All Things Digital

There will be a lot of different reactions to the first of Microsoft’s newest series of commercials, featuring Founder Bill Gates playing straight man to comic Jerry Seinfeld.

Set up as a discount shoe-buying skit, Seinfeld helps Gates purchase a pair called “The Conquistador,” and for some Seinfeldesque reason, it’s churros all around.

Actually, it feels a lot like the frequent and excellent Microsoft internal spoof videos Gates does with various celebs.

I have always liked them a lot and I like this one too, as it is quirkily charming (or is it charmingly quirky?).

But I am not sure the Gates-Seinfeld kibitzing will really get a lot of people talking about Microsoft (MSFT) products, as is the marketing goal.

And they surely are no where near as spot-on as Apple’s famed PC-Mac guys commercials, which are memorable and witty and deliver the message that Apple (AAPL) products are better.

What might be more effective, of course, at least in the Internet arena, is for Microsoft to get off the stick and lay out its next Web strategy clearly, especially in the wake of its failed attempt to acquire Yahoo (YHOO), and name the digital chief it said it planned to.

Several sources with knowledge of the situation expect an internal choice to helm the part of the business that was run by former Microsoft exec Kevin Johnson, who left after the software giant’s bid for Yahoo failed.

Although an external star coming in would be CEO Steve Ballmer’s top choice, I would guess, top internal contenders are Brian McAndrews, who came to the company via its $6 billion aQuantive acquisition, and longtime exec Yusuf Mehdi, who was Johnson’s strategy guy.

(BoomTown votes for a combination of both to make it extra complex!)

In any case, if it is serious about taking on rival Google (GOOG) in the online ad space and becoming at least the No. 2 player in the market, Microsoft has to move sooner than later and definitely much faster and it has a lot of options.

With Yahoo’s stock circling the drain, closing yesterday at $17.75, will Microsoft think about another bid for even a part of the Internet company?

Or will it try, as it claims, to get truly serious about building its business organically with programs like Live Search cashback, a deeper focus on vertical search improvements in places like video, images and mapping, and more content on its MSN sites?

Or should it be aggressively looking around for other properties to purchase to bolster its Web assets, such as the company that owns the Ciao price comparison and online shopping sites in Europe, for which it just forked over $500 million?

Of course, Microsoft will likely keep trying all of these, although I hope not in the muddling way it has behaved for far too long.

Johnson was entirely right in his internally controversial concept that being one of the top players on the Web is key to Microsoft’s future, even more than its lucrative Windows software hegemony.

(If you want to read an interesting take as to why, don’t miss New York Times columnist Joe Nocera’s “Does Windows Still Matter?” post yesterday).

And with Google’s new foray into the browser business this week, Microsoft surely has to be certain that it does not lose in the one place it does dominate.

In other words, Microsoft has a lot of work ahead of it, well beyond amusing us with Gates doing a thankfully hands-free adjustment of his boxer shorts.

In any case, you should see that, so here’s the first Gates-Seinfeld commercial:

Here is a video I did while I was attending and liveblogging the Google launch of and press conference for its new “not-a-Windows-killer” Chrome browser, held at its Mountain View, Calif., HQ yesterday morning.

Google (GOOG) released its own software to navigate the Internet yesterday, setting itself up in yet another bruising competition with Microsoft (MSFT).

In the video, I reveal my secret Google parking spot, survey the media scrum, bother a Google PR guy, check out snacks while discussing Chrome with blogger John Furrier, listen to various Googlers–including Co-Founders Larry Page and Sergey Brin–talk about the effort, interview Chrome project honcho Google VP Sundar Pichal (and ask him about when the Mac version is coming) and make fun of Google furniture.

All in a day’s work for BoomTown!

Here’s the video:

Also, here are the links to three blog posts I did live from the launch yesterday, in order:

Liveblogging From the Google Chrome Launch: Hello, Sundar!

Liveblogging From the Google Chrome Launch: Toe Fungus and Pinocchio

Liveblogging From the Google Chrome Launch: Hello, Larry! (Wake Up, Sergey!)

Please see this disclosure related to me and Google.

BoomTown is back from a seasick cruise vacation in the wilds of Alaska–official sightings: lots of icebergs, 16 glaciers, a passel of jellyfish and starfish, four lumberjacks, three orcas, two seals, one otter, no moose or bears and, yep, one Republican Vice Presidential candidate’s lovely house in Juneau–just in time for school.

Or, more precisely, a little schooling for some of the tech companies that I cover in a mildly obsessive-compulsive manner.

All of them, I predict, are in for a news-filled fall.

That’s right, more Facebook employee hijinks! More BMOC-battling between Microsoft and Google! More Yahoo trying its hardest not to look like so much of a loser (Keep trying, Jerry–release your inner head cheerleader!).

Thus, here is a rundown of what to expect and also what some of those companies need to focus on over the next several months.

Read more »

Later his morning, the media circus has been summoned to the Googleplex in Mountain View for a look-see at Google’s new Internet browser and a chitchat with execs about the meaning of it all.

(Also, while there is only a 54 percent chance of being lectured to by the Big Brains of Google, there is a 100 percent chance of both free comic books and tasty organic snacks!)

And Chrome, the shiny code name of the project, which has stuck as the brand name, will also be going out to the world at large–100 countries, that is–right after that.

BoomTown is bringing the trusty Flip video camera to make some Silicon Valley memories, and will render a full report about what’s what.

But until then, I have decided to forgo writing the expected long, long, long, long what-the-new-Google-browser-represents-for-geekkind thumbsucker.

Instead, here is my three-part short version about Google’s new piece of open-source software to navigate the Internet, using my favored cultural references:

1.) Google=Red cape and and way too many picador lances. Microsoft=Really angry bull (not at all flower-sniffing Ferdinand-like).

2.) Remember “War Games” and the then-cute Matthew Broderick as teen nerd David Lightman, playing Global Thermonuclear War with the supercomputer called Joshua, and then being told the consequences of that by head government techie John McKittrick (Dabney Coleman)?

If not, here’s some dialog from the movie that is now apt, if you imagine Google (GOOG) as David and Microsoft (MSFT) as Joshua:

McKittrick: See that sign up here–up here. “Defcon.” That indicates our current defense condition. It should read “Defcon 5,” which means peace. It’s still on 4 because of that little stunt you pulled. Actually, if we hadn’t caught it in time, it might have gone to Defcon 1. You know what that means, David?
David Lightman: No. What does that mean?
McKittrick: World War Three.

3.) And, last, if Google’s Chrome browser does not take off on all the hot-air hype, isn’t outstanding as a product and does not make a substantial dent in Microsoft’s overwhelming market share in the browser market, I’d point to one of the best opening lines from “Sunset Boulevard”–the one with Joe Gillis (William Holden) narrating about himself post-mortem as a floating corpse:

“The poor dope–he always wanted a pool. Well, in the end, he got himself a pool.”

Well, Google has got itself an Olympic-sized pool now!

We kid! Google’s in no danger of foundering, given that its search business still dominates, and quite profitably, of course.

But for all the halo of that, Google has never had any other similar true home run with any of the other products it has released so far.

And to portray Chrome as a Windows killer–which some are quite incorrectly doing–is not the kind of image Google should encourage.

Nonetheless, with this move, the search giant has certainly stepped into the spotlight more than it ever has (and this is a company that–let’s be honest–never misses a chance to frolic and show off in that spotlight).

So, with these loftier ambitions, I think it is fair to say that this time Google had better be ready to actually perform better than Michael Phelps.

Please see this disclosure related to me and Google.

As was reported earlier this morning by BoomTown, Google has confirmed on its blog that it will launch its new Chrome browser tomorrow.

Google (GOOG) said it would be launching Chrome in 100 countries, but it will only be in beta in Windows (Google said Mac and Linux versions were coming soon).

The move by the search giant, although the blog does not say so, is clearly a direct shot over the bow of Microsoft (MSFT), which dominates the browser market with 74 percent share.

Here is the blog post in full:

A fresh take on the browser

Posted by Sundar Pichai, VP Product Management, and Linus Upson, Engineering Director

Also, here is the entire comic book Google is using to explain the technical aspects of Chrome, and here is Digital Daily’s John Paczkowski with a CliffNotes version of the comic (believe me, you’ll need it).

Please see this disclosure related to me and Google.

BoomTown was all busy trying to think of execs to replace Yahoo CEO Jerry Yang, as pressure mounts on him to right the troubled Internet company.

But now, Yang’s position feels safer than ever and it’s his nemesis–Microsoft– that needs a new leader for its long-stumbling online services business.

Microsoft (MSFT) was already cracking, according to sources, and had a wish list of internal and external candidates that CEO Steve Ballmer is now considering.

Read more »

BoomTown is flatly fascinated by the rather incredible memo Microsoft CEO Steve Ballmer penned to his troops yesterday, with news of the reorganization of its massive Platforms and Services Division and the departure of its president, Kevin Johnson.

In the memo, in a very rare public airing of its less-clean laundry, Ballmer actually casts Microsoft’s two major rivals, Apple and Google, in a somewhat positive light, while still vowing to best them.

It is not often that Ballmer or even Microsoft Founder Bill Gates mentions either company in public. More to the point, what neither typically does is acknowledge that they do anything right.

But Ballmer did so yesterday in the memo, perhaps a sign that Microsoft (MSFT) realizes it has trouble on its hands and needs to publicly declare tough enemies to pump itself up to fight.

Read more »

Here is the full memo Microsoft CEO Steve Ballmer sent out to the troops about the big changes in its organization, including the departure of Platforms and Services Division President Kevin Johnson, in which he addresses Apple, Yahoo, Google and more:

From: Steve Ballmer
Sent: Wednesday, July 23, 2008 4:30 PM
To: Microsoft–All Employees
Subject: FY09 Strategic Update

I also have news about an organizational change and a transition in our Senior Leadership Team.

Read more »

Kevin Johnson (pictured here), the point person for Microsoft’s failed bid to buy Yahoo, is leaving the company to run Juniper Networks.

As the president of its Platforms and Services Division, the smooth Johnson has been trying, without much success, to beef up the software giant’s efforts in the Web space, especially in the online advertising arena.

He and Microsoft have had a little problem with that, largely due to an immovable object called Google.

In an attempt to make an end run around the search behemoth, Johnson led Microsoft’s attempt to take over Yahoo, the #2 player in the search and search advertising space.

The six-month effort, according to many sources at Microsoft, has led to a great deal of unrest at the company, including ire aimed directly at Johnson because of his perceived influence on CEO Steve Ballmer.

That got worse as Microsoft’s various tactics to grab Yahoo and later just its search business have failed again and again.

Read more »

Please see this disclosure related to me and Google.

Sitting at the Senate hearings about the Yahoo-Google ad search deal this morning in Washington, D.C., let it be said that BoomTown is deeply dubious about whether it is a good thing for consumers and advertisers, as both Internet companies have asserted.

But this was my most certain conclusion:

The worst-case scenario is actually for politicians to meddle in the Internet space with their largely Web-ignorant mitts.

But that’s just me!

Titled “The Google-Yahoo Agreement and the Future of Internet Advertising,” the hearings were called by the Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, chaired by Sen. Herb Kohl (D., Wis.).

Read more »

Just prior to Microsoft’s annual advertising conference advance08, Kevin Johnson, president of the company’s Platforms & Services division, sent the following strategy update to PSD employees:

From: Kevin Johnson
Sent: Sunday, May 18, 2008 1:30 PM
To: Platforms & Services Division
Subject: Online Services Strategy Update

We have been executing against the core strategy I first presented at our Financial Analyst Meeting in July 2007 to go after the growing opportunity in online services and advertising. Four pillars have formed the basis of our strategy:

1. Consolidate ad platform and win in display
2. Innovate and disrupt in search
3. Deliver end-to-end user experiences across PC, phone, and Web
4. Reinvent portal and social media experiences

We have many options that support acceleration of our strategy. As announced earlier today, we are also considering new alternatives for a transaction with Yahoo! which do not involve a full acquisition. At this time, we have not made a new bid to acquire all of Yahoo!, but we reserve the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo!, shareholders of Yahoo! or Microsoft, or with other third parties.

Read more »

Lots of people were bellyaching about the lackluster nature of Bill Gates’s final performance at CES last night–long on deals and stats and short on the futuristic predictions Gates often makes.

Digital Daily’s John Paczkowski was unimpressed, as were Duncan Riley of TechCrunch and ZDNet’s Mary Jo Foley, for example.

But, to my mind, giving the Microsoft co-founder and chairman a hard time at this point is sort of like razzing Celine Dion, who coincidentally also just completed her own longtime run in Las Vegas in her Caesars Palace show, “A New Day.”

In other words, let’s just all admit that–as irksome as both have sometimes been–they do kind of grow on you after a while.

While that may be still debatable with Dion, I know, it is squarely the case with Gates, who has had the longest-running and most complicated relationship with the tech industry, even as he has dominated it for most of the past two-plus decades.

Gates’s impact will surely be chewed over in the history books in centuries hence–likely as not, always with the Yin to his Yang, Steve Jobs of Apple.

And, despite all the controversy his tenure has engendered (most especially the bullying antitrust behavior), as he transitions from his day-to-day role at Microsoft in July in what will likely be one of the longer goodbyes in the digital arena (including his sixth appearance at our D6 conference in May), I am guessing his influence will be seen as a net plus in the years to come.

While many level charges at Microsoft as a hindrance to innovation over the years, via the overwhelming dominance of its Windows operating system, the fact of the matter is that the digital industry has never been more fast-moving and quick-changing, and it remains one of the brighter spots in the pantheon of businesses worldwide.

While that is not because of Gates and Microsoft alone, it is also not in spite of them either. In fact, it’s quite bracing to see Gates attempt to make quick shifts over the years as technology has raced past him, an indication of just how powerful change is compared to the world’s richest man.

Very powerful, as it has turned out, and watching Gates try to keep up has been a perfect metaphor for all those who labor in the tech sector.

His famous December, 1995 sleeping-giant-has-awakened speech about the Internet was a case in point, as were his aggressive moves in later years into a wide range of arenas such as gaming, search, online services, social networking and even an attempt to take on the iPod hegemony with the Zune.

It is clear that most of Microsoft’s efforts outside of its core software business–and a great business it remains, by the way–have been less impressive. But it points to a key factor that never changes throughout the tech arena that even the giants are always vulnerable.

Now, going forward, what Microsoft will do post-Gates, of course, is all that matters.

Will it try to vaunt ahead in the search and portal arena and catch No. 1 Google by attempting to acquire Yahoo?

Will it use its popular Xbox to finally move successfully into the home-entertainment space, as evidenced by announcements Gates made last night at CES about deals with media giants like NBC Universal and others?

Can its MSN ever be more than just an also-ran portal?

What will happen to software in the years ahead as applications inevitably move to the Web?

Gates will not be the one to figure it all out, as he will be off, focused on his laudable philanthropic work when these questions and more get answered.

But even he could not have made an accurate guess onstage last night, as much as pundits wanted him to.

In fact, one of the more tiresome things to endure at CES–aside from the long lines–is always having to listen to the spate of predictions of what is to come, when, the truth is, no one really knows how it will all turn out.

It was always thus. After all, reaching way back in history: Wasn’t the launch of the Titantic supposed to herald in the age of high-tech super-boats? Of course, no one figured in the tragic results from its encounter with an iceberg.

But it did make for a pretty good song, so let’s enjoy a bit of Celine to send Bill Gates off on what one hopes is a much safer journey:

Here is the entire interview Steve Jobs did with Walt Mossberg on May 30 at D5 in Carlsbad, Calif. For those who have not seen the Apple CEO in action, this is a good opportunity.

Among the wide range of topics: the iPhone, of course, and Jobs talked a lot about it; Apple growth since the Intel transition; the iPod; whether Apple should drop Computer from its corporate name, given all its popular noncomputer products; and a major dig at Microsoft, wherein Jobs called the Windows operating system “hell” and Apple’s popular iTunes software on Windows “a glass of ice water.”

There is also a demo of new AppleTV features, including the ability to access YouTube with expected goofy videos such as a human slingshot. Also, Jobs said he reads the Fake Steve Jobs blog, but–surprise–does not write it.

If you want to also read Walt’s recent review of the iPhone, here is the link, a picture gallery and also a more recent text Q&A with Jobs by Walt.

Here’s the video, which is 67 minutes long:

We’re as busy as can be as our setup for the D: All Things Digital conference moves into overdrive. Aside from building the stage and the risers for the seating, we are also sorting through all the complicated audio-visual elements of the show.

But we also have to focus a lot on a major new element this year–making sure the AllThingsD.com Web site is ready to offer up news, photos and video from the stage as soon as possible.

(Still, we also made time to tease Walt about the term, “craplets,” that he popularized. See also the video below.)

We had a meeting this morning to figure out all the complex logistics to make the site rock, which include editing and posting of text and photos almost immediately after each speaker appears onstage at the conference.

In addition, because of the explosion of video on the Web, we also will be editing and posting video excerpts on the fly. We’ll be making the videos we post available for embedding by any other site that wants to use them.

Of course, we will make sure we have all audio and video rights (I know, all information should be free, but that does not mean we are not going to also respect copyright), as well as give credit to folks like our most excellent D photographer, Asa Mathat.

One big issue, of course, will be press and blogger coverage, which is suddenly increasing now that everyone is really paying attention to the fact that Microsoft’s Bill Gates and Apple’s Steve Jobs will be interviewed together (which we announced way back in February here).

We’ve let dozens of reporters and bloggers into the conference itself and will also have a spillover room for the dozens more who have asked to get in, specifically for the Gates and Jobs joint interview, given the space constraints.

So, I am guessing there will be an overload of coverage, when all is said and done, which seems apt given the impact these two tech titans have had on the industry.

Here’s another video of our prep, including our entire staff surprising Walt with “Craplets!” T-shirts. Our terrific San Francisco-based design firm, Mule Design, which designed our AllthingsD.com site, loves to make warped and funny T-shirts on the side. Mule’s Creative Director Mike Monteiro came up with this one of Walt’s visage with the “Craplets!” bubble.

The phrase was popularized by Walt in a column here, referring to all the unsolicited third-party programs that come loaded onto Windows PCs. We liked the term so much, we had to immortalize it in a T-shirt.

(Correction: An earlier version of this post stated that Walt Mossberg coined the word “craplets” in his Personal Technology column of April 5. In fact, he referred to the term, which had been in use since before he wrote the column.)