Random Thoughts: “It is Like Oxygen – Get Used to It.”

That is my favorite answer to a question by Bill Gates. Truer words were never spoken. Microsoft is a company of biblical proportions. “It was, it is and it will always be.” :-)

I became active in the pc software and hardware business in 1980. That is when I first met Bill Gates and when I first started to work with and around the company. Almost 30 years of my life with Microsoft always front and center in the industries that I work.

I worked with Microsoft throughout the 80′s at my start-ups providing services and media products that helped Microsoft meet its sales objectives. They were great clients. They were respectful and their checks never bounced. And they were everywhere and in every PC and in every category of software. Read my book “Blue Magic” for a snapshot into their history and their role in the launch of the IBM PC.

In the 90′s, Microsoft first tried to acquire AOL. AOL was also Microsoft’s biggest distributor of Windows. AOL won early on because it was first to adopt the Windows graphical user interface. AOL also worked with Microsoft on the IE browser bundle into our client software. Microsoft launched MSN to try and stop AOL’s momentum at the time. It was late into the Web world and Paul Allen, Microsoft’s Co-Founder tried to personally acquire AOL to boot. True “coopetition”.

Microsoft then finally shipped MSN to compete with AOL. I made a dumb comment that ended up on t-shirts around campus that said ”Online services with be Microsoft’s Vietnam.” I also sent a blimp to the campus of Microsoft with a message that said “Welcome”. I testified many times against Microsoft and its business practices. I did so as we continued to work with them as a supplier and as a distributor. AOL acquired Netscape and we again were in the world of Microsoft competition.

Microsoft is again everywhere. In 2006, it became deeply involved with AOL as it attempted to do a big strategic search deal for search-based services. It wanted to unseat Google. All I will say about the negotiations was that I remember saying to a senior Microsoft executive on a trip to Redmond who was negotiating in a tough manner, ”You can’t overpay for a deal with us. Don’t over think this. You will pay now or you will pay later.” Google eventually won the deal.

Microsoft then went on to make an investment into Facebook that valued a pre-revenue company at $15 billion. It did so to get a seat at the table in social networks and it created the new Facebook economy. Slide and RockYou can thank Microsoft for their deals. It also wanted to lock out Google from a search deal with Facebook.

It then made a $45 billion premium offer to acquire Yahoo. That bid was withdrawn yesterday.

Microsoft now has $45 billion burning a hole in its pocket. The face of the Web 2.0 industry will now be forever changed. Every company is awaiting a call from Microsoft. Yahoo’s stock was crushed yesterday. They over played their hand. They will do a business deal with Google. Microsoft will now roll up a bunch of smaller players to aggregate up technology, talent, unique visitors and revenues, and traffic to compete head on with Google who is now the clear winner in online and web services.

Thirty years with Microsoft front and center. What a long strange trip it has been.