Ray Ozzie: Microsoft is not threatened by netbooks, Google Wave is ‘anti-web’

Ray Ozzie, Microsoft’s chief software officer, spoke tonight at a meeting of the Churchill Club about a wide range of topics related to cloud computing, but the most memorable discussion came when he was asked about the effect of netbooks. One might think those cheap, low-end laptops that exist primarily to access the Internet (rather than use powerful desktop software) might be a threat to the software giant. But that’s not the case, Ozzie said.

“In reality, I don’t know what a netbook is,” said Ozzie, who was interviewed on-stage by Wired writer Steven Levy. “A netbook is evolving into an inexpensive, appliance-like PC. It’s a laptop. . . . The more laptops are out there, the happier I am.”

And not only is Microsoft moving its applications and infrastructure onto the web — indeed, Levy has written about Ozzie’s efforts to push Microsoft in that direction — but when it comes to those laptops, Ozzie said: “We’re always going to need an operating system. . . . The experience on top of that OS is what’s changing.”

Ozzie was pressed on this point later in the evening by a reporter who noted that Microsoft’s upcoming Windows 7 operating system won’t work on netbooks with ARM processors. The problem with those netbooks, he said, is that they aren’t up to the standards of normal laptops, and consumers want netbooks that are laptop-like. But he’s also “not writing it off.”

Another fun quote from the question-and-answer session came when Ozzie was asked about Google Wave, Google’s new tool for online collaboration and communication. He replied that it looks “nice,” but also seems “anti-web” in its complexity, because Wave can exist in multiple locations all over the web, all of them updated in real time.

“Just by the nature of how complex it is, no one will be able to do a fundamental implementation,” he said. “[Wave's developers] had no choice. . . . The problem they took on, the way they defined it, is an inherently complex problem.”

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About the Author, Anthony Ha

Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.

  • leonardspeiser
    The Wave comment is a little strange coming from Ray. Groove was remarkably similar to Wave (given the times it lived in). From the good ole Wayback machine for groove.net:

    groove networks is currently developing new and highly innovative PC/Internet communication software that will complement the major forms of PC-based, network-based communication methods in use today: eMail, the Web, and Notes. The company was founded by Ray Ozzie, who left Lotus/IBM in late 1997 to devote his time exclusively to this new idea & venture. He had previously founded Iris Associates, in 1984, to create the product eventually known as Lotus Notes, now in use by more than 25 million users at most major corporations worldwide. Iris, acquired by Lotus in 1994, is widely recognized as one of the most capable software engineering firms in the PC software industry today.
  • yup, my thoughts exactly - Google Wave is in many ways what Groove could have been perhaps should have been.

    Full disclosure, my Uncle was for about a year hired by Microsoft post-Groove acquisition to lead the development of the next release of Groove - he's no longer at Microsoft, I haven't yet gotten a chance to get the inside scoop on where Groove is/where it may be going in the future.

    But definitely Wave is very similar - and in many ways (being Open sourced, designed at a protocol vs a closed piece of software) it is far MORE weblike than Groove or Lotus Notes before it ever were (hmm replication - wasn't that the core of Lotus Notes also?)
  • Yeah, and to be clear both Levy and Ozzie were open about the similarities between Groove and Wave. But that didn't stop Ozzie from slagging Wave.
  • Atul Salgaonkar
    I was at the event and, while I don't want to diss the writer in any way, the edited content leaves out some subtle aspects of Ray's comments.

    Ray seemed genuinely respectful about the pioneering aspects of Wave and also mentioned how it is very similar to Groove. The "anti-web" comment is accurate but related to the way complexity is introduced and managed by the Wave. Ray was responding to a question from the audience and don't know if it was a planted question or not. Those who are more interested can review the event video.

    Standard disclaimer: No links to any of the companies or presenters.
  • Anonymous (have to)
    SharePoint is a way more complex and is certainly more anti-web: it's very slow in the extranet, very intertwined with active directory, and way less open than Wave is planned to be.
    Ray Ozzie had to say what he said, because Wave is a big threat to the most fast growing Microsoft server product, SharePoint, and a serious threat to Exchange as well.

    We on the other side, have to say what we have to say, which is: what Ozzie said has more to do with Microsoft PR than with Google technology.

    With full respect to Ray Ozzie and with full understanding of his duty as a senior corporate executive.
  • I disagree with you claiming Wave being a threat to SharePoint or Exchange. They both do a LOT more than Wave, and no one in a corporate wants to see in real time what the other is typing too. SharePoint integrates with other products seamlessly such as Office Suite.
    And no matter what Silicon Valley predicts, Google or Zoho will never surpass Microsoft Office. So, SharePoint isn't going anywhere no matter how many Waves come.
  • Pat Kelly
    Office dominates the corporate landscape for the rest of time? You do realize that would be the first time in history and a sad time at that. Things change man, get used to it. The main thing SharePoint does better than Wave is cost of lot of friggin money, take forever to implement, and force users to work to fit the technology instead of the technology being flexible enough to fit the way people really communicate and collaborate. Email is still the primary collaboration, document management, workflow engine, etc. in the enterprise - beating SharePoint is the easy part, beating Outlook will be the true tipping point. MSFT had a great run, but every dominate company is eventually pushed aside in the name of progress. MSFT's revenue depends on server and desktop software - stuck in the innovator's dilemma, they cannot compete against companies solely focused on the web.
  • Imran, did you run a survey for - "no one in a corporate wants to see in real time what the other is typing too"
  • Walter
    And to add to what Vivek asks -- Real time typing review is not madated and not the least of the features offrered by Wave...
  • Like Pat, I'd definitely be interesting in seeing you elaborate on the idea that "Google and Zoho will never surpass Microsoft Office." Do you think Office will be on top forever? That whatever beats Office hasn't been invented yet?
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