Simon Moves On

Jim Simon at the Library of Alexandria, Egypt

One indulgent use of a personal blog is to drop a nod in the direction of a salutary individual, and I’d like to do so for my departing boss, Jim Simon.

Jim has been the founding Director of the Microsoft Institute since 2004, when Bill Gates and Craig Mundie personally decided to establish a small outfit to use the benefits of Microsoft’s advanced research and development activities against intractable problems for the global public sector. They had been talking with Jim for several years, back when he was a senior executive at the Central Intelligence Agency and after, to understand how to improve government’s adoption of modern technologies.

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Place your bets on research

No reason to sugarcoat the Microsoft quarterly financial report issued this afternoon: it reflected the bad news in the overall economy.  Revenue down, earnings down, profits down. 

What I did find most interesting was the silver lining as Business Week points out in its coverage. Like most of Wall Street apparently (MSFT stock rose in after-hours trading), Business Week was impressed with some of the positive steps taken by the company:

Maybe the most striking news is Microsoft’s crisp cost-cutting. Who knew this Midas of the computer industry knew how to scale back so well? In the quarter, administrative costs fell by more than $1 billion, from $2.3 billion to $913 million. And the company completed its first ever general layoff, of 5,000 people. The company did not cut into its R&D budget, however. Spending there rose from $2 billion to $2.2 billion.”

It’s that last point that I’m focusing on, as it demonstrates that the company is living up to CEO Ballmer’s pledge to increase our annual R&D spending – amid this deep recession – from $8 billion a year to over $9 billion.

At a time when most budgets are hurting, that’s quite an investment.  If you’d like to know what we’re getting for that, check out http://research.microsoft.com, or for the most up-to-date reports, use Twitter to follow @MSFTResearch – this week, the Twitter feed has focused on papers and demonstrations we’re presenting at the 18th International World Wide Web Conference (WWW2009).

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How Not to Predict Stock Performance

Google hasn’t had a great week on the stock market so far, but it isn’t often that you get to use the words “Google stock” and “kick ’em while they’re down” in the same sentence, so…

I like my own little subtle “inside jokes” a bit too much sometimes. If you’re sharp-eyed you’ll have noticed that on the left-hand margin, down a ways, is an RSS feed featuring the latest news stories which include the phrase, “the next Google.” Yes, I use Google News itself to drive the RSS feed, ha ha.

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