Bill Gates to transition out of a day-to-day role in Microsoft

Microsoft’s press release verbatim:

REDMOND, Wash. — June 15, 2006 — Microsoft Corp. today announced that effective July 2008 Bill Gates, chairman, will transition out of a day-to-day role in the company to spend more time on his global health and education work at the Bill & Melinda Gates Foundation. The company announced a two-year transition process to ensure that there is a smooth and orderly transfer of Gates’ daily responsibilities, and said that after July 2008 Gates would continue to serve as the company’s chairman and an advisor on key development projects

The company announced that Chief Technical Officer Ray Ozzie will immediately assume the title of chief software architect and begin working side by side with Gates on all technical architecture and product oversight responsibilities, to ensure a smooth transition. Similarly, Chief Technical Officer Craig Mundie will immediately take the new title of chief research and strategy officer and will work closely with Gates to assume his responsibility for the company’s research and incubation efforts; Mundie also will partner with general counsel Brad Smith to guide Microsoft’s intellectual property and technology policy efforts.

“Our business and technical leadership has never been stronger, and Microsoft is well-positioned for success in the years ahead. I feel very fortunate to have such great technical leaders like Ray and Craig at the company,” Gates said. “I remain fully committed and full time at Microsoft through June 2008 and will be working side by side with Ray and Craig to ensure that a smooth transition occurs.”

“This was a hard decision for me,” Gates added. “I’m very lucky to have two passions that I feel are so important and so challenging. As I prepare for this change, I firmly believe the road ahead for Microsoft is as bright as ever.”

In September 2005 Microsoft Chief Executive Officer Steve Ballmer organized the company into three divisions under presidents Jim Allchin, Kevin Johnson, Robbie Bach and Jeff Raikes, who were given much greater responsibility for product development and strategy decisions within their respective businesses. In August 2005 the company appointed Kevin Turner as chief operating officer.

“Bill and I are confident we’ve got a great team that can step up to fill his shoes and drive Microsoft innovation forward without missing a beat,” Ballmer said. “We will continue to hire the world’s best technical talent and give them the tools to do their best work, and we will continue to tackle the biggest challenges and opportunities for our customers by investing for the long term.”

Ballmer and Gates noted that Microsoft has been steadily expanding its senior leadership in recent years, and that today’s announcement continues a transition process that has been underway for several years. In January 2000, Gates assumed the role of chief software architect and Ballmer assumed the role of CEO, responsible for all day-to-day operations and company business strategy.

“This is a very sensible and thorough approach. A two-year transition will ensure that the company has a smooth transfer of strategy and knowledge from Bill to the next generation of leaders,” said James I. Cash, Ph.D., member of the Microsoft board of directors and former James E. Robison Professor, Harvard Business School. “Steve and his management team are very impressive, and I’m confident the company will not miss a step.”

Ozzie, 50, worked on the first electronic spreadsheet, VisiCalc, in the early 1980s, then joined Lotus Development Corp. in 1983 to develop Lotus Symphony, an MS-DOS-based integrated software management product that combined word processing, spreadsheet, business graphics, data management and communications capabilities. In 1984, Ozzie formed Iris Associates Inc. to develop Lotus Notes. In 1997 Ozzie founded Groove Networks, where he developed Groove Virtual Office. Microsoft acquired Groove Networks in April 2005 and named Ozzie chief technical officer.

Mundie, 56, joined Microsoft in 1992 to create and run the Consumer Platforms Division, which was responsible for developing non-PC platform and service offerings including the Microsoft® Windows CE operating system; software for handheld PCs, Pocket PCs and Auto PCs; and early telephony products. Mundie also started Microsoft’s digital TV efforts and acquired and managed the WebTV Networks Inc. subsidiary. Mundie is also the original champion of the Trustworthy Computing Initiative at Microsoft, which has influenced Microsoft’s software development strategy. His current responsibilities also include global technology policy and a variety of technical and business incubation activities.

Ozzie and Mundie will continue to report to Gates. At an appropriate time during the two-year transition period, they will shift to reporting to Ballmer.

MacDailyNews Take: Buh-bye, Bill. No sense sticking around for the decline and fall, of course. Bill’s lifting his helicopter off the Titanic just in time. Apple will thrive regardless of what happens, but having Ballmer left to captain the ship sure won’t hurt the Cupertino Mac- and iPod-maker. We believe it can only help.

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72 Comments

  1. Tend to agree with MDN’s take on this one. But holy cow, what a bunch of old farts at the top of MS. I mean its ok to be an old fart (‘specially since I’m one), just as long as you don’t operate like one. Has MS forgotten that it was young blood that got them into the ranks of successful businesses? What’s the goal in corporate America now: Hire every white male old fart that came off of Noah’s ark. Geez. In the high-tech industries I always look for manufacturers that have people under 40 somewhere near the top.

    Microsoft – What a freakin behemoth.

  2. MP, what are you smoking? Bill Gates was “one of the greatest visionaries of our time”?!?!?!?!? I don’t know what third rate history book you’ve been reading, but it ain’t right. Bill Gates has been so far behind the curve in his “visionary” role, it’s not even funny. Bill made his fortune by purchasing MS-DOS from someone else and convincing IBM to use it as their operating system. He made a great business deal. He was not visionary.

    After that, he used that money to buy up other companies from people that really were visionary. He then shuttered those companies, with an end result of the general public missing out on some cool technology.

    He moved forward with Windows 3.1. Do you remember that piece of crap. Was that visionary? Hell no! It was a horrible imitation of the Mac OS.

    Visionary? This is the guy that said that the internet was going nowhere and so his company didn’t bother doing anything with it until Netscape had a really cool product. So, Bill had his company make a cheap knockoff and forced it down people’s throats illegally until he ran Netscape out of business.

    He’s also the same guy that comes out every year and spouts off about ” In the future, we will control our computers with voice, not with mice.” Yeah, this was years after my Quadra 660AV could accept voice commands.

    Bill Gates has NEVER been a visionary. He’s a very shrewd businessman that has never played by the rules.

  3. Jimbo,

    In your analysis of Gates, you yourself have described a “visionary.”

    It takes a ‘Visionary” to do the things you mentioned. It takes a “visionary” to recognize the potential of scooping up talent and where it can take you.

    Like it or not, an empire like Microsoft does not happen by accident. True, it was a lot of right time at the right place, but it takes a “visionary” to see those things.

  4. Good riddance, asshole.

    Obviously Apple have stopped throwing their unused code in their rubbish bins, so Gates can’t rummage through them, stealing whatever code he lay his hands on, so there’s nothing left for him to steal or copy anymore.

    Apparently, this is what he used to do in the early days. He hasn’t created a single worthwhile thing for this planet since the day he was born – he’s always ridden on the shoulders of giants.

    Now he’s throwing in the towel so he can give some more of his money away to charity.

    At least he feels guilty enough about his ill-gotten gains to show a modicum of remorse – although apparently it’s his wife that encouraged him to give to charity.

    Let’s hope Ballmer stays on so he can run the ship into the iceberg.

  5. Bill Gates’ greatest vision was to license software at a time when everyone thought the money was in hardware.

    His second greatest vision was finding (buying) the talent to make his vision come true.

  6. Wow! It is a well-timed move. Not that I am suspecting Windows Vista to completely fail or anything tragic to happen to Microsoft, but when you have a company as successful (financially) and secure (it holds 95% market share), then why stick around?

    I don’t think he’s a visionary, but he’s a great businessman. Perhaps if Steve Jobs had been as inventive business-wise, then Macs would have more market share (as everyone has been predicting it would since OSX was first introduced years ago). But, then again, if Gates was as Jobs is then maybe Windows would be a much better OS. Anyhow, use crying over what could have been, right?

    Anyhow, as much flack as I sometimes give Gates, I do commend him for wanting to spend more time with his charities. You really don’t see any other corporate leader saying that too often.

    Farewell… I guess I’ll just have to knock around some other corporate schmuck now!!!

  7. Sorry bill, but use your built in dictionary in Mac OS X to look up “visionary”.

    visionary |ˈvi zh əˌnerē| adjective 1 (esp. of a person) thinking about or planning the future with imagination or wisdom : a visionary leader. • archaic (of a scheme or idea) not practical. 2 of, relating to, or able to see visions in a dream or trance, or as a supernatural apparition : a visionary experience. • archaic existing only in a vision or in the imagination. noun ( pl. -aries) a person with original ideas about what the future will or could be like. DERIVATIVES visionariness noun

    The first definition is not applicable because it uses the terms “imagination” and “wisdom”. It doesn’t mention “copying” or “cheating” or anything about stunting the technological growth of the computer industry.

    The second definition is not appropriate. It talks about seeing visions such as apparitions.

    The third says “a person with original ideas…” Original ideas. I will not bother going to the dictionary with those 2 words. I assume you get the meaning of them. As I said, Bill Gates has not had an original idea in his life. He copies (badly). He steals. He buys out someone else’s original ideas and boards up the shop. That’s not original, that’s not innovation, and that’s not visionary.

    In fact, the most visionary thing he ever did was buying DOS from some sap and convincing IBM to use it. That is not really visionary, since he certainly didn’t foresee what would come of that!

  8. Jimbo, I’m quite aware of the definition of visionary, your missing the point.

    I’m not saying that Gates was a visionary in terms of being an inventor or creating products.

    I agree, Microsoft = crap products.

    BUT, he is a visionary in terms of making Microsoft a dominant world wide leader a reality. It takes visionary talent to do that.

  9. If Bill is a visionary, then you may wonder what vision he had that got him to leave a company that has “a road ahead as bright as ever”. (mustn’t be that bright after all).

    If he’s not a visionary then he’s not been leading Microsoft to a bright future before getting out. (inertia’s probably mainaining it afloat more than any vision).

    So who cares if he’s a visionary or not. In both cases, M$ is in trouble and this is a very telling sign of that predicament.

    What I think is really happening though is that Bill is being ousted. Steve’s had enough of his incompetence and has made a move (putsch). Now he’s getting some of his buddies to come in and fill the “gap”.

    The effective transition will indeed be much faster than 2 years. However it has nothing to do with any knowledge transfer but rather with transitionning the public image of a “Bill Gates” onto some other figurehead.

    In any case, Window’s technical issues aren’t going to be addressed by politics and PR. I expect that coverup and finger pointing is going the be the next big srategy at M$.

    This is a long shot but I believe that as soon as the new M$ mascot is out, Vista will be canned, a new Unix based Windows will be anounced for delivery in 18 months and everything will be blamed on Gates.

  10. Excellent news! ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />)

    Bill is running away just as the train wreck that is VISTA goes to market.

    He obviously has no confidence in M$ anymore and is using the smokescreen of concentrating on his foundation to cover his ass.

    Bye Bye bill… RIP M$

    LLLOOOLL!!!

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