Microsoft offensive History of Google company 13

Microsoft offensive

When Eric Schmidt arrived at the University of Washington on May Day 2005, students and professors of the computer technology department were already looking forward to it in the hall. The CEO of the most dynamic IT company in the world, casually throwing a jacket over his shoulders, loosening his tie and attaching a smartphone to his belt, quickly went down the steps of the lecture hall. Here, on the Microsoft field, he was going to not only defeat an opponent, but also strengthen the position of Google.

Many IT industry experts, comparing the two companies, put success in the field of software research and development, but at the same time lose sight of the main battlefield. Since both Google and Microsoft have achievements in the field of engineering and programming, the main subject of the struggle between them was not the market segments, not browsers and not operating systems, but talented IT specialists. This is the key variable by which one can judge the company's potential, whether it is ready to solve the most interesting and important tasks of the Internet era.

A few months ago, Google opened an office in Kirkland (Washington), not far from Microsoft headquarters, thanks to which it was able to attract a number of talented programmers who dreamed of working for Google but did not want to leave Seattle.

Schmidt's speech was held in the building called Paul G. Allen Center for Computer Science & Engineering ("Paul Allen Center for Computer Technologies and Computer Engineering") - a building erected at the expense of Microsoft co-founder Paul Allen.

Eric had an important mission - to convince teachers and students of a prestigious university that working at Google is better and more interesting than at Microsoft.

Guest was delighted to be presented to the audience by Ed Lazowska, an honorary professor at the Department of Computer Technologies and Computer Engineering at Washington University, guided by the motto: “You are in this life or a skating rink or asphalt”. Schmidt was sure of himself. He is not the last person on the market, and yes, and Google is just on the crest of a wave: the price per share has exceeded $ 250, and the company's market value is $ 70 billion. Therefore, he was only interested in one question: how many students from here will want to join Google ?

For several months (and even this morning), answering questions about rivalry with Microsoft, Schmidt showed respect for a competitor, but clearly did not want to cover this topic: he said that Microsoft is a much larger company with broader financial capabilities. and resources, and therefore comparing it with Google is just silly. But in his words one could see the following implication: Google is the best company in the world, and Microsoft is an aging giant, whose best days are over. According to Schmidt, Gates’s company is based on the past principles of technology development, which the Internet revolution has already eclipsed. That's why Microsoft’s role has steadily declined, while Google’s role continued to grow. “We seem to have moved to a new level, where the stakes are much higher,” he noted.

Then Schmidt went on the offensive.

“We are competing with Yahoo! every day, he said. “Microsoft recently announced its entry into the search technology market, but has not yet become a serious competitor for us, although I am sure it will strive for this.” He added: “Microsoft publicly announced that it was going to implement the search function in every bit on the personal computer screen. But this will take them many months or even years, depending on how dynamically they work. ”

This week, Schmidt met the head of Microsoft at a computer technology conference and realized that Gates was oppressed by talk about Google, information about the company's development dynamics and the growth of its stock price. A couple of months ago, everyone said that Google could be the next Netscape - a company that personified the Internet boom of the late 1990s, but destroyed by Microsoft. Now everyone was discussing whether Google could press Microsoft and become the world leader in software, technology and innovation. Gates, the richest man in the world, answered questions about the competitive threat posed by a search engine from Silicon Valley with ill-concealed irritation.

“Google is flawless so far,” he told the journalists and experts who gathered at the conference, sarcastically. - The bubble is still alive. You should purchase their shares at any price. History repeats itself.

Both Gates and other technology and investment professionals knew perfectly well that between 1998 and 2005, Microsoft’s stock price did not change significantly, while Google went from being a newbie to the largest search engine. Gates was pained to realize that, despite the fact that Microsoft had been convincing everyone for several years, which was making great strides in the field of Internet search, its product called “MSN Search”, launched in early 2005, was not liked by most computer users. But since his operating system completely controlled the work of the PC, Gates decided to conquer millions of users as follows: implement a search engine in Vista, a new version of Windows. The MSN Search main page will automatically load whenever you turn on your PC.

“We will“ tie ”everything to the search engine that is relevant to the search,” Gates promised.

A huge company with colossal financial capabilities in the field of search technology was lagging behind - mainly because, with a huge number of excellent programmers, it lacked specialists in information search. Schmidt knew that promising software engineers would be happy to work at Google. There, in a small team, they will be able to work on interesting and promising projects and create products that will be used by people all over the world. For an ambitious programmer or engineer, there is no better motivation.

Schmidt’s comments on Microsoft were a clear sign of how ambitious and self-confident Google has become: Microsoft couldn’t do anything that would seriously shake competitor’s position. “Our users are everywhere,” noted Schmidt. On the projection screen in his office, he showed a slide with the cover of Newsweek magazine, where he mocked the imaginary transition of the founders of Google to work for Gates. Under the photo of Brin and Page, there was a huge headline: “A new era is coming to Microsoft: two newcomers make Redmond the king of search” (Microsoft has its headquarters in Redmond).

Schmidt’s march to Seattle in May 2005 was preceded by an article published earlier this month in Fortune magazine, which, along with The Wall Street Journal, is a desktop publication of the American business establishment. The article titled "Why Bill Gates is Scared of Google," written by Fortune columnist Fred Vogelshtein, has made the effect of a bombshell. It began with a description of the episode that took place in December 2003, when Gates realized how vulnerable Microsoft could become. The article outlined a grim, deeply personal interest-related picture of competition, which the author aptly dubbed Gates vs. Google.

Unlike other companies that competed with Microsoft, Google relied on Internet resources and free software development and, without spending on distribution and marketing, attracted millions of users around the world. Microsoft, which offered a set of integrated office products, effortlessly repelled the attacks of other competitors. To resist Google, which also created a set of complementary tools, using the accumulated knowledge in the field of software, it will be more difficult. Google has already baffled Microsoft by releasing the free Desktop Search utility, with which users can find the right information in the wilds of their Windows in no time. But even worse for the Gates brainchild was that above the Microsoft Internet Explorer browser,which for a good decade has been a “starting point” for searching the Internet, the threat has been threatened. Millions of people are switching to a new browser called Firefox, which was developed using Google tools and provides a built-in search option. The presence of Microsoft on the desktop PC will probably decrease if Internet Explorer is threatened as a browser, because all the company's main products — from Microsoft Word to Microsoft Excel — are programmed to function in conjunction with it.because all the main products of the company - from Microsoft Word to Microsoft Excel — are programmed to function in conjunction with it.because all the main products of the company - from Microsoft Word to Microsoft Excel — are programmed to function in conjunction with it.

“Microsoft has been working on a project for several months that was supposed to crush Google, when suddenly the truth was revealed to Bill Gates,” Vogelstein wrote in his article. - It happened in December 2003. Wandering through Google, he went to the job page. “I wonder,” he thought, “why are the requirements for many of them identical to the requirements of Microsoft?” The search giant posted information about vacancies for software engineers with experience in developing operating systems, system administrators and other specialists who were rather Microsoft’s part. “Gates wondered if Microsoft was expecting a bigger war than a search skirmish,” Vogelstein wrote. “On the same day, he sent out a letter to all the top managers of the company, which said:“ We need to carefully monitor these guys. It looks like they are creating somethingwhich can make us a serious competitor. "

What exactly they create was not entirely clear, since the series of products that Google launched - from the image editor to the mail service and the search program for a mobile phone - was not at all a widespread attack on the Microsoft-controlled desktop. At the same time, users who adopted them became less dependent on Gates software and were able to type, edit, send and print materials without using Windows and Word, the pillars of the Microsoft empire.

“Google is of interest not only because of Internet search. Using the knowledge gained from search engine development, they are working on other types of software, Gates told the author. - If they only had a search, they would be of little interest to anyone. The thing is, they are a software company. In this regard, they are more like us than any other of our competitors. " An article by Vogelstein and other media materials argued that the disregard and suppression by Google of Windows and other Microsoft software is no longer a distant prospect, but a reality.

Safa Rashchi, one of the most authoritative experts in the high-tech industry, was quoted in the last paragraph of this large analytical article: “Google is a powerful brand. I think they have every chance of success. " In another article from the same issue of Newsweek, titled "Living in the Google World," statements by well-known IT professionals summed up one phrase: "Welcome to the Microsoft nightmare."

Eric Schmidt concluded his audacious talk by giving faculty and students the opportunity to ask questions. He did not know what to expect from them, especially in light of the proximity of the university to Microsoft headquarters and the likelihood that some of those present in the hall worked for the company, underwent practical training or studied at the university at its expense. True, Google itself has already recruited more than 40 students and at least 15 doctors of Washington - a bit compared to the army of graduates who worked at Microsoft, but very well for a young company. Schmidt looked at the hall with interest - he was sure that there was at least one Microsoft spy among the audience who listened to his every word and watched the audience’s reaction.

The first question - about the project teams - was simple. Google employees work in teams of three to five people. “The teams are small. The larger the group, the lower the productivity, ”noted Schmidt. The "warming up" questions were simple. The second was about the pace of new product development. “Our innovation development rate is significantly higher than that of other IT companies, and much higher than that of our competitors,” answered Schmidt. Knowing how highly IT specialists value independence, Schmidt answered the following question with particular enthusiasm - about management. “The secret here is not how we manage, but how we select employees. This model works only when the right people are gathered in the company. We would surely fail if we had one big project and employees who prefer to be toldwhat to do. We try to minimize the management of specialists. It often only gets in the way. ”

Since people who were educated and well prepared gathered in the hall, Schmidt understood that sooner or later he would hear questions from which he would have to avoid a direct answer. And here is one of them: why Google does not disclose the details of its financial operations, so that analysts can make predictions about its future profits and determine how the price of its shares corresponds to the real state of affairs? “We decided not to make this information public,” said Schmidt. - We do not want our competitors to find out about this. We have developed models that they do not have. That is why our revenues are growing. ” Then he was asked why Google does not advertise on its very popular Google News site - is it because the company uses content owned by others? “Google News is a very successful product for us.And every month or two we discuss this possibility, - said Schmidt. - Google News, I am sure, will bring us a lot of money. But imagine: the team leader comes to me and says: “Do you want to make a profit or include news from the media in Arab countries?” Of course, I choose the second. There are about 300 countries in the world. When we cover them all, then we will focus on the issue of advertising on this site. ”

Then, quite predictably, more complex questions went. For example, what impact will society have on distributing Google information that was previously unavailable. Schmidt thought for a moment. "It is hard to say. Personally, I think that all information should be viewed as something that can be put, say, into an iPod player. What happens when some of the information you carry with you is updated in real time? How does the learning process affect the fact that a student can find an answer to a question asked before the professor asks for it? ”Then, one student noticed that Google had no products to sell, and very few registered users, and therefore if someone develops a better search technology, it can lose users.Does the company play with fire? “We actually have relatively few user linking tools,” agreed Schmidt. - This means that our competitiveness is determined by the number of search operations. We understand it and constantly talk about it. Our search results should be better for any query in any language in any country in the world. ”

Then Schmidt was asked about how real the threat of becoming a victim of antitrust laws is, given that Google is growing and gaining momentum and that competitors, respectively, have an incentive to spur officials in the US and other countries to take action. It happened to Gates, can it happen to Google? "This is a serious problem," admitted Schmidt. - Today we are a real force, and therefore many are closely watching us. People deprived, disadvantaged or those who simply dislike us for some reason, are constantly dissatisfied with something. As our presence on the Internet grows, I think the situation will not improve. ”

Schmidt did not want to finish the meeting on a sad note: viewers might have a feeling that Google has every chance of becoming the next target of the US Department of Justice. The motto “Do no harm!” Signaled to engineers all over the world that Larry and Sergey are not only techies and “guglomany”, but also just good guys who want to benefit people while enjoying themselves. Schmidt noted that they do not set out to destroy competitors, like those predators whose habits were described in the materials of the lawsuits filed against Gates and Microsoft. He said, not without pride, that Google has no enemies, there are only competitors.

Finally, Schmidt was asked about the role of the company as a filter of online information for those websites that might want to take money for providing their content. In fact, Schmidt preferred not to dwell on products under development, but then he decided to lift the veil of secrecy and allow viewers to feel like Google employees - a classic technique that he successfully used during interviews with candidates for vacant places. “Now we are working on a system that distributes other people's content. Most of the revenue goes to the content owner. We hold a small percentage for what we advertise. ”

In conclusion, he said a few words about the role of Google as the gateway to the Internet. “As a search engine, Google is probably one of the largest websites that redirects users to other sites. Therefore, the sites profitable to cooperate with us. We expect to become the largest "supplier" of users for each of them. It would be great".