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Microsoft CEO Steve Ballmer to retire within 12 months

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Re: Microsoft CEO Steve Ballmer to retire within 12 months

#371
post #23

He'll be remembered as a terrible CEO. Ballmer took over as CEO in 2000. In the 13 years since then, Apple has experienced an unprecedented resurgence. Google and Facebook have gone from being obscure startups to giants. The tech industry went through the bubble, recovered, and today is stronger than ever. What happened to Microsoft? While the rest of the tech sector exploded and prospered, it stayed still. A MSFT sh…

"A MSFT share was worth about $35 dollars when Ballmer took over; it's worth about $35 now. " When doing this type of calculation, please adjust for Dividends, which have been substantial from Microsoft, and only recently started from Apple.

And inflation. Dividends averaged 1.5% during this period, inflation about 3%. So really we're looking at a ~15% decline in value.

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#372
post #23

He'll be remembered as a terrible CEO. Ballmer took over as CEO in 2000. In the 13 years since then, Apple has experienced an unprecedented resurgence. Google and Facebook have gone from being obscure startups to giants. The tech industry went through the bubble, recovered, and today is stronger than ever. What happened to Microsoft? While the rest of the tech sector exploded and prospered, it stayed still. A MSFT sh…

I agree that he will probably not be remembered for having more than doubled revenue and almost tripled profits. He will not be remembered for transforming Microsoft into one of the most important enterprise software companies. Not for introducing .NET, C# or Kinect either. All of that will be forgotten. He will be remembered for missing mobile. He will also be remembered for caring a lot about developers and about d…

.NET started as COM2 back in 1998 along with a predecessor of C#, so I'm disinclined to give ballmer credit for it. Likewise, Kinect was brought to Microsoft by an Israil R&D firm, it was not home grown.

Kudos for executing, but the vision thing was always missing with Ballmer. He didn't just miss mobile, he laughed at it. He will be remembered for Windows Vista.

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#373
post #23

He'll be remembered as a terrible CEO. Ballmer took over as CEO in 2000. In the 13 years since then, Apple has experienced an unprecedented resurgence. Google and Facebook have gone from being obscure startups to giants. The tech industry went through the bubble, recovered, and today is stronger than ever. What happened to Microsoft? While the rest of the tech sector exploded and prospered, it stayed still. A MSFT sh…

You're judging the share price coming out of the greatest stock market bubble in world history.

1) The stock was closer to $57 in January 2000 if you average the trading days, not $35 (high in Jan was $64 at the end of the month, low was $42 at the beginning of the month).

2) They generated $22.9b in sales and $9.4b in profit in the fiscal 2000 year. Ballmer inherited about a 45 PE ratio, which is a massive multiple for a company with a $425+ billion market cap. An impossible multiple to maintain at that size I'll note. Just ask Apple, their PE has imploded from 35 to 60 several years ago, down to 9 recently (now 12 or so). Does that make Cook a terrible CEO, the fact that it's very likely impossible for him to build a trillion dollar company? No, he inherited a growth monster that is rapidly slowing down. Welcome to the law of big numbers.

3) Sales have increased from $22.9b to $77b so far under Ballmer. And profits have gone from $9.4b to $21.8b for fiscal 2013. For a company that was already the largest software company in the world, that's a spectacular operating performance. Meanwhile they've returned 40% of their market cap in cash to investors.

The notion that any company can dominate all industries simultaneously, such that Microsoft was going to own search, social and mobile is absurd to put it very lightly. The notion that Microsoft can just magically stop all future giant companies from existing, is equally absurd.

I don't think he was a great CEO, but your bashing is completely off target. You're criticizing Ballmer for basically not being a trillion dollar company with $100 billion per year in profit by not being a combined MSFT + GOOG + AAPL + FB. That makes no sense.

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#374

Earlier quoted context omitted.

That's because that has been Microsoft's strategy from the beginning: let someone else take the risk of proving whether a market for something exists, and then, if it does, get in there quick with their own offering. They got into the PC OS business with MS-DOS after the Apple II; into the GUI business with Windows after the Mac; into the word-processor business with Word after WordPerfect; into the browser business…

In the mobile market, Google was the fast follower. MSFT's entries with windows phone and the surface cannot be called fast .

To be fair, Windows Mobile existed and gained market dominance long before the iPhone was around. Tablet PCs were introduced with Windows XP, long before the iPad was around.

Microsoft's failure was in hesitating to change with the market, not a failure to have products on the market.

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#375
post #328

Earlier quoted context omitted.

I agree that he will probably not be remembered for having more than doubled revenue and almost tripled profits. He will not be remembered for transforming Microsoft into one of the most important enterprise software companies. Not for introducing .NET, C# or Kinect either. All of that will be forgotten. He will be remembered for missing mobile. He will also be remembered for caring a lot about developers and about d…

It's hard to disagree with sarcasm on the internet. But in this case you are absolutely correct. Microsoft used to control the future of computing. Now they are yet another enterprise software company with no apparent mission except to make money. The lay somewhere on a continuum with IBM, Oracle, SAP all the way through to companies like CA. At one end of that spectrum they do research and produce software that peop…

Why would anybody think that there aren't limits to what one company can dominate?

This absurd notion that Microsoft could have ever possibly retained "control" of the future of computing (apparently forever would be the requirement) is non-sense.

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#376
post #347
post #328

Earlier quoted context omitted.

It's hard to disagree with sarcasm on the internet. But in this case you are absolutely correct. Microsoft used to control the future of computing. Now they are yet another enterprise software company with no apparent mission except to make money. The lay somewhere on a continuum with IBM, Oracle, SAP all the way through to companies like CA. At one end of that spectrum they do research and produce software that peop…

We tend to forget that Microsoft ALREADY did what these "startups" did. MSFT already pushed the envelope and changed the way we use technology in our day to day lives. There is (probably) only so much change one company / person can do. Even if there is additional potential, in the end companies will seek profit and stability.

> We tend to forget that Microsoft ALREADY did what these "startups" did. MSFT already pushed the envelope and changed the way we use technology in our day to day lives.

We tend to forget that IBM did that in a previous era.

Another example that "in the end companies will seek profit and stability" and be an "enterprise software company"

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#378
post #23

He'll be remembered as a terrible CEO. Ballmer took over as CEO in 2000. In the 13 years since then, Apple has experienced an unprecedented resurgence. Google and Facebook have gone from being obscure startups to giants. The tech industry went through the bubble, recovered, and today is stronger than ever. What happened to Microsoft? While the rest of the tech sector exploded and prospered, it stayed still. A MSFT sh…

>>>A MSFT share was worth about $35 dollars when Ballmer took over This is incorrect. In December of 1999 the shares were selling around $58/share. Even in March after he took over the stock still hovered around $53/share. By May, the price had crashed to around $30/share - which coincides with the first dot com bubble bursting.

IIRC the MSFT 'crash' was on the day they were found guilty of antitrust violations, and a bit before the bubble actually popped.

Re: Microsoft CEO Steve Ballmer to retire within 12 months

#380

Earlier quoted context omitted.

It's a strong assertion to say that it edged up based on news possibly getting out. After the NASDAQ halt yesterday the NASDAQ composite as a whole edged up. MSFT's movement looks correlated to this broader move. https://www.google.com/finance?q=INDEXNASDAQ%3A.IXIC&ei=mGoX...

Good point. I was thinking it was rumors getting out because of the gradual nature of the move, but I think that you're right. Traders were slow to put orders back into the market, which created a gradual drift up, rather than an instant reset in the market when it re-opened.

It here is some speculation about said inside information. I emphasize speculation.

http://www.zerohedge.com/news/2013-08-23/call-it-ballmer-gam...

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