Ozzie's New Groove

Many observers had speculated in the year since Microsoft bought Ozzie's Groove Networks that this was Gates' end game. Especially since the incumbent had developed an outsized outside interest in the philanthropic work of The Bill and Melinda Gates Foundation.

But Ozzie told CRN last Thursday that the Microsoft-Groove pact focused solely on bringing Groove to Office.

"We had been negotiating to sell Groove to Microsoft as far back as '03," he noted. Microsoft and Groove's collaboration strengths were complementary and different. Groove was better able to deal with secure cross-firewall work than SharePoint, and Microsoft saw the benefit.

"All of my passion was around the product. When I came on board, I negotiated with Bill and Steve [Ballmer]. The agreement was that Groove would be part of Microsoft Office. They also said, 'We want you to be a change agent here for the better and make sure the Groove acquisition is functional. Once the integration is more or less completed, why don't you recomment do us what you believe in," Ozzie said.

Gates started telling senior staff late last year that he was getting ready for the change and alerted the board in March. "That catalyzed the whole process," Ozzie said.

Ozzie's elevation makes sense. To many, he has the star power needed for the job, both in his tech knowledge and his public persona. Microsoft was already taking advantage of that.

As a former Lotus colleague once said, Ozzie is the "whole package." Articulate, photogenic, visionary.

Given his software IQ, the architect role is a fit. Speculation that Ozzie would become CEO (taking Ballmer's post) never made sense.

But contrarians say that Ozzie, who's the same age as Ballmer and Gates, is not the fresh new blood Microsoft needs. Their view is that Microsoft needs a transfusion, not a slow changing of the guard.

Ozzie and Steve Sinofsky—who moved to Windows in part to fix the process resulting in the Vista/Longhorn snafu—are now seen as saviors. Ironically, many see the Microsoft juggernaut as a company in need of saving. Ozzie and Sinofsky are smart, capable, motivated.

No pressure, guys.

How'll Ray do? Let me know at (781) 839-1223 or via e-mail at [email protected].