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Bullish Ballmer defends Microsoft record

By Barry Collins

Posted on 5 Oct 2010 at 10:25

Under-fire Microsoft boss Steve Ballmer has defended his record at Microsoft on a rare visit to London.

The Microsoft CEO was only awarded half of his maximum bonus last week, with the company's board penalising Ballmer for losing share in the mobile market and its failure to address emerging form factors, such as tablet PCs.

Yet, after delivering a speech on cloud computing at the London School of Economics this morning, Ballmer issued a forthright defence of his company's performance.

We're a company that will make $26 billion pre-tax, so I'm not going to be apologetic for our financial results

"We're a company that will make $26 billion pre-tax [this year], so I'm not going to be apologetic for our financial results," Ballmer told the audience.

"We've seen very few companies stay at a high level for a long time," Ballmer later added. "I'd put us and IBM on that list. I kinda like what we're doing right now."

Ballmer admitted the company's failings in the mobile market, but said next week's launch of Windows Phone 7 will help reverse the company's fortunes. "On the pocket side we got out to an early jump, but we had competitors come back at us in a way I'm not excited about," Ballmer said to the amusement of the gathered audience of journalists and academics.

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"My belief is that when you look at the product [Windows Phone 7] in the coming weeks, people will say 'wow'," he said.

The Microsoft boss was also confident the company could make up lost ground in the tablet market. "You'll see slates with Windows on them, you'll see them this Christmas," Ballmer claimed, when asked whether Apple iOS and Google Android had harmed Windows' chances in the tablet market. "We certainly have a superior device," Ballmer added.

Cloudy forecast

Ballmer arrived in London as part of a European tour to espouse the benefits of cloud computing. The Microsoft chief executive claimed that the IT industry was on the cusp of another revolution that would see the cloud combined with a battery of intelligent devices.

"Our industry is going through quite a wave of invention, powered by one major phenomenon... the shift to the cloud," Ballmer said.

"The cloud wants smarter devices," he added, claiming that the prophecy that PCs and mobiles would become dumb clients was provably false. "People want smarter devices, but smarter devices that can connect with the cloud... in intelligent ways."

Yet, while devices will become more sophisticated, the data centres that power the cloud infrastructure will become simpler and easier to manage, Ballmer predicted. "A data centre should be a shipping container that you put under a roof to protect from water," he said. "You plug in some electricity and an internet connection [and that's it]."

"When you build an app, you have to build it in a way that nobody needs to be around to manage it," he added.

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User comments

In what way will this tablet be superior? extra RAM? a camera? When are they going to learn that it needs to get the basics done first to be superior. It needs good battery life, nearly instant on and be able to browse simply. Once they've got that sorted people will want them. Having a 1 minute boot up, a 2 hour battery life and IE's five stage zoom is not going to impress anyone

By TimoGunt on 5 Oct 2010

Actually Timo I think its going to be easier than you think. There are already Win 7 ultraportables with long battery life, instant on from sleep mode and a choice of 5+ browsers. So I don't see why it should be that hard to bring those attributes to a tablet. And just a few extra basics like some USB ports and an SD card slot would impress a few folks.

By rjp2000 on 5 Oct 2010

Balmer on Cloud Computing?

Another area where Microsoft are failing despite very large investment.
Since April Microsoft stock has lost over 20% and Apple has grown by 12%, who is Balmer trying to kid that everything is OK.

By milliganp on 5 Oct 2010

WOW!

"My belief is that when you look at the product [Windows Phone 7] in the coming weeks, people will say 'wow'," he said

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ish-ballmer-defends-microsoft-record#ixzz11Vew389h

I seem to remember "wow" being what Vista was all about: perhaps Microsoft think that Windows Phone 7 will be as great a hit as Vista was.

By ngc001 on 5 Oct 2010

Has MS lost it's way?

There is no doubt that Apple has made tablets a hit with 3 Million sales in no time. MS tried this and lost so what's new now, a rethink. Their modus is now outdated people are moving on, the need for IT managers because Windows doesn't work is almost over. I don't know what the next era will bring but half bonus sounds generous to me.

By cherryco on 5 Oct 2010

No matter what the markets say

Microsoft still brings in loads more money than Apple. Windows 7 was praised by nearly everyone, the exceptions being the Apple faithful To be honest their opinions are about the same level as schoolgirl with a crush.

IT managers will still be required because you can't do any real work on an iPad and no business in their right mind wants to pay extra for a computer just because it looks nice.

By windywoo on 6 Oct 2010

Good Grief!

The man is a complete Poltroon! Maybe if MS made hardware as well, they could say what will happen with some accuracy, but to claim the (imaginary) hardware will be better because it runs WinMo is ridiculous, considering that MS always miss so many obvious tricks on initial release. I wonder how long it will take BallsUp to run MS into the ground (while shouting 'WOW' very loudly)...

By Wilbert3 on 7 Oct 2010

Ape man found in Redmond...

This Guy has always been a big fan of Geroge Dubbya's special brand of Turd Polish.

Everything he has been invloved with has had to endure U-turn fixes, corrections or replacements.

Namely Vista - Win 7 trainwreck, and that Ribbon Bar in Office 2k7, which has been pared back to something more natural again in Office 2010.

Bring back Bill.

By Gindylow on 7 Oct 2010

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