The transition of power from Founder to Successor is never smooth. If there’s one company that planned it carefully and has been on the path of smooth execution, that’s Microsoft. Life-long friendship, 8-year-long transition - yet things got bumpy at times, especially in the early days. The Wall Street Journal runs a story with rare insight into some of the difficult times:

Things became so bitter that, on one occasion, Mr. Gates stormed out of a meeting in a huff after a shouting match in which Mr. Ballmer jumped to the defense of several colleagues…

The conflict between the two men paralyzed business-strategy decisions that the company still wrestles with today.

The two men clashed as Mr. Ballmer tried to assert himself in his new job. As the firm’s iconic leader, Mr. Gates still held sway that wasn’t tied to a title: In meetings Mr. Gates would interject with sarcasm, undermining Mr. Ballmer in front of other executives, Mr. Gates and other Microsoft executives say.

Two worked out their differences in 2001, when Founder Bill Gates realized he himself needed to change: having formally relinquished the CEO title to Steve Ballmer, he had to let him lead without constantly being challenged, overshadowed.

But let’s turn back to our angle here, how Microsoft could have been a very early SaaS pioneer:

In one case, two vice presidents clashed over the future of NetDocs, a promising effort to offer software programs such as word processing over the Internet. The issue: Because NetDocs risked cannibalizing sales of Microsoft’s cash-cow Office programs, some executives wanted NetDocs killed.

Messrs. Gates and Ballmer were unable to settle on a plan. First, NetDocs ballooned to a 400-person staff, then it got folded into the Office group in early 2001, where it died.

Fascinating. Eight years later web-based products still threaten to cannibalize Microsoft’s cash-cow, but they can no longer be ignored - largely because of Google and Zoho which now offer viable alternatives to users formerly “stuck” with Microsoft’s products. A costly debate, indeed.

Tags: bill gates, Google, microsoft, netdocs, SaaS, steve ballmer, web office, zoho

Just as soon as the Microsoft CEO started his speech at the Corvinus University (my Alma Mater), a protesting student wearing a “Microsoft=Corruption” shirt stood up and threw eggs at the Microsoft CEO. Not exactly a sign of the famous “Hungarian hospitality”.

(If your feed does not show embedded videos, please click through to watch it in the blog.  Update: Originally I had the index.hu video here, but as it started to slow down, I uloaded it to youtube and am now embedding the youtube version.  A day later this vid received over 223K views)

On second thought, perhaps it was fair enough. After all, his boss, Bill Gates received a full cream-pie in the face ten years ago in Belgium - Ballmer only got some of the ingredients.

Another ironic moment comes at 0:38m in the video: as other students stand up to give way to the departing egg-thrower, the camera closes in on one of them holding up his shiny Apple - and not the pie variety.

Update: The search is on for Ballmer’s replacement.

Another video from a different angle, and it ends with the Gates Pie Scene.

Update#2: OK, enough of the fun part. As the story circulates people start wondering what may be the background, and since the only sources are in Hungarian, here’s a summary of the circumstances:

A Hungarian Government bid, worth $25B Hungarian Forints, roughly $157M was allegedly skewed towards MS. (A ‘competitive’ bid with wording that all but ensures only Microsoft meets the requirements.) A Hungarian Watchdog Body (sort of like the FTC in the US) challenged the bidding process via the Court system, and a trial date was set for today. The trial was suddenly and unexpectedly rescheduled just as Ballmer arrived in Budapest. So there may be a perception of the Bully lobbying there.

That said, they could have protested with banners, without eggs. Or displaying more of those flashy Macbooks.

Tags: Apple, bill gates, budapes, egg-throwing, gates creampie, mac, microsoft, prank, protest, steve ballmer