Ballmer calls Google's growth plans 'insane'

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His assertion is accurate.

A public company is in the business of making money.

If Google grows without a purpose for the staff that will increase revenue, then the growth is a mistake. If Google produces a substantial amount of software and receives no return on the investment, then producing the software is a mistake.

There is some justification for allowing talented people to experiment with new ideas. Many companies call that "R&D". If the experiment cannot be turned into a profitable product, then it's a mistake. If the effort is so disorganized that a potentially profitable product advances more slowly than it might, that's an admionistrative mistake.

To clarify, some of the most valuable products in use came from research into general ideas, without a specific product in mind. The discoveries made could then be turned into highly profitable products.

But Google's staff producing the 35th piece of software, and not the most effective, for a given purpose is not effective R&D.

If someone somewhere at Google is producing a valuable new general idea, I haven't heard anything about it. There may be such a person, and the idea may become known in some years. More years than woyuld be needed in an organized R&D program.

Microsoft has its own organizational problems, from what I've read. Maybe Mr. Ballmer is so perceptive about Google's problems because they're different from his own.

But he's right this time.

Posted by: Anton Philidor   Posted on: 03/16/07 You are currently: a Guest | Members login | Terms of Use

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