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Ballmer channels 1985, suggests Apple split iPhone hardware and OS

Steve Ballmer is imitating his CEO predecessor by suggesting that Apple separate its iPhone hardware from OS X, according to Ars Technica.

Nokia leads the smartphone market today with about a 30 percent share, he said. "If you want to reach more than that, you have to separate the hardware and software in the platform," he said in an discussion forum with the Churchill Club, a Silicon Valley business and technology group.

In 1985, Bill Gates approached Apple (and its then-CEO, John Sculley) with prospects in hand to convince it to license Mac OS to third-party vendors. As we all know, that didn't happen (at least not with Microsoft as a partner), keeping the bond tight between Apple hardware and software. Microsoft wound up doing it themselves with Windows.

The idea that Ballmer thinks other companies should be more like Microsoft isn't shocking at all; in fact, what else was the man supposed to say? Like Jobs with Apple, Ballmer's talks and interviews wield a great deal of influence on Microsoft's stock price. If he said anything other than what he did, MSFT would have taken a hit. As CEO, that's unconscionable.

If Apple had partnered with Microsoft in 1985, chances are Apple wouldn't be anywhere near the company it is today. Apple's share of the OS market could have been even bigger, sure, or somehow assimilated into the Microsoft-Borg collective. Does that mean Sculley was wrong to reject the offer?

Ballmer is coaching the other team in this game, and to give his comments any merit beyond equating them to cheerleading bluster is a mistake. The same with Gates and Sculley: I'd say Apple was right, just as it's right today to keep the iPhone platform tightly integrated.

In fact, if you want to look at the key difference between Microsoft and Apple, look at search. For search, Microsoft is to Google as Apple is to Microsoft for operating systems. Microsoft has about nine percent of the search market, Apple has eight percent of the OS market.

Instead of demonstrating how Microsoft is innovating their way into greater market share, Ballmer talks for seven minutes at the same conference about their position in the search market, but says nothing. He makes noises about "redefining the category" of search, but what does that even mean?

CEOs are never comfortable being called on the carpet when their company is facing stiff challenges, as Microsoft is with search. Ballmer's talk is an interesting case study in the contrast between Ballmer and Steve Jobs when it comes to explaining bad news. Ballmer blathers for seven minutes, while Jobs is more likely to write a tersely-worded letter that gets leaked to the press.

Microsoft and Apple are two companies at two extremes of transparency. Ballmer has verbal diarrhea, Jobs is communicatively constipated. Neither is ideal, but which one is better, in the end?

It all boils down to corporate politics: Ballmer's blithe suggestion that Apple should be more like Microsoft would -- of course -- be impossible to implement. Apple would destroy itself in a cataclysm of management.

Exactly what Ballmer wants -- and what Microsoft has wanted for 23 years.



Steve Ballmer is imitating his CEO predecessor by suggesting that Apple separate its iPhone hardware from OS X, according to Ars Technica....
 

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Hum! Desperate are we? I have both a Windoze Mobile 6.1 handset and an iPhone.

Well lets just say that it is easier for me to have a root canal than to use my Windoze Mobile 6.1 handset. The only reason I have it is that my company gives it to me and I have to use it.

Now what would be really really cool is that other phone manufacturers like Motorola and Nokia start using iPhone OS instead of Windoze Mobile 6.1.

October 07 2008 at 6:53 PM Report abuse rate up rate down Reply
iHoppipolla

Isn't this 7-minute statement in complete contrast to what Ballmer stated here:
http://www.appleinsider.com/articles/08/07/24/microsoft_sets_sights_on_providing_an_apple_like_experience.html

Not that that was an original question:
http://www.appleinsider.com/articles/08/09/26/ballmer_changes_tune_while_dancing_around_apples_success.html

One thing I appreciate about the Apple experience is that either the OS was written for the hardware or the hardware was chosen for the OS. I do not have to worry like I do with Android's "open" experience about the handset I buy because I know that this Mac and its software are "meant" for each other.

Ballmer believes differently and yet according to the links provided above, at the same time he agrees with me. Neither he or Christina Warren (a commenter on the previous page) mention any sort of reason why they believe that splitting the OS from the hardware is necessary.

One cannot cite Microsoft's market share as a reasoning why to follow Ballmer's advice. Apple is not trying to be like Microsoft. They are profitable otherwise. They do not feel the need to compare. They are being Apple, not imitators of Microsoft. Microsoft on the other hand is continuing to look in the rear-view mirror at Apple, wondering why Apple is catching up and how they can replicate Apple's success. Maybe Apple is just being Apple, integrated OS-hardware and all.

October 03 2008 at 8:38 AM Report abuse rate up rate down Reply
nfoo

Computers have reached such high computing powers that it's not about hardware anymore. The Internet makes software even more important - and hardware even less important. It is device independent.

It is about Software ( and interface, respectively).

Who ever has the best software wins.
And Apple know that a decade ago, already.

Right now, and in the future, their wise decision in that regard will pay out.

It's about Software. And for good software you got to control the hardware.
That is a lesson painfully learned over decades now.

Also: Balmer is just the idiot I believed him to be - see also his comments about Android. Who doesn't get that he's just helplessly trying to calm down investors, stock holders?

October 03 2008 at 5:47 AM Report abuse rate up rate down Reply
Ebel3003

I didn't read the whole article, but what makes the iPhone appealing to me is the fact that the iPhone software is on hardware that specifically accommodates it. Apple's hardware and software works so well together, and that's what makes it so attractive to use. Features flow and it's a great product overall.

Ballmer's reasoning is also what makes Android so unappealing to me. The hardware android will be distributed on will be so diverse, that results will vary. There's no end-all definitive solution like there is with the iPhone.

I don't have an iPhone yet, but I will be purchasing one within the next several months, when my current contact with Sprint-Nextel expires.

October 03 2008 at 2:30 AM Report abuse rate up rate down Reply
SSteve

Yeah, that'll happen as soon as Microsoft splits their OS and desktop software.

October 03 2008 at 1:54 AM Report abuse rate up rate down Reply
Colin R. Campbell

And how well did that work for Palm. When they spilt the company, to software, and hardware it all went downhill from there.

October 02 2008 at 11:12 PM Report abuse rate up rate down Reply
Virtuous

Ballmer is an idiot that couldn't manage his way out of a paper bag. Too bad he'll be MS CEO as long as Gates is alive.

October 02 2008 at 7:29 PM Report abuse rate up rate down Reply
Haro!

He's talking market share. Its not about market share, and Microsoft's stock price reflects that. Market share isn't everything and Apple's been significantly profitable with under 10% market share. Its all about what is best for Apple to make money, under Jobs' direction they will continue to do so. Besides that small market share has allowed them to continually innovate and be ahead of the game. Keeping the hardware and software together doesn't look so bad now...

October 02 2008 at 7:08 PM Report abuse rate up rate down Reply
Jean-Pierre

The most important reason that Microsoft is loosing market share is that they get drowned in their different versions of OS and huge amounts of drivers for each different hardware device they "support". It's impossible to keep up a decent after sales support to such a huge different configurations.

That is why Apple is gaining market share "TODAY", 10 years ago this was not an issue, today it is, since customers want EASY technology.

It is not a surprise that Nokia is also going to integrate Hardware with their own software services. (they just dropped Blackberry support)

Only then you can control and give decent after sales support.

Of course if you have 80% market share that isn't changing overnight.
Windows will have to adapt to this new vision. The globalisation with less hardware manufacturers is going to help them with fighting this challenge.

October 02 2008 at 5:41 PM Report abuse rate up rate down Reply
Jon

I think it is in Apple's interests to tie the phone and software together. I bought my first Mac around 3 years ago solely because of my experience with the iPod and iTunes on Windows. To say that is stupid because Apple has been very successful in tying hardware to software in order to improve the user experience.

I think there are two reasons why the iPhone has not attracted a larger market - its price (and contract price) and the lack of choice in service providers. I think issues with the phone and software (e.g. no video capture) have had a much smaller impact.

October 02 2008 at 5:22 PM Report abuse rate up rate down Reply
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