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July 17: New York, NY:
Fog Creek Open House 5:00pm 535 8th Ave, 18 Floor |
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Wanted: Software Architect
at Rustici Software LLC (Nashville, TN).
See this and other great job listings at
jobs.joelonsoftware.com.
Rick Chapman is In Search of StupidityBy Joel Spolsky
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| Rank | Company | Annual Revenues |
|---|---|---|
| #1 | Micropro International | $60,000,000 |
| #2 | Microsoft Corp. | $55,000,000 |
| #3 | Lotus | $53,000,000 |
| #4 | Digital Research | $45,000,000 |
| #5 | VisiCorp | $43,000,000 |
| #6 | Ashton-Tate | $35,000,000 |
| #7 | Peachtree | $21,700,000 |
| #8 | MicroFocus | $15,000,000 |
| #9 | Software Publishing | $14,000,000 |
| #10 | Broderbund | $13,000,000 |
OK, Microsoft is number 2, but it is one of a handful of companies with roughly similar annual revenues.
Now let’s look at the same list for 2001.
| Rank | Company | Annual Revenues |
|---|---|---|
| #1 | Microsoft Corp. | $23,845,000,000 |
| #2 | Adobe | $1,266,378,000 |
| #3 | Novell | $1,103,592,000 |
| #4 | Intuit | $1,076,000,000 |
| #5 | Autodesk | $926,324,000 |
| #6 | Symantec | $790,153,000 |
| #7 | Network Associates | $745,692,000 |
| #8 | Citrix | $479,446,000 |
| #9 | Macromedia | $295,997,000 |
| #10 | Great Plains | $250,231,000 |
Whoa. Notice, if you will, that every single company except Microsoft has disappeared from the top ten. Also notice, please, that Microsoft is so much larger than the next largest player, it’s not even funny. Adobe would double in revenues if they could just get Microsoft’s soda pop budget.
The personal computer software market is Microsoft. Microsoft’s revenues, it turns out, make up 69% of the total revenues of all the top 100 companies combined.
This is what we’re talking about, here.
Is this just superior marketing, as our imaginary geek claims? Or the result of an illegal monopoly? (Which begs the question: how did Microsoft get that monopoly? You can’t have it both ways.)
According to Rick Chapman, the answer is simpler: Microsoft was the only company on the list that never made a fatal, stupid mistake. Whether this was by dint of superior brainpower or just dumb luck, the biggest mistake Microsoft made was the dancing paperclip. And how bad was that, really? We ridiculed them, shut it off, and went back to using Word, Excel, Outlook, and Internet Explorer every minute of every day. But for every other software company that once had market leadership and saw it go down the drain, you can point to one or two giant blunders that steered the boat into an iceberg. Micropro fiddled around rewriting the printer architecture instead of upgrading their flagship product, WordStar. Lotus wasted a year and a half shoehorning 123 to run on 640kb machines; by the time they were done Excel was shipping and 640kb machines were a dim memory. Digital Research wildly overcharged for CP/M-86 and lost a chance to be the de-facto standard for PC operating systems. VisiCorp sued themselves out of existence. Ashton-Tate never missed an opportunity to piss off dBase developers, poisoning the fragile ecology that is so vital to a platform vendor’s success.
I’m a programmer, of course, so I tend to blame the marketing people for these stupid mistakes. Almost all of them revolve around a failure of non-technical business people to understand basic technology facts. When Pepsi-pusher John Sculley was developing the Apple Newton, he didn’t know something that every computer science major in the country knows: handwriting recognition is not possible. This was at the same time that Bill Gates was hauling programmers into meetings begging them to create a single rich text edit control that could be reused in all their products. Put Jim Manzi (the suit who let the MBAs take over Lotus) in that meeting and he would be staring blankly. “What’s a rich text edit control?” It never would have occurred to him to take technological leadership because he didn’t grok the technology; in fact, the very use of the word grok in that sentence would probably throw him off.
Buy the book |
If you ask me, and I’m biased, no software company can succeed unless there is a programmer at the helm. So far the evidence backs me up. But many of these boneheaded mistakes come from the programmers themselves. Netscape’s monumental decision to rewrite their browser instead of improving the old code base cost them several years of Internet time, during which their market share went from around 90% to about 4%, and this was the programmers’ idea. Of course, the nontechnical and inexperienced management of that company had no idea why this was a bad idea. There are still scads of programmers who defend Netscape’s ground-up rewrite. “The old code really sucked, Joel!” Yeah, uh-huh. Such programmers should be admired for their love of clean code, but they shouldn’t be allowed within 100 feet of any business decisions, since it’s obvious that clean code is more important to them than shipping, uh, software.
So I’ll concede to Rick a bit and say that if you want to be successful in the software business, you have to have a management team that thoroughly understands and loves programming, but they have to understand and love business, too. Finding a leader with strong aptitude in both dimensions is difficult, but it’s the only way to avoid making one of those fatal mistakes that Rick catalogs lovingly in this book. So read it, chuckle a bit, and if there’s a stupidhead running your company, get your résumé in shape and start looking for a house in Redmond.
My new book is here! Apress has just published a new collection of 36 essays from Joel on Software, aptly named More Joel on Software. Get yours today! Available from Amazon.com or wherever fine cheese is sold.
About the Author: I’m your host, Joel Spolsky, a software developer in New York City. Since 2000, I've been writing about software development, management, business, and the Internet on this site. For my day job, I run Fog Creek Software, makers of FogBugz—the smart bug tracking software with the stupid name, and Fog Creek Copilot—the easiest way to provide remote tech support over the Internet, with nothing to install or configure.
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