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Archive for June 2008

Birthdate 10/28/55
Founder, Chairman

William (Bill) H. Gates is chairman of Microsoft Corporation, the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Microsoft had revenues of US$51.12 billion for the fiscal year ending June 2007, and employs more than 78,000 people in 105 countries and regions.

On June 15, 2006, Microsoft announced that effective July 2008 Gates 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. After July 2008 Gates will continue to serve as Microsoft’s chairman and an advisor on key development projects. The two-year transition process is to ensure that there is a smooth and orderly transfer of Gates’ daily responsibilities. Effective June 2006, Ray Ozzie has assumed Gates’ previous title as chief software architect and is working side by side with Gates on all technical architecture and product oversight responsibilities at Microsoft. Craig Mundie has assumed the new title of chief research and strategy officer at Microsoft and is working closely with Gates to assume his responsibility for the company’s research and incubation efforts.

Born on Oct. 28, 1955, Gates grew up in Seattle with his two sisters. Their father, William H. Gates II, is a Seattle attorney. Their late mother, Mary Gates, was a schoolteacher, University of Washington regent, and chairwoman of United Way International.

Gates attended public elementary school and the private Lakeside School. There, he discovered his interest in software and began programming computers at age 13.

In 1973, Gates entered Harvard University as a freshman, where he lived down the hall from Steve Ballmer, now Microsoft’s chief executive officer. While at Harvard, Gates developed a version of the programming language BASIC for the first microcomputer – the MITS Altair.

In his junior year, Gates left Harvard to devote his energies to Microsoft, a company he had begun in 1975 with his childhood friend Paul Allen. Guided by a belief that the computer would be a valuable tool on every office desktop and in every home, they began developing software for personal computers. Gates’ foresight and his vision for personal computing have been central to the success of Microsoft and the software industry.

Under Gates’ leadership, Microsoft’s mission has been to continually advance and improve software technology, and to make it easier, more cost-effective and more enjoyable for people to use computers. The company is committed to a long-term view, reflected in its investment of approximately $7.1 billion on research and development in the 2007 fiscal year.

In 1999, Gates wrote Business @ the Speed of Thought, a book that shows how computer technology can solve business problems in fundamentally new ways. The book was published in 25 languages and is available in more than 60 countries. Business @ the Speed of Thought has received wide critical acclaim, and was listed on the best-seller lists of the New York Times, USA Today, the Wall Street Journal and Amazon.com. Gates’ previous book, The Road Ahead, published in 1995, held the No. 1 spot on the New York Times’ bestseller list for seven weeks. Top row: Steve Wood (left), Bob Wallace, Jim Lane. Middle row: Bob O’Rear, Bob Greenberg, Marc McDonald, Gordon Letwin. Bottom row: Bill Gates, Andrea Lewis, Marla Wood, Paul Allen. December 7, 1978. Top row: Steve Wood (left), Bob Wallace, Jim Lane. Middle row: Bob O’Rear, Bob Greenberg, Marc McDonald, Gordon Letwin. Bottom row: Bill Gates, Andrea Lewis, Marla Wood, Paul Allen. December 7, 1978.

Gates has donated the proceeds of both books to non-profit organizations that support the use of technology in education and skills development.

In addition to his love of computers and software, Gates founded Corbis, which is developing one of the world’s largest resources of visual information – a comprehensive digital archive of art and photography from public and private collections around the globe. He is also a member of the board of directors of Berkshire Hathaway Inc., which invests in companies engaged in diverse business activities.

Philanthropy is also important to Gates. He and his wife, Melinda, have endowed a foundation with more than $28.8 billion (as of January 2005) to support philanthropic initiatives in the areas of global health and learning, with the hope that in the 21st century, advances in these critical areas will be available for all people. The Bill and Melinda Gates Foundation has committed more than $3.6 billion to organizations working in global health; more than $2 billion to improve learning opportunities, including the Gates Library Initiative to bring computers, Internet Access and training to public libraries in low-income communities in the United States and Canada; more than $477 million to community projects in the Pacific Northwest; and more than $488 million to special projects and annual giving campaigns.

Gates was married on Jan. 1, 1994, to Melinda French Gates. They have three children. Gates is an avid reader, and enjoys playing golf and bridge.

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Sometimes, software isn’t so magical. Even for Bill Gates.

PictureFor the opening piece in our series on Gates leaving daily life at Microsoft, one goal was to give a clear picture of the Microsoft co-founder’s role inside the company, as a gauge of the impact his departure will have. As part of that, I went back through the internal e-mails turned over in the antitrust suits against the company, looking for new insights into his personality.

Read on past the jump for one of the gems that turned up, showing Gates in the role of chief rabble-rouser. (Original document: PDF, 5 pages.) It shows that even the Microsoft co-founder — who champions the “magic of software” — isn’t immune to the frustrations of everyday computer users. Keep in mind that this was more than five years ago, so it doesn’t necessarily reflect the specific state of things now. At the bottom, see what Gates said when I asked him about the message last week.

—- Original Message —-

From: Bill Gates
Sent: Wednesday, January 15, 2003 10:05 AM
To: Jim Allchin
Cc: Chris Jones (WINDOWS); Bharat Shah (NT); Joe Peterson; Will Poole; Brian Valentine; Anoop Gupta (RESEARCH)
Subject: Windows Usability Systematic degradation flame

I am quite disappointed at how Windows Usability has been going backwards and the program management groups don’t drive usability issues.

Let me give you my experience from yesterday.

I decided to download (Moviemaker) and buy the Digital Plus pack … so I went to Microsoft.com. They have a download place so I went there.

The first 5 times I used the site it timed out while trying to bring up the download page. Then after an 8 second delay I got it to come up.

This site is so slow it is unusable.

It wasn’t in the top 5 so I expanded the other 45.

These 45 names are totally confusing. These names make stuff like: C:\Documents and Settings\billg\My Documents\My Pictures seem clear.

They are not filtered by the system … and so many of the things are strange.

I tried scoping to Media stuff. Still no moviemaker. I typed in movie. Nothing. I typed in movie maker. Nothing.

So I gave up and sent mail to Amir saying – where is this Moviemaker download? Does it exist?

So they told me that using the download page to download something was not something they anticipated.

They told me to go to the main page search button and type movie maker (not moviemaker!).

I tried that. The site was pathetically slow but after 6 seconds of waiting up it came.

I thought for sure now I would see a button to just go do the download.

In fact it is more like a puzzle that you get to solve. It told me to go to Windows Update and do a bunch of incantations.

This struck me as completely odd. Why should I have to go somewhere else and do a scan to download moviemaker?

So I went to Windows update. Windows Update decides I need to download a bunch of controls. (Not) just once but multiple times where I get to see weird dialog boxes.

Doesn’t Windows update know some key to talk to Windows?

Then I did the scan. This took quite some time and I was told it was critical for me to download 17megs of stuff.

This is after I was told we were doing delta patches to things but instead just to get 6 things that are labeled in the SCARIEST possible way I had to download 17meg.

So I did the download. That part was fast. Then it wanted to do an install. This took 6 minutes and the machine was so slow I couldn’t use it for anything else during this time.

What the heck is going on during those 6 minutes? That is crazy. This is after the download was finished.

Then it told me to reboot my machine. Why should I do that? I reboot every night — why should I reboot at that time?

So I did the reboot because it INSISTED on it. Of course that meant completely getting rid of all my Outlook state.

So I got back up and running and went to Windows Update again. I forgot why I was in Windows Update at all since all I wanted was to get Moviemaker.

So I went back to Microsoft.com and looked at the instructions. I have to click on a folder called WindowsXP. Why should I do that? Windows Update knows I am on Windows XP.

What does it mean to have to click on that folder? So I get a bunch of confusing stuff but sure enough one of them is Moviemaker.

So I do the download. The download is fast but the Install takes many minutes. Amazing how slow this thing is.

At some point I get told I need to go get Windows Media Series 9 to download.

So I decide I will go do that. This time I get dialogs saying things like “Open” or “Save”. No guidance in the instructions which to do. I have no clue which to do.

The download is fast and the install takes 7 minutes for this thing.

So now I think I am going to have Moviemaker. I go to my add/remove programs place to make sure it is there.

It is not there.

What is there? The following garbage is there. Microsoft Autoupdate Exclusive test package, Microsoft Autoupdate Reboot test package, Microsoft Autoupdate testpackage1. Microsoft AUtoupdate testpackage2, Microsoft Autoupdate Test package3.

Someone decided to trash the one part of Windows that was usable? The file system is no longer usable. The registry is not usable. This program listing was one sane place but now it is all crapped up.

But that is just the start of the crap. Later I have listed things like Windows XP Hotfix see Q329048 for more information. What is Q329048? Why are these series of patches listed here? Some of the patches just things like Q810655 instead of saying see Q329048 for more information.

What an absolute mess.

Moviemaker is just not there at all.

So I give up on Moviemaker and decide to download the Digital Plus Package.

I get told I need to go enter a bunch of information about myself.

I enter it all in and because it decides I have mistyped something I have to try again. Of course it has cleared out most of what I typed.

I try (typing) the right stuff in 5 times and it just keeps clearing things out for me to type them in again.

So after more than an hour of craziness and making my programs list garbage and being scared and seeing that Microsoft.com is a terrible website I haven’t run Moviemaker and I haven’t got the plus package.

The lack of attention to usability represented by these experiences blows my mind. I thought we had reached a low with Windows Network places or the messages I get when I try to use 802.11. (don’t you just love that root certificate message?)

When I really get to use the stuff I am sure I will have more feedback.

When we were concluding our interview last week, I showed Gates a printout of the e-mail and asked if he ever got Movie Maker to work. Gates noted that Microsoft plans to include Movie Maker as part of Windows Live, so people will get the program when they download that online package. The company isn’t confirming that officially yet, but’s not a complete surprise. See this Wikipedia entry and this related post on LiveSide.net. (Site temporarily down as of Tuesday morning.)

As for the message, Gates smiled and said, “There’s not a day that I don’t send a piece of e-mail … like that piece of e-mail. That’s my job.”

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All good things must come to an end, and in the case of Bill Gates’ career at Microsoft, it’s coming to an end today.

Friday, June 27th is Gates final day on the job as an employee of Microsoft, the company he’s been with for 33 years. It’s been a career full of much turmoil and more than a few industry-shaking quakes, but an immensely important one. If nothing else, Gates personally proved that business savvy was just as crucial as technical smarts in the high-tech war that continues to rage today. Gates was (and remains) a master of both.

In an era when many tech CEOs have no idea what their company really does, Gates has long been a hands-on anomaly. Back in the ’70s, he personally reviewed every line of code that Microsoft engineers wrote. If he didn’t like what he saw, he rewrote it on the spot. As DOS and Windows grew to mammoth proportions, such oversight became impossible, but Gates continued to weigh in on all matters great and small that faced the company. Getting comments back from Gates on a product submitted for his approval has long been one of Microsofties’ most terrifying moments. Why? Because it might look something like this (from 2003). In an age when managers massage employees with nothing but “you can do it!” encouragement for fear of being sued, seeing straight talk like Gates’ scathing memo, which could have driven weaker-willed employees to leap from the roof, is a bracing surprise. You may not like Microsoft or what its products have become of late, but give Gates the man the props he deserves.

What happens now? Gates heads off with wife Melinda to focus on his mega-zillion-dollar endowed charity, the Gates Foundation, while Microsoft looks toward an era of getting on without him. The 52-year-old Gates will reportedly check in once a week (specifically to aid in the company’s battle vs. Google) and will remain a non-executive Chairman, but it’s up to CEO Steve Ballmer and Chief Software Architect Ray Ozzie to keep the ship afloat. Craig Mundie also steps in to fill Gates’ other role as “product master planner and technology strategist,” as it was felt that Gates’ shoes were too big for just one man to fill. But even then, as CNN notes, Gates can never truly be replaced.

Lastly I leave you with this: Remember that iconic photo of Microsoft’s original team, back when 11 (well, 12, actually) employees worked for the company? The group reformed for a follow-up shot earlier this month. Check it out here for a little bit of teary nostaligia. The more things change, the more they stay the same.

Good luck out there Bill. Do some good.

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The new iPhone hasn’t even landed in stores yet, but already pundits are grumbling about the revised iPhone, based on demos and published specs, about what the new model has failed to fix since the first-gen device.

Yes, we get 3G and GPS, a way to connect to Exchange, and the new app store, but what about everything else? Forbes’ Brian Caulfield outlines seven (actually eight) iPhone disappointments, and most of these observations are spot on. Some highlights (get his full list here).

The cost – I’ve written about the value proposition of iPhone 3G already, and sure enough it’ll cost you an extra $160 or so over the next two years vs. the original iPhone. Worth it? It’s debatable, but I can’t blame people for not being happy about the service price hike.

The camera – Forbes notes that there’s still no flash and no video recording on the device. I’ll add the camera resolution: We’re going to see 8 megapixel cell phone cameras in the U.S. this year, and the iPhone is still stuck with a puny 2MP model? Many early rumors also had expected the iPhone 3G to include a forward-facing camera for videoconferencing use. Naturally that didn’t happen either.

The battery – Not replaceable. Again. On the other hand, this shouldn’t be a surprise considering that Apple is now actually making laptops without replaceable batteries, too.

No MMS – Again, the lack thereof. It just makes no sense. Apple is basically right that you don’t need MMS to send pictures on a device that has a full email client, but the problem comes when users of other phones send you a photo via MMS: You simply can’t view it on the iPhone. It’s a ludicrous limitation on what should be the most advanced phone on the planet.

I’ll add a few of my own complaints to Caulfield’s list:

No live TV – That YouTube feature was fun last year, but now it’s grown tiresome and old. Live TV is coming to all manner of handsets now as part of the standard data plan, but one gets the impression that Apple keeps it off the iPhone just so it can sell you TV episodes at $1.99 a pop instead.

No 32GB option – 8GB feels pathetically small in 2008. 16GB is really barely passable now. 32GB USB thumbdrives have been on the market since 2006, as cheaply as $140. I’m sure Apple will launch a 32GB model in the near future (another $100, please!), probably around Christmas, in the hopes that you’ll buy a third phone.

LINK: Seven iPhone Disappointments

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Judges and jurors who must decide whether sexually explicit material is obscene are asked to use a local yardstick: does the material violate community standards?

That is often a tricky question because there is no simple, concrete way to gauge a community’s tastes and values.

The Internet may be changing that. In a novel approach, the defense in an obscenity trial in Florida plans to use publicly accessible Google search data to try to persuade jurors that their neighbors have broader interests than they might have thought.

In the trial of a pornographic Web site operator, the defense plans to show that residents of Pensacola are more likely to use Google to search for terms like “orgy” than for “apple pie” or “watermelon.” The publicly accessible data is vague in that it does not specify how many people are searching for the terms, just their relative popularity over time. But the defense lawyer, Lawrence Walters, is arguing that the evidence is sufficient to demonstrate that interest in the sexual subjects exceeds that of more mainstream topics — and that by extension, the sexual material distributed by his client is not outside the norm.

It is not clear that the approach will succeed. The Florida state prosecutor in the case, which is scheduled for trial July 1, said the search data may not be relevant because the volume of Internet searches is not necessarily an indication of, or proxy for, a community’s values.

But the tactic is another example of the value of data collected by Internet companies like Google, both from a commercial standpoint and as a window into the thoughts, interests and desires of their users.

“Time and time again you’ll have jurors sitting on a jury panel who will condemn material that they routinely consume in private,” said Mr. Walters, the defense lawyer. Using the Internet data, “we can show how people really think and feel and act in their own homes, which, parenthetically, is where this material was intended to be viewed,” he added.

Mr. Walters last week also served Google with a subpoena seeking more specific search data, including the number of searches for certain sexual topics done by local residents. A Google spokesman said the company was reviewing the subpoena.

Mr. Walters is defending Clinton Raymond McCowen, who is facing charges that he created and distributed obscene material through a Web site based in Florida. The charges include racketeering and prostitution, but Mr. Walters said the prosecution’s case fundamentally relies on proving that the material on the site is obscene.

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Judges and jurors who must decide whether sexually explicit material is obscene are asked to use a local yardstick: does the material violate community standards?

That is often a tricky question because there is no simple, concrete way to gauge a community’s tastes and values.

The Internet may be changing that. In a novel approach, the defense in an obscenity trial in Florida plans to use publicly accessible Google search data to try to persuade jurors that their neighbors have broader interests than they might have thought.

In the trial of a pornographic Web site operator, the defense plans to show that residents of Pensacola are more likely to use Google to search for terms like “orgy” than for “apple pie” or “watermelon.” The publicly accessible data is vague in that it does not specify how many people are searching for the terms, just their relative popularity over time. But the defense lawyer, Lawrence Walters, is arguing that the evidence is sufficient to demonstrate that interest in the sexual subjects exceeds that of more mainstream topics — and that by extension, the sexual material distributed by his client is not outside the norm.

It is not clear that the approach will succeed. The Florida state prosecutor in the case, which is scheduled for trial July 1, said the search data may not be relevant because the volume of Internet searches is not necessarily an indication of, or proxy for, a community’s values.

But the tactic is another example of the value of data collected by Internet companies like Google, both from a commercial standpoint and as a window into the thoughts, interests and desires of their users.

“Time and time again you’ll have jurors sitting on a jury panel who will condemn material that they routinely consume in private,” said Mr. Walters, the defense lawyer. Using the Internet data, “we can show how people really think and feel and act in their own homes, which, parenthetically, is where this material was intended to be viewed,” he added.

Mr. Walters last week also served Google with a subpoena seeking more specific search data, including the number of searches for certain sexual topics done by local residents. A Google spokesman said the company was reviewing the subpoena.

Mr. Walters is defending Clinton Raymond McCowen, who is facing charges that he created and distributed obscene material through a Web site based in Florida. The charges include racketeering and prostitution, but Mr. Walters said the prosecution’s case fundamentally relies on proving that the material on the site is obscene.

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Gates gives an update on the Bill & Melinda Gates Foundation's work in agriculture at the World Economic Forum in Switzerland early this year.

Enlarge this photo

PIERRE VERDY / AFP/GETTY IMAGES

Gates gives an update on the Bill & Melinda Gates Foundation’s work in agriculture at the World Economic Forum in Switzerland early this year.

MARTY LEDERHANDLER / AP

Bill Gates shows off Windows software in this 1990 photo. That was also the year Microsoft became the first software company to surpass $1 billion in sales.

He made a career, a company and an industry by looking over the horizon and charting a course.

Bill Gates, who today ends his full-time involvement with the company he and Paul Allen cofounded 33 years ago, was often right. The Microsoft empire of 91,200 employees, billions in profit and ubiquitous products stands as testament.

Now, Seattle’s most famous son points his full intellect and attention to the world’s poor, giving them a voice in a global market that responds disproportionately to the rich.

Microsoft’s success, which has enabled Gates, 52, to launch a second career that could install him as history’s greatest philanthropist, was not a sure thing. Aided by a growing crew of technical and business smart guys, Gates spotted opportunities and challenges, and pushed his company toward them.

He wrote a series of course-setting memos to lead the company in these new directions — a new computer interface, the Internet, computer security. They stand as signposts at several key junctures in Microsoft’s history.

The 1995 Internet memo in particular

marked an important turning point, when Microsoft’s huge software success confronted an uncertain future online.

In many cases, these prescient missives launched the company toward ever-greater heights. But even Gates couldn’t see everything coming. And he knew it.

“We never come into work and say, ‘Hey, we’re golden. You know, hey, let’s just lie around today,’ ” Gates said in an interview with The Seattle Times last week. “That’s not our culture. And so it’s a hungry company, and it’s always thinking. … ”

An Open Letter to Hobbyists

February 1976:

“As the majority of hobbyists must be aware, most of you steal your software. … Who cares if the people who worked on it get paid?”

Gates wrote his first famous memo when Micro-Soft was still spelled with a hyphen. “An Open Letter to Hobbyists,” published in the early newsletter Computer Notes, came at a time when communicating with his handful of colleagues required only shouting across their small office in Albuquerque, N.M. He aimed this brief at the small and growing community of computer users for whom Gates and staff wrote programming languages.

With his characteristic sarcasm, Gates argued that software had economic value — a necessary condition for a successful software company.

“Nothing would please me more than being able to hire 10 programmers and deluge the hobby market with good software,” Gates concluded.

Dennis Báthory-Kitsz, a composer, author and technologist, followed the intellectual-property debate raging in computer clubs and courtrooms that would set the rules of the software game. In a 1980 interview, Gates told Báthory-Kitsz: “There’s nobody getting rich writing software that I know of.”

“He didn’t mean they weren’t getting back their investment, but rather they were not making a lot of money,” Báthory-Kitsz said. “[Gates], as a prime example of the capitalist notion, felt that high investment of time, energy and imagination deserved a multiple return rather than equal return.”

Applications Strategy

June 1983:

“Microsoft believes in mouse and graphics as invaluable to the man-machine interface. We will bet on that belief by focusing new development on the two new environments with mouse and graphics … Macintosh and Windows.”

Gates’ memos often gathered the thinking of many in the company and were sometimes signed by other executives. In 1983, he and Steve Ballmer, who had joined the company three years earlier, ordered Microsoft full speed ahead toward the graphical user interface. They laid it out in the “Applications Strategy” memo, written on a Mac.

Charles Simonyi, an illustrious Microsoft alumnus who was leading application development at Microsoft at the time, said in a recent e-mail that Microsoft had been studying graphical user interface, a big step up from controlling computers with text commands, for two years when the memo was sent.

Simonyi, now CEO of Bellevue-based Intentional Software, said Gates was a visionary who could see big shifts coming, but that’s not the hard part.

Gates, he said, “selects the promising ideas that are over the horizon but not too far over, studies them in great detail, and then communicates them very effectively to the company, but also to the industry.”

Others say Gates’ skill was not in pointing Microsoft toward promising ideas, but rather toward promising targets — competitors the company could follow into a new market and clobber.

“Let 100 companies blossom, let one survive and then we’ll take that one down — we’ll replace that one,” Mark Anderson, a Friday Harbor-based analyst and adviser, said of the company’s approach.

Microsoft’s bet on the graphical user interface started paying off big-time by the late 1980s.

Windows was taking off on IBM’s PC and its clones. Microsoft applications were grabbing market share on the Apple Macintosh. The company had its initial public offering in 1986.

In spring 1987, Bill Gates, despite being “conservative … about self-congratulations and celebrating our achievements,” took a moment to enjoy some hard-fought success.

“I have to say, as today went on, I got pretty excited about the fact that we are now the number 1 software company in every respect (sales, profit, units, leadership, people … ),” Gates told his top lieutenants in an e-mail written after midnight.

The overtaken foe was Lotus. Gates, always wary of complacency, quickly noted that “their sales may go past ours again,” but for a moment, he was exultant.

By 1995, Microsoft, in business 20 years, was king of the hill. It was the dominant provider of operating systems and launched Windows 95 with previously unseen fanfare.

“They were really just reaching their apex with Windows 95 coming out,” Cusumano said. “… Just tremendous confidence in their development abilities, their marketing abilities. The world was the limit.”

Gates turned 40 that year, still a newlywed, not yet a father. He had built an empire with astonishing speed. That summer, Forbes named him the richest private individual on Earth with an estimated net worth of $12.9 billion.

But as a careful student of business history, Gates knew “some startup just like Microsoft could come in and blindside them,” Cusumano said.

The Internet Tidal Wave

May 1995:

“In this memo I want to make clear that our focus on the Internet is critical to every part of our business.”

Netscape Communications was that startup. In 1994, it released its Internet browser, providing a gateway to the growing volume of content on the World Wide Web and diminishing the importance of Windows because the browser worked the same regardless of a computer’s operating system.

On May 26, 1995, Gates sent one of his most famous memos, comparing the arrival of the Internet with IBM’s PC. It would “set the course of our industry for a long time to come,” he predicted.

Government Exhibit 20 in U.S. v. Microsoft was “The Internet Tidal Wave” memo.

The episode showed another side of the company’s character.

“You see the paranoid side come out,” Cusumano said. “… Microsoft would have won the browser wars anyway without illegally doing things to limit Netscape’s presence in the market.”

Larry Page and Sergey Brin were still bickering Stanford graduate students when Gates set his company on course for the Internet.

Today, the company they founded, Google, is the unquestioned leader in what has become the Internet’s all-important application and business model: search and online advertising.

Gates dismissed the notion that Microsoft overlooked search in the mid-1990s.

“The whole ‘information at your fingertips’ thing” — an idea Gates first introduced in a 1990 industry speech — “is a superset of search, in the sense that you don’t want to just get a bunch of links back. That’s not an end to itself,” Gates said last week.

Microsoft didn’t field a search engine based on its own technology until 2005.

Gates, who said he will work on search as a Microsoft part-timer, acknowledged that “the importance that advertising would play is not in [the memo].”

But, he said, advertising was not part of the early plans of Google or other rivals, either. Google’s advertising machine wasn’t started in earnest until 2000.

“Google really got the business model right,” he said. ” … [It’s] a thing which I would claim we didn’t see — maybe should have — and others didn’t see. Where was Yahoo?”

Internet Services Disruption

October 2005:

“The broad and rich foundation of the internet will unleash a ‘services wave’ of applications and experiences available instantly over the internet to millions of users.”

In the fall of 2005, several months before he announced plans to “reorder his personal priorities,” Gates put his hand to another major memo. This time, he wrote only a brief introduction, in which he handed off strategic leadership for this next big shift.

But the number of markets, opportunities and challenges the company faces today leave plenty of room for Gates, who will remain Microsoft chairman, to contribute.

“In fact,” he said, “there’s one that I’m thinking about writing now.”

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Google has entered the living room, but it’s not clear whether it is just wandering through or whether it will grab some popcorn, plop on the couch and stay for a while.

The company has introduced a new feature to its Google Desktop program that can help get content from the Internet onto televisions. It is called the Google Media Server, and it’s a bit of software meant to run all the time on your home computer. It can send video, audio and photos to any other device on your home network that uses a standard called called Universal Plug and Play — most significantly, Sony’s PlayStation 3 game console. It also works with some televisions made by Hewlett-Packard and a handful of other geeky devices.

There is other media server software out there, but Google adds two tricks: it can also pass video from YouTube and photos stored on Picasa Web Albums from the Internet to the television. (Both services are owned by Google.)

You could make the argument that this is another sign that Google has too many engineers with too little to do. Is the company really serious about telling mass-market consumers that they should run media servers in their homes? And is it willing to devote the resources to make sure it has a product that it can explain and that really works? (Looking at the Google Media Server user forum it looks like there are a fair number of glitches right now. )

Google’s throw-spaghetti-at-the-wall-and-see-what-sticks strategy makes sense in some areas. Google wants to be a big player in video advertising, and it already has the largest Web video site in YouTube. It has an opportunity to make YouTube an important link in the chain that will get video from the Internet to consumer electronic devices.

Since YouTube has more video than any other source, Google can offer a hardware maker a very easy way to add Internet video capability to a television, Blu-Ray player or some other device. Google has already cut such deals with Apple, HP and others. This new software provides a way to get YouTube videos onto other devices that use the UPnP standard.

This could all help Google in a virtuous circle. Video producers will find YouTube an ever more attractive place to distribute their programs because it not only has the broadest reach on the Web but will also have a wider range of devices that it can link to. More content brings more users and more devices. Since Google is adding more advertising on YouTube, that ultimately means more profits.

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Google has entered the living room, but it’s not clear whether it is just wandering through or whether it will grab some popcorn, plop on the couch and stay for a while.

The company has introduced a new feature to its Google Desktop program that can help get content from the Internet onto televisions. It is called the Google Media Server, and it’s a bit of software meant to run all the time on your home computer. It can send video, audio and photos to any other device on your home network that uses a standard called called Universal Plug and Play — most significantly, Sony’s PlayStation 3 game console. It also works with some televisions made by Hewlett-Packard and a handful of other geeky devices.

There is other media server software out there, but Google adds two tricks: it can also pass video from YouTube and photos stored on Picasa Web Albums from the Internet to the television. (Both services are owned by Google.)

You could make the argument that this is another sign that Google has too many engineers with too little to do. Is the company really serious about telling mass-market consumers that they should run media servers in their homes? And is it willing to devote the resources to make sure it has a product that it can explain and that really works? (Looking at the Google Media Server user forum it looks like there are a fair number of glitches right now. )

Google’s throw-spaghetti-at-the-wall-and-see-what-sticks strategy makes sense in some areas. Google wants to be a big player in video advertising, and it already has the largest Web video site in YouTube. It has an opportunity to make YouTube an important link in the chain that will get video from the Internet to consumer electronic devices.

Since YouTube has more video than any other source, Google can offer a hardware maker a very easy way to add Internet video capability to a television, Blu-Ray player or some other device. Google has already cut such deals with Apple, HP and others. This new software provides a way to get YouTube videos onto other devices that use the UPnP standard.

This could all help Google in a virtuous circle. Video producers will find YouTube an ever more attractive place to distribute their programs because it not only has the broadest reach on the Web but will also have a wider range of devices that it can link to. More content brings more users and more devices. Since Google is adding more advertising on YouTube, that ultimately means more profits.

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Courtesy of Universal Pictures
James McAvoy and Angelina Jolie in “Wanted”

“WANTED”
James McAvoy, Angelina Jolie
Directed by Timur Bekmambetov
Rated R
Wide release

“Wanted,” based on the comic-book miniseries by Mark Millar, is every action movie you ever loved, at twice the speed. It should be the most original live-action blockbuster of the summer. Russian director Timur Bekmambetov, who made the imaginative “Night Watch” and “Day Watch” for pennies, expands his talent to fit a Hollywood budget. Not only hasn’t he missed a beat, but he’s added a few.

James McAvoy, an unlikely actor to portray an action hero, plays an unlikely action hero. Put-upon wimp Wesley Gibson introduces us to his so-called life, working as an account manager in a soul-draining cubicle he shares with his best friend, Barry (Chris Pratt), who thinks Wesley doesn’t know he’s sleeping with his girlfriend (Kristen Hager).

Wesley’s life changes—what man’s wouldn’t?—when he encounters Angelina Jolie. Suddenly her character, Fox, is protecting him in a shootout, before whisking him away in that great “How’d they do that?” moment you’ve seen in the trailer, and they’re off on a wild ride that should get “Wanted” nominated for all sorts of technical awards.

Fox recruits Wesley into the Fraternity, a thousand-year-old secret society of assassins headed by Sloan (Morgan Freeman) and headquartered in a functioning textile mill in Chicago. They say they want Wesley to kill Cross (Thomas Kretschmann), the man who killed their top assassin, the father he never knew, from whom he unknowingly inherited skills that include the ability to shoot bullets on a curved path.

Wesley is toughened up with repeated beatings (this should appeal to disciplinarian parents) and rides with Fox atop elevated trains until he’s ready to start killing. The trail involves some globe-hopping and a surprising revelation that turns the story around. Needless to say, there’s more action before it’s resolved.

The plentiful violent action incorporates real stunts and CGI work, both of the highest order. Bullets meeting in midair and being tracked over a course of several miles are just a couple of the elements that will have geeks in heaven. Bekmambetov’s crew uses every trick in (and out of) the book to create visceral excitement.

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