linux wouldn't take it how do they know [TS]

00:44:47 ◼   ► Apple wasn't doing that if if your [TS]

00:44:50 ◼   ► Microsoft you think everybody thinks [TS]

00:44:51 ◼   ► like Microsoft you said if we if we [TS]

00:44:53 ◼   ► abandon this market by betraying those [TS]

00:44:55 ◼   ► people and doing something that we think [TS]

00:44:56 ◼   ► is better for the long-term health of [TS]

00:44:57 ◼   ► our product but worse for for our [TS]

00:44:59 ◼   ► constituents who want our products to be [TS]

00:45:00 ◼   ► a certain way apples going to eat our [TS]

00:45:03 ◼   ► lunch because if I was at Apple that's [TS]

00:45:05 ◼   ► what I would do that's the Microsoft [TS]

00:45:06 ◼   ► philosophy all of our competitors [TS]

00:45:07 ◼   ► stumble we swoop right in and say [TS]

00:45:09 ◼   ► whatever that competitor is no longer [TS]

00:45:11 ◼   ► willing to do for you we will do that [TS]

00:45:12 ◼   ► for you we're ready to to be your [TS]

00:45:14 ◼   ► servant in this need to be your partner [TS]

00:45:16 ◼   ► and figuring out what kind of products [TS]

00:45:18 ◼   ► you need maybe maybe they thought that [TS]

00:45:21 ◼   ► Apple would think like them you know and [TS]

00:45:24 ◼   ► again it hindsight is easy to is easy to [TS]

00:45:26 ◼   ► see oh sure you know they didn't know [TS]

00:45:28 ◼   ► everything that we know now that Steve [TS]

00:45:30 ◼   ► Jobs in his attitude and they they [TS]

00:45:32 ◼   ► couldn't have predicted you know was too [TS]

00:45:33 ◼   ► dangerous to move this is I admit [TS]

00:45:35 ◼   ► hindsight you know I'm just saying like [TS]

00:45:37 ◼   ► if you could go back in time with full [TS]

00:45:38 ◼   ► knowledge what would be the correct move [TS]

00:45:40 ◼   ► and I think that's it that it turns out [TS]

00:45:43 ◼   ► they had a lot stronger hand they [TS]

00:45:44 ◼   ► thought they did and they didn't play [TS]

00:45:45 ◼   ► now they're kind of playing it out with [TS]

00:45:48 ◼   ► Metro as I alluded to we would did old [TS]

00:45:50 ◼   ► several episodes in Metro where it [TS]

00:45:52 ◼   ► really is a clean break except for the [TS]

00:45:54 ◼   ► fact that you can still see the windows [TS]

00:45:55 ◼   ► that's not but on the tablets and [TS]

00:45:56 ◼   ► everything like the apps don't look like [TS]

00:45:58 ◼   ► they do this entirely new UI paradigm [TS]

00:46:00 ◼   ► you know new API is the whole nine yards [TS]

00:46:03 ◼   ► with the hedge of the desktop hiding [TS]

00:46:05 ◼   ► underneath but I actually think that [TS]

00:46:08 ◼   ► from Microsoft really to turn itself [TS]

00:46:11 ◼   ► around maybe the best thing that could [TS]

00:46:13 ◼   ► happen to them is for Metro to fail [TS]

00:46:14 ◼   ► miserably and you know like at this [TS]

00:46:16 ◼   ► point the only option maybe the 90 days [TS]

00:46:19 ◼   ► from bankruptcy option or you just [TS]

00:46:21 ◼   ► everything goes to crap the desktop [TS]

00:46:24 ◼   ► starts falling apart not because the [TS]

00:46:26 ◼   ► competitors taking your place but [TS]

00:46:27 ◼   ► because everyone starts using iPads or [TS]

00:46:28 ◼   ► god knows what like some other some [TS]

00:46:31 ◼   ► other horrible thing starts happening [TS]

00:46:32 ◼   ► too [TS]

00:46:33 ◼   ► business and you're just the company [TS]

00:46:34 ◼   ► declined sales declined your cash cow [TS]

00:46:35 ◼   ► stops being a cash cow your new next [TS]

00:46:38 ◼   ► generation product Metro just fails [TS]

00:46:40 ◼   ► miserably in the market Windows 7 [TS]

00:46:41 ◼   ► doesn't take off when the company [TS]

00:46:42 ◼   ► shrinks to some tiny sad little [TS]

00:46:45 ◼   ► shriveled ball of what it used to be [TS]

00:46:47 ◼   ► like Apple in 1996-97 right and then [TS]

00:46:50 ◼   ► someone comes in with a clearer vision [TS]

00:46:52 ◼   ► in terms of turns the thing around you [TS]

00:46:55 ◼   ► know that that maybe uh that's probably [TS]

00:46:58 ◼   ► not the scenario than anybody who's a [TS]

00:47:00 ◼   ► Microsoft fan or shareholder an employee [TS]

00:47:02 ◼   ► wants to happen [TS]

00:47:03 ◼   ► but that may be the most likely dramatic [TS]

00:47:06 ◼   ► turnaround scenario at this point so [TS]

00:47:07 ◼   ► because they didn't back when they had [TS]

00:47:09 ◼   ► the strongest hand they didn't use that [TS]

00:47:12 ◼   ► hand to force you know to force their [TS]

00:47:15 ◼   ► customers and constituents to accept a [TS]

00:47:17 ◼   ► more radical change in their ready [TS]

00:47:18 ◼   ► forwards that's been Apple's MO from day [TS]

00:47:22 ◼   ► one of jobs has returned forcing Apple [TS]

00:47:25 ◼   ► customers Apple developers everybody who [TS]

00:47:28 ◼   ► has a stake in an Apple hardware [TS]

00:47:29 ◼   ► software to to choke down more than they [TS]

00:47:33 ◼   ► were willing to choke down it's always [TS]

00:47:35 ◼   ► been their mo well you're taking all our [TS]

00:47:37 ◼   ► ports away it's just us beyond this iMac [TS]

00:47:39 ◼   ► peripheral manufacturers like grumble [TS]

00:47:40 ◼   ► grumble grumble Kay fine we'll make [TS]

00:47:41 ◼   ► bunch of USB stuff with teal plastic all [TS]

00:47:43 ◼   ► over and for your iMac you know that it [TS]

00:47:46 ◼   ► you're making an entirely new operating [TS]

00:47:48 ◼   ► system it's objective-c with a new [TS]

00:47:49 ◼   ► language and a new API and you're [TS]

00:47:51 ◼   ► telling me this this backward [TS]

00:47:52 ◼   ► compatibility layer I still have to [TS]

00:47:54 ◼   ► modify my apps and by the way you're [TS]

00:47:56 ◼   ► taking that away too it's always been [TS]

00:47:57 ◼   ► whatever you think you can handle my [TS]

00:47:59 ◼   ► crapples is taking away a little bit [TS]

00:48:01 ◼   ► more uh ask for a little bit more right [TS]

00:48:03 ◼   ► the App Store we have full approval in [TS]

00:48:06 ◼   ► your applications the customers aren't [TS]

00:48:08 ◼   ► even ours that's just too much but just [TS]

00:48:10 ◼   ► always Apple is always asking for more [TS]

00:48:12 ◼   ► whereas Microsoft has just been so shy [TS]

00:48:14 ◼   ► about that not wanting to anger the [TS]

00:48:16 ◼   ► people who it serves not don't anger [TS]

00:48:19 ◼   ► them too much right and I think that's [TS]

00:48:21 ◼   ► just the wrong strategy for having a [TS]

00:48:23 ◼   ► long term success I think that's the end [TS]

00:48:28 ◼   ► of my Microsoft notes hmm it's a topic [TS]

00:48:32 ◼   ► that I don't see discussed a lot is [TS]

00:48:33 ◼   ► everyone's talking about like what [TS]

00:48:34 ◼   ► Microsoft should do now but whenever [TS]

00:48:36 ◼   ► anyone talks about Microsoft did in the [TS]

00:48:38 ◼   ► past it's always about how great they [TS]

00:48:41 ◼   ► did look at how Microsoft won the [TS]

00:48:42 ◼   ► desktop market look at all these great [TS]

00:48:43 ◼   ► moves that I make [TS]

00:48:44 ◼   ► I mean there's a lot of things that [TS]

00:48:46 ◼   ► Microsoft did though that helped Apple [TS]

00:48:49 ◼   ► yeah unintentionally unintentionally not [TS]

00:48:52 ◼   ► on purpose or because they didn't think [TS]

00:48:54 ◼   ► Apple was a threat but it was you know [TS]

00:48:56 ◼   ► that the thing I think it's most [TS]

00:48:58 ◼   ► important of our history is back when [TS]

00:49:00 ◼   ► everyone thought it was doing so great [TS]

00:49:01 ◼   ► back were all the stories about [TS]

00:49:02 ◼   ► Microsoft were about how savvy it was in [TS]

00:49:05 ◼   ► business and how it crushed Apple that [TS]

00:49:07 ◼   ► was the point where it made its worst [TS]

00:49:09 ◼   ► mistake not playing its hand not not [TS]

00:49:11 ◼   ► using you know think of think of the [TS]

00:49:13 ◼   ► hands that Apple has played I know it's [TS]

00:49:14 ◼   ► bluffing or what but it would be like [TS]

00:49:16 ◼   ► taking all the ports away from the iMac [TS]

00:49:17 ◼   ► they were an imposition of strengths [TS]

00:49:19 ◼   ► when I did that they were gone down the [TS]

00:49:20 ◼   ► tubes and that was the time that they [TS]

00:49:23 ◼   ► they rightly Jobs rightly I don't know [TS]

00:49:25 ◼   ► if you call it a bluff or whatever but [TS]

00:49:26 ◼   ► he was like you trust me on this like we [TS]

00:49:28 ◼   ► make this computer awesome-looking I [TS]

00:49:29 ◼   ► know people scream and complain that [TS]

00:49:31 ◼   ► just has USB ports but it'll work will [TS]

00:49:33 ◼   ► take away the floppy drive to look trust [TS]

00:49:34 ◼   ► me I know it seem crazy but I have the [TS]

00:49:37 ◼   ► people who like Apple I think they'll go [TS]

00:49:38 ◼   ► with us in this our hand is stronger [TS]

00:49:40 ◼   ► than we think it as whereas if you're an [TS]

00:49:41 ◼   ► outside observer you're saying you [TS]

00:49:42 ◼   ► kidding you're practically bankrupt you [TS]

00:49:44 ◼   ► can't sign any computers that you have [TS]

00:49:45 ◼   ► and you're going to do a bunch of stuff [TS]

00:49:46 ◼   ► that you know is going to piss off your [TS]

00:49:48 ◼   ► customers your loyal customers who love [TS]

00:49:50 ◼   ► you the only people who are buying your [TS]

00:49:51 ◼   ► stuff anymore but he did it so imagine [TS]

00:49:54 ◼   ► how strong Microsoft's hand was if they [TS]

00:49:56 ◼   ► had done Apple like moves back when they [TS]

00:49:59 ◼   ► were so dominant they just think that [TS]

00:50:00 ◼   ► their customers had nowhere to go [TS]

00:50:02 ◼   ► oh god I've got some more things I want [TS]

00:50:09 ◼   ► to ask you about this all right before I [TS]

00:50:11 ◼   ► do let's do our second and and last [TS]

00:50:13 ◼   ► sponsor it's a mail chimp they have a [TS]

00:50:16 ◼   ► brand new mobile app so you're on the go [TS]

00:50:19 ◼   ► you want to see some reports you want to [TS]

00:50:22 ◼   ► see people signing up people are reading [TS]

00:50:23 ◼   ► the list you do that the app is pretty [TS]

00:50:26 ◼   ► pretty amazing as a brand new version [TS]

00:50:28 ◼   ► out there for iOS and Android all you [TS]

00:50:31 ◼   ► need is OS 4.3 or new or an Android 2.2 [TS]

00:50:35 ◼   ► or newer and a MailChimp account which [TS]

00:50:36 ◼   ► is free and it's a shortcut to your [TS]

00:50:39 ◼   ► stats just a few taps you can see our [TS]

00:50:41 ◼   ► campaigns are doing you can see what [TS]

00:50:43 ◼   ► your subscribers are doing with your [TS]

00:50:45 ◼   ► campaigns if they're sharing them and [TS]

00:50:46 ◼   ► how and what if you're out somewhere and [TS]

00:50:49 ◼   ► you you have somebody and you're talking [TS]

00:50:51 ◼   ► about this this cool newsletter you do [TS]

00:50:53 ◼   ► and they're like oh I sign me up for [TS]

00:50:54 ◼   ► that what how do I have to sign [TS]

00:50:55 ◼   ► oh you got to go to my website and here [TS]

00:50:58 ◼   ► let me write down the oral and then you [TS]

00:50:59 ◼   ► go to slash newsletter and you fill out [TS]

00:51:01 ◼   ► the form no you can subscribe them right [TS]

00:51:04 ◼   ► there on the spot with the app it's [TS]

00:51:06 ◼   ► amazing again it's all free go to [TS]

00:51:09 ◼   ► MailChimp com there's a link to it there [TS]

00:51:12 ◼   ► or you can go to the iTunes App Store [TS]

00:51:13 ◼   ► and search for MailChimp you'll find it [TS]

00:51:16 ◼   ► it's pretty great stuff [TS]

00:51:17 ◼   ► MailChimp com is a longtime sponsor of [TS]

00:51:21 ◼   ► ours we love them [TS]

00:51:22 ◼   ► love what they're doing newsletters are [TS]

00:51:25 ◼   ► a big deal [TS]

00:51:25 ◼   ► Ida sign up for siracusa newsletter [TS]

00:51:28 ◼   ► there was one should be one instead of a [TS]

00:51:32 ◼   ► blog a lot of work to write then you [TS]

00:51:35 ◼   ► would have to write it yeah so looking [TS]

00:51:39 ◼   ► at this this situation what do you feel [TS]

00:51:43 ◼   ► looking forward five years from now not [TS]

00:51:46 ◼   ► at Apple which is what we're all fond of [TS]

00:51:48 ◼   ► doing but at Microsoft what what kind of [TS]

00:51:52 ◼   ► company is Microsoft five years from now [TS]

00:51:54 ◼   ► in 2000 a 2015 that's not quite five [TS]

00:51:58 ◼   ► years from now what what is what in 2015 [TS]

00:52:01 ◼   ► what is Microsoft is it the same thing [TS]

00:52:03 ◼   ► are they still struggling have they come [TS]

00:52:05 ◼   ► out with something amazing are they [TS]

00:52:07 ◼   ► I mean what's what's the story the [TS]

00:52:11 ◼   ► problem I have with predicting any kind [TS]

00:52:12 ◼   ► of non boring future for Microsoft is [TS]

00:52:15 ◼   ► the boring future is like well they kind [TS]

00:52:17 ◼   ► of like they are now but like their [TS]

00:52:18 ◼   ► desktop business is making less money [TS]

00:52:20 ◼   ► than you used to and they're kind of [TS]

00:52:22 ◼   ► trying to be more successful Windows [TS]

00:52:24 ◼   ► Phone 7 Metro is kind of out there like [TS]

00:52:26 ◼   ► but that's boring though that's not like [TS]

00:52:28 ◼   ► a they're going to be dead because they [TS]

00:52:30 ◼   ► won't and it's not like they're going to [TS]

00:52:32 ◼   ► be 20 times the size they are now or [TS]

00:52:33 ◼   ► massively successful because I don't [TS]

00:52:35 ◼   ► think they will and the reason for that [TS]

00:52:37 ◼   ► is that when I look at all Microsoft's [TS]

00:52:39 ◼   ► efforts even in cases where I think [TS]

00:52:41 ◼   ► they're kind of doing the right thing [TS]

00:52:42 ◼   ► albeit too late everything they're doing [TS]

00:52:44 ◼   ► is a reaction to something somebody else [TS]

00:52:46 ◼   ► did that's what it seems like to me and [TS]

00:52:48 ◼   ► the things they're not doing that are [TS]

00:52:50 ◼   ► reactions I just never get out the door [TS]

00:52:51 ◼   ► so just look at all their product lines [TS]

00:52:54 ◼   ► Windows Phone 7 it's a reaction to iOS [TS]

00:52:56 ◼   ► the like MIT like pretty much every [TS]

00:52:57 ◼   ► mobile thing in the entire market since [TS]

00:53:01 ◼   ► 2007 has been a reaction to the iPhone [TS]

00:53:02 ◼   ► right because they Microsoft had a [TS]

00:53:05 ◼   ► window uh windows you know what was it [TS]

00:53:07 ◼   ► called Windows Mobile and then was [TS]

00:53:09 ◼   ► called [TS]

00:53:09 ◼   ► see before that's great that they name [TS]

00:53:10 ◼   ► the product whose if you pronounce this [TS]

00:53:12 ◼   ► acronym is wince yeah does that was [TS]

00:53:14 ◼   ► pretty much for people dip in Houston [TS]

00:53:15 ◼   ► and they had a mobile operating system [TS]

00:53:18 ◼   ► for a long time right so it's like oh [TS]

00:53:20 ◼   ► they weren't we weren't reacting to [TS]

00:53:21 ◼   ► iPhone we've been doing this mobile [TS]

00:53:21 ◼   ► thing forever clearly iPhone came out [TS]

00:53:23 ◼   ► and they said all that mobile stuff [TS]

00:53:24 ◼   ► we've been doing is crap when you start [TS]

00:53:26 ◼   ► over Windows Phone 7 and I actually got [TS]

00:53:28 ◼   ► a chance to use Windows Phone 7 for the [TS]

00:53:29 ◼   ► first time for like you know three and a [TS]

00:53:32 ◼   ► half minutes I was very impressed by it [TS]

00:53:33 ◼   ► much more impressed than I've ever been [TS]

00:53:35 ◼   ► with my three minutes spent with a [TS]

00:53:36 ◼   ► variety of Android or palm phones were [TS]

00:53:38 ◼   ► you able to try out the Siri like [TS]

00:53:40 ◼   ► functionality that Windows has had on [TS]

00:53:43 ◼   ► the phone for decades or whatever the no [TS]

00:53:45 ◼   ► no I did not I did not try that out I [TS]

00:53:49 ◼   ► was just flipping around looking at you [TS]

00:53:51 ◼   ► know the applications a scrolling [TS]

00:53:53 ◼   ► responsiveness how they've got stuff [TS]

00:53:54 ◼   ► organized is definitely different than [TS]

00:53:56 ◼   ► the iPhone which I think is good and [TS]

00:53:57 ◼   ► actually maybe that's a counter example [TS]

00:53:58 ◼   ► to what I'm saying how everything to do [TS]

00:54:00 ◼   ► is a reaction Windows Phone 7 interface [TS]

00:54:01 ◼   ► and Metro interface it's very least is [TS]

00:54:03 ◼   ► not directly derivative of things other [TS]

00:54:08 ◼   ► people doing but I think the the effort [TS]

00:54:10 ◼   ► itself that effort we need to make next [TS]

00:54:12 ◼   ► generation mobile platform because all [TS]

00:54:13 ◼   ► the ones we've had so far are not good [TS]

00:54:15 ◼   ► enough because of the iPhone that's a [TS]

00:54:16 ◼   ► reaction and the Xbox is a reaction [TS]

00:54:19 ◼   ► basically to the game console market [TS]

00:54:22 ◼   ► starting to grip up its PC power like [TS]

00:54:23 ◼   ► the PlayStation 2 being so massively [TS]

00:54:25 ◼   ► dominant and starting to be a powerful [TS]

00:54:26 ◼   ► enough thing that you know it's got a [TS]

00:54:27 ◼   ► net it's got networking on it uh and [TS]

00:54:29 ◼   ► it's got a powerful CPU and lots of [TS]

00:54:31 ◼   ► memory it's like boy you know to be that [TS]

00:54:35 ◼   ► starting to look like pcs we need to be [TS]

00:54:36 ◼   ► in that market so the Xbox Xbox is a [TS]

00:54:37 ◼   ► reaction to the console market that [TS]

00:54:39 ◼   ► existed before them and and they they [TS]

00:54:42 ◼   ► did sort of the same things that the [TS]

00:54:44 ◼   ► rest of the console market did same [TS]

00:54:46 ◼   ► thing on the phone that you know it's [TS]

00:54:47 ◼   ► got to be all screen it's got to be all [TS]

00:54:48 ◼   ► touchscreen yeah we'll do it from UI [TS]

00:54:49 ◼   ► buts react into the iPhone whatever set [TS]

00:54:52 ◼   ► MSN is your action data well windows [TS]

00:54:55 ◼   ► your reaction to the Mac one other [TS]

00:54:58 ◼   ► efforts might forgetting something the [TS]

00:54:59 ◼   ► Microsoft's doing now that one of their [TS]

00:55:01 ◼   ► important things Kinect is a great [TS]

00:55:03 ◼   ► example Kinect is a reaction to we you [TS]

00:55:06 ◼   ► know the the we was the innovator [TS]

00:55:07 ◼   ► they're saying we're going to change the [TS]

00:55:09 ◼   ► input for consoles from this little [TS]

00:55:11 ◼   ► thing you hold your hand through thumbs [TS]

00:55:12 ◼   ► to something different [TS]

00:55:13 ◼   ► Kinect is more innovative than [TS]

00:55:15 ◼   ► PlayStation Move because it's like oh no [TS]

00:55:17 ◼   ► control at all like but it's still a [TS]

00:55:18 ◼   ► reaction to what's something that [TS]

00:55:19 ◼   ► competitor did but I don't see from [TS]

00:55:20 ◼   ► Microsoft is them [TS]

00:55:22 ◼   ► doing something where they're the first [TS]

00:55:25 ◼   ► one to do this thing and everyone's [TS]

00:55:26 ◼   ► going to be reacting to them I'll Bing [TS]

00:55:28 ◼   ► is another example Bing does reaction to [TS]

00:55:29 ◼   ► Google right they weren't the ones [TS]

00:55:32 ◼   ► spearheading that effort so if [TS]

00:55:34 ◼   ► everything they do is your reaction to [TS]