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Interview with Steve Ballmer with Anton Nosik

The interview took place at the ReMIX conference. During the interview, Anton asked his own questions and questions that won the voting questions of users.

Anton Nosik . Hi, Steve!
Steve Ballmer . I'm glad to see you!
A. I have a few questions prepared, so I will pry into my notebook.
S. Yes, please.


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A. Some questions from me, and some from people here. Questions will be shown on the screen in Russian, and I will ask them in English. First question. What brings you here today?
S. I love to travel and meet with our customers. Unfortunately, the last time I was in Moscow for work a long time ago - a couple of years ago. I also came here during my vacation in October, but I wanted to come back and see with my own eyes what was happening in the technology market here.
A. At the same time, as you understand, every visit of this level awakens expectations of Microsoft expansion in the Russian market. You have been on the market for sixteen years. For example, Google, just two years after entering the market, has already set up its research and development center in Moscow and another in St. Petersburg. And Microsoft here seems to have nothing like it. Are there plans to expand activities in Russia?
C. We are always engaged in the expansion of its activities. Do we have plans to open a research and development center today? At least at this conference, I can not make such an announcement. But, of course, I am interested in exploring all the promising opportunities. We understand how many talents in the Russian market. We have over a thousand Russian-language software developers working in Seattle. I am sure that at some point it will be extremely interesting to come back here.
A. Do they get any salary increase for mastering Russian?
S. (laughs) I can not say for sure. But I will not give them such an idea either.
A. Well, those gathered here should conclude that now you should not send you your resume, because you have not opened here yet, and try to convince you to start opening your units here in the near future. The next question is probably not a pleasant one. While Microsoft has a dominant position in the local software market, we also know that 80% of Microsoft software products are used in the form of pirated versions. The IDC optimistic report says that we are likely to see rapid growth in the economy and rapid growth in the IT industry when we bring this figure to 70% in 2011. What do you think, what really achievable percentage of pirated use could be considered a good level for a country like Russia? We will not talk about 0% - even in the USA the level of piracy is not zero. What are realistic numbers?
C. In my opinion, low levels of piracy achieved in a number of countries around the world can be considered realistic within 25%. It is important that there is no piracy in government departments, educational institutions and large enterprises. The level of piracy in small business should be small, and the level of piracy in home use should be kept to a minimum. (applause)
A. Suppose a decline to a certain level, for example, 25%, is inevitable sooner or later. Perhaps a change in the licensing structure would help speed up this process?
C. We have extensive experience in this area, and we are working to make the licensing of our products easier and prices more affordable. We have made a number of steps in this direction, and you will see significant steps from our side, especially for the domestic market. For the education market we have very low prices. For the home user market, we offer even more attractive prices. Yes, in part, pricing and licensing policies have an impact, but there is no substitute for the human culture of respect for intellectual property. And in this regard, I was very pleased with the significant improvements in Russia. But there is still a long way to go.
A. Since the level of piracy fell from 95% to 80%, it is obvious that three times more people began to use licensed software. Continuing this topic, you probably could expect questions about the school teacher, or rather, the principal, Alexander Ponosov. He was accused, as an ordinary criminal, of buying computers with Microsoft pre-installed pirated software. At the same time, I know that Microsoft has not filed a civil or criminal lawsuit against him. Microsoft did not initiate this process and, moreover, Microsoft has a licensing program for schools, through which it could get the same software for free or almost free. After this episode, unpleasant for all parties - both for the teacher and for Microsoft, did new ideas emerge on how to prevent such situations in the future? About training? About available licenses?
S. I want to note a couple of points. First, undoubtedly, this is a very, very unpleasant situation. It is unfortunate that this situation happened to Mr. Ponosov. There is no doubt about it. Microsoft believes the fight against piracy is necessary, but we are not trying to deal with school teachers and school principals. And, of course, we would not take such steps. This incident essentially indicated that not only our company, but our entire industry should pay even more attention to training in the field of pricing, licensing and intellectual property. This training should cover government departments, judicial and law enforcement agencies, as well as users themselves. And then, perhaps, in the future we can all avoid such very, very unpleasant things.
A. In general, people should not steal what they can get from you for free.
S. Very well noticed.
A. If they knew about it. Now the question is from a completely different area, about events happening thousands of kilometers from us. As I recall, at the beginning of this month you informed Jerry Young that the deal would not take place. And you are left with 50 billion dollars set aside for acquiring a very attractive online business. What are you going to do with this money? Buy something else? Try to get Yahoo again? Or is it a secret?
S. Well, of course, this is a mystery. But for you, in private, I’ll slightly open it up.
A. Yes, it would be nice!
C. We have a long-term strategy, the implementation of which will take some time, but it is a strategy of real success in finding information. And we have a high competitiveness in the search - and here in Russia, but especially globally, around the world. If we acquired Yahoo, it would shorten the implementation of our strategy. But Yahoo has never been the strategy we are trying to implement. Provided that we will not spend 50 billion dollars on such acceleration, we use this money partly on acquisitions of companies, but, frankly speaking, to a greater extent on marketing and attracting customers. We plan to continue to increase investment in data centers. We plan to continue to increase investment in research and development. It turns out that with 50 billion dollars you can do a whole bunch of things.
A. Really? I never thought about it.
C. Even with high Moscow prices of 50 billion dollars, this is a huge amount of money.
A. You could invest them in real estate in Moscow.
S. (laughs)
A. The next question will be about open source software, because I heard that Microsoft has changed its attitude towards it in recent years or even months. And Microsoft accepts open source standards and opens some of its codes. The question people ask themselves is: does Microsoft really believe that the future is open source, or is the company just trying to impress people who are used to open source and want it to be supported in your products?
C. I think when people use the term open source, they mean several different meanings. Let me comment on each of them. First, sometimes, using the term "open source", people simply mean that the code is open. Can people write applications related to it? Can people create products that interact with it over the Internet? We firmly believe in the need for interoperability, and we have even taken more steps to make our products open in this sense. But this is not all that can be meant by “open source”. Sometimes people use the term "open source", meaning: "Will you give away your software for free?". In general, our answer is “No”, because we are a company and we need a good business model.
Sometimes people use the term "open source", meaning: "Will you publish your source code?". We provide our source code to some people for important tasks, for example, to check information security in government and government agencies. And we had our first such experience with the Russian government. Sometimes people use the term "open source", in fact, referring to Linux and Open Office. We will actively compete with Linux and Open Office. Sometimes people mean open source innovation as a comprehensive concept. One of the goals to which we are investing significant efforts is to make Windows a good place where people can place their open source innovations. For example, we did a lot of work to make Windows Server the best platform for PHP applications.
A. Another example is the Open ID standard, which provides a single identity when using different platforms. A year and three months ago, Bill Gates said that Microsoft will adopt this standard and will support it. Since that time, I have never seen a single Microsoft product that supports Open ID. Was this idea abandoned? Or just its implementation requires more time than has passed since?
C. We didn’t give up the idea ... When Bill made this statement, everything planned for Windows Server 2008 was already implemented. So, I'm afraid, Open ID support will not be until the next release.
A. Well, let's wait until the next release.
S. I know that you remind me of this.
A. Be sure, steveb@microsoft.com, I will remind you. The next question concerns what and how you propose to software developers. For example, “Software + Services”. It can be assumed that this area is of particular interest to those present here and in general for independent developers in Russia and Europe. But there is a problem. If you want to charge a small fee for use, there will be difficulties with the payment system. In many Internet businesses, this problem is solved using such tools as Google Checkout, Yahoo Wallet, Paypal. Does Microsoft plan to enter this market - the online payment market? I have never heard of Microsoft working in this area, but it would be very logical. After all, Microsoft offers a comprehensive platform, and the platform should include payment methods.
C. Different people in different ways solve individual problems of receiving payment. You cited the example of Yahoo, Google, Paypal, and others. As for us, we do two things. First, we have the so-called “points system”. We use it for payments within our web projects: Xbox, etc. If you want to pay for something, we have a Micropayment system. To a certain extent, we will make it open to other developers. This is the first remedy. Secondly, we announced about this week (I can’t say for sure since I am traveling now, but I think we’ve already announced something) about extended collaboration with eBay, as well as Paypal.
A, clear. So, soon we will hear specific recommendations within the Microsoft platform for developers. Next question. You offer people to develop web applications, Microsoft offers a platform for such developments, and at the same time you offer Office and CRM online. In addition, there are other major players in the market, such as Amazon, that offer web services. How can a small developer compete with such giants? How can you compete with Microsoft, which offers web services based on proprietary technology?
C. A developer must have a specific target segment on which his proposed solution is focused. If you want to compete with us, offering large-scale services, we are happy to compete. But I think we have certain advantages. When choosing a CRM system, some will like our system; others may prefer innovations from independent developers in this room or otherwise. Honestly, in the “Software + Services” world, some of the advantages of large companies over small ones lose their importance to a certain extent. In the world of "Software + Services" you have direct contact with the customer. Consequently, the need to hire vendors and do some other things, like in large companies, is reduced. I believe that small developers will have more opportunities.
A. This leads me to the next question. Suppose you would now be not the head of Microsoft, but a young entrepreneur. Or, let's say, as you said, you would work part-time at Microsoft and would think about starting a new web project. Based on the available options for platforms and activities, and, as you just said, something more focused than universal offers from Microsoft. What character would you like to start a new web project if you were a developer?
S. At the present time, in my opinion, there are two enormous opportunities that are to a certain extent underestimated by the market. Small business is still not automated enough. And in this area, someone is really lucky to grasp this great opportunity. Microsoft is trying to accomplish this, but many others should also try it. For someone who makes the best applications on the principle of “Software + Services” for automating small businesses, I think this is an amazing opportunity. I think this would be the main area where I would launch a new project. Another area of ​​implementation is health care. The population is getting older, which means that medicine will be one of the fastest growing components of the global economy. Much remains to be done to improve automation in this area.
A. Do I remember correctly that Microsoft owns a patent on the human body?
S. I do not know about this. But it is quite possible.
A. That was a few years ago. This is a patent on the human body. As far as I heard, Bill’s spouse experimented with the genome. Perhaps one day we will hear about a genetic code licensed by Microsoft. Or maybe not. Unfortunately, many of my readers (too many to ignore their wishes) asked and complained about the fact that Windows Vista is preinstalled on all computers and, in particular, on all laptops sold in Moscow. Moreover, Windows Vista is preinstalled on those laptops, the power of which is not enough to work in this system. Many people, including many present here, fear that XP will disappear and only Windows Vista operating system will remain, with which they will not be able to work on their hardware. Do you think they will have to increase the RAM to 4 GB or will the support of Windows XP be extended anyway?
S. Let's clarify a few points. First of all, we are going to continue to support Windows XP. We are only talking about whether we will continue to sell Windows XP. The second point: we will continue to allow people purchasing Windows Vista for business to work of their choice either on Vista or on XP. That is, you can upgrade to an earlier version. So in reality, we are only talking about home users. Starting from the second half of this year, will people have to buy new computers just because old computers will not be updated? Will people be able to buy new computers with Windows XP or only with Vista? At least, the majority of hardware manufacturers with whom we communicated, believe that a better option is to pre-install only Vista. And they are ready to provide sufficient hardware resources in computers. We know that there will also be demand for computers with less memory. In this case, we need to provide a way to satisfy this part of the demand legally. We don’t want people to use pirated copies of Windows XP, so we’ll meet this market demand.
As for the large number of computers still sold with 1 GB of memory, hardware manufacturers have barely discussed this with us. I will consider this question taking into account the comments you made at the beginning of the day. Now I can say that manufacturers plan to leave Windows XP as an option for new computers until the end of this year. And if we need to do something extra, I will once again consider the issue of low-power computers that you and your readers were talking about.
A. Thank you. And the last questions, since we have 51 seconds left.For the past 13 years, Microsoft has offered various tools for the Internet, such as the Microsoft Network (MSN) and Internet Explorer. Which of these tools was the most successful from your point of view, and why?
S: I think the most successful tool we have created for the Internet is Internet Explorer. For the first time, we presented it as a component of Windows 95. It deserved great popularity. Therefore, it has become a common and standard tool that facilitates Internet access for everyone. Since then, we have had very strong competitors, and this is also very good and valuable. Undoubtedly, our first Internet product is Internet Explorer. Perhaps, in second place, I would call the .NET platform. According to the situation today, about half of new applications are created using Windows and .NET, and the other half are created on LAMP (Linux, Apache, MySQL, PHP / Python / Perl). As for high-level applications, the percentage of products built on the .NET platform is even greater.Almost from the zero level in 1999–2000, we reached about half the market today.
These two achievements I want to highlight. Both are infrastructure supporting the Internet. As for applications for the Internet, I am very pleased with our success in the projects of e-mail, Messenger and several others. But Internet Explorer is number one.
A. Clear, thanks. Let us turn to the questions of readers. Questions from the Internet will be displayed in Russian, and I will ask them in English. First question, please. User Avg00r asks how you personally and as head of Microsoft see the future of the Internet. What do you think will be Web 3.0? Obviously, the question was asked before your speech.
S. I guess two things. I have already spoken a little on this topic and now I will tell you about some details. Web 3.0 consists of two parts. First, there are changes in how developers usually create applications. This is what I talked about the concept of “Software + Services”. The second part is the changes in what kinds of applications the developers create. The bottom line is that collaboration and communities will be an integral and ubiquitous part of the applications of the future. The original personal and corporate applications were not created with this foundation. At that time, we did not have the opportunity to use the entire Internet at work. Now, whatever you do, you need communication and collaboration with others. This applies to work, and entertainment, and other areas.
A. The next question from the user SOID: “Everything that I know about you, I learned from the movie“ Pirates of Silicon Valley ”. How do you like the movie and your character? Do you like him and how true is he? ”
S. The character in the film is a cool guy. I am a cool guy.
A. The next question. The person with the alias SPARKS says that he is far from a fan of Microsoft. But his work is related to the development of software products on the Microsoft platform. Many people use Windows, and he personally is a Windows developer. And, actually, a question. In addition to the meeting at the W3C consortium, why doesn't Microsoft want to comply with existing web standards? In addition to having a representative in the W3C consortium, how does Microsoft demonstrate compliance with existing web standards?
S. The fact is that we developed a significant part of Internet Explorer long before certain standards appeared. Currently, there is a problem of incompatibility of standards and the actual use of the Internet in IE, Web sites for IE. So you have a choice - either choose standards or choose compatibility with what people use. We announced that both types of work will be supported in Internet Explorer. There will be a standards-based mode, and there will be a compatibility mode with the lion's share of Web sites that exist on the Internet today. We will make both modes of operation available. We are not against standards. However, we also respect the fact that there are many websites that are actually displayed correctly only if we use the approaches first introduced in Internet Explorer.
A, clear.But it seems to me that HTML tables must be closed in order to be displayed correctly.
C. We will have both options supported.
A. Thank you.The next question, from hpgeerdes, is about using third-party intellectual property in Microsoft products. Does Microsoft software use code from other companies or individual developers? The question concerns both the commercial code and the open code, which is available free of charge to anyone.
C. We license commercial software and, of course, we acquire licenses for third-party patents for use in our software. We do not use open source. Open source is licensed under the GPL, and this is incompatible with our business of selling commercial products. We do not use it.
A. The next question is about Flash and Silverlight. Are there plans to merge them, ensure interaction between them, and the like? Before you came, there was a presentation with a demonstration of a bull flying between the Flash area and the Silverlight area on the screen. And yet this question is asked by everyone. How do you feel about Flash?
S. What can I say. Flash is our competitor. There are currently no discussions between us and Adobe about the level of interaction. I am open-minded and open to new, but there was simply no such discussion. And, of course, if such a question will be discussed by two commercial companies, one of which, Adobe, owns a very significant market share, certain legal issues that are undesirable for us will also arise. Undoubtedly, interaction capabilities would be of some value.
A. So developers may need to prepare for the best.
C. Yes. I think all developers should learn Silverlight. (applause)
A. Your position is clear.
C. But, of course, you will have the opportunity to use Flash on Windows Server systems.
A. The next question is about the interface of Microsoft products and the visual design of future versions. User KORTUNOV asks: “Will it be an interface with vector three-dimensional graphics, or will it be something never seen before?”
S. Repeat, please. Three-dimensional or some other? I did not understand the question.
A. Vector ... hmm ... Tell us about how the interface of future versions will be and how it will be revolutionary in its turn from today.
S. I guess the user interface will expand significantly. There are many ways to do this. There will be a richer three-dimensional visualization. There will be surfaces that the user touches and interacts with them directly. Panning and moving, as well as the graphical effects first used in Silverlight, in the Windows Presentation Foundation will become somewhat of a “second nature”. In the morning I spoke with one of our large customers here in Russia. He is engaged in financial services. We made assumptions about how a three-dimensional environment for teaching people in the field of various financial services could look like. People like things more like real-world objects. I believe that graphics and software capabilities should make it easier for many of you to create these high-quality applications.
A. So there will be a three-dimensional banking service on the Internet?
S. Yes, that's right, a visit to the Internet bank will be in many ways similar to a real bank visit. Everything will be three-dimensional.
A. And the 3D money will pop out of the screen right on our table. Next question. What, in terms of the market, is Microsoft’s most significant achievement in the last 5 years? And what do you suppose will be the most significant act for the market in the next 5 years?
C. In the past five years, the most significant contribution and the most significant achievement of Microsoft is, above all, work with our IT customers and business customers. The way we have recently worked with IT and business clients in the areas of improving security, productivity, management, reliability, our income, our presence, the number of running applications - this was made possible thanks to investments that began twenty years ago. Twenty years ago we started working on Windows NT, and this was an invaluable step. In the next five years, in my opinion, significant innovations will be in Windows Mobile, in Xbox and Xbox Live tools, in our interactive Internet TV system and in some projects that we are implementing for the first time today in the field of Internet search, etc. .
A, clear.We skip question number eight on open source, as this topic has already been discussed in detail. The last question is about your usual day. How do you organize your time? Do you read incoming emails yourself, or does someone do it for you?
C. When I'm not in the office, my day usually starts around 7:30, like today. I communicate with customers and Microsoft employees. When does the day end? For example, yesterday we finished around midnight. So my usual day, when I'm not at home, starts at 7:30 am and ends at midnight. When I am at home, I usually arrive at the office by eight in the morning. I keep a spreadsheet in Excel where my time is written. I distribute how many hours I use for meetings with customers, with employees, etc. And I very carefully follow the schedule.
A. Does it help?
S. And very much so. Now I do not live on schedule. But the person must have a schedule. So I am very disciplined. My friends consider me a bit obsessed with maintaining a spreadsheet with a schedule, but for me it is very important. I read all my personal mail. I do not have an assistant who reads email. If you send me a letter, I will read it. I can not promise that I will read today. But read it necessarily. In fact, I will most likely read it today. Tonight I have a 12-hour flight home to Seattle from Moscow.
A. With an internet connection? Or will you preload the mail?
S. Mail I will upload in advance. By the time I get home to Seattle, I’ll finish everything.
A. It means that everyone sitting here should hurry to send a letter before your departure.
S. If you have something interesting, be sure to email me. People think it's crazy that I give out my email address. Perhaps it is. But in reality, spam is sent by computers, not by people. People usually send real proposals, real ideas, real criticism. So I really like to receive informative letters, letters from our customers.
A. It is encouraging. You can trust people. Thanks Steve! This completes the questions.
S. And to all of you, too, thank you so much!
The original video recording and text in English can be viewed on the ReMIX conference site .

Source: https://habr.com/ru/post/27637/


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