After leaving his daily job at Microsoft, Bill Gates has chosen to leave his legacy in a manner similar to many industrial moguls. Names like Carnegie, Getty, and Rockefeller are now more associated with philanthropy than the industries they once pioneered.
In the coming two years, Gates will shift his focus from corporate leadership to the Bill & Melinda Gates Foundation, the charitable organization he co-founded with his wife in 1994.
“When you’re the richest man in the world, how do you measure your success?” asked Mark Stephens, a technology author known by the pseudonym Robert X. Cringely. “Winning a Nobel Peace Prize. He once told friends that was his goal.”
Gates remains the chairman of the software company he founded, which has grown to become a global software giant. The Windows operating system now runs on the majority of computers worldwide. This success has elevated Gates to the status of the richest man in the world, with an estimated fortune of $50 billion.
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The shadow of Bill Gates is cast on the Microsoft logo during a press conference. Photo: AFP |
However, in recent years, he has increasingly focused his attention on the Gates Foundation. The foundation has spent $10 billion on initiatives targeting education reform, AIDS, and malaria. It has a total budget exceeding $29 billion, outpacing even the World Health Organization in expenditures.
The announcement of Gates stepping back comes at a time when Microsoft is struggling to maintain its competitive edge. The importance of PC-based software is diminishing in the face of the growing impact of web applications. Microsoft’s central position in the computing world is under intense attack from Internet companies like Google Inc. and Yahoo Inc.
Gates began to gradually transfer power at Microsoft starting in 2000, when he appointed Steve Ballmer as CEO amidst escalating legal battles between the company and the U.S. Department of Justice. In that conflict, Gates was often viewed as an unyielding monopolist. Promoting Ballmer was seen as a way to present a softer image of Microsoft to the public.
Last Thursday’s decision marks a much deeper change, according to Mark Stahlman, a technology strategy analyst at Hedgerow Partners.
“This reflects the reality that Gates can no longer single-handedly manage all the changes occurring in the information technology sector,” Stahlman stated. “He is sidelined due to the lawsuit and now has to rely on others. At this point, what matters is that what he’s saying – dedicating his wealth – is generating positive momentum for the company.”
This withdrawal paves the way for a significant reshuffling at Microsoft’s upper echelons.
The role of Chief Software Architect will be taken over by Ray Ozzie, 50, the creator of Lotus Notes, who joined Microsoft after the company acquired his first firm, Groove Networks, last year. Chief Technical Officer Craig Mundie will take over research and strategy, while General Counsel Brad Smith will handle copyright and technology policy.
“In some respects, what’s most important today is not Bill Gates but the rise of others into senior technological and strategic positions,” Stahlman noted.
However, some observers argue that Microsoft’s need for three successors to perform Gates’ previous roles illustrates just how significant his influence is within the company.
“There are many companies that do not depend on a single individual, but in many ways, Microsoft is one of them,” said Michael Cohen, research director at Pacific American Securities. “I think he could be replaced in terms of technology, but not in terms of business strategy.
If Gates remained chairman and worked at the company part-time, Microsoft would benefit from his wisdom in marrying business strategy with technology.”
This change may allow Gates more time to focus on his role as the world’s most influential philanthropist through the charity funded by his Microsoft stock. He and his wife have traveled around the globe, visiting slums in India and remote villages in Africa.
“For a long time, he said he would invest money smartly to create jobs to recoup funds,” said Greg DeMichillie, an analyst at Directions on Microsoft – an independent research agency in Washington state. “His shift to charity work makes sense.”
The Gates Foundation has taken the lead in combating diseases that afflict millions around the world, including malaria, tuberculosis, and AIDS. Gates is passionate about understanding the complex causes of these diseases and engages in discussions with researchers and policymakers.
“Clearly, he finds the issues the charity needs to tackle just as interesting and complicated as those he faced while leading Microsoft,” remarked Ian Wilhelm, a veteran reporter for the Chronicle of Philanthropy.
Some comment that Gates embodies the style of a free-market capitalist, sharing personality traits with oil magnate John D. Rockefeller.
Gates has announced that he plans to take a seven-week vacation this summer. This will be the first time Gates allows himself a break longer than two weeks since founding Microsoft. During that time, Gates will participate in a government leadership forum in Africa.
Observers predict that Gates will gradually shift his focus and competitive energy away from Microsoft and towards addressing global issues.
“Look at Microsoft’s struggles over the past two years. The little rabbit Google is tightening its noose around this company,” said Paul Saffo, director of the Institute for the Future in Palo Alto, California. “Bill needs to quietly transition to something else. He doesn’t need to keep an eye on whether Google will take his place in the world of philanthropic charity.”
Gates has stated he will dedicate more time, not more Microsoft shares, to his new goals.
“I always view myself as the largest shareholder of Microsoft,” he remarked. “And I take pride in that.”
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