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How Apple eventually delivered on Gil Amelio's promise
Nobody really talks about Gil Amelio any more. Serving as CEO of Apple for just over a year, his tenure is overshadowed by the return of Steve Jobs and the eventual rise to greatness that the company is still enjoying today. But Gil Amelio was a smart man, and he identified a lot of what was wrong with Apple's game plan and message at the time, as is evident by this internal address that he put out just weeks after becoming CEO. Looking back, it's remarkable how accurate Amelio was regarding how Apple could get its groove back, and he paints a near perfect picture of the company Apple would later become, even without him at the helm. "We need to do some financial house cleaning, ridding ourself of some assets and infrastructure which just don't figure into our future game plan." That meant killing off a lot of the seemingly random product categories that Apple had begun to unsuccessfully dabble in. Jobs is often credited with actually delivering on this promise -- axing unpopular projects like the Pippin -- but it's clear that Amelio saw the problem and had at least partially begun the culling process. "The essence of our plan is simple: We're going back to our roots." Amelio certainly delivered on this, not only in terms of product focus but more literally by bringing back Steve Jobs... who would eventually lead a coup to oust him. "We think computer-based tools should be fun as well as fulfilling. This means we must put the customer -- the Apple user -- at the center of everything we do, and frankly, I think we've lost sight of that." Amen! Apple was at a strange crossroads in 1996. The company's scattershot approach was clearly a failure and a new direction was needed. The user-first model is something that Apple would eventually grasp on to and has yet to let it go. "We must simplify our line of products while differentiating them through innovation, deliver greater perceived customer value, increase the clarity and intensity of our marketing message, improve the value proposition for our family of third party developers, and simply and strengthen the organization while rebuilding many of our basic business processes." This reads like a list of things any current CEO could propose today if they wanted their company to be more like modern-day Apple. Apple knocked each and every one of these ideas out of the park. Today, Apple's product line is fairly simple but sets itself apart from the competition with unique features and overall quality, perceived customer value is what drives Apple's premium product pricing, its marketing is world class, third party developers flock to Apple's devices, and the company's business processes, while sometimes opaque, are serving it splendidly. "You will see a world full of graphics and visualization. You will also see new breakthroughs in the area of usability from Apple. Up until now, we've had to learn our computers. In the future, our computers are going to learn us." Is this man a psychic? Gil Amelio's days were numbered as soon as he completed the deal that brought Steve Jobs and NeXT into the fold, so his opportunity to deliver on these promises was practically non-existent. Despite this, everything about his vision for the future of Apple eventually came to fruition, and the company is now thriving. How much Amelio actually played a role in the turnaround can obviously be debated, but his eerily accurate predictions can't be denied.
Origin Stories: Steve Sande
I certainly didn't start my career with plans to become a blogger and editor at one of the world's most active Apple websites. When I was a child dreaming about a future career path, computer science barely registered on the "What I want to do when I grow up" list since only corporations owned room-sized mainframes at that time and there was no such thing as a home computer. The first time I had any physical contact with a computer was in 8th grade in Aurora, Colorado in the Apollo moon landing year of 1969. The Aurora Public Schools had purchased a Data General Nova (see console photo of a similar model at top of this post) in that year for accounting and scheduling purposes, and some brilliant person came up with the idea of buying some Teletypes that could be used as dialup terminals to allow personnel at the schools to access the main computer remotely. Well, the administrators and teachers at the school weren't all that interested in computers, so guess who started using the Teletypes and Nova to learn how to program in BASIC? The students. Since they wouldn't let us save our programs to paper tape (that would come in about two or three years), any programs we ran were usually quite short out of necessity – we'd type 'em in, run them, try to figure out what the TOO MANY NESTED GOSUBS error meant, and then start all over again. It was fun, but frustrating with no real way to store the programs permanently. In 9th and 10th grade, I was only able to play rarely with the Nova or whatever computer they may have purchased as an upgrade. But when the school announced in 11th grade that the regular algebra class would also be offered in a "computer algebra" version providing access to the school system's minicomputer, I jumped on the opportunity to have a full semester of working with ... the future! Things were a little better at that point. We could save our programs out on paper tape, kind of the "floppy disk" of the era. I think part of the reason we wanted to save to paper tape was that the tape punch created some very good confetti for high school football games... About this time I became very interested in two things; transportation engineering and writing. I had a wonderful high school English teacher by the name of David Faull (still alive and kicking) who really taught me how to write, something I'd need to do in college in those pesky elective courses. I had decided to go into Civil Engineering, and was accepted at the University of Colorado at Boulder. Every engineering student at the time had to take an introductory computer class – CS 101 – in which they were introduced to two things: punch card input and FORTRAN IV. There was nothing worse than sitting down at a keypunch machine with a handwritten FORTRAN coding form, typing in several hundred cards, all of which needed to be read by a machine in order and without typos for your program to run. I can recall hearing of several computer science grad students who had nearly committed suicide after having ultra-long programs scattered to the wind when they accidentally dropped boxes of punch cards... One of my best high school buddies, Rick Brownson, was a student at CU at the same time in the Electrical Engineering department, and I recall that in 1976 he introduced me to an amazing game –- Lunar Lander –- that displayed vector graphics in real time onto a round green-screen terminal. We wasted many a weekend hour playing that game in one of the EE computer labs. Rick also introduced me to the nascent world of personal computing around that time, as he and I soldered chips into a MITS Altair 8800 kit in late 1975. I really wasn't all that impressed with the Altair, since when we finished it there was no way for us to connect it to a display (usually an old TV), and we had no keyboard for it. So we flipped switches on the front of the device to enter 8080 opcodes and then looked at the LEDs to see the results. I remember taking a weekend drive to Albuquerque, New Mexico in 1976 to go to a Altair convention of some sorts; the highlight was getting a pirated copy of Bill Gates' Altair BASIC on paper tape from another attendee. At the time I graduated from engineering school in 1978, word was getting out about Apple, but at the time I really didn't see any reason to buy a computer. Even while I was working in my first job and going to grad school, I refused to buy a computer. When I was able to get a Commodore VIC-20 for about $300 I bought one, then when Commodore reduced the price on the C-64 to about $250 the next week, I returned the VIC-20, got a refund, and picked up a Commodore 64. After a short amount of time I found myself hooked. I bought an Epson printer, got the cassette tape drive, and bought the height of communications technology at the time – a 300 baud modem. I quickly found myself on some of the early bulletin board systems of the time. But the Commodore 64 wasn't a "real computer", so when IBM compatible devices started hitting the market I went out and bought a Sanyo MBC-555 PC clone complete with two floppy drives (a Sanyo MBC-550 with only one floppy is shown below)! This is where I got my first introduction to business software, with WordStar as a word processor and CalcStar as a spreadsheet. At this time, I was working for a natural gas pipeline company called WestGas. The company was a subsidiary of a larger electric and gas utility (Public Service Company of Colorado, now part of Xcel Energy), and as a subsidiary we had of control over our destiny. In the fall of 1983, the Vice President of our company came to me to see if I would perform a study of possible uses for personal computers in our company and create a five-year plan to budget the introduction of those devices, so I jumped to the task. Everything was based on costs and benefits, and a calculated rate of return on the investment in IT. In retrospect, a lot of my numbers were probably quite suspect, as they were based on estimates of time savings that most likely never occurred... The final study saw a need for no more than about 15 PCs over the next five years as well as a handful of dedicated IBM DisplayWriter word processors. About the time that my study was completed, there was a lot of speculation in the computer world about Apple's forthcoming Macintosh. I was interested in seeing one, so a few days after they were introduced my boss and I went over to a Nynex Business Center store to take a look. While the mouse, the bitmapped display, and the 3.5" floppy drive were all amazing, the lack of memory (128K) was a real turnoff. Still, I felt as if I had seen the future, and I vowed to get myself a Mac if they ever built a model with more RAM. Towards the end of the year Apple introduced the 512K "Fat Mac", and the company was doing a "Test Drive A Mac" promotion where you filled out loan paperwork, took a Mac home to use for about three days, and if you decided you wanted to keep it they processed the loan. Having the Mac at home really made me fall in love with it, so in December of 1984 I bought my first Mac. Being enthralled with the Mac, I started lugging it with me to work. By this point I was the supervisor of a group called "Special Projects", and my team was charged with a number of things: regulatory compliance, studies, project management, and now IT. Pretty quickly, my co-workers got began to turn into Mac fans, and I started tweaking the five year plan to buy fewer PCs and more Macs. I was also going to a lot of Mac User Group meetings in those days; that was the place to really try out software, as most everyone would bring boxes of floppies as well as the original disks for new applications they had purchased. Copying was rampant, but I don't remember anyone doing outright pirating; if you tried a program and liked it, you'd end up buying it. That was the case for me in 1985 when I tried out a copy of Aldus Pagemaker (the first "professional" page layout application) and then bought the application. At one point, I bragged to our financial manager that I could use the app to lay out our subsidiary's annual report at a much lower cost than sending it out to a traditional printshop; he called my bluff and for the next month I worked with the very buggy 1.0 software to create the report. In the end, I was successful and the finance department decided to get Macs for everyone. In a few more years, the engineering role ended for me and I was a full-time IT manager. Starting in 1987 and through 1994, I attended Macworld Expo in San Francisco. From about 1990 to 1994, I also went to the Apple WorldWide Developer Conference, which was held in San Jose at that point. These were the years of trying to get a new Mac OS off the ground, the intro of the Newton MessagePad, the MPW vs. CodeWarrior battles, and extremely boring keynotes by such luminaries as Michael Spindler and Gil Amelio. I also spent a lot of time using Pagemaker to create printed newsletters for WestGas and for a number of groups I was a member of. While that was a bit of work that I never really ended up getting paid for, it taught me a lot about design, layout, printing, and writing. From 1986 to 1994, I also ran a Mac bulletin board system known as MAGIC (Mac And [Apple II] GS Information Center). This started off on my original Mac 512, and by the time I quit running the BBS and moved to a website, it was a three-phone-line setup running on two networked Macs Including my favorite Mac of all time, a Mac IIcx. The BBS was the "official site" for the MacinTech Users Group, a MUG that's still going strong to this day. My first website was PDAntic.com, a play on John Sculley's acronym for the Newton – Personal Digital Assistant – and the fact that my wife often refers to me as being pedantic. I chose to run the site with news posts written in a reverse chronological order, which means that I was essentially doing blogging in 1994! I was doing some half-hearted development for the Newton at the time, and still have a working MessagePad 2100. 1995 was the start of a bad period for me personally – our pipeline company was swallowed back into our parent company, and then all of us who had any dealings in information technology were outsourced to IBM's ISSC services group (later IBM Global Services). While I won't go into details, it was the worst part of my career, with incompetent and occasionally unethical managers, a strategy that consisted of trying to do more and more work with fewer employees (with predictable bad results), and the most demoralized staff I've ever seen. I survived for nine years, after which I chose to go out on my own. At the beginning of my time with IBM our client (the company I worked for) had a total of over 1,200 Macs company-wide; by the time I left we were down to a handful in the corporate communications department. One of my first IBM projects in 1996 was to move all of the Mac users to Windows 95 –- I should have quit when I was ordered to do that. One bright spot during the years 1999 through 2006 was my participation in a number of Microsoft's Mobius conferences. These were meetings of those of us who ran mobile-oriented websites, with Microsoft showing off concepts and picking our brains for ideas about UI, built-in applications, and the direction of the mobile world. I also met a number of the top bloggers in the mobile space, including Ryan Block and Peter Rojas, who were both instrumental in starting up Engadget. Peter was one of the co-founders of Weblogs, Inc., the blog network that TUAW was a part of before being purchased by our current owner -- AOL. In 2005 I started my own consulting firm, Raven Solutions, to do Mac consulting and support. I became a member of the Apple Consultant Network (ACN), which helped my business to grow quite quickly. I also started writing books at about this time, creating a book called "Take Control of your iPod: Beyond the Music" that is still for sale from Adam and Tonya Engst's Take Control Books. One top moment about this time was seeing Steve Jobs introduce the iPhone at the 2007 Macworld Expo. That was something I'll never forget, and I have a Nitrozac painting of the event within my field of view in my office. In late 2007 I was on a weekend trip to Vegas with my wife when a friend pointed out that one of my favorite Apple sites –- TUAW –- was accepting applications for freelance writers. I turned in my requisite three sample articles, but didn't hear anything ... until April of 2008. I was on a business trip when I received a call from former TUAWite Scott McNulty, who wondered if I was still interested in being a TUAW blogger. He gave me a test that I remember quite well; I had one hour (sitting in an airport waiting for a flight) to write a news post about a new and completely hypothetical Apple product. I zapped it to him via email with time to spare and was offered the job. Since that time I've become a full-time employee of TUAW parent company AOL, I've met thousands of TUAW readers at Macworld/iWorld and other events, written a number of books (many with fellow TUAW blogger Erica Sadun), and published almost 1.8 million words of blog posts. I love sharing time with TUAW fans every Wednesday afternoon on TUAW TV Live, as well as delivering the daily Apple news on the Daily Update podcast. And when I get to join with my teammates for one of the Sunday night Talkcasts, that's like getting together with family. The only way to describe my life right now is as "blessed." I work with a great team of professionals doing what I love to do the most, writing about a company that has had such a huge effect on the course of my career and my life. I don't know how long this ride will last, but I sincerely hope it's for a long, long time.
On this day in 1996, Apple acquired NeXT (Updated)
Updated to clarify that 10.0 was the first official client version of Mac OS X, and that Mac OS X Server shipped prior to its release. On this day, December 20, just fifteen years ago, Apple paid $400 million to purchase NeXT. That's the move that brought Steve Jobs back to the company he helped to found, and it was the beginning of the incredible run of success that continues to this day. According to CNET's coverage on that day, the company was shopping for an operating system to replace the aging Mac OS. It had recently abandoned the Copland system project and was negotiating with Be and other companies. With the purchase of NeXT, Apple bought the core of what is now Mac OS X. It also gained WebObjects, the powerful Web app development tool that had been licensed to 275 corporate customers by the time of the sale to Apple. In addition to WebObjects, Apple also gained the powerful programming environment known as OpenStep. That was the core of the NeXTSTEP operating system, and is the heart of what became Cocoa for Mac OS applications. In fact, Cocoa classes start with the acronym NS, which stands for either the NeXT-Sun creation of OpenStep or for NeXTSTEP. In retrospect, it's humorous to look at then-chairman and CEO Gil Amelio's comment that "Apple expects to ship products with the NeXT operating system in 1997." The client version of Mac OS X didn't actually ship in a non-beta version until 10.0 "Cheetah" hit the market on March 24, 2001. Mac OS X Server 1.0 shipped in March of 1999, but it wasn't really recognizable as the Mac OS X we know today; it was a hybrid of NeXTSTEP UI elements and Mac concepts, and lacked the Carbon APIs. That $400 million dollar investment paid off in spades for Apple, both in the technology that it acquired and in bringing back Steve Jobs to save the company. It's hard to believe that everything that's happened in Apple's modern era started just 15 years ago, but it's true: OS X, and eventually the iPod, the iPhone, and the iPad were all made possible by Apple's purchase of NeXT, and Steve Jobs' return to his company.
The bright side of owning a Mac
This morning when my alarm clock went off (playing some Harold Budd) I was reminded how things have changed over the years for Mac users.My alarm clock is a Logitech Squeezebox Boom, a well reviewed product that will wirelessly stream your iTunes playlists, give you access to thousands of internet radio stations, wakes you up, puts you to sleep, and does it with good quality audio. It's basically a Squeezebox with speakers in a clock radio form factor. It has an extensive feature set, and like other Squeezebox products, can be controlled or re-programmed from Safari or Firefox from anywhere in my house.Not too many years ago, a cool new product would come out, and the chances of it working with a Mac was pretty slim. In the mid nineties, when Michael Spindler, Gil Amelio and friends just about destroyed Apple, we Mac owners were pretty much on our own.Now, companies are falling all over themselves to make nice with Macs, iPods and iPhones. Walk into any electronics store, or even a department store, and marvel at the gaggle of products that boast about how compatible they are with Apple. Long time owners of Macs will remember those dark days when nothing mated to an Apple product other than a SCSI drive.While new owners of Apple products take this interoperability for granted, it wasn't always that way. Since we're talking about Logitech, take a deep look into its catalog. Mice, Harmony remotes, webcams, keyboards and of course the Squeezebox are almost universally friendly to Apple products. Many other companies are also on board. Even some of the Microsoft keyboards and mice advertise Mac compatibility. What's this world coming to? How about you? Do you remember the days of near-zero compatibility? Are you thrilled about how things have opened up? Think there is still a long way to go?
TUAW 1996
Welcome to the TUAW newsletter for April 1st 1996. We're really glad that our subscriber base is growing, and that you are continuing to read our daily coverage of all things Apple, including Mac and Newton. We've got a lot in store for this issue, and would love to hear your comments back, so be sure to leave us a note in the attached forum thread to let us know how you liked it.Happy Birthday, Apple!Yes, today Apple turned 20 years old. While the company has been struggling for the past year, we can only hope that a turnaround is imminent. We've definitely seen some improvements, like that shiny new Newton MessagePad 130 that Apple released a few weeks ago, but we can't help but think that Apple is missing something. Either way, Apple is still an innovative company that holds true to their slogan of bringing "The Power to Be Your Best" to the consumer and professionals that rely on their products everyday. Rumor Alert: Is Apple working on a new OS?Our sources familiar with Apple's plans tell us that Apple is actively working on a project that will eventually replace the Mac OS. According to insiders, the code name for the project is Copland. We're also hearing word that Copland will feature amazing new features like protected memory, better performance, less crashes, and be completely PowerPC native. Becoming PowerPC native will be a huge issue as the PowerPC Macs only started shipping two years ago. Apple's CEO stepping down? Who's stepping up?We've recently heard that Apple's board of directors have replaced CEO Michael Spindler with Gil Amelio. From sources, we've heard that Apple will begin a massive layoff of employees -- not good for the company. Here's hoping Gil can turn the ship around. Apple releases update to Newton MessagePadJust a couple weeks ago Apple released a new MessagePad that looks promising. The MessagePad 130 features an ARM 610 processor that runs at 20Mhz, an 8MB ROM, 1.2MB RAM, and 1.5MB flash memory for storage. There is the same 320x240 screen that we've come to love on these portable wonders, and there is a backlight included on this model. It runs the 2.0 version of the Newton OS, which has been available on the MessagePad 120 since last year. The device is powered by 4 AA batteries (or a rechargeable pack), and only weighs 1 pound! This device looks promising and we can't wait to get our hands on it. You can get your MessagePad for $800USD. **For more Apple news, be sure to sign up for The Unofficial Apple Webmailer available on TUAW.com, or you can see more Apple news on their website.**
Why is everyone picking on Apple?
A spate of bad news surrounding Mobile Me and iPhone 3G quality problems paired with renewed vigor from competitors Microsoft, Dell, and Nokia has Apple running out of slack from the normally fawning press (TUAW certainly not withstanding). Forbes has a story about why Apple seems to have lost its luster recently. The New York Times is waxing nostalgic with a retrospective article titled Apple Imperfect. The National Post cites TechCrunch's Michael Arrington saying Apple is "rotting" and "flailing badly at the edges." Consider the parable of the friend. Say you have a good friend, who's trustworthy, reliable and generally happy to be around you. If that friend suddenly isn't glad to see you anymore, swears at the elderly and starts drinking cheap bourbon from a hip flask in meetings, you'd say something, right? At least you'd worry that your friend was on the wrong path. That's where we find Apple today: A friend on the wrong path. Many have noted that a lack of transparency in admitting its mistakes is hurting its credibility. The fact that it's making mistakes in the first place is generally forgivable, but we've been spoiled by Apple's pristine track record of consistently delivering quality. As consumers, we want the quality back. If anything, our expectations are even higher now to properly correct the various perceived injustices we've suffered. Taking the long view, Apple will pull out of its funk. Knowing Steve Jobs, it will do so in a spectacular fashion, too, with new products, product improvements, or both. Apple isn't suffering from a lack of talent or innovation. It's suffering from management problems that any company of its size faces on a daily basis: scheduling new products, preventing employee burnout, and managing logistics. We're nowhere near Apple's nadir under Gil Amelio, over a decade ago. In fact, investors don't seem to be fazed at all, with stock prices rebounding to their levels in May. Apple may already be back.
