Microsoft’s Ray Ozzie and Steve Ballmer at D8: Round up

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Microsoft CEO Steve Ballmer and Chief Software Architect Ray Ozzie was face-to-face with The Wall Street Journal’s Walt Mossberg at D8 on Thursday in a non-appeasing interview. The Microsoft top bosses were on the wrong track almost throughout the interview Walt Mossberg at The All Things Digital Conference.
Major half of their conversation was out of focus with Steve Ballmer and Ray Ozzie both clinging to arguments related to competing products like Apple iPad, Google Android, Google Apps, Google search, rather than discussing the company’s future plans. Overtly, it seemed an attempt to take on the competitors who have exposed weaknesses in Microsoft’s product offerings. As tablets and smartphones shaping the future of digital world, Microsoft lagging behind in its approach. Ballmer couldn’t frame Microsoft within the existing trends, interpreting an apprehension that the company might fail to even up with industry’s next big growth phase.

Transition to Cloud

One of the first questions Steve Ballmer encountered in All Things Digital D8 conference was the transition towards cloud computing that presents a potential challenge to Microsoft, that thrives on traditional desktops.

Ballmer was optimistic that there is “nothing bad for us in the trend.”

“But it’s a transition and as such it’s a period of tumult. So we need to be smarter and more vigilant. But not because we’re moving from a world that’s fundamentally good for us to a world that’s not. We’re moving [from] a world that’s good for us to a world that’s potentially even more good for us.”

Ballmer disputed the existing grapevine that Microsoft would be moving everything to the cloud.

With the competition growing more in Colud computing, Microsoft is all set to take on the market

According to Ballmer, users will have really cheap devices, which will offer reasonable amount of local processing power, storage and graphics. He added that local processing power and storage are here to stay. Ozzie provided a broader view buying a new gadget turning it on with instant access to your applications.

Steve Ballmer disputed the claim made by Steve Jobs that the PC will get less relevant.

Transition to Tablets

Steve Jobs a day ago predicted a trasition form PCs to tablets and mobile devices. Reacting on the statement, Ballmer said “not everyone can afford five devices” adding to the notion that Windows is for those who cannot afford something better.

Walt Mossberg asked about Microsoft’s plans for tablets. Bill Gates had advocated the tablet concept some years back, pre-echoing Jobs clam that they will largely replace laptops. Microsoft had been conceptualizing and re-modelling the Tablets with XP Tablet Edition, Vista tablets, then Origami,” or Ultra-mobile PC. The Tablet PC was not a complete failure but remained an expensive niche.

Ballmer has to get Microsoft in vague to survive the transition.

Ballmer calls the “race is on”. This could interpreted Apple has demonstrated how to make a successful Tablet and Microsoft can copy the same.

Microsoft started with a no-so-good track record, and has to overcome the past mistakes to establish itself in the Tablet market.

Future with PCs

No doubt Microsoft is the industry leader in personal computing, so it doesn’t have to be as bold and risky as Apple. Microsoft will continue to capitalize on Windows and Office franchises for high  profits for the next decade with the number of developing nations joining the digital revolution increasing. This is where Ballmer is eyeing.

Ballmer mentioned specifically,

I think people are going to be using PCs in a greater and greater numbers for many years to come. I think PCs are going to continue to shift in form factor. PCs will look different next year, the year after, the year after that… I think the PC as we know it will continue to morph form factor… Windows machines are not going to be ‘trucks.’ They will continue to be the mass popularizer of a variety of things that people want to do with information… I think there’s a fundamental difference between small-enough-to-be-in-your-pocket and not-small-enough-to-be-in-your-pocket. There will be some distinct differences in usage patterns between those two devices.

Microsoft Vs Google

Ballmer argues he can’t find reason why Google has both Chrome and Android. He pointed out, Google starting out incoherent while Microsoft has always supported coherence.

Architect Ray Ozzie was provided an answer to Ballmer’s question,

Android is a bet on past and Chrome is a bet on Future. Clearly, Android is more about installing applications on a specific device, while Chrome OS is designed for a future where everything is online, in the cloud.

However, Ballmer stuck to his assertion that two operating systems is confusing. He would advice Google to “make one bet and pursue it”.

Taking on Google for the search engine, Ballmer claimed that they are the first search engine to gain market share after a long time. He was quick to add that the Bing team needs to do “a heck lot of work in what remains to be a very competitive battle against a behemoth like Google.”

Microsoft Vs Apple

Ballmer addressed Apple CEO Steve Jobs’ latest prediction for the tech world on Tuesday at D8  - “PCs are going to be like trucks”. Jobs added that “Less people will need them. And this is going to make some people uneasy.” The PCs will assume the role of niche workhorse, while the touch-screen user interface  provided by iPhone and iPad will grow in maturity and usefulness.

Providing a befitting reply “Windows machines will not be trucks,” and acknowledged that the PC form factors will continue to evolve.

Will Silverlight be used for Android or iPhone?

Ballmer didn’t a straight answer for this question thrown by an audience, but he anticipated that it will be blocked. What remains to be answered is why Microsoft will continue to develop a product that has no future. Ballmer failed to provide an apt reply.

What’s evident Microsoft has to learn from its blunders in past, Windows 7 took over the mistakes in Vista and Windows Phone 7 learns from the mistakes in Windows Mobile.