Microsoft co-founder Bill Gates has been reflecting on his time at the company when crucial decisions were made over its mobile operating system. During a recent interview at Village Global, a venture capital firm, Gates revealed his âgreatest mistake everâ was Microsoft missing the Android opportunity:
âIn the software world, particularly for platforms, these are winner-take-all markets. So the greatest mistake ever is whatever mismanagement I engaged in that caused Microsoft not to be what Android is. That is, Android is the standard non-Apple phone platform. That was a natural thing for Microsoft to win. It really is winner take all. If youâre there with half as many apps or 90 percent as many apps, youâre on your way to complete doom. Thereâs room for exactly one non-Apple operating system and whatâs that worth? $400 billion that would be transferred from company G to company M.â
Google acquired Android back in 2005 for $50 million, and former CEO Eric Schmidt admitted that Googleâs initial focus was beating Microsoftâs early Windows Mobile efforts. âAt the time we were very concerned that Microsoftâs mobile strategy would be successful,â said Schmidt during a 2012 legal fight with Oracle about Java. Android ultimately killed Windows Mobile and Windows Phone off, and became the Windows equivalent in the mobile world.
Gatesâ admission is somewhat surprising, though. Many had assumed that Microsoftâs missed mobile opportunity was a Steve Ballmer era mistake. Ballmer famously laughed at the iPhone, calling it the âmost expensive phone in the world and it doesnât appeal to business customers because it doesnât have a keyboard.â While Ballmer accepted the iPhone could go on to sell well, he crucially missed the touch-friendly era it was ushering in, and laughed off its lack of a keyboard.
This was a key part of Microsoftâs early mobile mistakes, and it came from the very top. Microsoft spent months arguing internally over whether the company should scrap its Windows Mobile efforts, which at the time werenât touch-friendly and were born out of an era of stylus-powered devices. Microsoft decided, in a December 2008 emergency meeting, to scrap Windows Mobile and completely reboot its mobile efforts with Windows Phone.
While former Windows chief Terry Myerson and Microsoftâs Joe Belfiore were involved in that emergency meeting, itâs likely that the company would have sought Bill Gatesâ advice in some capacity. Gates stepped down as CEO in 2000, taking the chief software architect role during the crucial years leading up to Windows Phone and Microsoftâs Windows Vista missteps. Gates eventually stepped down as chief software architect in July 2008, and carried on as the companyâs chairman until Satya Nadella took over as CEO in 2014.
Gates promised to âsubstantially increase timeâ at Microsoft back in 2014, and Microsoftâs Edge team sought his thoughts about the company moving to Chromium last year. Gates has been assisting on a mysterious âpersonal agentâ project at Microsoft in recent years, and now uses an Android phone.
Gates might not have been directly involved in the management of some of Microsoftâs mobile decisions, but his departure came right in the middle of Microsoft missing out to Android. Comparatively, former Microsoft CEO Steve Ballmer said that Windows Vista was his biggest regret at Microsoft before his tearful farewell.
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