Microsoft rank and file unsettled but optimistic about change

The Microsoft logo is seen at their offices in Bucharest March 20, 2013.

Credit: Reuters/Bogdan Cristel

By Bill Rigby and Eric M. Johnson

REDMOND, Washington | Mon Sep 9, 2013 5:33am EDT

REDMOND, Washington (Reuters) - A mood of cautious optimism tempered with a dash of anxiety has spread on Microsoft Corp's leafy campus in the Seattle suburbs, as the world's biggest software maker embarks on one of the most tumultuous periods in its 38-year history.

Since mid-July, three interlocking events - all of them considered highly unlikely six months ago - have unfolded in quick succession, unsettling Microsoft managers and employees and roiling its share price.

First, CEO Steve Ballmer rejiggered top management as part of an ambitious plan to remodel the company around devices and services rather than software. Six weeks later, he announced his retirement within a year, sending shares soaring. Ten days after that, he unveiled a $7.2 billion purchase of Nokia's phone business, a move that ate up the stock's recent gains.

Within the company's Redmond, Washington, headquarters at least, the casually dressed workers seem much more worried about the far-reaching reorganization announced by Ballmer than the multibillion-dollar Nokia acquisition, which has incensed many investors who view it as a waste of money.

"The funniest thing I read on LinkedIn was, 'Two black holes converge,'" said one Microsoft employee, who asked not to be named, soon after the Nokia acquisition was announced. "But I think there's some real potential here."

The topic of Ballmer's retirement elicited a more complex reaction from some Microsoft employees interviewed this week.

"Like Wall Street, there was initial euphoria with the announcement for employees," said one 15-year veteran who has worked in a number of units at the company, in response to Ballmer's retirement and a change at the helm of a company that no longer sets the pace for technological innovation.

"But he is as much a symptom as the actual problem. This whole crazy re-org will still happen. And nothing will really change." he said. "Among many of my fellow employees - both new hires and long-timers - there is a recognition that Microsoft has lost its way."

Microsoft declined comment on the mood of its employees.

One of the ways the company aims to regain its stride is the addition of Nokia's phone business, but that will likely complicate an already complex reorganization that is just getting under way.

"The re-org is more unsettling for some people than Ballmer's departure. Exactly how that shakes out is more interesting," said another employee who asked not to be identified.

"There is always a small percentage of people who do lose their job, or get put into an awkward new role. For those people, morale is very bad, of course. But whoever you talk to, they all noticed that the stock went up on the Ballmer (retirement) news. If sustained, that will make morale improve broadly."

FOUR NEW GROUPS

Under Ballmer's 'One Microsoft' vision - which will take until the end of the year, at least, to complete - Microsoft's five operating units, including the massive Windows and Office businesses, are being realigned under four new functional engineering groups, broadly covering operating systems, devices, applications and the cloud.

In practice, that means tearing up some existing units and shifting thousands of staff around campus. The old Windows business will largely go into the new operating systems unit, but the Surface tablet unit will go into the new devices organization, to be joined by Nokia's phones next year. Office will be split between the applications and cloud units.

Most advertising and marketing staff are being taken out of their traditional business units and grouped together under a unified team. The software parts of Xbox will go to operating systems while the hardware will go to the devices unit, but not until after the November 22 launch of the Xbox One console.

Given the complexity, the full effects of the reorganization may not be felt for several more months.

"I guess the re-org hasn't yet settled down in a big way," said Raman Shrama, 34, who works at Microsoft as a program manager in the developer division, which helps outside firms make apps to run on Microsoft's Windows 8.

"I am personally not very impacted, because the division that I am working in is largely unchanged," said Shrama at the Overlake Transit Center used by thousands of Microsoft commuters.

Generally, he said, the mood at the company was good. "CEOs don't change every day. It's a big event, for sure. But I haven't noticed a drop in morale, or anything like that."

Microsoft's Redmond campus has maintained its laid-back air for the last few weeks. Crowds occasionally gather for morale-building events on one of the artificial-turf soccer fields. And in The Commons - the campus social hub - a few hundred employees congregate upstairs for the rowdy 'Trivia Tuesday' quiz.

One 31-year-old contractor who works on the Office user interface team said he was "very optimistic" about the changes.

"We are so far behind on the mobile end of things. This is the only hope we have for connecting to the younger generation," he said. "The PC market is declining so much. This might give us a chance to find a new approach and a new corporate identity to get behind. I don't think Ballmer was really that inspirational, someone people believed in."

Another 25-year-old software engineer in the Bing search engine unit said she was "excited" about what was to come.

"I don't expect a big change after his (Ballmer's) retirement. Microsoft is a big company. A new CEO won't change much," she said. "In the last company meeting, Steve talked about the 'One Microsoft' spirit. People liked that idea. Probably, the new CEO will continue that."

(Reporting by Bill Rigby and Eric M. Johnson; editing by Gunna Dickson)

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Sharknado: The Stars React To Ian Ziering & Tara Reid’s Syfy Movie About Sharks & Tornadoes

First Published: July 12, 2013 9:32 AM EDT Credit: Syfy

Caption Tara Reid and Ian Ziering in Syfy’s ‘Sharknado’ LOS ANGELES, Calif. -- “Sharknado,” the television movie that combined sharks and tornadoes with Ian Ziering and Tara Reid, became an internet sensation on Thursday night when the project captivated the attention of those on Twitter.

Celebrities couldn’t help themselves from Tweeting – heavily – about the Syfy network movie that chronicled what happened when a tornado full of hungry sharks swept through Los Angeles creating devastation and casualties, and with only Ian and Tara to save them.

Some of the best Tweets came from “Sharknado” star Ian Ziering, who Tweeted as he prepped for his Chippendales show in Las Vegas. He even managed to Tweet about an unbelievable scene at the end of the film that saw his character emerge from the belly of a shark by using a chainsaw.

PHOTOS: ‘Sharknado’ — Scenes From The Syfy Hit

“#LiveTweetingSharknado when I read this [script] I thought, chainsawing out of a shark, repelling, guns, sharks, tornadoes, I’ve gotta do this,” the actor Tweeted.

Among those who participated in the #Sharknado trend was “Marvel’s Agents of S.H.I.E.L.D.’s” Agent Coulsen himself, actor Clark Greg, who tried to explain the phenomenon that overtook Twitter as U.S. viewers watched the film, to his buddies abroad.

PHOTOS: Hollywood’s Hottest Beach Bodies — The Guys!

“For my overseas pals: There was an awesome/awful TV event on tonight called #sharknado About sharks. In tornados. Chewing up LA #clarknado,” he wrote.

Here are more of the celeb Tweets about the movie that had everyone talking online:

Michael Chiklis: “Clearly SyFy is employing the old, “so bad, it’s good,” method with tremendous effect. #TrendingForHours #SharkNado.”

Patton Oswalt: “No way is SHARKNADO as entertaining as the Tweets about it. Congrats, @SyfyTV. You’ve created a new way to watch movies.”

POLL: Should Syfy make a ‘Sharknado 2’?

Jackson Rathbone: “Watching #sharknado on #syfy ‘Sharks in the swimming pool?! No way..’ Yes way, Mr movie-cliche bad guy. It’s a mother-bleeping Sharknado!”

Chad Lowe: “Why have we not been throwing bombs into tornadoes to stop them? Or are we doing it, and I’m just now learning about it? #Sharknado.”

Wil Wheaton: “‘We lost the night to #SharkNado? What the hell is that?’ - every non-syfy network executive tomorrow morning.”

Judah Friedlander: “Can’t wait to see how @MSNBC & @FoxNews cover this developing #Sharknado story.”

Bill Lawrence: “Sharknado is everything that is right AND wrong about everything.”

Damon Lindelof: “I am going to write the Sharknado sequel and I am going to do it before Shaknado is over.”

Elizabeth Banks: “@DamonLindelof did Tessa already take revenge on the guy who harpooned mom or am I dating his son in #sharknado2 #backstory.”

Olivia Wilde: “@ElizabethBanks Banks, this is our chance to play Siamese twins: two heads, one magnificent shark tail. Emmys all around. #SharknadoTwo.”

-- Jolie Lash

Copyright 2013 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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13 Surprising Facts About Your Taxes

Paying taxes is on everyone's mind, rarely in a good way. Knowing some pithy facts about our tax system and how you fit in may not make you feel any better. Still, as you embark on your own annual tax odyssey you might be surprised about who pays what, who doesn't pay, and how you fit in according to recent IRS statistics. It could even help you plan.

1. The IRS receives over 140 million individual tax returns and collects over $950 billion in taxes.

2. The biggest tax deductions are those for taxes paid to state and local governments. Next biggest are for interest, especially on home mortgages.

[More from Forbes.com: The Highest State And Local Income Taxes On A $1 Million Income: Post Election 2012]

3. The average tax refund is almost $3,000, $2,953 to be exact. In all, over $325 billion in tax refunds are paid out. Tax refunds are great, but really suggest you were having too much withholding taken out of your pay or you made estimated tax payments that were too large. Tax refunds are like interest free loans to the government.

4. Many returns--4 million--report alternative minimum tax (AMT). You compute your regular tax and your AMT and pay whichever the more. Despite recent reforms, AMT plagues taxpayers. Many things--like most attorney fees--are deductible for regular tax but not for AMT. That hurts.

5. Want to be in the top 1% of earners nationally? You’ll need $369,509 of annual income to join that group. If you aim to be in the top 10% of income earners, you'll only need $116,555. That means 90% of taxpayers make less.

[More from Forbes.com: Companies That Pay CEOs More Than Uncle Sam]

6. Making a million dollars is a nice goal, but roughly 7,000 millionaires didn’t pay any income tax in 2011. In all over 275,000 returns showed adjusted gross incomes of $1 million or more.

7. California has the most millionaires. More than 40,000 Californians reported over $1 million in income. Vermont has the least--less than 300 millionaires.

8. Want to aim really high and try to crack the $10 million mark? More than 11,000 individual tax returns reported adjusted gross income above $10 million.

9. E-filing is now nearly universal. Almost 90% of individual tax returns are now e-filed.

10. Who uses paid tax preparers? More than half of returns--about 57%--are done by paid preparers.

11. If you don't itemize and claim the standard deduction, you might want to know that the average standard deduction is $7,000 to $8,000. ($7,884).  Itemizers on average claim $26,084.

12. Our tax code is wordy, about 4 million words. It's always changing, too. Since 2001 alone, there have been more than 4,500 changes.

[More from Forbes.com: 15 Ways To Invite An IRS Audit]

13. As a percentage of adjusted gross income, people earning $100K-$200K pay an average federal tax rate of only 12%. Those earning $200K to $500K pay 19.6%. Don't confuse marginal rates with average rates. The former is what you pay on your very last dollar.

Robert W. Wood practices law with  , in San Francisco. The author of more than 30 books, including Taxation of Damage Awards & Settlement Payments (4th Ed. 2009 with 2012 Supplement,  ), he can be reached at  . This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

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11 Things You Didn't Know About the 2013 NLJ 350 Regional Report

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Big Banks Worried About Outside Counsel Who BYOD

Note to Big Law: When you’re working with Wall Street, don’t BYOD. At least not until the devices are configured to secure data.

That’s the anti-Bring Your Own Device message the country’s biggest banks and financial institutions are trying to convey to their law firms, according to the global chief operating officer of Goldman Sachs’s legal department.

Actually, Goldman’s Jeffrey Isaacs doesn’t care if the outside lawyers his department hires have personal smartphones in their pockets—he just doesn’t want them to use the same devices for business.

He spoke to a small gathering of in-house types who had been invited to attend a panel discussion called “Legal Departments Under Pressure,” which was held at the Yale Club in Manhattan on June 19. Isaacs underscored his point by picking up the two smartphones on the table in front of him.

“Everyone on Wall Street” uses separate devices for business and personal data, he said. But the law firms they hire as outside counsel haven’t gotten on board, he complained. The firms are apparently worried that they will be at a “competitive disadvantage”—especially when recruiting talent—if they agree to enforce stricter data-security standards for smartphones, tablets, laptops, and other digital devices.

Isaacs wasn’t the only panelist who expressed concern. The subject was first raised by moderator Kris Satkunas, director of strategic consulting at LexisNexis, which sponsored the event (organized by Sandpiper Partners LLC). Panelist Lani Quarmby, associate GC who oversees outside counsel management at Bank of America, said she and her colleagues spend lots of time talking to law firms to see how they’re protecting data.

“Can you imagine if a law firm had a breach” of their clients’ confidential information? “We wouldn’t work with them again,” she said.

Rose Battaglia, global chief operating officer responsible for Deutsche Bank’s legal and compliance departments, also chimed in. For the first time her team is being asked to perform risk assessments of their law firms. In a world where companies are responsible for the behavior of their vendors, law firms are among the last vendors they’re assessing, she said.

Isaacs said that companies understand that federal regulators are eager for them to resolve the issue. He has a sense that if companies don’t, the regulators will step in and impose a solution for them.

Many of the largest banks and financial institutions are concerned enough that they have joined together to attack the problem as one, Isaacs said. He and his counterparts have identified 11 big law firms and have begun a dialogue—mostly with the firms’ chief information officers, along with a smattering of partners, he said.

They plan to voice their concerns in a more public way at a conference in Las Vegas in August, Isaacs added, referring to the upcoming International Legal Technology Association event. And if that doesn’t work, he concluded, Goldman intends to host a data-security meeting in October.

If there was a time when BYOD sounded like an acronym you might see at the bottom of a party invitation, apparently those days are gone. The message from the big banks seems clear: Sober up!

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What's So Special About Patent Law, Judge Asks

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Justice Ginsburg: 'Optimistic' About Women in the Courts

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Microsoft caught lying about tablet size in comparison to Apple's iPad

Microsoft caught lying about tablet size in comparison to Apple's iPadGet the lowest prices anywhere on Macs and iPads with exclusive coupons: Apple Price Guide updated May 25th. (Get the lowest prices anywhere) HomeReviewsBackpagePrice GuidesNew MacsMacs with AppleCarePrevious MacsiPadsApple Wireless DevicesBid on New & Used Apple ProductsFollow UsTwitterFacebookGoogle+RSS Feeds & QriusiPhone AppTip UsSend us a tiptip us anonymouslyContact us by e-mailForumsAAPL: 445.15 ( +3.01 )Never miss an update Follow AppleInsiderFollow @AppleInsider –A+
Thursday, May 23, 2013, 03:52 pm

Microsoft caught lying about tablet size in comparison to Apple's iPadBy Daniel Eran Dilger

In an attempt to draw interest away from Apple's iPad, Microsoft has set up a tablet comparison page that falsely presents the iPad as having a smaller screen than a Windows tablet with less screen area.


Source: Microsoft
Microsoft presents a series of four tablet devices running either Windows 8 or Windows RT, but the default comparison pits a full size 9.7 inch iPad against the 10.6 inch Asus VivoTab Smart.

However, as noted by blogger Elliot Temple of Curi.us, Microsoft's comparison graphics are not to scale.

"Microsoft has drawn a 10.1 inch tablet 36% larger than a 9.7 inch tablet," Temple wrote, pointing out that the iPad actually has a screen area of 45.16 square inches, while the Asus tablet is actually 3.5 percent smaller at 43.56 square inches, "not 36% more as Microsoft depicts."


Source: Microsoft
Microsoft doesn't just imply the Windows device is bigger; the site actually states that the ASUS VivoTab Smart "has a bigger touchscreen," when in fact it does not. Microsoft also points out that the Asus product has a lower battery life rating, is slightly thicker, and weights slightly less.

One detail Microsoft doesn't mention: the current iPad has sported a Retina Display with a resolution of 2048 by 1536 for years now, while the new Asus Windows tablet has an "HD" resolution of just 1366 x768, more comparable to the original iPad from three years ago.

iPad can't run our apps that we won't sell you

Microsoft also draws attention to the fact that "the only consumer Office app the iPad can run is OneNote," an interesting claim from the only company that has the power to port Microsoft Office apps to the iPad. The company is already rumored to have done this but is apparently withholding their release until all hope is lost for Windows tablets.


Microsoft also notes that the Asus tablet ships with ports for attaching HDMI and SD cards; Apple sells such dongles separately but also offers the technology to access external screens and storage wirelessly via AirPort and iCloud.

A fourth unfavorable comparison Microsoft makes is contrasting Apple's included 5GB of iCloud storage with the free 7GB it offers via SkyDrive. However, iPad users can access both Apple's iCloud and Microsoft's SkyDrive, meaning that it effectively provides 12GB of "free cloud storage" to anyone who wants to sign up for both.

The high cost of Windows baggage

Microsoft lastly compares the two models on price, depicting the iPad as $699 in comparison to the $449 Asus tablet, both at 64GB. However, Windows consumes much more storage than iOS does, so the free space Microsoft is giving it also is taking away.

On Windows tablets like the Asus, a full 8GB of storage is consumed by a "recovery partition," leaving, after Windows and other bundled software, just 33GB free, about half of the advertised storage. The list price of the Asus tablet is $499 ($420 on Amazon), and 64GB is the cheapest model available.

Apple's full size iPad also starts at $499 (with models as low as $410 on Amazon). Apple's iOS also consumes much less storage, only around 4GB. A 32GB iPad has over 28GB free, making pure price per GB comparisons misleading.

Microsoft also makes no mention of Asus' NFC feature, promoted as "tap and Explore: simple interaction with other NFC enabled devices" on the Asus website. NFC has failed to capture much attention among consumers a year after Google, Microsoft and their partners have tried to leverage it as a differentiating feature that Apple has chosen not to support.

Microsoft spent two years reworking its failed Windows Slate PC efforts in order to more effectively compete with Apple's iPad, which has been eating its way into both consumer and enterprise markets, gobbling up conventional PC sales.

The moves included a two pronged effort to target both desktop PC users with iPad-like features and a tablet-optimized version of Windows capable of running on more efficient ARM hardware like the iPad (but incapable of running conventional Windows software).

Both efforts have failed to gain traction.Tags:WindowsMicrosofttabletsJump to comments (79)Categories:iPad(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#xfbml=1"; fjs.parentNode.insertBefore(js, fjs);}(document, 'script', 'facebook-jssdk'));Tweet!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); On Topic: WindowsMicrosoft caught lying about tablet size in comparison to Apple's iPadApple software update brings QuickTime for Windows to 7.7.4Editorial: Apple's iOS is the new WindowsFujifilm to help PC makers take on Apple with new touchscreen techApple's iPhone and iPad models claim top 5 slots in enterprise device activations for Q4Today's' HeadlinesNo news headlines yet todayRelated ArticlesTest finds Surface Pro's storage space comparable to MacBook AirMicrosoft Surface with Windows RT to start at $499Microsoft Surface tablet with Windows RT to start at $499Microsoft's changes to Windows 8 certification rules hint at potential iPad mini competitorMicrosoft says Surface screen outperforms iPad Retina displayPrevious Comments View Allslurpy2013/05/23 03:56pm

Yeah I sensed something was off about the iPad in that video.. it seemed to have the bezel of an iPad with the size of an iPad mini. You know, to make the iPad look as ugly as possible. Pretty disgusting dishonesty.

ireland2013/05/23 04:10pm

This article should have said 1. MS lies about screen size. 2. New iPads actually start from $329. End of article.

bullhead2013/05/23 04:13pm

Imagine that! ?Microsoft lying. ?Show how desparate they are with complete and total failure windows tablets are.

damn_its_hot2013/05/23 04:37pm

Quote:Originally Posted by AppleInsider?

In an
Microsoft presents a series of four tablet devices running either Windows 8 or Windows RT, but the default comparison pits a full size 9.7 inch iPad against the 10.6 inch Asus VivoTab Smart.

However, as noted by blogger Elliot Temple of Curi.us, Microsoft's comparison graphics are not to scale...

On Windows tablets like the Asus, a full 8GB of storage is consumed by a "recovery partition," leaving, after Windows and other bundled software, just 33GB free, about half of the advertised storage. The list price of the Asus tablet is $499 ($420 on Amazon), and 64GB is the cheapest model available.

Apple's full size iPad also starts at $499 (with models as low as $410 on Amazon). Apple's iOS also consumes much less storage, only around 4GB. A 32GB iPad has over 28GB free, making pure price per GB comparisons misleading....
?

?

?

I understand that puffing is a legal practice in marketing and sales but this goes way beyond that. This is deceptive and outright fraudulent in some cases. I wonder what the UK judge would have to say about this -- my bet is it would be a lot more than "its not as cool". I bet they are not running this advert in the UK.

?

slurpy2013/05/23 04:39pm

Quote:Originally Posted by Phrosty23?

This isn't as bad as Apple photoshopping the heck out of Samsung phones to make them appear almost identical to iPhones for their lawsuits.

@ireland, the ad is comparing 64gb models to each other. If you want to go with the Mini, it's $529.

?

Nice 1st post. Love people who register on Apple sites just to post comments like these. Justifying/defending something like this just to find an excuse to bash Apple because of a previous incident, (which is different in so many ways, because what was being compared were software elements) ?because of how much you despise the company. Apparently nothing was worth registering for until this very moment, to make this very comment. I'm sure we'll see a bright future of trolling from you.?

jungmark2013/05/23 04:40pm

Wait, Microsoft lies? In other news, water is still wet.

cobby102013/05/23 04:42pm

@phrosty23

Apple wasn't making size comparisons, the images were to dispute general software characteristics of the Lawsuit. The images were on different pages, and both images were not to scale. Size or scale was not part of the lawsuit.

This is a direct comparison in size and even stated as larger, yet it is not.

digitalclips2013/05/23 04:42pm

Well known sign of inadequacy, lying about your size that is.

sockrolid2013/05/23 04:45pm

Originally Posted by AppleInsider?

Microsoft spent two years reworking its failed Windows Slate PC efforts in order to more effectively compete with Apple's iPad, which has been eating its way into both consumer and enterprise markets, gobbling up conventional PC sales.

?

Evidently two years of rework wasn't enough. ?Of course, it was a lose-lose proposition for Microsoft from the very start. ?I think there were only three possible scenarios for Surface vs. iPad:

?

- The "success" scenario:?Surface becomes a raging success equalling or surpassing iPad sales. ?Surface hardware revenues soar beyond whatever MS can eke out of Xbox. ?But, because Surface's Windows RT / Pro apps and OS updates are much cheaper than legacy Windows + Office software licenses and updates, the company's overall revenue drops. ?Apple still makes money on iPad, selling to consumers and enterprise, still hurting Microsoft's profitability. ?But it's a two-horse race: Surface and iPad. ?MS actively iterates Surface and releases a Surface mini to broaden the line.

?

- The "don't care" scenario: Surface sales are moderate but still "successful." ?Surface hardware revenue is not stellar, but gives the business some sustainability. ?And again, because Surface's Windows RT / Pro apps and OS updates are much cheaper than legacy Windows + Office software licenses and updates, the company's software revenue drops. ?It's break-even. ?MS could flip a coin: keeping Surface or canceling it makes little or no difference to their overall revenue. ?They decide to keep marketing it because it makes them look relevant and modern.

?

- The "nightmare" scenario: Surface sales are dismal. ?iPad continues to dominate in the consumer and corporate pad computing markets, disrupting the legacy PC markets that Microsoft once thought they had locked up in perpetuity. ?The Surface division operates at a loss, and Microsoft's overall revenues decline due to the iPad onslaught. ?They decide to continue marketing Surface because they think it makes them look relevant and modern, even though it costs them plenty of money and in reality makes them look foolish and out of touch. ?They hype Xbox more, because it is their only successful post-PC device.

?

I think we all know which scenario is now playing out.

?

?

Originally Posted by?AppleInsider?

Both efforts have failed to gain traction.?

The market has spoken. ?Windows 8 and Surface have both been Zuned.

agramonte2013/05/23 04:48pm

"One detail Microsoft doesn't mention: the current iPad has sported a Retina Display with a resolution of 2048 by 1536 for years now, while the new Asus Windows tablet has an "HD" resolution of just 1366 x768, more comparable to the original iPad from three years ago"

that is also misleading... you do not get 2048X1536 real estate on an ipad... you do get the full work environment of 1366X768 using windows 8

you cant do a direct resolution comparison - the OS is using the resolution in different ways.

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BlackBerry CEO supposedly says dumb things about the future of tablets, but what are the smart things?

BlackBerry CEO supposedly says dumb things about the future of tablets, but what are the smart things? | iMore.com Skip to main content Android BlackBerry iPhone / iPad Windows Phone webOS SIGN UP|LOG IN iMore Forums Apps Games Accessories Reviews How-To Podcasts Contests iPhone iPad mini iPad iPod touch Apple TV iOS iCloud iTunes Mac Hot: iPhone 5S Guides: iPhone buyers | iPad buyers | iOS users Free: Wallpaper | iPhone apps, games | iPad apps, games Shop Online Cases Chargers Screen protectors Headsets & More Free shipping on orders over $50 BlackBerry CEO supposedly says dumb things about the future of tablets, but what are the smart things? By Rene Ritchie, Tuesday, Apr 30, 2013 a 9:09 pm 16

BlackBerry CEO Thorsten Heins was quoted today as saying tablets didn't have much of a future, product or market-wise. Given the huge, and still growing success of the iPad, even the idea sounds ridiculous. Here's what Bloomberg posted:

"In five years I don’t think there’ll be a reason to have a tablet anymore,” Heins said in an interview yesterday at the Milken Institute conference in Los Angeles. “Maybe a big screen in your workspace, but not a tablet as such. Tablets themselves are not a good business model."

I love a good CEO-snap story as much as the next blogger. Almost every time Ballmer or Schmidt open their mouths, it's gold for everyone in our industry. Hell, the previous leadership at BlackBerry, co-CEOs Jim Balsillie and Mike Lazaridis, said amongst the dumbest things in the recent history of mobile. To see such affluent, powerful people come off as utterly out of touch with reality is about as great a shot of schadenfreude as it gets. So to think the only man currently responsible for a purely mobile computing company on the planet -- BlackBerry carries no legacy desktop or services business -- doesn't think there's a future in the most computer-like form of mobile technology today is... stupefying.

Granted, he wasn't talking about today, but about 5 years from now -- and the velocity of mobile makes it difficult if not impossible to predict the market even a couple of years out, never mind five -- but I'd put good money on the tablet having a bigger future than the desktop for most people, most of the time. That's why Steve Jobs reportedly said the iPad was the most important product of his life.

BlackBerry's version of the tablet, the PlayBook, hasn't been anywhere nearly as successful to date. I've gone on record as saying the PlayBook was probably an ill-advised distraction that led to BlackBerry being even further behind in the phone business than they might otherwise have been, and for BlackBerry it certainly doesn't seem to have been a good business model.

Here's BlackBerry PR's response:

The comments that Thorsten made yesterday are in line with previous comments he has made about the future of mobile computing overall, and the possibilities that come with a platform like BlackBerry 10. We continue to evaluate our tablet strategy, but we are not making any shifts in that strategy in the short term. When we do have information about our PlayBook strategy, we will share it.

And Kevin Michaluk of CrackBerry sums it up this way:

What he did say is that the mobile device in your pocket.. aka. your smartphone... is getting to the point where it has enough computing power in it that it can perform processing tasks akin to a computer. Especially when hooked up to the cloud. And also considering you can connect it up to peripherals like a monitor, keyboard and mouse. It's not that hard to picture a use case where at your home and office are your big screens, and you just walk in and drop your phone down and your work environment is setup off your phone.

The futurist in me wants to take that a step further, to where the computing is decoupled from device, and the "brains" are a constant thing we always have with us, hooked in everywhere, capable of being expressed as a phone or tablet or laptop or desktop or holodeck for that matter. All my stuff, existing everywhere, accessible everywhere, through any hardware interface available.

In that world, interface becomes commoditized. Panels, even beautiful ones, would be utterly interchangeable and transfigurable. In that future, what would an iPhone or iPad look like? What would an iTV or iWatch look like? Manifestations?

Yes, Heins' comment came off sounding ludicrous in the context in which it was presented, and if that's how it was given, he deserved the headlines he got this morning. But funny blog headlines only last a few hours or days. In the greater context, and in the way BlackBerry has been positioning themselves, and in the way Apple has been building out iOS, and in the way Microsoft could figure out 3 screens and the cloud, and in the way Google could take Android or ChromeOS, given some time and coherent thought, the idea of ultra-personal computing 5 years in the future is fascinating.

Feel free to lay into the CEO of BlackBerry in the comments if that's your thing, but also let me know -- where do you see the future of tablets and of computing in five years?

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, ZEN and TECH, MacBreak Weekly. Cook, grappler, photon wrangler. Follow him on Twitter, App.net, Google+.

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More of: Blackberry, Ceo-snap ? PreviouslyCurrency for iPhone review: Convert between currencies on the go Next up ?Thor 2: The Dark World hits theaters this fall, but you can get lots of great Thor stuff from iTunes right now There are 16 comments. Add yours. elpolodiablo says: Apr 30, 2013 at 9:19 pm - 8 hours ago

I watched to interview on bloomberg and I think everything was taking out of context and I don't think he said anything horrible, i think it's just it's blackberry so dump on him. He basically said that other than apple nobody has figured out a way to make money on tablets because you can't make money off the hardware, it's the services you deliver on them. Apple has said the same thing. Tim Cook basically said they are strategically given margin up on the ipad mini as it's the introduction of apple to emerging markets. So unless you have some idea of what type of service you're going to provide on the tablet It's difficult to make money on it. I think that view point is right. I think he's also said that blackberry isn't going to compete in that market because they can't provide a useful servce on a tablet. They have a phone and their core competency is managing devices for enterprise and making sure they are secure in a BYOD world. I think those are fair statements. I think the whole tablet is dead in 5 years is dumping by the media to get clicks, apple has been getting a fair bit of this lately also

Reply Rene Ritchie says: Apr 30, 2013 at 11:25 pm - 6 hours ago

It's a "man bites dog" story -- something people will buy/click on. We tell the media what gets our attention, they feed us back more and more of it.

Media gets some blame, but we get some blame too. (I'm both, so I get double blame.)

Reply kvanh says: Apr 30, 2013 at 9:38 pm - 8 hours ago

This was the same thought I had. He thinks the phone will be powerful enough to simply be docked in different contexts. Desktops and Tablets would go away with this.

I don't think this is a bad vision of the future. It's certainly possible, but generally the bigger the device the more power. I can see the phone being the CPU being the center if we don't come up with things needing more power than we currently use tablets for. If games or some other interfaces get developed that need significantly more power than even 5 years from now mobile units will posses than I can see that as a possibility.

Mind/computer interfaces might be one area where a significant amount of processing power or large amounts of memory might be needed.

Reply Rene Ritchie says: Apr 30, 2013 at 11:27 pm - 6 hours ago

I think there are several sizes of things that have transcended media evolutions. We have the small pocket size, be it paperback or phone, the larger lap size, be it hardcover or tablet, and the even large desk size, be it tome or desktop.

That likely won't change until stuff is injected straight into our brain.

Reply gordol says: Apr 30, 2013 at 9:56 pm - 8 hours ago

IMO, he may be right. Tablets took off primarily, imo, because people want something bigger than a phone, more portable than a traditional laptop and more useful-powerful than the Netbook was. But now with Ultrabooks taking off and starting to come down in price, I think that will eat into tablet sales moving forward.

Why settle for a boxed in system (regardless of whether iOS, Android or Win8) when you can, for not much more money and about the same portability, have a "full" computer experience? If I had the money for it last year, I'd have gotten a Win7 ultrabook instead of the iPad2 for that very reason.

Reply Rene Ritchie says: Apr 30, 2013 at 11:29 pm - 6 hours ago

Trucks vs. cars :)

Reply NegatronDev says: May 1, 2013 at 1:56 am - 4 hours ago

I so agree with you on your last statement. However, I am trying to break the dependency on Windows. As I see it I can use my smartphone for just about anything accept developed application which is how I make my living.

That's the only reason I keep my Windows Laptop.

Otherwise I would design my own docking station, charging block with mouse, keyboard and screen and ill be using my smartphone only.

Reply coolhaircolor says: Apr 30, 2013 at 9:57 pm - 8 hours ago

I have been saying this for the past two years, and I am seeing my predictions come true, the laptop is on it's way out. Laptops have always been bulky, but ever since tablets have hit the scene, many companies have been trying to streamline their laptops, by making, ultra books, but people are buying more tablets now, than laptops. What did computer companies do in response to this growing trend, they have created hybrid tablet/computers with removable keyboards, thus turning it back into tablet. Truth is I actually use my tablet more then my ultra book. I use my ultra book to make changes to my website and edit pictures. I use my tablet more because it is more compact, and easier to carry around.

Reply markbyrn says: Apr 30, 2013 at 10:00 pm - 8 hours ago

The issue isn't whether or not his dubious prediction is going to come true; the issue is poor judgement in making a statement that can readily be perceived as a self-serving excuse for why the Playbook didn't succeed or make the Playbook obsolete ala the HP Touchpad. Also, as the CEO of a company that's trying to regain lost ground, you probably want to avoid putting your foot in your mouth, and getting mocked and pilloried by the tech press.

Reply dannyd86 says: Apr 30, 2013 at 10:33 pm - 7 hours ago

The future where we hold the brains In our pocket and connect them to other devices as we move through the world is fascinating. Would eliminate a lot if problems we have with cross compatability. And it is totally in line with what QNX is designed for. As far as tablets, do we really need a tablet with its own core and everything. Why not just a screen, possibly flexible sold as an accessory to our phone. With a battery nfc and bluetooth. That simply streams what's on your phone. Is buy one.

in previous interviews he has mentioned blackberry can't beat the ipad in ipad game. Which is apps and games. And to a less extent browsing and cloud sharing. But he's willing to release a tablet if it means something new. If u knew what that was I'd be a rich man lol.

The headlines will be gone tomorrow. Stuff out of context is what you can expect in 5 minute interviews and 5 minute blog reposts. Thanks for putting in some thought to the subject Rene, why I come to mobile nations

Reply SockRolid says: May 1, 2013 at 1:44 am - 4 hours ago

Re: "The headlines will be gone tomorrow."
And BlackBerry will be gone the day after tomorrow.
Kicked down the Palm staircase.

Reply schmittdog says: Apr 30, 2013 at 11:19 pm - 6 hours ago

I love how people can pass judgment when a CEO of a tech company provides a little insight to what he holds for the future... Steve Jobs can go on conference calls and say how bad Android and BlackBerry is and that's ok? That's some illogical thinking on everybody's part for not letting Thorsten talk on what he holds for the future. Is everybody really gonna be biased and say that no matter what Thorsten does or says is wrong like that Jack Rabbit Boy Genius? Give me a break Rene. It's dump on BlackBerry once again cause Apple is throwing 60 billion and iBonds to it's shareholders. It's crap and everybody knows it! Would it be as funny if Thorsten would have said 5 years ago that the SmartPhone is gonna replace your digital camera? Tell me how well it goes to sync your 10" iPad to your iCar on the dashboard.

Reply SockRolid says: May 1, 2013 at 1:39 am - 4 hours ago

What Heins said: "In five years I don’t think there’ll be a reason to have a tablet anymore.”
What Heins meant: "We give up. Apple won."

Reply NegatronDev says: May 1, 2013 at 1:43 am - 4 hours ago

I agree with Thorsten Heins. To me the Tablet is already obsolete. It's to much of an inconvenience using and moving around with a 10" device. My smart phone is all I need. There is nothing I can't do on my smart phone that demand that I carry a tablet.

The fact of the matter is, I haven't used my iPad in months. My five year in the future is now.

Reply Ashish Asawa says: May 1, 2013 at 1:51 am - 4 hours ago

My Vision of table in five years. Its going to get much better, more lighter, better processing capabilities, touch responses, new sensors, a much better speech AI, (kind of jarvis in Iron Man), more and better apps, more communication with other devices (already started are cars, philips hue).
I dont see tablet going away now in five years, as the kind of impact they have make, its made human computer interaction more natural, a device which can be easily used by any age group, with such a less learning curve, it has limitations though, and so does with any product, their is no silver bullet, but yah I am sure its going to get better and better. Take first generation iPad and current one, you can see the difference.

Reply dandbj13 says: May 1, 2013 at 6:01 am - 17 sec ago

Sorry, Rene. Sometimes you are too much of a diplomat for your own good. T. H. said what he said. Trying to massage the meaning into something more rational may sooth a few, frayed nerves on the Blackberry side of the MN empire, but it does nothing for the integrity of the story, IMO.

T. H. would like nothing more than to roll back the clock, and make the PlayBook un-happen. He still has to deliver BB10 for the PB, but probably would rather not. The PB is a constant reminder of the stupidest failure in the history of the company. Chasing Apple into that market, especially at that time, was asinine, and everyone outside of RIM knew it.

Since he can't talk about tablets of the past, he has to talk about the future of tablets. Once again, the PB is causing the company to position itself in stupid terms with regard to the tablet market. Of course, tablets are profitable. Apple has made it so. And tablets: the iPad, will go on being profitable well beyond five years. The PC has done just fine for 30 years. What makes him think tablets won't stick around on the profit sheet for eight? He has to justify why his company is pulling the plug, by dumping on the tablet's prospects for the near future.

As for his vision for a world where our only computing device is a Blackberry phone with keyboard, plugged into different terminals, ask him how he's enjoying his Atrix. I don't think a Blackberry Atrix is going to work any better than a Motorola Atrix, do you? That is not a vision of the future; it is a return to the junkyard of failed ideas.

People like tablets. On the Android side, flagship phones are approaching the size of tablets. The next generation of the Galaxy Tab will be a 7" phone. Apple just sold 19.5 million iPads in an off quarter. There is a certain screen size that, below which, common tasks become difficult. People do not want a phone plus several, dumb terminals. If that is the direction Blackberry is headed, then they absolutely deserve the scorn being heaped on them now. Personally, I think T. H. just wanted to poo-poo the thing that their competitor is good at, and they're not. Trying to turn it into something more thoughtful does a disservice to the comment that was actually made.

By the way, does disagreeing with you mean that I should not bother to apply for the next writing job for iMore? :)

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