Microsoft CEO belittles Apple and Linux in one speech
In a discussion around Microsoft’s deal with Yahoo, Steve Ballmer, CEO of Microsoft made some interesting comments against competitors, Apple and Linux. Ballmer indicated that unlike its competitors, Microsoft has established the perfect balance as to where the company wants to be.
Recently during a discussion, Ballmer indicated that Microsoft has the perfect business model, while indirectly belittling competitors Apple and Linux. He stated that Apple has a business model of low-volume and high prices, while Microsoft focuses on high-volume, low prices while maintaining high quality.
This does sound a bit like Ballmer bragging about Microsoft’s business model. According to CNET, Ballmer also criticized Linux by indicating that despite claims of the OS being free, it is truly not free as there is no sustained “ecosystem to support the hardware vendors” like Microsoft has. However, despite external factors, the bottom line is that Linux is truly free with no strings attached.
It’s interesting how a conversation about Microsoft’s new deal with Yahoo has turned into a discussion about Apple and Linux. According to Computer World, Microsoft recently formally acknowledged that Linux is a competitor and is a real threat to Windows. This may explain Ballmer’s defensive stance regarding discussions around Microsoft’s competitors.
CNET makes several excellent points in reference to Ballmer’s response towards Apple and Linux. There is no denying the fact that Windows-based PC shipments have been declining as Mac shipments have continued to climb. Also, the fact that the iPhone has sold “high-volumes” while Windows Mobile based devices have sold “low-volumes” disproves Ballmer’s understanding of Apple’s business model.
It is interesting to watch Ballmer as he tries to place labels on competitor’s business models while patting Microsoft’s back. I would have thought that Ballmer would be a little more humble when it comes to business model discussions, as Vista proved to be one of Microsoft’s biggest fiascos in recent memory.
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August 9th, 2009
This clearly a case of sour grapes. I have all three OS’s at home and use them as needed. In my opinion Windows is the least stable and most expensive to maintain – not the money cost but the time cost is very very high. Number of unexplained events is so high that I limit what I do on Windows. Microsoft has NO business model. They are a bunch of excellent bull…..rs and do a great job marketing.
August 9th, 2009
I too use all three OS, …some observations. Linux is (and has been) ruling the server arena for sometime…this is where Linux is a competitor to Windows.
Linux still has a lot of catching up to do in the desktop department. The beauty is that Linux doesn’t need a time frame to get there. They won’t close down next year or two if it didn’t meet “marketing goals”.
Looking further into Linux a bit more… you know maybe Linux DID hurt Microsoft in the desktop department.
When the netbooks came out they were all Linux, MSFT had to discount XP Home to the OEMS so that XP could be put on the netbooks (so that Linux didn’t a big foothold in that department)…as a result…they might have won the battle …but maybe they lost the war? This is one example where Vista could have hurt MSFT as Vista could not fit on the netbooks.
There has been a growing movement across the globe for “open source mandates”…this means a department or a agency must use a open source software product or develop plans with eventual migrations to all open source.
Russia is a good example, where schools in all regions must use open source or the school district must pay for proprietary software themselves. Mandates such as these will eventually boost Linux on the desktop in the future ahead.
The force behind the mandates is mainly financial as agencies and districts will have saved themselves from huge licensing fees. And in this economy…who can argue with that logic.
As far as marketability, Apple is the winner in all of this. MSFT can’t hold a candle to Apple when it comes marketing new products.
Vista hurt Microsoft much more than Windows Me….and Windows Me was a much more troubled OS than Vista ever will be…but perceptions remain that Vista is a troubled OS does affect MSFT in the long run.
Emballmer has to put the best possible light on Microsoft as possible…it is his job. Microsoft isn’t going anywhere soon, but their days of 99% market share are long over.
Like other companies…they are facing profit issues and losing market shares. Adding further insult to injury…Some are starting to refer to Windows as (“your father’s OS”)….. ouch!
August 9th, 2009
7 will be a hit for Microsoft. Since almost every PC sold gave MS a license fee, the Vista “damage” was more wistful thinking than anything else.
The versions of Linux that were sold on Netbooks were horrible, at least here in the States. Most of the people I know blew them off and installed a standard Distro with an XFE or similar lightweight GUI.
The most popular OSS also runs on Windows. If you limit your scope to the Desktop, Apple has a 10% share of that single segment. Microsoft doesn’t build hardware. Macs are much more of a threat to individual PC manufacturers than Microsoft.
It was stupid of the Linux community to bail on the Server side and go Ububtu desktop crazy. Microsoft grew the server products:
http://www.microsoft-watch.com/content/corporate/microsoft_q3_2009_by_the_numbers.html
Linux blew it. The outlook for significant growth is primarily hopeful and wishful. And I’m a Linux user. OSX has taken more from Linux than Microsoft in the Desktop. They tripled share during the Vista fiasco with a $1K entry fee. The PC/Mac commercials further marginalized the Linux desktop.
Funny thing is if the Linux community hadn’t decided to fight Apple for scraps, the already superior server side, the thing that had Microsoft really scared, would have gained significant traction in the current fiscal climate, the use as a corporate desktop would have people exposed to the product in a controlled environment and mitigated the lack of pre-installed Linux PCs to a large degree.
If Apples long rumored tablet taps into the Netbook segment,
Russia and other overseas markets had mostly pirated Windows copies.
I’ve been using Linux since 1998 as a server product and messed with it on the desktop until I switched to it as my main OS in 2006.
Unless Linux gains in the Server segment in a big way, it’s going to remain a tiny slice of the Desktop.
You need to view Windows in the context of Microsoft’s entire product line. It isn’t a standalone product, it’s a platform to run their other products. It’s how they knocked Novell out of the server room, how Office punted WordPerfect, Lotus and Dbase. Open Office is a much bigger threat than OSX or Linux.
Apple isn’t any real threat to Microsoft. Sure they bleed some revenue on the Desktop and Windows Mobile is getting pounded from the iPhone. But Apple can’t really challenge Microsoft in the enterprise and the Linux community has blown off serious efforts in the one area it is clearly superior.
Look at the big picture if you want to judge Microsoft’s health. It’s like looking at Apple without iPods and the iPhone if you don’t.
August 10th, 2009
If you have Microsoft shares and you can’t get rid of this moron as CEO, then sell your shares. Windows 7 sill be a shot in the arm but it wont turn Microsoft around. You’re only going to keep losing money.
August 10th, 2009
Compared with Linux, Microsoft focuses on high-volume, HIGH prices and LOW quality.
February 7th, 2011
Useful site, where did you come up with the info in this blog post? I’m glad I found it though, ill be checking back soon to see what other articles you have.