No, it’s not about technology

Negotiation ploy or not, these kind of statements by Microsoft’s Steve Balmer don’t give me much confidence in Microsoft’s ability to execute on its ambition to conquer the advertising business:

‘However, he adds that, in contrast to the aQuantive deal, there is little in the way of underlying technology to justify the lofty valuation attached to Facebook. “There can’t be any more deep technology in FaceBook than what dozens of people could write in a couple of years,” he says.’

Duh. Of course it’s not about technology. And that point is well made by Hugh Macleod:

Which is why I’m fond of saying, the future of Microsoft lies squarely in how they talk to people. That’s me thinking as a marketer, a “culturalist”, not as a techie. i.e. If “markets are conversations”, then yeah, how you talk to people is the DNA of marketing. N.B. Unlike some of the stuff going on in Redmond, none of this is rocket science. Which may explain why Redmond seems to have so much trouble grasping this.’

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