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Can India-born CEO Satya Nadella Fix Microsoft?
Microsoft, the world's largest software company, has named Satya Nardella, an Indian-American company veteran of 20 years, as its new CEO to replace its long-time leader and Bill Gates' pal Steve Ballmer. It's clearly a matter of great pride for not only his fellow Indian-Americans in the United States but also in India, Nadella's country of birth. I offer my sincere congratulations and best wishes to Mr. Nadella and his fellow Indians who are celebrating it as their own success. The question on everyone's mind now is whether he has what it takes to bring back the Wintel-era glory to Microsoft.
Wintel Era:
Wintel (Windows+Intel) represented the most successful period for Microsoft and its partner Intel when the two companies together made history with the personal computer revolution.
Working for Intel as an engineer in 1980s and 1990s, I had a chance to work with both Microsoft and Intel executives to help bring about the PC revolution. Both companies offered products that worked well together to address the needs of hundreds of millions of PC users in that period. Both companies enjoyed phenomenal growth and high profit margins. I met Bill Gates several times in the two decades at frequent Intel-Microsoft executive meetings. I also got a chance to work with other Microsoft executives including Paul Maritz, Rob Glaser, Nathan Myhrvold, Carl Stork and others.
One particular incident with Bill Gates that I remember was at the 80486 CPU launch event at McCormick Place in Chicago. Gates insisted on doing the 80486 CPU demo at the event. Gates was a real geek at the time. He showed up wearing a rumpled shirt. His hair was uncombed. As he began the rehearsal under a spotlight aimed at the stage, he started complaining that he couldn't see under its glare. Intel marketing manager suggested to him to not look directly into the light to avoid it. Somehow we got through the rehearsal and, later, the actual launch in front of the media and the analysts went quite well.
The Wintel duopoly enabled both Intel and Microsoft to increase performance, bring down prices and still enjoy unprecedented profitability in the computer industry. Dave House, Executive VP at Intel in charge of microprocessor business, put it best when he told me and my fellow 80386 CPU engineers in 1985 that "making 80386 microprocessor chips is like printing money". He went on to explain that "it costs more than 10 cents for the US govt to print a dollar bill but Intel's cost of printing 80386 chips is less than 10% of its average selling price". I believe Microsoft made even bigger profits with DOS and Windows operating systems and PC applications in 1990s.
RISC Challenge:
Wintel partnership came under severe strain in 1992-93 when Microsoft decided to build its Windows NT operating system to run primarily on Reduced Instruction Set Computing (RISC) processors from DEC and MIPS. Intel's CISC (Complex Instruction Set Computing) X86 architecture-based processors were considered by many as old and uncompetitive relative to RISC. RISC processors came with a reduced set of simple instructions executable within a clock period, lots of registers, more cache memory and powerful compilers which Intel x86 based CPUs lacked at the time. Intel responded to the challenge by offering much higher clock rates, larger cache memories, improved instruction pipelining, multiple execution units and highly optimizing compilers which made more efficient use of the limited number of registers and better instruction scheduling on the Intel processors. I was assigned the role of a program manager at Intel to work with Microsoft to optimize Windows NT for 80486 at the time. It was interesting to watch the competing arrogant management styles of the two companies on full display during this effort. Needless to say, Intel beat back the RISC challenge and went to become the world's largest and most profitable chip company.
PC Era Over:
The world has dramatically changed since the 1990s when Wintel ruled the roost. PC is no longer the dominant device. Smartphones and tablets have brought the era of mobile cloud computing where neither Intel nor Microsoft enjoy leadership position. Even developing like Pakistan are deploying cloud computing applications. A Google sponsored survey in Pakistan found that mobile computing is expected to overtake desktop computing this year. Several new and more innovative and powerful players have emerged to in this market. It is this new reality that stares Staya Nadella in the face.
Decline of Empires:
In a recent New York Times column, Nobel Laureate economist Paul Krugman compared the decline of Microsoft to the fall of the great empires of the past. Drawing upon the lessons of Medieval Muslim historian Ibn Khaldun, Krugman wrote:
"How could Microsoft have been so blind? Here’s where Ibn Khaldun comes in. He was a 14th-century Islamic philosopher who basically invented what we would now call the social sciences. And one insight he had, based on the history of his native North Africa, was that there was a rhythm to the rise and fall of dynasties.
Desert tribesmen, he argued, always have more courage and social cohesion than settled, civilized folk, so every once in a while they will sweep in and conquer lands whose rulers have become corrupt and complacent. They create a new dynasty — and, over time, become corrupt and complacent themselves, ready to be overrun by a new set of barbarians.
I don’t think it’s much of a stretch to apply this story to Microsoft, a company that did so well with its operating-system monopoly that it lost focus, while Apple — still wandering in the wilderness after all those years — was alert to new opportunities. And so the barbarians swept in from the desert".
Conclusion:
Krugman's comparison of today's Microsoft with ancient dynasties seems to make a lot of sense. The "Wintel" dynasty is being overthrown by hordes representing cloud computing "barbarians and tribesmen" at Apple, Google, Amazon and a whole bunch of other tech companies. Can a Microsoft lifer like Staya Nadella, steeped in Microsoft's established culture, fend off the "barbarian at the gates"? If I were a betting man, I'd say No! But let's wait and see.
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Comment by Riaz Haq on January 1, 2022 at 4:57pm
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Dalit Diva
@dalitdiva
(Thenmozhi Soundarajan)In the grand silicon valley tradition of white cismen passing the torch to Brahmin cismen Jack Dorsey is stepping down and Parag Agarwal is the new CEO of Twitter. Will he also remain silent about Caste? #casteintech
https://twitter.com/dalitdiva/status/1465358123640655875?s=20
Remember Microsoft went from Steve Ballmer to Satya Nadella & Alphabet from Larry Page to Sundar Pinchai. These companies still have caste discrimination while having leadership that is racially diverse but caste priviliged. DEI is the need of the hour. #Casteintech
https://twitter.com/dalitdiva/status/1465358125616152581?s=20
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Infosys founder NR Narayana Murthy says IITs have become victims to rote learning due to coaching classes
https://www.timesnownews.com/business-economy/companies/infosys-fou...
As more and more students leave India for higher studies, Infosys founder Narayana Murthy proposed that governments and corporates should “incentivise” researchers with grants and provide facilities to work here. “The 10,000 crore per year grants for universities under the New Education Policy will help institutions become competitive", he said.
https://youtu.be/2vzSwExIoNg
Infosys founder NR Narayana Murthy on Tuesday expressed concern over India’s education system saying that even the IITs are becoming a victim of learning by rote due to the “tyranny of coaching classes.” Murthy suggested that our education system needs a reorientation directed towards Socratic questioning.
The Infosys founder, who himself is an IIT alumnus, batted for Socratic questioning in the classroom in order to arrive at solutions to real-world issues. “Many experts feel that (in) our country, (there is an) inability to use research to solve our immediate pressing problems around us… (this) is due to lack of inculcating curiosity at an early age, disconnect between pure or applied research," he said.
As to what could be done to solve this, the 76-year-old suggested that the first component is to reorient teaching in schools and colleges towards Socratic questioning in the classroom to solve real-world problems rather than passing the examinations by rote learning. Socrates was a fifth century (BCE) Greek philosopher credited as the founder of Western philosophy.
Speaking at the 14th edition of the Infosys Prize event in Bengaluru, Murthy said that the nation’s progress on the economic and social front depends on the quality of scientific and technological research. Research thrives in an environment of honour and respect for intellectuals, meritocracy and the support and approbation of such intellectuals from society, he noted.
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Neither Indian nor Pakistani universities make the top 100 world rankings.
All Indian-American CEOs here have studied in the US and earned advanced degrees in America without which they wouldn't advance.I bet these CEOs are a lot more rational than most of the Indian grads from IIT or anywhere else in India.These CEOs wouldn't make it to the top in America if they spewed the kind of hate and bigotry that is the norm in India.
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Why #Indians don't want to be Indian #citizens anymore? More than 1.6 million Indians have renounced their Indian citizenship since 2011, including a whopping 225,620 in 2022 alone, averaging around 618 per day. #Modi #BJP #Hindutva
#chaos #anarchy
https://economictimes.indiatimes.com/nri/migrate/why-indians-dont-w...
"The principal reason why people migrate is economic well being. Everyone wants a better life and their hope is that they would find it in another country," Amit Dasgupta, former Consul-General of India in Sydney, told IANS.
"In sociology, this is referred to as 'the push factor'. You are pushed out to a place which offers better prospects," Dasgupta said.Many Indian students who go for higher studies abroad also end up settling there as these countries provide them better jobs with attractive pay scales.According to the latest Education Ministry data, more than 770,000 Indian students went abroad to study in 2022 -- a six-year high.
Also, many Indian students find it tough to find jobs after returning home, which is why they apply for permanent residency in their country of study.
More than 90 per cent of the students do not wish to come back to India, say estimates.When it comes to India's rich, they want to swim in foreign waters to diversify their fortune, set up alternative residencies, conduct business and pursue a better quality of life even though India continues to be an attractive environment for business activity and corporate growth.
A 2020 Global Wealth Migration Review report said that among many reasons why people make the decision to migrate to other countries is safety of women and children, lifestyle factors like climate and pollution, financial concerns including taxes, better healthcare for families and educational opportunities for children, and to escape oppressive governments.A low passport score of a country can also make individuals emigrate.
A higher passport index ranking ensures one gets better access to travel visa-free to many countries.The Indian passport registered the largest global fall in the Passport Index 2023 -- ranking at 144th position this year with a mobility score of 70.
This means Indians can travel to 21 countries visa-free, and need a visa for 128 countries.In contrast, a Greece or Portugal residency card provides Indians visa-free travel across all Schengen countries.
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