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Gates: ‘People tend to get overfocused on one of our competitors’
Thursday, January 05, 2006 - 09:20 AM EDT

"Microsoft Chairman Bill Gates took the wraps off its next-generation operating system known as Windows Vista on Wednesday, displaying features aimed at positioning the software giant as the entertainment hub for a future of digitally connected homes," Daisuke Wakabayashi reports for Reuters. "The much anticipated upgrade to Microsoft's flagship operating system displayed a new interface with 3-D scrolling between different windows, which can appear translucent to allow users to see the information beneath."

"Some of the elements of Vista featured in Gates' speech took aim at Microsoft's various competitors, such as Google Inc. and Apple Computer Inc.," Wakabayashi reports. "Microsoft unveiled a search function within Vista that cuts across the content within the PC and its network, aimed at not conceding search on the desktop or the Internet to Google. 'People tend to get overfocused on one of our competitors. We've always seen that,' said Gates. 'The biggest company in the computer industry by far is IBM. They have the four times the employees that I have, way more revenues than I have. IBM has always been our biggest competitor. The press just doesn't like to write about IBM.'"

"Redmond, Washington-based Microsoft also unveiled MTV Network's Urge Music Service, which will be built into Vista's new Windows Media Center and offer users instant access to 2 million songs and videos in MTV's library," Wakabayashi reports. "In a show of pizzazz usually reserved for Apple, Gates was joined on stage by pop idol Justin Timberlake to introduce the new service. The enormous popularity of Apple's iPod portable music player has made the accompanying iTunes music and video service the defining entertainment media delivery service."

Full article here.

MacDailyNews Take: If Gates was referring to Apple with his "people tend to get overfocused on one of our competitors" comment, the reason is because most people are interested in the future, not in seeing things called "innovations" that Mac users have had for half a decade or more. Photo organization app with red eye removal? Translucent windows? Some rudimentary Exposé feature? Justin Effing Timberlake?! Puleeze, will the rest of the world actually fall for Gates' and Microsoft's B.S. again? What would the world's PC users have to be excited about exactly, that they can finally do it, if they buy a new computer to run Vista? What'll stop them from buying a Mac instead (especially if Intel-based Macs can run their Windows software at acceptable speed)? Their iPods will thank them for it, that's for sure; so will their sanity. This isn't 1995, many people can see Microsoft for what they are: a mediocre application coder that has grown bloated beyond recognition and is already in decline, past its prime; desperate to leverage its monopoly to hold onto its position. Rolling out a fake, badly-executed copy of Mac OS X, 6+ years after Apple's original debut, is just plain sad - almost as sad as the 11 years it took them to do it the first time (1984 vs. 1995).

Don't misunderstand, millions upon millions will lap up Bill's pabulum and excitedly and ignorantly line up at midnight for another box full of Windows dreck. After all, half of the people in the world are below average. Still, many will be forced to upgrade to a new computer to run Vista and, if Apple would finally advertise correctly, regularly, and heavily, the Mac platform could see significant and rapid growth in 2006 and beyond.

And don't believe a word that the great samaritan/monopoly abuser says about which competitors he's most worried. He has to be worried about Apple. If he's not, Microsoft's in for even more trouble than anyone can imagine. People like to say that the "OS Wars" are over. They're not.

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Jan 05, 06 - 10:46 am Comment from: Webster

The word "pabulum" isn't in my Mac's dictionary.

Jan 05, 06 - 10:50 am Comment from: The Crunge

The word "overfocused" isn't in my Mac;s dictionary either.

Either your focused or not. "Overfocused" could be a trademark slogan for M$'s new Photo App.

Jan 05, 06 - 10:51 am Comment from: winfan

Alrighty Bill, sock it to these machead losers.

Laughing out loud! Vista is here! I'm ready!

Jan 05, 06 - 10:52 am Comment from: Tacitus

Quote: "...will the rest of the world actually fall for Gates' and Microsoft's B.S. again? "

Yup.

Jan 05, 06 - 10:54 am Comment from: Matt

I love this quote:

"In a show of pizzazz usually reserved for Apple, Gates was joined on stage by pop idol Justin Timberlake to introduce the new service."

So this is how they mimic Apple with their presentation? Drag out "Pop Idol" Justin Timberlake? JUSTIN TIMBERLAKE? If I was a Windows champion like Enderle or "He Who Must Not Be Named", I'd be completely embarassed!

Jan 05, 06 - 10:56 am Comment from: its true

whut gatez sayez iz true.

why does the wOrLd hat3 gatez? iBm gets no flak, but wind0wz gets all the criticizm.

its nOt fa1r. w1nd0wz works good. iHavenoproblemswithit

kthx

Jan 05, 06 - 10:58 am Comment from: FactChecker

pabulum: Insipid intellectual nourishment

http://dictionary.reference.com/search?q=pabulum

Jan 05, 06 - 11:02 am Comment from: loki capret

And how is it that a company that primarily focuses on hardware (IBM) could be considered M$'s biggest competitor?!?!

And MDN, great job at putting yet another ad between the comment box and the magic word ("economic" is my all-too-ironic mw this time, btw). To be a site that promotes Apple and touts their simplicity and elegance, you sure do bastardize the concepts!!

Jan 05, 06 - 11:03 am Comment from: chi guy

On stage with Apple: John Mayer, U2, Kanye West, Mynton Marsalis

On stage with Microsoft: Justin Timberlake and i think at one time Bono (not U2 just Bono)


Pizzazz? gimmie a break.

Jan 05, 06 - 11:05 am Comment from: Voyager

"Pabulum" isn't in my Mac dictionary (Oxford) either! Come on MDN, what's with the Shakespearean vocabulary? We are mere mortals. smile

> "The much anticipated upgrade to Microsoft's flagship
> operating system displayed a new interface with 3-D
> scrolling between different windows, which can appear
> translucent to allow users to see the information beneath."

Uhhhhh...... looking through a frontmost window or several frontmost windows to see information in a buried window? Wouldn't it be easier to just switch to the window one wanted to view? I don't mean to be over-critical, and I'm sure Microsoft's implementation won't be completely idiotic, but I don't see any utility for it (other than "eye candy", something which Windows has been lacking for quite some time).

> Translucent windows? Some rudimentary Exposé feature?
> Puleeze, will the rest of the world actually fall for Gates'
> and Microsoft's B.S. again?

Really... I can't figure it out. Where do Mac users have translucent windows? Not that I need or want them (they might tend to be distracting), but other than a few widgets and small items (the dock, the Exposé blob, desktop clock, etc.), I don't remember any translucence.

Also, doesn't Apple hold a patent on Exposé? Sock it to 'em!

Jan 05, 06 - 11:06 am Comment from: :rolleyes:

Windows using drones are SO PATHETIC!

Most of my friends who are forced to use that dreck, admit that it blows and own a Mac for personal use.

Defending that platform is a job for morons.

Jan 05, 06 - 11:08 am Comment from: Quevar

I just worry about the millions of people out there who don't know there is something better. Once MS starts advertising, they are just going to believe all of hoopla (probably not in the Mac's dictionary) about Vista. I really hope Apple wakes up and starts to advertise the Intel Macs (that will hopefully be released next week) so they can start grabbing these people before they make another big purchase on a computer capable of running Vista.

Jan 05, 06 - 11:09 am Comment from: Tyk

IBM is their biggest competitor? Does IBM have another OS out I didn't hear about? Did Microsoft start making servers and things? What is Gates smoking?

I found the funniest comment "the much anticipated" Windows Vista. By whom? Virus writers?

Jan 05, 06 - 11:11 am Comment from: Mtnmm

I just watch the entire CES Keynote. What a snooze. One of the things that stood out for me was MS is trying to work on cool stuff, but like always, all of it is complex and in pieces everywhere. By this I mean, they have some nice ideas for things, just like Apple, but they have to work with all of their partners to make stuff happen and the things they are trying to do are really complex for the average Joe. That always spells for disaster. One of the best thing about the Frontrow vs. XP Media Center remote comparison Jobs gave late last year is that it shows clearly the two companies differences in approach and culture of development. Does that make Apple better, let the consumer decide. MS has still a huge install base for computers, but as content begins to trickle down more and more to more specialized devices, their dominance with install base becames less and less relevant.

Jan 05, 06 - 11:12 am Comment from: TruthDetector

Voyager,

Mac OS X has had translucent windows from day one. And translucency throughout the OS, too. Apple has been refining it over the years to tone it down and keep it only where it's useful. Vista makes all the original mistakes and more, by the looks of it. It'll be years before they get to where Apple is today and, then, where will Apple be? Apple will be where they always are: years and years ahead.

Jan 05, 06 - 11:14 am Comment from: RepubliCON

"...will the rest of the world actually fall for Gates' and Microsoft's B.S. again? "

It's called "Herd Mentality".

You can bank on it.

Jan 05, 06 - 11:14 am Comment from: wannabe

Actually, I'd say IBM is mostly a research and services company. For instance, every storage technology we use today was at least partially developed at IBM, and the new technologies we will be using in 15 years will be the same.

As for services, IBM is the company you can call that will handle any task of any size with basically any parameters. They'll run IBM mainframes for you, or Windows servers if that's what you want, or Linux clusters. They are a very big one-stop shop, with a solution for every possible need.

The idea that IBM should be seen as a Microsoft competitor today is absurd. IBM does not make desktop operating systems, office suites, game consoles, or music players. Gates doesn't believe that IBM is his biggest competitor; he's saying that to further the perception that company size is what matters. It's a sly way to belittle the likes of Apple and Google.

Jan 05, 06 - 11:18 am Comment from: Quevar

"Where do Mac users have translucent windows?" - Voyager

There is built in support for any window to become transluscent. There are several third party utilities (WindowsShade($10) and GeekBind(free) that let you change the transparency of any window). I've tried them and agree that there generally isn't any real purpose for it. The only times are when I want to compare two graphs/images for slight differences. I just make the front window half transparent and align it on the back window. Takes ten seconds and I can immediately determine the difference. For most information, I agree with you that it doesn't make sense to use it for most tasks.

There has also been some work based on chatting in a transparent window:
http://rockfish.cs.unc.edu/pubs/TR05-010.pdf
This could only be done on the Mac because it had built in support for it.

Jan 05, 06 - 11:18 am Comment from: MacDude

It's too bad IBM couldn't stay in the game against Intel.

Intel is Microsoft's biggest friend, sure Intel has been yaking it up to appease the Apple market, but in fact switching to Intel might be the worse move Apple ever made.

All these PC companies are gearing up to deliver content via PC, it's too complicated and too much trouble to bother.

Apple and M$ are both sold on this Intel created HDCP content protection, that's why Apple switched to Intel chips, Intel didn't share the technology/license with IBM or AMD.

Hollywood endorsed HDCP only and now we are stuck using Intel's infereior processors just so a few Macheads can watch high definition on their tiny 23 or 30" screens instead of a 50" plasma where it belongs.

Prepare for DRM hell on these Intel chips and even worse when BlueDevilRay disks arrive.

Sad sad world when Hollywood gets to dictate what we can do with our computers.

Jan 05, 06 - 11:19 am Comment from: MTV Music Library? ROTFLMAO

MTV is Jerry Springer/Maury Povich for the High School/College Set. The only difference is that the trash are generally better dressed and live in a nicer zip code.

MTV ( BET for white boys ) stopped being about music a long time ago. What little connection they now have is a bunch of lame rap crap.

Jan 05, 06 - 11:30 am Comment from: mike

he was referring to either Google or Apple...

bottom line.. both of these companies are 10 times more interesting than MS.

Jan 05, 06 - 11:31 am Comment from: Will

Yes, they will fall for it, but they won't get excited, perhaps. They will get relieved, maybe, because Windows has become better, but nothing more than that.

Those who even know that Mac exists as an alternative, will repeat: It is for artist types and I need a normal PC. It is for artist types and I... and so on.
Others will repeat: Yes, Macs are nice but Microsoft is about tp buy them out. Yes, Macs are nice but Microsoft is about... and so on.
Still others will repeat: Macs? I had to work with them in school ten years ago and they suck! Macs? I had to work with them in school ten years ago and... and so on.

But, on the optimistic side; there are more and more each year that see through the myths and FUD and lies and simply switch and sooner or later, the levee will break and the Microgiant will fall when its feet of FUDdy mud will collapse:)

Jan 05, 06 - 11:31 am Comment from: Bizarro Jeff

Only a "journalist" who can't get enough of the drivel M$ churns out would use a word like "pizzazz". Especially when referencing Justin Freaking Timberlake of all people, who apparently epitomizes their idea of being hip. Is their target audience for Vista musically-impaired twelve year old girls? Because that's Justin's audience. It really goes to show how out of touch these people truly are. Twenty-three-skiddoo and all that. Can't wait for the next round of Vist Virii that will hit, most likely before Vista does. I imagine the script kiddies are drooling at the though of it, since they've already managed to drop a bug or three even before the damn thing was even announced and was still in Alpha. They may have to wait, though. Microsoft announcing their new OS and actually shipping it are two different things entirely.

MDN MW: "study", as in "Perhaps Bill should study Apple's success and truly try to understand it rather than try and duplicate it after a quick glance and then bitching about it in the media."

Jan 05, 06 - 11:33 am Comment from: Ampar

Overfocused? Is that anything like underblurred?

Jan 05, 06 - 11:34 am Comment from: Tommy Boy

wannabe wrote: "IBM does not make desktop operating systems, office suites"

Sure there are a lot of places where IBM and Microsoft do not overlap, but there are places where they do, starting with #1 competing for mindshare with CIOs, CTOs, and MIS managers.

IBM is by far the single largest distributor of Linux, which until next Tuesday (he he), is Windows only viable competitor for the x86 desktop.

And IBM owns Lotus, which produces the Lotus Smart Suite (including Notes, WordPro, 1-2-3, and Freelance) which is a direct Office competitor.

IBM's Domino competes against Microsoft's Exchange.

IBM's DB2 and Informix compete against Microsoft's SQL Server.

IBM's Visual Age programming tool compete with Microsoft's Builder tools.

Jan 05, 06 - 11:42 am Comment from: ed

Hey Goliath, tilt your forehead down here for a moment, would ya?

Jan 05, 06 - 11:44 am Comment from: bring it down

CHECK OUT DELL'S HOME PAGE: They have a 30" LCD with better specs then Apple's and much cheaper. hmmmm....

Jan 05, 06 - 11:47 am Comment from: Jeff

Gates is worried about three things, and IBM ain't it. The combination of Google for Internet, Linux for servers, and Apple for multimedia and desktop scares the crap out of him and his monopoly.

Jan 05, 06 - 11:51 am Comment from: hagar57

Justin Timberlake? Now that's an endorsement Apple can live without. Why not Britney Spears doing a Steve Ballmer impression? I mean, she's got the body for it.

Jan 05, 06 - 11:51 am Comment from: EasyTiger

He was referring to Google, bub.

Jan 05, 06 - 11:53 am Comment from: twdldee

Have the Macroshit people lowered the system requirements for the Vista, or am I going to have to buy a $5,000 system when it comes out.

Tiger system requirements, BTW:
Macintosh computer with a PowerPC G3, G4 or G5 processor
Built-in FireWire
DVD drive for installation
256MB of RAM
3GB of available hard disk space (4GB if you install the developer tools)

that's a pretty cheap system, even for a Linux/Windows machine. Can XP function with those specs?

Jan 05, 06 - 11:58 am Comment from: wannabe

Tommy Boy, I'm aware of SmartSuite, but I wouldn't consider it a notable part of IBM. IBM has posession of it only because they bought Lotus to acquire Notes, and I'm sure that they don't consider it to be of any strategic importance today.

I think the situation is similar with most of your other examples. It's important to understand how big IBM is, and how many customers they have had over the years. Many things they sell are almost historical artifacts, still supported and sold only because some of their customers are still using legacy systems. So for example, the fact that they still sell VisualAge doesn't mean we should see it as a serious competitor to Microsoft's equivalent products.

To be sure, IBM's databases compete with Microsoft's, as do their mail solutions. But I do not believe that Microsoft intends to leverage, say, SQL Server, into anything much more than a minor revenue generator. In other words, neither IBM nor Microsoft has much at stake in that particular battle.

On the other hand, Apple and Google both threaten to turn computing around in such a way that Microsoft will have no place in the future market. Microsoft's major corporate strategy right now must be to survive this and stay relevant, which is a much bigger challenge than selling databases.

Jan 05, 06 - 11:58 am Comment from: Spark

I tend to believe that Gates was alluding to Google as the company that others overfocus on. If you read tech journals outside of MDN you will see that the bulk of the stories are about Microsoft battling with and strategizing against Google. Google works directly in the PC space and is embarrassing MS with the apps they are supplying to fix the shortcomings of Windows. Gates is a lot more worried about Google. After all, with Apple switching to Intel, MS will have one more computer type out their onto which Windows can be installed.

Jan 05, 06 - 12:00 pm Comment from: Tim Coughlin

"Is their target audience for Vista musically-impaired twelve year old girls?"

I nearly wet myself laughing with that. However, in all seriousness this is the market they are going after and it is a wise move to make. These are the people who will by buying music online for the longest so if you get them now you potentially have them for 60years. Also, by using such figures to promote themselves they have the associated benefit of free advetising from record labels. The labels pump millions of pounds into advertising Justin Timberlake so he is immediately vastly more recognisable then quality artists such as Brad Mehldau etc etc.

Tim Coughlin
http://timcoughlin.typepad.com

Jan 05, 06 - 12:01 pm Comment from: allgood2

Justin Timberlake added the pizzazz (lol). Has even done anything since hooking up with Carmen Diaz? Yeah! He's big, for 2004.

Jan 05, 06 - 12:02 pm Comment from: Hard Hard

IBM is a competitor? Where does Billy boy get his PowerPC chips for his xbox systems? The tooth fairy?

Jan 05, 06 - 12:14 pm Comment from: Majikthize

"In a show of pizzazz usually reserved for Apple, Gates was joined on stage by pop idol Justin Timberlake..."

Say what you will about Justin Timberlake, I'll take him over Monkeyboy any day. Yet another reason for Windows fans to thank Mr. Jobs.

Jan 05, 06 - 12:23 pm Comment from: ...

Just wait tilll you see paperiazzi shot of justin with white headphones or a ipod in his hand. That would just kill urge

Jan 05, 06 - 12:32 pm Comment from: hammer

MacDude
DRM isnt the number one reason why they switched to Intel. It isn't and you'll soon see why. And by soon I dont necessarily mean next week, i mean this year.

Jan 05, 06 - 12:43 pm Comment from: Jimbo von Winskinheimer

Winfan sez:

"Vista is here. I'm ready!"

Ha! It's not here you fool. It won't be for awhile. Gates showed another mockup of a potential operating system that might come by some time late in this decade. And the good news: There are already viruses for it.

Bwahahahahahahahahahha!!!!!

Jan 05, 06 - 12:43 pm Comment from: ndelc

It's interesting to note the musician each company brings up onstage to help them introduce products. Very telling.

Microsoft brings up Justin Timberlake, who rose to fame as a producer-created boyband star. Lacking any musical substance, his success is strictly due to marketing.

Apple brings up John Mayer, a virtuoso, Berkeley trained guitarist/singer/songwriter who has gained success because of the quality of the music he wrote, and his scorching live performances.

I think this speaks volumes about the two companies. It points out everything that's good about Apple, and bad about MS.

Jan 05, 06 - 12:45 pm Comment from: Big Al

The funny thing about Vista is that the only people that use it will be the ones who buy a new computer that comes with Vista installed. No one, statistically speaking, will upgrade existing hardware to Vista.

Same thing happened with XP.

Windows users will not be excited about the new OS. Can you blame them?

Jan 05, 06 - 12:47 pm Comment from: Mac & PC Guy

As a consumer.... GREAT NEWS... more choices. I can add Vista to my list of tools. smile

Jan 05, 06 - 12:50 pm Comment from: Bizarro Jeff

Tim, I agree with you that M$ is trying to go after that particular youth market, but they really don't know how to go about it. Let's face it, 50-something year old white guys (and I use the word "white" as a cultural reference like I would "mayonnaise" and "Barry Manilow", rather than a racial one) don't usually know jack about marketing to twelve-year old girls who can smell contrived, pandering BS like this a mile away. Besides, how many twelve-year old girls even saw M$'s announcement to know that Timberlake was even there? Ask any twelve-year old girl which she'd rather have for her birthday: Windows Vista or an iPod Nano. It's not real hard to figure out what the answer to that one is going to be.

Jan 05, 06 - 01:05 pm Comment from: Ampar

In a year, Vista will be renamed Vue so that Ballmer can proudly proclaim that Vue, the ACTUAL OS is not behind schedule at all!

Coming soon to a theater near you: A Bruce Lee remake entitled "Vista Fury" starring hundred of battling developers in sweaty, chair-throwing duels filmed entirely through translucent windows.

Jan 05, 06 - 01:07 pm Comment from: Gregg Thurman

Intel is Microsoft's biggest friend, sure Intel has been yaking it up to appease the Apple market, but in fact switching to Intel might be the worse move Apple ever made.

All these PC companies are gearing up to deliver content via PC, it's too complicated and too much trouble to bother.

Apple and M$ are both sold on this Intel created HDCP content protection, that's why Apple switched to Intel chips, Intel didn't share the technology/license with IBM or AMD.

Hollywood endorsed HDCP only and now we are stuck using Intel's infereior processors just so a few Macheads can watch high definition on their tiny 23 or 30" screens instead of a 50" plasma where it belongs.


Hey MacDude, be prepared to eat your words.

Jan 05, 06 - 01:36 pm Comment from: Schmutz

'People tend to get overfocused on one of our competitors. We've always seen that,' said Gates. 'The biggest company in the computer industry by far is IBM. They have the four times the employees that I have, way more revenues than I have. IBM has always been our biggest competitor. The press just doesn't like to write about IBM.'"

Funny, isn't that what Steve Jobs said 20+ years ago about Microsoft?

Jan 05, 06 - 01:44 pm Comment from: Schmutz

Doesn't read right.

Funny, isn't that what Steve Jobs said 20+ years ago?

His minor competitor was MS. Do you suppose Bill is worried that Ballmer is gonna let him go like Sculley did Steve?

: )

Jan 05, 06 - 01:58 pm Comment from: carlo

Ampar,

nice one brother. i like it.

Jan 05, 06 - 02:01 pm Comment from: LordRobin

Bizzaro Jeff: Not only that, but from my limited understanding of "tweener" culture, my impression is that Justin Timberlake is "over". Fads burn out fast in the 12-to-15-year-old market. Timberlake is already what their older sisters used to listen to and is therefore so yesterday.

Jan 05, 06 - 02:02 pm Comment from: Evil_MS_User

Re MDN's take...

"What'll stop them from buying a Mac instead..."

More people will buy Macs, of course - just not in the numbers you would like them to. No matter how much MDN rants and foams at the mouth.

"...many people can see Microsoft for what they are: a mediocre application coder that has grown bloated beyond recognition and is already in decline..."

Active Directory, SQL, Exchange, XBox, WinMobile on Treo, etc. - your blinders keep you from seeing the forest. M$ is competing on many fronts with numerous LARGE companies - and it's holding its own, if not advancing. Apple's advance in the desktop is a non-issue. By the time OS X reaches a share of the desktop that makes it a player the IT/Media/Comm world will have moved on from the standalone computer to newer, better things.

"half of the people in the world are below average..."

I'm still shaking my head that you said that. It just confirms my view that Mac fanatics have a screw loose up there. It's probably an over-compensated inferiority complex.

"He has to be worried about Apple. If he's not, Microsoft's in for even more trouble than anyone can imagine. People like to say that the "OS Wars" are over. They're not."

The "OS wars" are so last-century. Move on. Grow up.

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