Microsoft’s Top Technologist Steps Down

When Steve Johnson sent the manuscript of his book “Where Good Ideas Come From” to Ray Ozzie for comment, Microsoft’s top software architect, gave an interesting response. There are two kinds of innovation, Ozzie wrote, as Johnson recalled recently. One kind of innovation, the kind Johnson wrote about in his book, was applicable to emerging technologies. But there is another kind of technology, Ozzie wrote, which has more to do with solving problems.

Solving problems is what Ozzie has been trying to do at Microsoft for the past five years. And apparently, he’s had enough of it. Microsoft CEO Steve Ballmer sent an email letter to employees today announcing that Ray Ozzie, who was appointed chief software architect in 2006 when Bill Gates retired, will now be stepping down from that role. Its the latest of several significant departures including the recent loss of Robbie Bach, who built up Microsofts successful XBox franchise.

This just shows that Bill (Gates) is irreplaceable, said Wes Miller an analyst at Directions on Microsoft, a Kirkland-based research organization. Although Ozzie played a key role in the creation of Azure, Microsofts cloud platform, an achievement for which Ballmer praised Ozzie, Miller says Ozzie was less successful in coordinating the many divisions of Microsoft in a way that allowed Microsoft to move more aggressively in other important markets.

Ballmer says he will not replace Ozzie with another top technology executive. That could be a problem for Microsoft, says Miller. If you look at Bill, he ran aggressive meetings, says Miller. He was personally invested in what you were doing. Steve does not seem to have that same personal investment. This is a big risk. It will be interesting to see how Wall Street reacts.”

The news came on an afternoon when Apple announced a blow out quarter in which it made $4.3 billion in profits on $20.3 billion in revenues. At a time when Microsoft just launched its Windows 7 mobile software, Apple said sales of its iPhones in the quarter ended September 25 climbed 91 percent to 14.1 million.

Apple also announced that it sold 4.2 million iPads. The success of the iPad presents a major challenge to Windows and Office, the two products that generate the bulk of Microsoft’s revenues.