Ballmer tells Oz: get with the broadband

Microsoft's CEO Steve Ballmer yesterday tip-toed around Australia's broadband debate but said that if the country was to engage in cloud computing business that telcos and the government needed to 'get on with' delivering high speed broadband — at a fair price.

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Microsoft CEO Steve Ballmer
(Credit: Microsoft)

For the full video of Ballmer's Sydney speech click here.

Just hours after joining Telstra's CEO Sol Trujillo on stage for the telco's investor day at the Sydney Hilton, Ballmer gave a second talk to over 1,000 Australian developers at Microsoft's Liberation Day at the Sydney Convention Centre.

During the Q & A session after Ballmer's lively speech, a student developer asked Ballmer how Australia was supposed to participate in cloud computing initiatives, such as Microsoft's Azure — a version of Windows for developers that runs over the internet — when Australia lacked fast broadband.

"Well... Let me try it this way," Ballmer said. "One of the things that's probably important for all of us to agree on before I get myself in trouble, which I will do before I'm done: at the end of the day, the world is going to move to a world of cloud, server and device. But it's not going to move in two months," he said.

"Now, with that said," he continued. "What's the best thing in the world? The best thing in the world is to be in a place where you can get high, high, high speed broadband at a... at a fair price. And be able to do that in a way that allows you to be either fixed or mobile."

Ballmer went on to applaud Telstra's announcement earlier in the day that it would deliver 21Mbps wireless speeds. "Hey, that's world leading, on a global scale, to be moving ahead with high speed mobile. I think that's fantastic," he said.

However, he admitted that the intensity of the broadband debate in Australia like nothing else he had seen in the world.

"I gather there's a whole big debate between government, telecoms, blah, blah, blah. I hear about it more in Australia than in any other place in the world and rather than put my foot deep in the political mud around that topic, I'll just give encouragement to who wants to listen: whatever needs to happen to allow this to move forward in Australia, it's time get on with it," he said.

The developers applauded and cheered at Ballmer's comments.

"The world is moving to a world of broadband cloud based computing," he said. "I'm sure that between Telstra and their competitors, and the government, I'm sure it will get worked out. Let's all hope that it's real soon," he said.

Developers ask Ballmer for iPhone, Facebook cash code

Ballmer also answered another developer who had aired his question to ZDNet.com.au earlier this week.

Sydney-based Silverlight and Adobe Flex/AIR developer Jose Fajardo had asked Ballmer whether Microsoft would introduce similar financial models to developers to that for Facebook or Apple's iPhone. Each company allows developers to distribute applications to a broader audience by utilising the web for exposure, distribution and sales — a move that Microsoft has yet to make.

"Making money is a very good thing. I think everybody likes the idea of making money. Now, it turns out that some of the competitive opportunities that the questioner mentioned — I don't think anybody's making money," he said.

"But I actually will agree that there's some good work we see, particularly at Facebook and also with the iPhone, where both of these companies have made it easier to distribute their applications," he said.

"It's not any easier than freeware but it is actually easier to get exposure for your application. Now there's not much money being made, but the general concept of giving developers a way of not only getting their code distributed but to get visibility for their code," he said.

Ballmer said Microsoft had debated long and hard prior to its Professional Developers Conference in Los Angeles earlier this month whether it should disclose its plans in the area.

"We decided the answer was 'not ready to talk about those yet'. But fear not, we're hard at work, we do see some benefits in some of the concepts, particularly in Facebook," he said.

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Talkback 32 comments

    Naught Naughty Anonymous -- 07/11/08

    Ballmer was in quite a spot, wasnt he? It is difficult to express your feelings regarding the topic, when your mate across the road is trying to increase prices and kill competition, but he did his best. We agree with you Steve, it is time to get on with building a national broadband network for the people of Australia, to offer them world class bandwidth, quota's and prices. Hear hear!

    Agreed Anonymous -- 07/11/08 (in reply to #320115740)

    "building a national broadband network for the people of Australia"

    I couldn't agree more. I hope the NBN is build with the people of Australia in mind, not the Telstra Shareholders (which sadly includes myself)...

    *GASP*! dave -- 07/11/08 (in reply to #320115744)

    its okay anoymous, your already on the 1st step to recovery, admitting the problem... telstra shares... rofl, might be good to have a few shares though, as a telstra basher, if i had the spare cash I sure would like a few 1000 telstra shares, you know, try and sway the company to a more...nicer, business model

    Greed! Sydney Lawrence -- 07/11/08 (in reply to #320115748)

    While i think it would be obvious to everyone here i feel that i must point out your obvious exterior motives... I personally think you would have telstra shares for the knowledge that for once you'd be helping australia instead of your foregein masters bloptus, but alas they dont payyou to write that do they? so instead you try to hide behind your desire to help tesltra by deriding it, its alright, telstra is strong enough to go on without you...

    Telstra epitomizes greed Anonymous -- 07/11/08 (in reply to #320115752)

    Calling names now Mr Lawrence? True professional. Can you explain how Telstra is helping Australia, because they appear to be in court fighting the Government, whom is using our tax dollars to defend their rulings. It is a sad state of affairs really. The people pay Telstra, the people pay tax, and they then square off. Isnt progress fantastic!

    "True Competition" Anonymous -- 07/11/08 (in reply to #320115744)

    idiot!! I suppose you would rather support foreign owned SINGTEL/OPTUS. Stop the foreign "sponge off" they have enjoyed under Howard/Coonan and get behind Conroy/Telstra.

    Only serious choice has to be Telstra. Australia needs a world class NBN NOW!!!

    What we need is "True Competition" like in mobiles where everyone invests instead of just Telstra!!

    Temper Temper.. Anonymous -- 07/11/08 (in reply to #320115770)

    I had quite a giggle at the idea that Telstra is friendly with Conroy and the Government. Why did Telstra call on Conroy to stop dithering and wasting money? Why have they threatened to not bid unless Conroy ceases all talk of separation?

    Why does it come down to who we are 'supporting'? Nothing in your home or on your back in made in Australia, why so patriotic now? I'll tell you what I support Sir, affordable broadband, high bandwidth/quota's and no Internet censorship. You may enjoy paying twice as much to Telstra, but dont forget, more money heads over seas through Telstra than Optus, period. Perhaps if Telstra is such an Australian company, they could try employing an Australian instead of Americans and Indians.

    "temper temper" by anonymous Paul -- 14/11/08 (in reply to #320115777)

    Hi mate, sad to tell you this but Telstra employs by a vast majority australian workers. Im sitting in a telstra office right now, and im not in bangladesh. You might get an indian on the phone, but guess what, we have a large portion of migrated indians LIVING in australia that are in fact AUSTRALIAN by citizenship. So dont crap on about things you dont have a real clue about. With regards to americans, the only americans i've even heard of in the company are higher level management, and guess what, america is where the worlds most famous and prestigeous business schools are, so why wouldnt you hire the right people for the job? Realistically, having worked for another carrier that DID outsource all of its jobs to india (their quote was "We arent reducing jobs here, its just that when people leave we're replacing them with our indian call centre") Telstra is an angel as far as outsourcing to other countries is concerned.

    Telstra are the sponges Mel Sommersberg -- 26/11/08 (in reply to #320116313)

    "Hi mate, sad to tell you this but Telstra employs by a vast majority australian workers."

    That number shrinks daily in favour of whinging septics and Indians. That is fact. Get used to the idea because your American mate Sol is making sure it happens.

    We'll see the sponges are if Hel$tra are awarded the FTTN contract. They'll happily hold their hand out for KRudd's $4.7bn subsidy, $2bn of which will be skimmed from the Future Fund.

    @agreed Anonymous -- 07/11/08 (in reply to #320115744)

    shareholder - bs.

    Smarter than Jobs Anonymous -- 07/11/08

    Whilst I baulk at supporting Tesltra, I do applaud Ballmer's comments on the need to get with it in the Broadband world. He didn't come out looking like a fool spouting off about something he doesn't know, like Steve Jobs did recently with his comments on broadband caps.

    but alas they dont payyou to write that do they? MARV -- 07/11/08

    Jeeze Sydney your standards are starting to sink
    Is the pressure/reality getting to much for you

    For crying out loud Sydney Lawrence the only reason a person WOULD BUY SHARES in testra is to CHANGE it into something that is not the anti competitive egotistical monopoly that it is today.
    They would buy shares to change it into something that that might actually benefit the Australian economy and the Australian people + still make a profit for the share holders

    Oh but telstra keeps the money in Australia!
    BULL look at who owns shares (companies own most) who owns or part owns these companies ??
    Well lets just say that if you break it down then a HELL OF A LOT OF MONEY is going OVERSEAS
    Mr Lawrence I think you should question your masters every now and then
    I could supply links for you but as I am trying to get through a stuffed telstra rim (thanks telstra) the connection is too painful
    So I suggest you get of your own bum and check for yourself if you don't believe me
    Remember
    FEAR NOT THE MASTER AS THE MASTER IS NOTHING WITHOUT THE SLAVE
    P.S.
    Most people won't sell there shares as they would LOSE to much money as the prices are crap compared to when they (were conned) bought them
    THANKS SOL WE LOVE YOU TO but where's our cut?????

    My enemy's enemy is my friend. Sydney Lawrence -- 07/11/08

    MARV I have a Mini Me who Posts under my name ( although I do admit I agree with what he says) but I do question some (almost all) of your thoughts.

    It is a fact MARV that some people prefer to invest in Australian companies thereby supporting Australia and helping to keep Australians in employment.

    By your comments you are not one of them and fair enough this is a free country. I wonder MARV could you enlighten me as to what percentage of Telstra bashers have business interests opposed to Telstra.

    I can understand their fear of the competition that Telstra generates but as Mr. Ballmer advises we should forget our personal greed and get the NBN built for the benefit of all Australians.

    The Irony Anonymous -- 07/11/08 (in reply to #320115791)

    My Lawrence, I'm curious as to your stance on supporting an Australian company to help preserve and create jobs. In the last three years, Sol has slashed 8,784 jobs, and has announced a plan to cut a further 3,216 before 2010. Could you please explain the discrepancy in your theory?

    On the up side Mr Lawrence;

    "You can take it to the bank that we are going to be growing earnings."

    "You can take it to the bank that we are going to be growing earnings margins."

    Straight out of the union play book Ironic -- 07/11/08 (in reply to #320115803)

    Well put - NOT!

    On one hand people want Telstra to be more efficient, to move into the 21st century and to be more price competitive.

    On the other hand people want it to keep the same level of employees as 10 years ago.

    Which one do you want?

    Ultimately technology will reduce the time required to do things, it will reduce duplication and it will reduce productivity. You either don't move with the times and don't take advantage of technology or you go full steam ahead and grab the opportunities with both hands.

    There are more people working in the communications industry then 20 years ago and there is more money being spent, it just happens to not all be in Telstra's pockets now.

    Dont shoot the mesenger Anonymous -- 08/11/08 (in reply to #320115806)

    I can only respond to what is written. Mr Lawrence stated that supporting Telstra will create jobs. It is clearly false, by many thousands and counting.

    Steve Ballmer smokes crack, allways has, allways will Anonymous -- 07/11/08

    Cloud computing on the scale he is talking about is a myth. Somethings are better being located on the internet and somethings are not. Most people want control over their **** and cloud computing isnt going to give you that. I know I am not going to be doing sensitive stuff on other peoples equiment, who dont have my intersts at heart.

    Well - you are wrong Anonymous -- 11/01/09 (in reply to #320115792)

    Ballmer is right. Cloud computing a myth? What crack are you smoking?

    Think centralisation, think bandwidth, think administration.

    Look at Exchange 2007 and Outlook Webmail. Some companies have moved away from a local outlook entirely and moved away from site servers for one centralised server delivering webmail.

    Next, no doubt Office will be delivered via cloud computing - just like a host of corporate apps are moving to web based.

    You will be using cloud based computing in the future, and that is fact.

    Re My enemy's enemy is my friend. MARV -- 07/11/08

    Mr Lawrence
    Shall we agree to disagree on many things??
    BUT let us AGREE on what Mr. Ballmer said

    Mr. Ballmer advises we should forget our personal greed and get the NBN built for the benefit of all Australians.

    As this is a very rational and sensible thing to do .
    Though he should also have added " and our personal bias " to that statement
    Marv
    P.S.
    you should try to contain mini me lest he does you a serious injustice

    Pot calling the kettle black Anonymous -- 07/11/08

    Before criticising Tel$tra, Mr Ballmer should first produce a reliable, robust operating system.... at a fair price.

    HE did Matt -- 25/11/08 (in reply to #320115802)

    Its called windows XP, and it costs around $35 with your netbook

    Hah Anonymous -- 03/12/08 (in reply to #320117013)

    2001 called. They want their operating system back.

    Besides, XP runs like BS on a netbook

    Missing the Point Anonymous -- 07/11/08

    Your missing the point. OUR INTERNET REALLY SUCKS. Whenever I go over to Europe or the US, I feel like the retarded cousin. Blame mongering achieves nothing. What Steve Ballmer was trying to say is exactly this, He doesn't give a damn how it happens but it needs to happen. Otherwise Australia is just going to fall further behind.

    Strong alliance!!! Anonymous -- 08/11/08 (in reply to #320115810)

    Telstra and Microsoft offer a unique opprtunity for Australia to advance into the future.

    Please Please Please MR Conroy do not stuff this and award the NBN to the joke that is "Tierra"

    Inform yourself Anonymous -- 08/11/08 (in reply to #320115831)

    What is 'Tierra'? You may wish to become informed before any further posting.

    re "Tierra" Anonymous -- 09/11/08 (in reply to #320115841)

    look it up on Wykapedia!!

    ballmer Anonymous -- 10/11/08

    Who cares what ballmer has to say anyway. We all know we need to improve broadband and don't need no schmoltz to tell us again.

    What are the consequences of Telstra building the NBN? Anonymous -- 14/11/08

    If Telstra were to build the network, how much are we going to have to spend to access it or will they even wholesale the bandwidth at all?

    Or will they just stuff up people like me that didn't even have the option of ADSL 2 until a competitor moved in?

    Oh but wait, because Telstra put the infrastructure into my estate I now have a useless Telstra mini-DSLAM at the end of my street that won't allow a competitors ADSL 2 service through. I thought these sorts of monopolising anti-competitive tactics were illegal?

    So my choices are insanely overpriced Telstra ADSL 2 service or ridiculously overpriced wholesaled Telstra ADSL 2 from another company.

    This is what I envision a Telstra NBN will be like for us. The nightmare will contunue.

    Yes, Telstra builds the best quality broadband networks but what's the point when only the elite class can afford it?

    The NBN is supposed to be for everyone!

    Broadband???!! Anonymous -- 17/11/08

    What you call broadband in this country is nothing but pathetic! In other parts of the world you would probably get a fat lawsuit if you would market what you have here as broadband.

    It must be embarrassing that a western country has not got its act together in this area - especially one that would gain more than many others by wide and fast broadband coverage.

    Then again, business, education, innovation and technology is not really a big thing here, is it?

    "Down under" indeed!

    Our broadband is pathetic because... Stanley Bruce -- 17/11/08

    Prime Minister == KRudd.
    Incumbent ISP == Bigpond.

    The former is too inept to consider that Australia requires something a bit more substantial than an FTTN network, given that many other countries are constructing FTTH.

    The latter just want to scrape the cream off everyone's pie. Telstra is a greedy corporate capitalist swine and their ROI projections amount to only one thing - extortion.

    Lazy ISP's Anonymous -- 17/11/08 (in reply to #320116440)

    How about some of the Lazy ISP's get off their arse and start investing for a change instead of leeching off Telstra!!

    They don't leech Mel Sommersberg -- 01/12/08 (in reply to #320116444)

    They pay the price that Telstra charges them, no more or less.

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