Software, charity drive info-tech visionary

Bill Gates, chairman and co-founder of Microsoft Corp., shared his views on a wide range of issues-- from his vision of an information society to his passions about philanthropy and science education--in an exclusive interview with The Asahi Shimbun on Wednesday. Following are excerpts:

Bill Gates, pictured Wednesday, says he plans to make more trips to Japan. (MASARU KOMIYAJI/ THE ASAHI SHIMBUN)

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Competition in Internet business

Question: Why did Microsoft need to acquire Yahoo?

Answer: We didn't need to. We thought the combination would accelerate some of our mutual goals.

Most of Microsoft's success has been based on hiring smart software developers and doing software built internally. We have some incredible people working on (Internet) search.

It's pretty rare when people underestimate Microsoft, but I think in some of these online things, we are viewed as kind of an underdog. It's kind of nice in a way. I think we will surprise people quite a bit.

Q: Did Microsoft want Yahoo's talented people?

A: No. As I said, we didn't need to (acquire Yahoo). We thought it would help our mutual objectives. We have no problem hiring tons of smart people.

Yes, Yahoo has good people, and that's a nice asset. But we have an incredible team working on these and many other problems.

Q: In interviews with U.S. media, Jerry Yang, Yahoo's chief executive, said he is more than willing to listen if Microsoft has anything new to say. Do you have intention of reconsidering?

A: I've said everything I want to say on this topic. You should go with what (Microsoft Chief Executive) Steve (Ballmer) said.

Q: How do you see Google as a competitor?

A: The overlap between Google's product line and ours is very narrow. That's not to take away from the fact that they're very popular in search. They've done a good job.

If you look at IBM or Oracle, you'd see a much bigger overlap in terms of things we do.

The majority of the computing industry is about business computing, about how people get their job done, and PCs are high-volume products in business computing.

If you look at our core products (such as the Windows operating systems and the Office application software package), there is not so much overlap between us and that particular company.

Q: Google is offering a free word processor over the Internet.

A: There has been a ton of free word processors and free spreadsheets. That was news about 20 years ago.

I'm not trying to minimize Google, but you should write down all our competitors and look at what they do and what we do, and not overemphasize one.

When people said Netscape (Communications) would put Microsoft out of business, what's the follow-up on that? (They said) Sun (Microsystems) would put Microsoft out of business. (Microsoft also competed with) Ashton-Tate and Novel. These were great companies.

Q: How can you compete with Google?

A: By having a better search. That would be an idea. However you do it, we'll be innovating in bringing new things. It's like somebody says, 'How can you compete with a word processor? How can you compete with a videogame?'

The customers are the ones who are going to decide. Fortunately, what's there today is not the final thing. I think there will be competition and innovation, and we'll just see.

Q: Do you plan to team up with other companies to strengthen your online business?

A: At this point, we're doing what we always do--hiring great software people and working in a broad range of software areas. That's how we built our success as a company.

(Time Warner's) AOL doesn't compete with Google. It uses Google search. AOL is in a different business than Google.

Future of information society

Q: You presented the future of information technology in "The Road Ahead," a 1995 book. What will be the next road ahead?

A: If you go back and look at that book, I think the predictions, many of them, have proven to be correct. But there are some things that are not realized yet.

The idea of digital wallet is only partially realized. Japan is probably as advanced as any country. But even here, you still have a lot of paper currency.

I also talked about computers in education--getting rid of paper textbooks and doing things online.

Although we have several thousands of pilot schools around the world where kids are using portable computers, that is not still kind of a standard idea.

The actual use of computers in high school here in Japan is still pretty limited.

And it's going to take some improvement, really encouraging people to make those investments before we see the big impact on education.

I'm sure if I look carefully, there are some things that I got wrong (in the book).

But the fundamental idea--empowerment and digitization of everything--we are moving there.

Q: In a speech at the Consumer Electronics Show, you said three things hold the key for the next digital decade, including a natural user interface. What is your vision?

A: I also talked about natural interface in the book. But today, it's even clear how we can teach the computers to see where you are touching, on a tablet or surface.

Q: If natural interface becomes common, we will not need the keyboard in 10 years?

A: It's less about eliminating the keyboard than about complementing the keyboard.

In things like writing a school paper and filling out a form, you will keep using the keyboard.

But for a lot of things, such as organizing your family photos, just pointing and touching is very simple.

I'm not against the keyboard. I'm just for bringing in the pen, touch and speech (recognition) to complement what we have with the keyboard.

Q: Is Microsoft planning to release a new version of Windows, code-named Windows 7, in two to three years?

A: I wasn't saying anything about the date at all. I've said that typically, we come out with releases in two to three years.

Q: What types of new functions can consumers expect?

A: For example, if you have a phone and a Windows PC, you would like them to be able to work together. If you want to synchronize information or transfer a call, we have interesting ideas about how they work to come together.

(We are also) doing things about reducing the power usage and making it better for people who want to write games.

To a new platform

Q: How will your life change in July when you depart from Microsoft's day-to-day operations and focus on philanthropy as full-time chairman at the Bill & Melinda Gates Foundation?

A: I will be meeting up with scientists who are working on AIDS and malaria. I will be learning about the conditions in poor countries and the challenges of delivering solutions in those countries.

Q: Currently, about 90 percent of your time is for Microsoft and 10 percent for the foundation. Will it be the other way around?

A: Now, I have a full-time Microsoft job that's well more than 40 hours a week. I still manage to squeeze in time to do some foundation work, read and (do) things like that.

When I switch, I'll have a pretty busy foundation schedule, but I'll have days that I go out to Microsoft and give advice to people. Steve will pick projects that he particularly wants me to focus on.

I am probably going from 80-20 to 20-80, but that is maybe out of a 60-hour pie in total.

Q: What was the biggest factor in your decision to change your role?

A: I always knew that when I was older, making sure that the money that I have been lucky enough to have because of the success of Microsoft, that I give that back to society in the best way possible.

I wanted to do that at a time when I am very energetic and able to travel and work as hard as I have in my software work.

Q: A corporate executive donating personal fortune to charity is still rare in Japan and even in the United States.

A: Well, I hope it becomes more common. I don't think having children have some huge wealth independent of the work they've done is good for them or for society.

It turns out that (with) the diseases of the poorest, there was almost no investment being made. The chance of doing something dramatic over the next decade, I think, is very large.

So we've taken that vacuum and stepped into it and encouraged other philanthropists and rich governments to do more as well.

Q: Are you sad about changing your role?

A: I certainly love my software work, but I also love my work on the foundation.

If there is anyone who doesn't have anything to feel sad about, it's me. Most people don't have one amazing job they love. (But) I have two that I love.

Q: Is there a plan for your foundation to work with the Japanese government?

A: We are interested in working with the Japanese government on any new initiatives in terms of ODA or grants, particularly in health.

I'll be making other trips to Japan more focused on the foundation to talk about whatever increases they are making.

(I will be) talking to various companies on what we can do with them and maybe (with) some rich individuals.

With Japan, having the second biggest economy in the world, people are looking to an example to be set.

A next Bill Gates?

Q: It is sometimes said we have not been able to create a Bill Gates in Japan because of our education system, which strives to nurture average people.

A: I think broad statements like that are a little dangerous. Every country should want to improve its education system--teach more and excite the students more.

If you look at someone like (ASCII Corp. founder) Kazuhiko Nishi or (Softbank Corp. founder) Masayoshi Son, these people aren't any different than I am in loving software and in being willing to take a risk.

Q: What do you think made you become the leader of the information technology society?

A: I was very lucky in a lot of things, including being encouraged to read and I loved math.

When I was young, they didn't think I had to go to math class. They told me to mess around with the computer, and I fell in love with that.

My parents taught me about business. Meeting (Microsoft co-founder) Paul Allen was a key thing, and (so was) the early experience we had at being exposed to computers.

Every step (was) built onto the previous one. All the pieces came together.

Q: How would you respond to a question by mothers, "How can we create creative people like Bill Gates?"

A: I think kids should go into science--basically math, engineering and science.

Because if you want to change the world and have a fun job, science is where it is.

If you want to cure cancer, make new robots or videogames, or change how education is done, you need to be in computer science or classic engineering, or one of the pure sciences.

Q: Will your children go into the science field?

A: I'm exposing all of them, both my daughters and my son, to the excitement of science. I hope it catches on with them.

I'm not going to force something because at the end of the day, you work on what you're passionate about.

My parents didn't actually push me into science. They were not trying to push me into any direction.

Q: In Japan, many entrepreneurs sprung up during an Internet bubble. But after the arrest of one famous entrepreneur, Livedoor Co. founder Takafumi Horie, there are fewer energetic start-ups and the enthusiasm has gone. What is your message to the younger generation?

A: I think there may have been too many (start-ups) worldwide because investors were being a little bit too easy with the investment dollars.

But the average quality of start-ups in Japan and the United States is now much higher than in that crazy period.

So who knows what will come out of new software companies or biotech companies? I think there are some neat companies out there all over the world.

The failure rate will be very high, but some of the breakthroughs will come out of that.

People should work on whatever is exciting for them. There are clearly some big frontiers out there. (In) biology and information technology, a lot (has) yet to be done.(IHT/Asahi: May 9,2008)