Ballmer Says Smartphones Broke His Relationship With Gates

Ballmer Says Smartphones Broke His Relationship With Gates

Steve Ballmer said that his decision to push Microsoft into the hardware business contributed to the breakdown of his relationship with longtime friend and company co-founder Bill Gates, according to Bloomberg. Ballmer's only regret: not doing it sooner.

Ballmer, who was chief executive officer of Microsoft for 14 years, told Bloomberg Television that if he could do it all again, he would have entered the mobile device market years earlier. When he finally did, Gates and other members of the board disagreed, he said.

Ballmer, now owner of the NBA's Los Angeles Clippers said that he and Gates have "drifted apart" partly due to a disagreement over whether Microsoft should make its own handsets and tablets.  "It was definitely not a simple thing for either one of us," he said. There was a "little bit of a difference in opinion on the strategic direction of the company."

Ballmer also said they had a "brotherly relationship in the good parts and the bad parts. Towards the end, that was a bit more difficult than not, particularly with the strategic direction change and you know, the stock price isn't going anywhere, so the rest of the board felt pressure, despite the fact that profits were going up, so I think you had kind of a combustible situation," he recalled.

"There was a fundamental disagreement about how important it was to be in the hardware business," Ballmer said. "I had pushed Surface. The board had been a little -- little reluctant in supporting it. And then things came to a climax around what to do about the phone business."

Microsoft entered the market in 2012 with the Surface RT, a tablet that sold poorly and required Microsoft to take a $900 million charge to write down the value of inventory. Now, the rejiggered Surface business is profitable and generated more than $4 billion in sales for the most recent year.

Microsoft's foray was a mess almost from the start, with Microsoft's board rejecting Ballmer's initial plan to acquire Nokia's handset unit. By the time the $9.5 billion deal closed, Ballmer had handed the reins over to Satya Nadella and the Nokia business was in tatters. Microsoft has now written down almost the entire value of the deal and laid off most of the workers. Ballmer said the mistake was getting into handsets and tablets too late.

"I would have moved into the hardware business faster and recognized that what we had in the PC, where there was a separation of chips, systems and software, wasn't largely gonna reproduce itself in the mobile world," he said.

More from category

AZOP is Rapidly Preparing for the Implementation of the GDPR Regulation

AZOP is Rapidly Preparing for the Implementation of the GDPR Regulation

26 Jun 2017 comment

We continue with our big topic of GDPR regulations, and the answers to this topic were given by the Director of the Data Protection Agency Anto Rajkovača. According to him, AZOP will get some new powers as well, and the Agency continuously undertakes a series of measures and actions focused on organizational and personnel staffing and on providing sufficient resources to be ready to carry out all its tasks.

Apple Hires Sony's 'Breaking Bad' Team as TV Push Gains Momentum

Apple Hires Sony's 'Breaking Bad' Team as TV Push Gains Momentum

18 Jun 2017 comment

Apple hired two former Sony television executives who oversaw the development of acclaimed shows like “Breaking Bad” and “The Crown,” further evidence that the technology giant is getting serious about producing its own video programming, according to Bloomberg.

Gartner: AI Could Turn Some Skilled Practices Into Utilities

Gartner: AI Could Turn Some Skilled Practices Into Utilities

10 May 2017 comment

CIOs have a major role to play in preparing businesses for the impact that artificial intelligence (AI) will have on business strategy and human employment, according to Gartner. They predicts that by 2022, smart machines and robots may replace highly trained professionals in tasks within medicine, law and IT.