EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS


More Microsoft Products May be Axed After Microsoft Exodus, Other Trouble

Posted in Apple, Asia, GNU/Linux, Hardware, Microsoft, Steve Ballmer, Windows at 6:57 am by Dr. Roy Schestowitz


Summary: Microsoft’s spin after an exodus is explained and shown; Microsoft has begun suing Windows users for money and further limiting the available options

Last week we saw another wave of Microsoft exodus [1, 2, 3] (rumours of more layoffs exist too) and Microsoft uses “reorg” is a typical euphemism, as we previously explained in [1, 2]. Whenever large numbers of major departures are announced, the word “reorg” comes up. The term is usually being used by Ina Fried and other such PR folks (same two years ago when the mobile unit was abandoened). Here are more new examples of “reorg”/”reorganize”/”reorganization” in new headlines [1, 2, 3]. The term which Mary Jo Foley uses in her headline is “org[anisation] chart”.

“Shake-Up” is the word Murdoch’s press uses in the headline and the same word is used in the headline of John Carroll from Microsoft (he stopped working there) and an article by Microsoft boosters like Preston Gralla (maybe his editor changed the headline). They are spinning it as through it’s a good piece of news rather than a disaster for Microsoft.

Here is another example of the word “shakeup” being used in the headline:

Microsoft Shakeup Ballmer’s Last Chance?


Microsoft CEO Steve Ballmer put his credibility, and possibly his career at the software maker, on the line Tuesday with a bold reorganization of the company’s struggling hardware unit.

It’s not just about Ballmer. We’ll come to this in a moment.

When many departures are announced at the same time and the company fears investors’ wrath that’s just the type of reaction one ought to expect. It’s called “damage control” and the above is just a survey of headlines. The side blog of Murdoch’s press calls this a “reboot”, which is a term Ballmer used on various occasions, e.g. to describe post-Longhorn Windows development.

Microsoft’s stock fell some days ago after Barclays had lowered its views on Microsoft.

Microsoft (MSFT) is trending modestly lower in afternoon trading, down 1.08%, after Barclays Capital cut its target price on the stock while maintaining its “buy” rating.

Here are some other negative articles about Microsoft’s stock [1, 2, 3], coming at roughly the same time as when it fell behind Apple in terms of market cap. Some pro-GNU/Linux sites celebrated this. Other sites went further [1, 2, 3], with the headline of a longtime Microsoft watcher saying: “The Windows era is over”.

Here is a chart comparing Apple and Microsoft (MSFT). Apple customers will spend a lot of money on Apple’s stuff, whereas some people won’t pay Microsoft anything and they would pay absolutely nothing if Microsoft forced them to because Free software like GNU/Linux is available (Apple’s customers are people who choose by price tags and labels). In terms of market share, thanks to the less wealthy countries, GNU/Linux might already be ahead of Mac OS X. Here is Steve Ballmer’s presentation slide from last year (referring to desktop):

Ballmer's slide on Macs and GNU/Linux

Let’s go back to the main topic though. More “reorg” reports are appearing. It’s that euphemism again.

Microsoft Ready To Reorg Marketing Big Time, Analyst Says

Evidently, Steve Ballmer, Microsoft’s chief executive officer, has had enough. Maybe that’s why Microsoft in February appointed David Webster chief strategy officer, and Gayle Troberman chief creative officer, — both new roles — after somewhat of a reorganization earlier this year.

Webster was previously general manager, brand and marketing strategy. Troberman serves as general manager of advertising. Both report to Mich Mathews, senior vice president of corporate marketing. The new appointments and strategy will allow marketing team to work across campaigns to unify the message for the Microsoft brand.

Microsoft’s mobile business is a disaster and it’s not entirely clear who will take over and how. There is a big vacuum. Novell had similar problems in the channel before John Dragoon took over it, just like Steve Ballmer does in this case. It’s not just a couple of departures because this chain goes a while back (Enrique Rodriguez [1, 2] for example).

Might Microsoft just cancel some more of its products? It seems possible, based on CRN.

Microsoft has problems in its mobile business, but it’s clearly not afraid of jettisoning the old way of doing things and starting over with an entirely new approach.

Microsoft tried “an entirely new approach” with Sidekick and with “KIN”. It failed miserably. IDG has the following new articles:

Microsoft Admits Windows Phone 7 Slide Was Wrong

Microsoft Risks Becoming Mobile Market Also-Ran

Redmond has its share of problems in the rapidly evolving consumer tech market. While Microsoft continues to dominate in its two core, and highly profitable, software markets with Windows (desktop operating systems) and Office (productivity software), it has failed thus far to match the success of key rivals Apple and Google in the mobile arena.

If You Have Multithreading in Windows Phone 7, Do You Need Multitasking?

Microsoft’s decision to block multitasking for Windows Phone 7, at least in the initial release, unleashed complaints from some developers and pundits. It was a step backward! The Apple-fication of Windows Mobile and so on.

With multitasking lacking, how can Microsoft even compete on technical grounds?

Here is another new report: “Microsoft May Cut Zune Streaming Music Price, Executive Says” (is anyone even using it?)

Microsoft Corp., the world’s largest software maker, may cut the monthly fee it charges for streaming music on its Zune portable player, senior product manager Terry Farrell said in an interview.

CNET’s corner for Microsoft boosters (“Matt Rosoff is an analyst with Directions on Microsoft”) has this headline: “What should Ballmer do with Zune?”

“Some sites are trying to personify the problem by naming Ballmer, but it’s not a one-man failure.”Zune too is a dead/dying product, but “KIN” might depend on it now. Looking around at some other devices, Vista 7 keeps failing in tablets [1, 2, 3] and this new article states: “Microsoft: No Windows Phone 7 Tablet Devices Planned”

So how are they going to compete?

Some sites are trying to personify the problem by naming Ballmer, but it’s not a one-man failure. In fact, a lot of people in this team have been shown for their abuses. Getting rid of Ballmer, as some new article suggests, would not solve the behavioural problems of Microsoft. It’s a cultural issue in a changing landscape that injures this monopolist and leads to layoffs.

One author asks, “Why Does Steve Ballmer Still Have a Job?” [via]

Sure, Microsoft still has a dominant market share in PC operating systems and office applications, but it’s managed to take that massive competitive advantage and waste it everywhere else over the past decade.

Ballmer’s mistake is that he is a bully and a liar. He even shows this, unlike Bill Gates who was doing the same things but at least hiding it. Here is Ballmer spreading the counterfeiting lie that Microsoft uses whenever it’s down. Ballmer did this last week (original report here).

Microsoft CEO Steve Ballmer is scathing of ongoing, rampant piracy in China in his latest comments, saying: “India is not perfect, but the intellectual property protection in India is far, far better than it would be in China.” He added that “China is a less interesting market to us than India, than Indonesia”.


These comments come on the same day that US Secretary of State Hilary Clinton and Treasury Secretary Timothy Geithner are actually in China, which may put pressure on both Governments to address this issue once again, as it potentially loses Microsoft, and numerous other US companies, hundreds of millions of dollars.

There is a lot of poor reporting, which is not analytical and is just echoing Microsoft’s use of words like “piracy”, along with unsupported, un-backed claims about “damages”.

“It’s easier for our software to compete with Linux when there’s piracy than when there’s not.”

Bill Gates

Extreme sensationalism is being used by InformationWeek (“Microsoft Says China Piracy Killing Thousands Of U.S. Jobs”). Microsoft is just chasing old business models where this notion of counterfeiting still exists. It’s all about artificial limitations:

Microsoft says a Parallels virtualization product, aimed to help users upgrade their systems to Windows 7, will cause users to violate their software licenses in most cases, according to CNET.

Microsoft should sell services, not licences to merely run some binaries. Digital abundance cannot be fought against for much longer. That’s why Microsoft’s Encarta died and Microsoft’s software may be next. Windows is no longer free (gratis) in China and this is probably going to drive China to GNU/Linux even faster. Microsoft was suing Chinese businesses for using Windows, but it’s bouncing back at Microsoft’s face:

Internet café fires back at Microsoft over lawsuit

A Chinese Internet café group being sued by Microsoft for using pirated software is accusing the US firm of attempting to shore up money in its intellectual property lawsuit.

The accusation comes about two weeks after Microsoft said it would nearly triple its compensation claim in regard to the café group’s use of pirated Windows operating systems, bumping the damages sought to 1.58 million yuan ($231,000).

This Internet café is likely to just use GNU/Linux after the incident. The government in China has even begun encouraging this, but it’s claimed that there is in-built surveillance in the distribution/s the Chinese government approves/endorses/enforces. There’s nothing GNU/Linux can do to prevent them from doing this, but users can fetch/compile their own distribution of choice if they are permitted by the totalitarian regime. Microsoft is "enabling tyranny" in China and Ballmer defended this policy last week as well. To Microsoft, it’s still all about money.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New

  1. United They Stand: FFPE-EPO Supports Suspended Staff Representatives From SUEPO

    An obscure union from the Dutch side of things at the EPO is expressing support for the suspended colleagues from SUEPO (more German than Dutch)

  2. Censoring WIPR Article About Censorship by EPO

    A testament to how terrified journalists have become when it comes to EPO coverage, to the point of deleting entire paragraphs

  3. Censorship at the EPO Escalates: Now We Have Threats to Sue Publishers

    Having already blocked Techrights, the EPO's management proceeds to further suppressions of speech, impeding its staff's access to independently-distributed information (neither ordinary staff nor management)

  4. Response to Bogus Accusations That EPO Staff Protests Are Really an Attempt to Derail UPC

    Common myths about staff protests in the European Patent Office (EPO) debunked, with some additional background and general perspective on recent events, the unitary patent (UPC) and so on

  5. New Heise Article Makes It Clear That 'Nazi'-Themed Accusations Against the Suspended Board Judge Were Insufficiently Substantiated

    The personal attacks on a judge who was illegally suspended (a so-called 'house ban') increasingly look like the management's own campaign of defamation, mostly intended to marginalise and punish a judge who spoke about serious charges against VP4 (Željko Topić)

  6. Links 24/11/2015: Asus Chromebit CS10, Second Linux 4.4 RC

    Links for the day

  7. European Central Bank Staff Committee Adds to Growing Pressure on Abusive EPO Management

    The staff representatives of the European Central Bank E-mail their colleagues -- with European Central Bank managers' approval -- regarding the European Patent Office and its attacks on staff unions

  8. Gross Violation of Workers' Rights in EPO: Denial of Christmas Vacation/Leave for Slower Workers

    A look at an E-mail from within the EPO which shows how Christmas is used to squeeze staff, urging them to work even faster (despite speed gains) or lose their Christmas leave

  9. The Bogus Narrative Floated by EPO Management: Our Judges and Examiners Are Armed and Violent

    A look at the union-busting and protest-crushing moves from high-level EPO managers, who are trying to convince politicians that they do so in an effort to stop terrorists and neo-Nazis

  10. Support SUEPO or End Up Like They and Some of the Boards Did

    SUEPO, the fast-growing staff union of the EPO, increasingly needs the support and protection offered by action and participation from staff

  11. NRC Handelsblad (Dutch Evening Newspaper) Speaks About EPO's Refusal to Accept Court Orders From The Hague

    Article explains the depths of the issues inside the EPO and the unacceptable immunity that management at the EPO continues to exploit, shaming or discrediting the very notion of the rule of law in Europe

  12. HeBS Digital and Black Duck Press Releases Treated Like Articles, Used to Muddy the FOSS Waters

    Free/Open Source software (FOSS) is under attack again, and it's the proprietary software lobby that's responsible for that

  13. EPO President Battistelli Now Intimidates Even National Delegations

    Report about an embarrassing incident implicating Benoît Battistelli and some angry comments cast over the witch-hunting of a judge, using all sorts of questionable tactics

  14. A Look at the Latest Gross Deletionism at the EPO's 'Media Partner', French Newspaper Les Échos

    The EPO's bogus 'journal of record, which Team Battistelli likes to cite in order to bolster its warped version of events at the EPO while maintaining a close secret relationship with the publisher, keeps censoring its own reporters (spiked paragraphs, silently self-censored or censored after publications)

  15. Rumour About Efforts to Dismiss a Board Judge by Intimidating Boards of Appeal

    Comment found online accuses the Administrative Council of pressuring, by threats, Directorate-General 3 to dismiss a judge who is silently accused (with selective 'leaks' to the media, reportedly orchestrated by EPO managers) but not even proven guilty

  16. President Battistelli Now Pressures/Threatens Politicians Who 'Dare' to Complain About Abuses and Unacceptable Conditions at the EPO

    Pierre-Yves Le Borgn’, a French politician, unleashes an angry letter from Benoît Battistelli and reveals just to what lengths the EPO's Team Battistelli is willing to go in order to crush political backlash

  17. EPO: It's Like a Family Business - Part IV

    Some more background information about Elodie Bergot and Gilles Requena, who are married whilst also sharing positions of power at the EPO (and also strong connections/ties with the EPO's President, Mr. Battistelli); Rumours afloat at the EPO -- some with ever-increasing circulation too -- are worth noting

  18. Translation of Thomas Magenheim-Hörmann's Article in the German Media, Urging European Politicians to Intervene in EPO Chaos and Lawlessness

    Frankfurt-based media presents an opinion piece written by a Munich-based economic correspondent, Thomas Magenheim-Hörmann

  19. German Press Says Broken EPO Lets President Severely Punish Staff Not Even Guilty of Any Wrongdoing

    Juve publishes an article which attempts to be 'balanced' (meaning it believes everything that EPO officials say) but at the same time reveals unacceptable practices that go in inside the EPO

  20. German Media Reveals That Out-of-Control EPO Management is Even Threatening and Abusing Lawyers Now

    The EPO's longstanding fight against justice escalates to an unprecedented war on lawyers themselves; “After this latest move,” says a German newspaper, “even lawyers are starting to feel threatened by the Office.”

  21. Washington Post Only Entertains Debate About Patent Trolls (But Not Patent Scope) Whilst US Lawyers Trick the System to Patent Software

    The Bezos-owned Washington Post continues to help those who wish to eliminate patent trolls (which bother Amazon amongst other large conglomerates) but remains void of any coverage about patent scope, including software patents that patent lawyers work so hard to defend

  22. It Pays (Off) to 'Bribe' the Media: Watch How Les Échos Covers EPO Matters and Self-Censors

    French newspaper Les Échos is self-censoring yet again and it is framing the EPO scandals as the fault of employees, not the fault of abusive managers who are working with Les Échos as a so-called 'media partner' (the EPO management is French-dominated)

  23. 'Leaked' PDF Shows How EPO Management Tried to Crush Judge Who 'Dared' to Criticise EPO Management

    The EPO's management continues to chill potential critics and is now making an example of a board's judge, despite having no such authority over him

  24. Links 21/11/2015: Community Appreciation Day, Jolla's Problems

    Links for the day

  25. EPO: It's Like a Family Business - Part III

    A look at how the EPO's management (Željko Topić in particular) defended the unprecedented promotion of Ms Bergot (wife of the president's close assistant), even in the face of outcry from EPO staffwarning

  26. In an Effort to Counter EPO Staff Narrative (After ~2,000 of Staff Protest) EPO Management Portrays Staff as Violent But Provides No Evidence

    The EPO's management has a poor record on accuracy and truth and the latest staff-shaming tactics serve to reinforce that track record

  27. Gross Aggression by EPO Management Shows the Urgent Need to Remove Immunity From EPO

    The increasingly militant approach of EPO management (with counterterrorism staff added to interrogate EPO staff) serves to show an organisation gone truly bonkers

  28. Patents Roundup: Alice Decision Still Upsets Patent Lawyers, Microsoft AstroTurf Group Lobbies on FRAND, Google and Red Hat Recalled

    The reaction of patent profiteers to scope/boundary restrictions, the FRAND lobby by Microsoft's longtime front group, FRAND matters in Korea (affecting Android), Google's response to patent threats, and Red Hat still keeping quiet about its patent agreement with Microsoft

  29. Links 20/11/2015: DockerCon EU, Red Hat Enterprise Linux 7.2

    Links for the day

  30. Patent Lawyers Want to Bring Software Patents (Hence Patent Trolls Too) to Europe, Piggyback Battistelli's Habitual UPC Promotion

    Analysis of the views of academics (profiting from solid research), contrasted with patent lawyers (profiting from feuds and conflicts), and the latter group's exploitation of Benoît Battistelli's misguided policies


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time


Recent Posts