Ballmer, the Last of Tech’s Old Guard, Departs

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By Douglas A. McIntyre Updated Published
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Andy Grove, one of the founders of Intel Corp. (NASDAQ: INTC) and its greatest CEO has been gone since 1998. His company has fallen into deep decline as its place as engine of the PC has become irrelevant. John Young, Hewlett-Packard’s dominant CEO has been gone as long. None of the people from that generation of HP management would recognize the company today. Nor would the former heads of Intel competitor Advanced Micro Devices Inc. (NYSE: AMD) or long-gone Compaq or Gateway.

Steve Ballmer of Microsoft was younger than any of these, but he was in “senior management” at Microsoft in the Eighties and Nineties because his place at the top of the software company was cemented well before he was 30. And, of course, the same was true with Bill Gates who has been retired for a generation already, at least in tech years.

All of these departures have left only Ballmer and John Chambers of Cisco Systems Inc. (NASDAQ: CSCO) from the time before the tech industry stock boom of 1999 which collapsed and nearly burned the entire industry to the ground. Chambers has reached was could be called retirement age in the traditional sense, and will certainly be gone very soon. (Steve Jobs belongs on the list, too, He was less successful than Gates and Ballmer at first, and more successful later)

Ballmer, therefore, is last in his class, a fact that many employees and investors regret. But, all the regret can be measured against whether Gates of any Microsoft CEO would have seen the rise of devices no larger than a human hand slap down an industry which was as big and as important as any in the 20th Century. Microsoft’s decades of success simply blinded it.

Ballmer and Gates fancied themselves as founders of the internet, as well. To the extent that Windows was at the foundation of the computer, and Internet Explorer of access online, that was true. Legal forces in Europe took those tools away to a large extent. And, as per the internet, Microsoft never replaced them

However, Microsoft persisted to be a central force online. It funded MSN, and its own search tools, which went up against AOL (NYSE: AOL), whose founder Steve Case is long gone. Along with Case was there was Yahoo!”s (NASDAQ: YHOO) founder Jerry Yang the off and on leader until his refusal to accept Ballmer’s insistent efforts to buy the portal company injured him.

Not a single one of these companies saw Google (NASDAQ: GOOG) and Facebook (NASDAQ: FB) slip by them. That will be at the core of the blame leveled at Ballmer more than his failures in hardware (accept the remarkably successful XBox which Microsoft could not morph into a next generation online device) By the time search and social media were huge factors, Microsoft and the companies from its generation, which had survived the tech bubble, had been flanked by more popular products.

Ballmer will leave Microsoft, and along with that tech’s old guard will be almost gone. He will be several years short of sixty, retired at a time in his life when most CEOs have just been appointed.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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