Microsoft Determined To Stay On Top (06/11/99, 5:38 p.m. ET) By Stuart Glascock, Computer Reseller News
Steve Ballmer, Microsoft Corp.'s hard-charging,bombastic, number-one apostle, capped awhirlwind work week by telling a hometown audience that the PC will reign as king for many years, despite new form factors and rapid evolution in technology.
Speaking today before about 175 members of the Washington Software Association, which represents some 2,500 software companies in Washington state, Ballmer said Microsoft is determined to remain atop the software world that is dominated by PCs.
The computing industry can look ahead to 20 more years of exponential changes vis-a-vis Moore's Law, Ballmer said. He also said he envisions a new era of the "PC-plus," a time when the PC may be attached to many new form factors, such as mobile devices, smart phones and televisions with set-top boxes, but that the PC won't be replaced by these devices.
"PCs will remain a very important, critical device over the next 10 years," Ballmer said.
Ballmer Monday presided in San Francisco over the launch of Office 2000, the most Web-enabled Office suite to date. Tuesday, he pitched Windows NT in carrier networks at SuperComm '99 in Atlanta. And Wednesday, he discussed PC growth rates at the PaineWebber Growth & Technology Conference in New York.
Personal computers will control the newer, smaller devices, and accept them, but PCs do not go away and neither will the software that they run, said Ballmer. However, the software will change dramatically, he said.
"What you see on the client will look far more like what we think of today as Web pages," Ballmer said. "In some applications, a flat HTML application will work. Some will be largely client-based. As we think of the future of Word or Excel, the whole way in which the client environment displays information changes. Think about HTML with more rich controls in it. Even in the Internet environment, things will go that direction and XML will be the key technology that enables people to capture the best of both worlds."
"Also, in the era of broadband, there will no longer be software packages that are not also services," Ballmer added.
Windows operating systems, for instance, in a few years may be a bunch of bits on a computer, but also a bunch of bits on a server that keep the system up to date, he said.
"Every software package will go through an evolution" whereby they become a mix of software and services, Ballmer said.
Microsoft is preparing for this new PC-Plus world by focusing on five areas: consumer Windows, IT professionals, developers, knowledge workers and electronic commerce, Ballmer said.
"We want to enable people to do what they want, where they want, on any device, connected to the Internet," he said.
VARs who simply resell products will go out of business unless they follow the software evolution and incorporate services into their business models, he said.
"I'm not worried about the channel as long as these guys keep adding value," Ballmer said. "Retail is another story. Most software will be sold online. But broadband isn't here yet."
Before heading back to Microsoft's Redmond, Wash., corporate headquarters, Ballmer took two parting shots at competitors. He credited Linux with being a competitor in the server market, but downplayed its potential on the desktop. Then, he slammed Sun Microsystems Inc., and underscored his point about PCs being king."[Sun] can't beat us unless they're on the PC platform," he said.
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