The strange parallels between Microsoft's century start and decade's end
End of year is typically time for company retrospectives, but 2009 is also end of decade. For Microsoft, the slow economy and push into Web services bookends the decade 2000-2009. Microsoft parallels between the new century's first year and the decade's last year are surprising. I've put together a list of 10 things, presented here in no particular order of importance.
1. Microsoft struggled through recession. In December 2000, Microsoft issued an unexpected profit warning for its fiscal 2001 second quarter. In January 2009, Microsoft released disappointing 2010 second quarter results, announcing intent to lay off 5,000 employees. Recessions marked the beginning and end of the decade, hitting Microsoft sales hard.
2. Major new Windows versions launched. In February 2000, Microsoft released Windows 2000, mainly for the business market. Windows 2000 promised to fix many of the applications and device driver incompatibilities and performance problems associated with predecessor Windows NT. In October 2009, Microsoft launched Windows 7, promising better device driver support and improved performance than predecessor Windows Vista.
3. Internet Explorer bundling with Windows. In April 2000, U.S. District Judge Thomas Penfield Jackson found that Microsoft had violated 1898 Sherman Act by, among other things, integrating Internet Explorer into Windows. In January 2009, the European Union issued Statement of Objections that later solidified into a formal ruling against Microsoft's integrating Internet Explorer into Windows.
4. Office on the cheap. In November 2000, Microsoft announced that Office 10 (aka Office XP) would be available by subscription. Microsoft later scraped the subscription plan several times (anyone remember Equipt?) but not the concept. In summer 2009, Microsoft began testing Office Web, a hosted version of the productivity suite for the low subscription price of free.
5. Web services vision to delivery. In June 2000, Microsoft unveiled .NET, which replaced what had been called Next Generation Windows Services. In November 2009, Microsoft announced that its next-generation Azure Web services platform was in production among some businesses, in preparation for Jan. 1, 2010 official launch.
6. Ebook publishers unite. In March 2000, 30 publishers supported launch of Microsoft Reader format for ebooks. In December 2009, Condé Nast, Hearst, Meredith, News Corporation and Time announced plans to "develop open standards for a new digital storefront," supporting many portable devices (What? No Microsoft?).
Related: In August 2000, Barnes & Noble started selling ebooks in Microsoft Reader format. In December 2009, Barnes & Noble started selling the Nook ebook reader, based on software from Microsoft rival Google.
7. MSN butterfly takes wing. In February 2000, Microsoft introduced a new MSN logo, the four-color butterfly. In October 2009, Microsoft updated the butterfly logo.
8. Tablet PC keeps on trying. In November 2000, at Comdex, Microsoft Chairman Bill Gates unveiled Tablet PC, a concept that never really caught on. In October 2009, Windows 7 launched with touchscreen support, extending and finally fulfilling the original Tablet PC concept.
9. Mobile devices rule the day. Handheld PDAs, many running Palm or Windows CE operating systems, were the hot geek gadgets in 2000, as seen at PC Expo and Comdex trade shows (Anyone remember the first Compaq iPaq?). In 2009, smartphones were so popular that unit sales exceeded laptop sales, according to Gartner. But for smartphones, Microsoft's mobile OS stood behind Apple and Google products for mindshare and geek enthusiasm.
10. The Ballmer Era. In January 2000, Steve Ballmer replaced Gates as Microsoft CEO. Gates stayed as Chairman, a position he still holds. In 2009, Ballmer.... I simply can't complete this one, because people's emotions seem to run so high about him. That's your role, to offer appropriate Ballmer parallel from 2000 to 2009 -- or to add others that I might have missed. Comments are open for your Ballmer insight.