BoomTown Decodes Microsoft CEO Steve Ballmer’s Memo on New Digital Guru, Qi Lu (So You Don’t Have To)
by Kara Swisher
Posted on December 4, 2008 at 8:18 PM PT
BoomTown strives to bring readers the very best in internal memo decoding, and this one is just too good to pass up.
Microsoft CEO Steve Ballmer sent a short memo to employees this afternoon about finally hiring someone to head the software giant’s lackluster digital efforts.
That someone, as this column reported earlier today before the official announcement, was former Yahoo (YHOO) tech star Qi Lu. He will become president of the Online Services Group at Microsoft (MSFT), right after the new year.
Thus, let us try to read between the lines:
What Steve wrote: From: Steve Ballmer
Sent: Thursday, December 04, 2008 1:39 PM
To: Microsoft–All Employees (QBDG)
Subject: New Leader of Online Services Group
Search, advertising and online services are critical to Microsoft’s long-term strategy. To succeed, we need the right talent. Today, I’m pleased to announce that Qi Lu will join Microsoft as president of our Online Services Group. Qi will oversee all efforts in search, our online advertising platform, and all of our online information and communications services. Qi will join Microsoft on Jan. 5 and report to me.
Translation: Really, taking five months to pick someone to head Microsoft’s most critical arena for the future is not a long time. If you’re counting in dog years, that is! Woof!
But, I digress, we have a winner and, best of all, he’s from Yahoo, costing us $39.9 billion less than it would have cost to get Lu with the whole company.
What Steve wrote: Qi is one of the most respected technical minds in the industry. He comes to Microsoft after 10 years at Yahoo, where he most recently served as executive vice president of engineering for all of Yahoo’s search and advertising development efforts. Before joining Yahoo, Qi was a researcher at IBM’s Almaden Research Center. He has a doctorate in computer science from Carnegie Mellon, and he holds 20 U.S. patents.
Translation: Did I mention that Lu is from Yahoo? Let me say it again: Yahoo. The YAHOO that refused to take our $31 a share offer. That Yahoo. The Yahoo where–at one time–engineers would never consider leaving the Jedi forces of Silicon Valley to join the Death Star.
Jerry Yang, I am your bother.
Also, did I mention 20 patents?
What Steve wrote: Qi’s combination of deep technical expertise, proven leadership capability and broad business knowledge is rare in our industry. There is no one better qualified to guide our work to reinvent search and online advertising.
Translation: By “reinvent,” I mean, stop the endless flow of cash out of Microsoft pockets, even as Google (GOOG) is minting money in the basement of that irksome Googleplex in the search business.
If Lu manages not to lose, say, $3.23 trillion dollars, I will consider it a job well done!
What Steve wrote: While I’m excited that Qi is joining Microsoft, I’m sorry to share the news that Brian McAndrews has decided to transition out of the company. Brian came to us with the acquisition of aQuantive in 2007. Since then, he has helped build a world-class business in online advertising that provides a solid foundation for future growth. I have great respect for the important contributions Brian has made to Microsoft, and I wish him the very best in the future.
Translation: OK, so I dragged my feet on this selection process long enough to make Brian feel really badly, given he wanted the job too.
But, he’s an “ad” guy and Microsoft’s track record with those who don’t consider pocket protectors the height of fashion is, shall we say, rocky.
But don’t feel bad for Brian–Microsoft bought aQuantive for $6 billion last year, and he was CEO. You do the math.
Of course, it would be deeply ironic if Brian suddenly was in the running for the now-open Yahoo CEO job and I was facing him over the negotiating table over the search deal Microsoft has been salivating over, despite trying to seem only mildly interested.
Brian, honey, don’t take it personally that I went for the geek. It’s in my DNA.
What Steve wrote: On Monday at 4 p.m. Pacific Time, Qi will join me at Café RedWest for an Employee Town Hall. I encourage you to attend or to watch the webcast. If you have questions for Qi or me, please send them in advance to and we’ll try to answer as many as possible.
Steve
Translation: Free nachos and unintelligible discussions about algorithms for all!
Comments
I can’t wait for Qi Lu to announce that Linux will be the Search engine OS thereby undercutting Microsofts Vista and the distruction of the core cash machine Death Star.
Posted by Jeff Stevens at December 5th, 2008 at 4:30 amQi=Luke, Steve=Darth.
The return of the Jedi Yoda=Bill
It’s all entertaining to watch from the sidelines. It’s another thing to be in the midst of it. It’s just too bad that Yahoo is dragging its feet in the CEO search.
Yang wants none of the responsibility (stepped down in November), but wants all of the glory in making new deals. Pretty sad state of affairs.
If Yahoo does decide to hire me, I hope he has few things to pack as he’ll be escorted out the door very quickly following a week long transition meeting, de-badged and sent off the property to do other things.
No more Chief Yahoo’s in that company. Only 1 can be Chief.
Michael Murdock, CEO
Posted by Michael Murdock at December 5th, 2008 at 9:24 amDocMurdock.com
Kara, I did this yesterday, the decode:
http://kara.allthingsd.com/200...../#comments
Posted by Sam Harrison at December 5th, 2008 at 2:17 pmS:
Well done.
I do do them all the time, btw, so check the old ones out!
Posted by Kara Swisher at December 5th, 2008 at 4:42 pmIf you haven’t figured it out, that was my way of saying that when we do buy Yahoo we will need a “Microsoft trained” oriental guy to take Yang’s place. One hard and fast rule we have around here is that you never do cross-culture-replacement of senior executives! Italians for Irish or French for Portuguese or even Mexican for Bolivian is OK, but never replace a China-man with anything less than a Korean! It simply isn’t done.
Posted by Steve Ballmer at December 9th, 2008 at 8:00 pmhttp://fakesteveballmer.blogspot.com
It was delightful to see Bill and Steve sharing a stage and reminiscing about their stuff, but I was surprised that Bill (gadgets) and Steve (widgets) didn’t settle the debate about the original inventor of the widget.
One can never have too many widgets. Somebody codes something you never even dreamed of wanting – suddenly everybody
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