Teddy Bear CEO
Much speculation about Eric Schmidt, CEO of Google, joining the Apple Board. Is an Apple-Google alliance to take on Microsoft? Or is it merely, nothing?
Let’s rewind the history channel a few years. Larry Page and Sergei Brin were “forced” to recruit an outside CEO for Google to ensure adult supervision for the then infant Google. Silicon Valley legend goes, Larry and Sergei decided upon a guy whom they could control. (Needless to say, I am not going to disclose sources!) Eric Schmidt stayed out of the limelight, let the two founders have their way, and enjoyed his Billions that were included as perks. Larry and Sergei turned out to be brilliant entrepreneurs, so no one complained.
Another story. What happens at the Apple Board Meetings? “What color is the next iPod going to be, Steve?” is the level of discussion. Steve Jobs doesn’t have any desire to be challenged by his Board, and in any case, has such a clear vision of where he wants to go, that the Board is constantly in awe of him. Eric Schmidt, who has so far been happy to be a wall-flower at Google, will probably be not much more at Apple.
Google and Apple are two companies run by their extremely competent and visionary Founders. All this speculation around Eric Schmidt, therefore, is unnecessary and redundant.
One-Two Punch: Google Apps; Google and Apple coming close together
The New York Times discusses the appointment of Google’s CEO Eric Schmidt to the board of directors of Apple, Inc. Google has many times in the past expressed little interest in competing with Microsoft but their release of office productivity software this week indicates a desire for them to develop a two-pronged assault on the Redmond-based company.
1. Google realizes that in the world of software, collaboration is the name of the game. Microsoft has a head start in that space and Bill Gates’ hand-picked successor Ray Ozzie was brought in to guarantee Microsoft’s dominance in that space. This period though is a migration period that allows new entrants an opportunity to steal market share.
2. Google is aware of Microsoft’s keen interest in video and music (Microsoft Zune) a market dominated by Apple. Schmidt’s arrival at the board of Apple may allow the two companies to join efforts and release together a new generation of entertainment appliances (iPod 2) with Google’s search and advertising capabilities, but most importantly, voice (over Google’s Wi-Fi networks as well as traditional cellular networks). That will be a preemptive coup against Microsoft, but also against traditional wireless carriers that are touting their cellphone’s music capabilities, the latest of which is LG’s Chocolate from Verizon Wireless.
I always wonder how a CEO of a publicly traded large company get time to be a board member of another big company. Do these guys make any useful contribution to corporate governance or are they just for name sake.
Mike, The answer is, they don’t. I mean, “real” CEOs who want to be “real” Board Members, by and large, don’t have time to do so. There was a time when Boards were largely vanity positions. It was possible then. Nowadays, increasingly, it is very difficult. Sramana