Ballmer blames security costs on the Chinese

LEADER OF CLOSED SOURCE DEVELOPERS Steve Ballmer was in a typical bombastic mood as he took to the stage at the D8 conference.

Coming on after Steve Jobs and Mark Zuckerberg, the larger than life leader of Microsoft managed to arrive, for once, under the radar. Nevertheless, known for his colourful presentations, Ballmer came off the blocks quickly with a "magical device" of his own, a wand.

Questioned by Walt Mossberg, Ballmer strode through the potential slip-ups with typical grace. Unlike Zuckerberg, who wilted under the pressure of answering questions regarding the privacy of his data mining website, Facebook, Ballmer cut a dashing figure as he claimed that while Microsoft might have been embroiled in data mining controversies in the past, the firm's business model is not dependent on it.

Mossberg, apparently not liking the cut of Ballmer's jib, quickly interjected that Microsoft had made him pay for services to maintain his privacy, to which Ballmer made a rather discriminatory claim that while Mossberg might pay, "80 million Chinese people won't this year, if they paid then you wouldn't have to."

While it's true that illegal software distribution does flourish in China, it's by no means the only place where people want to dodge part of the overall cost of Windows security nor should it be singled out. Or perhaps we're not giving Ballmer enough credit, and he was referring to the Chinese Linux community.

Ballmer was even-handed with his praise for the open source operating system he once called "a cancer". Admitting what the rest of the world already knows, he said that the open source community is a competitor to Microsoft's products. However he wasn't quite so generous or accurate with his assertion that netbooks running Linux distributions "didn't sell well", in a not so gracious response to a question about Google's Linux based Android operating system tipping up on tablets.

When Mossberg asked why Microsoft had drastically lowered its price of Windows XP in reaction to netbook vendors having initially shipped units with Linux, Ballmer retreated by asking, "Why should I give someone else an opportunity?"

Much of the talk focused around Microsoft's failing mobile business unit, which has recently seen two high level departures and reorganisation. Ballmer boiled down the executive changes to one person wanting to retire who was part of an "extra layer which didn't make sense". But understating the truth, Ballmer said that Microsoft had "missed a cycle" and is adjusting to the realisation that it is "not at the front of the pack."

However, Ballmer tried to give hope to his subordinates by saying that the market leaders from six years ago were "not where they were", pointing out Motorola and Sony Ericsson as examples. A more accurate notion would be to refer to those firms' declines as mirrors for that of Microsoft's own mobile division.

The problem, as Ballmer himself alluded to, is that many of Microsoft's mobile competitors are "good". Admitting that Apple has "done a good job coming from nowhere" and that people don't realise "how good a job" Research in Motion (RIM) has done to allow people to "communicate vigorously", Ballmer allowed as how "they're [RIM] number one in this country."

Once again realising that the free-flowing praise for a competitor was possibly detrimental to his own cause, Ballmer claimed that "their [RIM's] platform is less robust than anyone in the market". With Mossberg not pressing, Ballmer failed to substantiate his claim, which only heightened the sense that Ballmer represents a fading, insecure firm taking pot shots at a relative newcomer.

Turning to Google, Ballmer, like many others, seemed confused why the firm has two operating systems, Android and Chrome. When asked about his thoughts on Chrome, he remarked "What am I supposed to think about it?". Interestingly, this time Ballmer chose to use Apple as a benchmark, saying that the firm has "some coherence" between the operating system on its computers and on its mobile devices.

Although Ballmer takes flak for his on-stage charisma, he pulled off something quite amazing, managing to make Microsoft seem like an underdog. Talking about web search, he referred to Google as a "very large behemoth".  When Mossberg came back to state the obvious case of the pot calling the kettle black, Ballmer joked, "It takes one to know one!"

Later on, when asked about what advice Ballmer could give to Apple and Google regarding antitrust issues they might face, Ballmer replied that he did not provide advice to competitors, adding, "I wish them good luck getting lots of experience", garnering widespread laughter from the audience.

Given that Microsoft has had a relatively quiet few months when it comes to controversy, with the heat being focused on Facebook, Google and Apple, it's not surprising that Ballmer felt happy to refer to his competitors numerous times, even indulging in some light ribbing at times.

On the main topic of discussion, mobile devices, Ballmer did little allay fears that Microsoft is still on a downward spiral. Rather, he did a very convincing job of illustrating just how good its competitors are. Ballmer might say that Microsoft missed a cycle, but in all likelihood, it's missed the boat altogether. µ