Entrepreneurial to the core

‘We are trying to get places and Vista will help us get there. It will be more robust, providing a much higher level of security and will take advantage of dual cell processors. The experience of managing and finding information will be great. Business processes will work much better together – the user interface will be richer.’
Baker is equal enthusiastic – perhaps justifiably so – about the likely success of Office 2007.

There’s a slight change of mood though when questioned about Google, the ubiquitous search engine whose online success – according to the critics – is a serious threat to Microsoft’s current hegemony in the online world.
‘Google has a good brand and a good engine,’ he admits, adding rather defiantly, ‘but we are putting a lot of money into search and our advertising and search revenues are increasing.’

Fighting on all fronts
Of course, as well as in the search engine world, Microsoft is battling for dominance in the browser market, the gaming space (Sony’s new console will be launched soon enough), as well as having to come to terms with developments in IPTV (internet protocol television) and VoIP (voice-over internet protocol). Then there is software-on-demand, the online hosted services solution that poses many questions about how businesses and consumers will buy software in the future. As you might expect, Baker reckons Microsoft has the flair and entrepreneurial zeal to meet these challenges head on.

‘There are many interesting models for hosted services, and a number of those are based on a Windows platform. The key issue is this: the more functionality we bring to the Microsoft product, the more people will come to us. We will be in the hosted marketplace. Our partners will have capabilities. It’s a very easy migration path.’ At present, he says, ‘certain areas are reacting and certain areas blazing,’ before adding, ‘it’s very rare you see total replacement. We reckon some areas will be hosted and some will be what we have.’ Rather ominously for his opponents, though, he adds, ‘we will be using the power of our technology, the power of our brand and that of our distribution network [to compete in this area].’

For Baker, staying competitive and winning is about risk management and ‘in the game of risk-taking and risk management you need smart people. I joined Microsoft because it has a philosophy of innovation at its core. Remaining competitive is about looking at all possibilities, trying to stay ahead of the curve and… the ceaseless search for new products and new markets.’ Perhaps that’s why he reminded me that Microsoft has a $7 billion R&D budget before bidding me goodbye.