OLPC mission control

Ivan Krstić was one of the key people on the OLPC project. He recently resigned. Here’s part of his explanation.

Not long ago, OLPC undertook a drastic internal restructuring coupled with what, despite official claims to the contrary, is a radical change in its goals and vision from those that were shared with me when I was invited to join the project. Adding insult to injury, I was asked to stop working with Walter Bender, without a doubt one of the most stunningly thoughtful and competent people I’ve ever worked with. Following Walter’s demotion from OLPC presidency, I was to report instead to a manager with no technical or engineering background who was put in charge of all OLPC technology…

What made Ivan despondent is his perception that Nicholas Negroponte sees the project as a vehicle for producing a lot of cheap laptops rather than as a primarily educational mission. According to The Register, he believes that

“Nicholas’ new OLPC is dropping those pesky education goals from the mission and turning itself into a 50-person nonprofit laptop manufacturer, competing with Lenovo, Dell, Apple, Asus, HP and Intel on their home turf, and by using the one strategy we know doesn’t work.”

Later: Actually, it’s more complicated that that quote implies. Just found a terrific, thoughtful essay by Ivan on the whole OLPC project. Lots of comments too.

Why Microsoft wanted Yahoo

From the New York Times

It’s no secret that Microsoft’s online businesses have failed to gain leading market positions. But what is not widely appreciated, perhaps, is that the company’s online initiatives have lately been doing worse than ever.

The last year when Microsoft made a profit in its online services business was the fiscal year that ended on June 30, 2005. Its MSN unit used to do a nicely profitable business providing dial-up Internet access to subscribers. When its users began to switch to broadband services provided by others, however, the earnings disappeared. Microsoft’s Web sites brought in a trickle of advertising revenue, which did not grow fast enough to offset the disappearance of the narrowband access business. AOL suffered in similar fashion.

In the 2006 fiscal year, Microsoft’s online services produced a $74 million loss after the previous year’s profit of $402 million. Since then, the numbers have become uglier, as Microsoft’s online segment has added employees and absorbed growing sales and marketing expenses. In the 2007 fiscal year, the online businesses lost $732 million. In the next nine months, through March 31 this year, they recorded a loss of $745 million, almost double the amount in the period a year earlier. With $2.39 billion in revenue for the nine months, the online segment represents only 5 percent of the company’s total revenue…