Ballmer is roughly the tech industry's equivalent of Mikhail Gorbachev, without the coup and the tanks and Red Square. When he took control, in 2000, Microsoft was one of the most powerful and feared companies in the world. It had a market capitalization of around five hundred billion dollars, the highest of any company on earth. Developers referred to it as an "evil empire." As he leaves, it's a sprawling shadow. It still has cash-but that matters little.
What has gone wrong? For starters, Ballmer proved to be the anti-Steve Jobs. He missed every major trend in technology. His innovations alienated people. When he tried something new, like Windows Vista, the public lined up around the block to trade it in. Microsoft missed social networking. It completely misjudged the iPhone and the iPad. It embraced complexity in product design just as everyone was turning toward simplicity. It entered growing markets too late. When was the last time you used Bing? In 2000, Microsoft made most of its money selling Microsoft Office and Microsoft Windows. Today, it still makes its money that way. Ballmer's reign has done more to defang Microsoft than the Justice Department could ever have hoped to do.
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