Digital Daily » Steve Ballmer

Google Uncrates Chrome

John Paczkowski — Fri, 20 Nov 2009 18:00:19 +0000

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Google's Chrome OS: "It Just Works"

John Paczkowski — Thu, 19 Nov 2009 17:51:03 +0000

Speaking at Microsoft’s Worldwide Partner Conference in New Orleans this past July, Microsoft CEO Steve Ballmer said of Google’s forthcoming Chrome OS, “Who knows what this thing is?”

Today, he found out. The operating system, a direct challenge to Microsoft Windows, was on display at a media gathering at the Google HQ this morning.

Sundar Pichai, vice president of product management, and Matthew Papakipos, engineering director for Google Chrome OS, presided over the event, which the company described as a “technical announcement.”

That meant that Google (GOOG) was not releasing a beta of the operating system this week, as had been rumored.

That said, it was an overview of Chrome, as well as Google’s plans for its launch in 2010, so let the Chrome OS liveblogging begin:

There will be no beta today. Pichai says Google is still a year away from an official launch. However, the company is making the code available today.
Pichai says that a year after launch, the Chrome browser has some 40 millions users. He boasts about the browser’s speed, noting that it handles Javascript 39 times faster than Microsoft’s (MSFT) Internet Explorer. There will be three more big Chrome announcements sometime in the future: Chrome for Mac, Chrome for Linux and the debut of Chrome Extensions.
Google’s goal is to ensure that Web applications function as well as desktop apps. Pichai says that the company is figuring out a way for Web apps to safely take advantage of the operating system in the way desktop apps do. A few examples: Graphics, video/audio applications, real-time communication, notification and local storage.

“By 2010 we expect to have all these things built into Chrome,” Pichai adds.
The advent of Chrome coincides with a perfect storm of converging trends, Pichai says, noting the tremendous popularity of netbooks during the recession, the growing acceptance of cloud apps and the rapid innovation in mobile devices. Smartphones are becoming more like laptops, Pichai adds, and laptops are becoming more like smartphones. Is there a better level of computing available for these devices?

There is, according to Pichai, and Google believes it is Chrome OS.
Among Chrome OS’s advantages, Pichai says: Speed, simplicity and security. Every application will be a Web application. There will be no desktop apps. Chrome OS is essentially a browser with a few modifications. All data in the Chrome OS resides in the cloud. Pichai: “We want all of personal computing to work that way….If I lose my Chrome machine, I should be able to go out, buy a new [one] and re-create my previous computing experience easily.”

Chrome OS will run completely inside the browser security model, he adds, noting that security is one of Google’s top priorities along with speed. “Turning on a PC should be like turning on your TV,” he says.
Chrome OS is very similar in appearance to the Chrome browser. “Chrome OS is Chrome,” says Pichai. Google made it look like a browser, because the browser is familiar.
And indeed, Chrome OS does look quite a bit like a browser. Multiple apps load into tabs, for example. It also features “Panels,” which Pichai describes as persistent lightweight windows. “All Chrome data resides in the cloud. Anything you put in the machine is immediately available to you anywhere.”
As netbooks become more advanced and battery life improves, they will evolve into entertainment devices, says Pichai, who notes that via Google Books, a netbook can become an e-reader, and, through YouTube, a video device.
A quick demo of the user interface, which seems very simple and intuitive. “It just works,” says Pichai in an unintentional nod to Apple (AAPL).

An interesting remark: Anyone who writes an app for the Web has written an app for Chrome, says Pichai, joking that Microsoft is already developing for it.
Speed, simplicity and security, says Pichai. We’re trying to make the computing experience delightful.

With that, Pichai hands the stage over to Engineering Director Matt Papakipos.

Papakipos, too, offers the “we want to make computing delightful” sound byte and notes once again that turning on the PC should be like turning on the TV.
Chrome OS eliminates the bootloader, auto-launching the browser. The OS also auto-updates itself, making sure that it’s always current with security patches, etc. Everything from the firmware to the kernel is secured with a cryptographic signature to ensure a secure boot. In the event malware is detected, the system repairs itself automatically.
The basic application security protocol for current operating systems allows apps the same privileges as the user. This presents obvious security issues. Whenever you install a new app, you’re taking a risk, says Papakipos.

But Web applications like those that Chrome OS use, are different. They are Web apps, so they don’t have system-level privileges. Additionally, all apps run in secured sandboxes that are separate from one other and from the OS. Finally, all apps must be signed and verified before each use.
In terms of file systems, Chrome’s is locked down. It’s a read-only root-file system, obviously quite different from other operating systems. All user data are encrypted and synched to the cloud. Essentially, Google uses the PC for caching. Again, if you should lose your machine, you buy a new one, fire it up and it synchs with the cloud, restoring your previous computing experience.
How will Google bring Chrome OS to market? The company is working with vendors to specify reference hardware. You cannot download and install Chrome on just any device, you will have to purchase a Chrome device. Google is looking at a launch window of late 2010, before the holidays.
Google sounds very concerned about the end-user Chrome OS experience. Pichai says the company wants to ensure that the displays, keyboard, etc., on the netbooks that run Chrome are robust and easy to use.
Pichai wraps things up, but before the Q&A, we’re shown a short explanatory video. “The first thing I want to do when I fire up my computer is browse the Internet….If there isn’t any Internet, I might not even use my computer….What if when you pressed on, your PC turned on, what if your operating system was more like a Web browser…what if it was a browser?…Chrome OS is a totally rethought computer that lets you focus on the Internet, which is what most of use our computers for these days anyway.”

Q&A

At this point, Pichai opens the event to questions:

If you’re specifying hardware components, do you must have an idea of what they’ll cost?

A: We expect Chrome netbooks to be in the price range of what people have come to expect….We are not specifying a price target. Price will be determined at the OEM level.

Will the APIs support W3C standards?

A: We’re working very closely with the W3C to standardize as much as we can….In general, we want to see everything standardized across multiple browsers.

Will there be an application store?

A: The Web offers hundreds of millions of applications. Our job is to make people aware of them.

What about desktop applications that are not available on the Web?

A: We expect most of our users to have a second machine at home….Chrome OS is about a delightful experience on the Web….If you’re a lawyer spending your entire day on contracts, etc., this is not the machine for you.

Will you support Microsoft Silverlight?

A: In the case of certain selection plug-ins, we are working to integrate them. No comment beyond that.

Since Chrome is open source, could people build their own variations?

A: Yes. We expect people will do many interesting things with it.

Do you see Chrome running on laptops or desktops?

A: We’re initially focused on netbook-like form factors–clamshells, etc. That said, the OS is being developed to work on other devices.

Is there any level of offline access? What happens when I’m on a plane and don’t want to pay for Wi-Fi?

A: Chrome devices are primarily intended to be Internet-connected. That said, it will have some caching abilities so, for example, you could play a game offline.

Virtualization?

A: Yes. You could run Chrome today on a virtual machine.

Are you working with outfits like Adobe to, say, build a Web-friendly version of Photoshop?

A: We’re very excited by things like Photoshop on the Web and we’re working hard to make that possible.

Will Android apps work on Chrome? Are there plans for third-party apps?

A: [Pichai dodges this one.] If it’s a Web app, it will work on Chrome. The Web works very, very well for our purposes.

Will Chrome work on both X86 and ARM?

A: Yes.

Is there a direct business model for Chrome OS or is this another variation of the-more-people-that-use-the-Web-the-better-for-Google?

A: We are working with partners. No plans for advertising. That said, Pichai notes again that anything that runs on the Web will run on Chrome. And of course, AdWords does, indeed, run on the Web.

[Sergey Brin joins the Q&A]

Do you want Android Apps to run on Chrome?

A: We are focused on creating the use case in which everything is a Web application, but hopefully we can do more in the future.

How does Chrome handle peripherals? Can it print?

A: Most keyboards, cameras, phones, etc., will work. In terms of printing…yes, Chrome OS will print and we’re working hard to make that possible.

What is Chrome’s strategic position for Google?

A: [Brin]: Call us dumb businessmen, but we really focus on user needs rather than focus on business strategies. We believe that the Web platform is a much simpler way of computing for individuals to use, and that’s a very important need in the market right now. That’s what we’re trying to fulfill.

Apple: How Do You Say "Eat My Dust" in Finnish?

John Paczkowski — Wed, 11 Nov 2009 12:30:06 +0000

“We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.”

Palm CEO Ed Colligan, December 2006

“Five hundred dollars? Fully subsidized? With a plan? I said that’s the most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard, which makes it not a very good e-mail machine.”

– Microsoft CEO Steve Ballmer, January 2007

At 37.9 percent, Nokia’s share of the global handset market is the largest in the industry. Odd then to learn that it is not the most profitable. And odder still to learn that that honor belongs to Apple, which has been in the handset market for just two years.

According to Strategy Analytics, Apple’s third-quarter iPhone operating profit was $1.6 billion, while Nokia’s was $1.1 billion. Driving Apple’s profits: Strong sales, high wholesale prices and tight cost controls.

“We have identified at least 4 key factors underlying Apple’s success,” Strategy Analytics analyst Alexander Spektor explains. “First, Apple created a simple sub-brand–the iPhone–which was memorable and easy to remember. Second, the firm developed an attractive family of models with standout usability that enabled Apple to charge way-above-average prices to operators and consumers. Third, Apple distributed and co-marketed its handsets through top-tier carriers in numerous high-value countries. And fourth, the vendor has kept a solid grip on production costs by working with Foxconn, the world’s largest contract handset manufacturer.”

Quite an achievement for Apple (AAPL) and a major humiliation for Nokia (NOK), which has seen its dominance eroded by the likes of Apple and Research in Motion (RIMM), and not just in North America, but in Europe. Indeed, in its latest quarter Nokia’s smart-phone market share dropped by six points.

As Strategy Analytics analyst Neil Mawston noted at the time, “[Nokia has] no iPhone killer to drive a major revival in its smartphone volumes. [It] is still struggling in the U.S. smartphone market, and with competition intensifying in China as well, Nokia’s battles can only get tougher in 2010.”

Sirius Turns a Corner?

John Paczkowski — Thu, 05 Nov 2009 19:00:34 +0000

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Well, What Did You Expect Him to Say? Windows 7 Is Selling Poorly?

John Paczkowski — Thu, 05 Nov 2009 18:50:10 +0000

Microsoft’s new Windows 7 operating system is selling quite well, according to CEO Steve Ballmer. In remarks at a press conference in Tokyo Thursday, Ballmer said that Windows 7’s first 10 days at market have been more successful than those of any of its predecessors.

“We’ve had a great response here in Japan,” Ballmer said. “Certainly we’ve seen initial sales be fantastic. The first ten days were bigger than the first ten days of XP or Vista or any other Windows launch that we have done.”

And indeed that would seem to be the case. According to research outfit NPD, Microsoft (MSFT) sales of Windows 7 in its first few days on the market were more than triple Vista sales for the same length of time.

Another Bloodletting at Microsoft

John Paczkowski — Wed, 04 Nov 2009 19:00:00 +0000

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Microsoft Sacks 800 [UPDATED]

John Paczkowski — Wed, 04 Nov 2009 12:58:00 +0000

“We are mostly but not all done” with layoffs. So said Microsoft CEO Steve Ballmer in May at the start of a second round of cuts that claimed the livelihoods of some 3,000 employees. Now, six months later, the company is apparently finishing the job.

Sources tell TechFlash that Microsoft (MSFT) will make additional job reductions this week–beginning as early as today. Cuts are expected to number in the hundreds–smaller than those made in January and May, but ugly just the same.

“As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations,” Ballmer said in May. Given that Microsoft posted declines in revenue and profits in its latest quarter, I suppose this week’s rumored “action” was inevitable.

UPDATE: Cuts are indeed being made today–800 of them. Here’s the official word from Microsoft:

“Earlier this year, we announced that in order to reduce costs, increase efficiency and prioritize our focus areas, we would eliminate approximately 5,000 positions by June 2010. Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago. At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments.”

Windows 7: Does the Wow Start Now?

John Paczkowski — Thu, 22 Oct 2009 18:00:28 +0000

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Best Thing About Windows 7? It's Not Vista.

John Paczkowski — Thu, 22 Oct 2009 15:55:41 +0000

“I’m Steve Ballmer, and I’m a Windows 7 PC.”

With those words, spoken at a big company event in New York City (see video below), the Microsoft CEO launched the newest version of Windows, the one he hopes will regain the customer goodwill lost with its predecessor, Vista. There’s no question that the stakes are particularly high this time around. Vista was widely maligned as mediocre, and Microsoft (MSFT) needs something to reverse three quarters of declining Windows sales.

By most accounts, Windows 7 fits that bill. Reviews of the new operating system have been largely positive, calling it faster, more secure and easier to use that its predecessors. Our own Walt Mossberg describes it as “the best version of Windows Microsoft has produced…a boost to productivity and a pleasure to use.” Quite an endorsement, but one that was hard won. According to Microsoft, more than eight million people participated in the Windows 7 beta program–more than for any Microsoft beta program ever.

In any event, if any OS has a shot at succeeding Windows XP as the world’s most ubiquitous operating system, it’s Windows 7. “I think Windows 7 will be the biggest, one of the biggest, products to hit the tech industry this year,” Ballmer told CNBC. “Just because Windows is used on about one billion computers around the planet. There’ll be another 300 million machines that ship this year, and the diversity of PCs that ship with Windows 7, the simplicity that Windows 7 brings–I think it’s a pretty banner year.”

Succinctly Speaking With Steve Ballmer: Sidekick Fiasco "Not Good"

John Paczkowski — Tue, 20 Oct 2009 19:07:40 +0000

T-Mobile Sidekick users who lost their personal data in a humiliating server failure at Microsoft subsidiary Danger last week are today restoring their contact lists–but not much else. With a tool provided on T-Mobile’s Web site, subscribers can view and restore their contacts as of Oct. 1. This is apparently the first phase of a multistep restoration process that Microsoft promises will eventually include photographs, notes, to-do lists, marketplace data and high scores.

Again, nice to hear this talk of a full data restoration after T-Mobile’s warning that all personal data had been permanently lost. Clearly, Microsoft (MSFT) is doing everything in its power to remedy the issue, which has led many to question the company’s protocols for redundancy and server failure, and beyond these, whether the software giant can even be trusted to safeguard user data. As Microsoft CEO Steve Ballmer told Network World, the Sidekick fiasco was “not good.”

“It is something we are going to have to address and explain to customers, our method and process and quality approach and what went wrong in that case and how we are making sure that it does not happen again,” Ballmer said. “Non-Sidekick users, we are not earning their trust back but I think people are going to say, ‘Hey, look, show me what you are doing to insure this does not happen to me.’”

Windows Mobile: "Unloved, Unappreciated, and Unlikely to Encourage Any Devotion"

John Paczkowski — Thu, 01 Oct 2009 07:01:40 +0000

No wonder Microsoft CEO Steve Ballmer is so dismayed by the company’s Windows Mobile division: Most Windows Mobile users aren’t even aware their phones run it. In fact, according to the CFI Group, WinMo has such poor brand recognition that it was forced to group it in the “Other” category in its Smartphone Satisfaction Survey.

“Throughout this report we have focused on the main ‘branded’ smartphones like iPhone, Android, Pre, BlackBerry, and Treo,” the market researcher explained. “And yet there are many more smartphones in use today, manufactured by the likes of LG, Samsung, Motorola, and Nokia, running either the Windows Mobile or Symbian operating system. What’s going on with these smartphones? For one thing, many users can’t identify their operating system. While Android users know they have a phone on the Android platform, most Windows Mobile or Symbian users have no idea what operating system is running their phone.”

That’s bad news for Microsoft (MSFT) and Nokia (NOK) because not only do these “other” smart phones tend to perform the most poorly in customer satisfaction, most of their owners would like to abandon them for Apple’s (AAPL) iPhone, Research in Motion’s (RIMM) BlackBerry or the Palm (PALM) Pre.

“The ‘generic’ smartphone is unloved, unappreciated, and unlikely to encourage any devotion among its users,” CFI concludes. “Its main role appears to be as a stepping stone to a ‘branded’ smartphone….Our data indicates there is little future for the ‘generic’ smartphone. Or, to be exact, the first generation of ‘generic’ smartphones. The iPhone has clearly raised the bar, but given the performance of the initial versions of the Pre and Android, the gap is narrowing. It’s clear from our data that the Android and Pre are worthy competitors to the iPhone, and more recent versions of the BlackBerry pose a bigger threat.”

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To Kai-Fu Lee, Thanks for Everything

John Paczkowski — Wed, 09 Sep 2009 07:00:57 +0000

Kai-Fu Lee’s uneventful departure from Google to start a Beijing incubator really belies the spectacle that attended the beginning of his tenure at the search giant.

Lee’s train-hopping from Microsoft (MSFT) to Google (GOOG) back in 2005 touched off a five-month pitched battle marked by all manner of inanities. Among them was this account of Microsoft CEO Steve Ballmer’s now-infamous alleged chair-tossing tantrum told by former Microsoft Distinguished Engineer Mark Lucovsky:

Prior to joining Google, I set up a meeting on or about November 11, 2004 with Microsoft’s CEO Steve Ballmer to discuss my planned departure…At some point in the conversation, Mr. Ballmer said: “Just tell me it’s not Google.” I told him it was Google.

At that point, Mr. Ballmer picked up a chair and threw it across the room hitting a table in his office. Mr. Ballmer then said: “F–king Eric Schmidt is a f–king p–sy. I’m going to f–king bury that guy, I have done it before, and I will do it again. I’m going to f–king kill Google.”

Thereafter, Mr. Ballmer resumed trying to persuade me to stay…Among other things, Mr. Ballmer told me that “Google’s not a real company. It’s a house of cards.”

And there were others as well. Certainly, the sourcing of some of Microsoft’s legal docs was amusing. As I wrote at the time:

Kai-Fu Lee may be a top-drawer research engineer, but his understanding of the mechanics of Microsoft’s desktop environment leaves a bit to be desired. Turns out Microsoft recovered Lee’s employment contract with Google, which figures prominently in its suit against the search leader (see “And, if you’re beaten by Microsoft thugs, our generous health plan will cover you”), from the “recycle bin” of one of Lee’s computers. Odd that Lee would choose to browse offers from his employer’s rivals on his work computer. Odder still that having done so, he would neglect to scrub them with a secure erase program. Clearly, he must have been a bit lightheaded after learning of Google’s promise to allow his stock options in the company to vest even if he was unable to start work for a year.

Then there was Lee’s testimony about a meeting with Bill Gates, during which the Microsoft chairman blew his top, shouting that the Chinese people and the Chinese government had “f—ked” Microsoft.

And, finally, there were the videotaped depositions, like one from Ballmer that included this great bit:

Ballmer: “Kai-Fu had a–a distinct commitment and responsibility on behalf of the company for being the senior executive here in Redmond, with responsibility for godfathering, shepherding all of our R&D activities in China. It’s a structure we also use for India. We have a senior executive with knowledge of India be the R&D godfather for India, encourage work to go there, shepherd, and–and mentor people in the area. Kai-Fu had that broad, important responsibility for China.”

Deposing lawyer: “This term, ‘godfather’–is that an official title within the Microsoft organization?”

Hard to believe Kai-Fu Lee’s tenure at Google China ended with such a whimper, although there are many quiet rumblings of trouble he had with Google’s top execs in Silicon Valley, given the bang it began with.

But it did. And here endeth the history lesson.

Windows 7: The "Wow" Starts Oct. 22

John Paczkowski — Thu, 27 Aug 2009 18:14:43 +0000

Microsoft (MSFT) launched Windows Vista in New York City on Jan. 30, 2007. And it plans to launch Windows 7 there as well. According to invitations distributed today, Microsoft CEO Steve Ballmer will preside over an event celebrating the availability and launch of Windows 7 on Oct. 22. No word yet on where the event is to be held or what it will entail, presumably the usual bloviating and partner accolades.

iPhone Undermining Microsoft in Enterprise?

John Paczkowski — Fri, 07 Aug 2009 13:00:51 +0000

Microsoft best get Windows Mobile 7 to market, and soon, because its delay may be causing the company to lose traction in the enterprise market. In a note to clients Thursday, UBS Securities analyst Maynard Um noted that Apple’s (AAPL) iPhone is making some inroads in the enterprise space and that they’re coming at Microsoft’s (MSFT) expense.

“We believe Apple is likely gaining some iPhone traction in enterprise with 19 of top 100 Fortune 1000 companies having iPhones deployed,” Um wrote. “However, we do not think this is a displacement of solutions such as BlackBerry but, rather, believe it is likely at the expense of other Microsoft Exchange capable smartphones.”

Um sees great opportunity in this trend, as long as Apple is willing to step up its game a bit. “In order for Apple to gain greater traction in the enterprise market,” he writes, “the company must overcome some issues including providing 24×7 customer support, providing more future product roadmap details (to allow large enterprises to build ahead and prepare), provide alternatives to OS upgrades solely from iTunes desktop application.”

Ironic, isn’t it, to read such a note in light of all the smack Microsoft CEO Steve Ballmer once talked about the iPhone? “There’s no chance that the iPhone is going to get any significant market share,” Ballmer said in 2007. “No chance. It’s a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.”

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More Consumers Googling With Bing

John Paczkowski — Mon, 03 Aug 2009 17:53:22 +0000

Microsoft’s Bing search service continues to gather momentum, albeit slowly. Bing’s share of the U.S. Internet search market grew one percent in July, rising to 9.41 percent from 8.23 percent in June, according to metrics outfit StatCounter.

Meanwhile, Yahoo (YHOO) and Google (GOOG) lost ground–Yahoo’s share fell to 10.95 percent from 11.04 percent and Google’s to 77.54 percent from 78.48 percent. Together, Microsoft (MSFT) and Yahoo, thanks to their new alliance, claim 20.36 percent of the search marke. That is still far less than Google’s 77.54 percent, but it’s significant nonetheless given the daunting challenge the search sovereign presents. Said StatCounter CEO Aodhan Cullen: “Bing continues to make slow but steady progress but the combined Yahoo! figures suggests that the deal announced last week will have to demonstrate major future synergies if it is to make any dent in Google’s dominance.”