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  • 00:00COUNTRY CLUB GUY. WHAT YOU THINK OF THIS? >> THE MICROSOFT CULTURE IS VERY STRONG, HARD DRIVING, PEOPLE ARE REALLY FOCUSED ON CHANGING THE WORLD, PEOPLE WORK VERY HARD. I BELIEVE THE SAME IS TRUE AT AMAZON BUT THERE IS INTENSE COMPETITION BETWEEN MICROSOFT AND AMAZON. BOTH AWS BUT THERE IS INTENSE COMPETITION JUST IN THE CITY OF SEATTLE OVER TALENT. I THINK THEY ARE A PLACE THAT PEOPLE DON'T WANT TO WORK. ANYBODY WHO EVER LET MICROSOFT CAN COUNT ON THEM COMING BACK. WE CAN COUNT ON THEM COMING BACK WITHIN A YEAR OR TWO BECAUSE IT'S NOT A GREAT PLACE TO WORK TO DO INNOVATIVE STUFF AS AN ENGINEER. STEPHANIE: SO PEOPLE WHO WOULD LEAD TO GO TO AMAZON, YOU WOULD SAY THAT THE DOORS OPEN AND THEY WERE BACK? >> MANY PEOPLE DID AROUND TRIP. NOT EVERYONE BUT MANY PEOPLE. IT'S PROBABLY FAIR TO SEE YOU SEE MOVEMENT BETWEEN THE TWO COMPANIES. IT'S NOT SILICON VALLEY WHERE EVERYONE IS MOVING BETWEEN EVERY COMPANY ALL THIS TIME. IN SEATTLE, THERE ARE SOME STARTUPS THAT MOSTLY THE TWO BIG EMPLOYERS ARE MICROSOFT AND AMAZON. STEPHANIE: YOU DO THE INTERVIEWS AT STARBUCKS SO THEY WENT? >> THAT'S RIGHT. STEPHANIE: CAPITAL -- >> THEY -- APPLE. >> THEY HAVE DONE A GREAT JOB. IF YOU GO BACK TO 1997 STEVE CAME BACK AND THEY WERE ALMOST BANKRUPT, WE MADE AN INVESTMENT IN APPLE AS PART OF SETTLING A LAWSUIT. MICROSOFT MADE AN INVESTMENT. IN A WAY, A YOU SAY THAT MIGHT'VE BEEN THE CRAZIEST THING WE EVER DID BUT THEY HAVE TAKEN THE FOUNDATION OF GREAT INNOVATION, SOME CASH, ENTERED INTO THE MOST VALUABLE COMPANY IN THE WORLD. MICROSOFT GAVE THEM A GOOD RUN FOR THEIR MONEY AND NOBODY ELSE IS TRIED TO COMPETE WITH THEM SERIOUSLY IN HARDWARE. WHO IS REALLY GOING AFTER THE MASS? WHO IS GOING AFTER THE IPAD? YOU CAN BASICALLY SAY MICROSOFT AND SAMSUNG. MICROSOFT IS THE ONLY ONE THAT HAS A SOFTWARE AND HARDWARE CAPABILITY. IF THERE IS GOING TO BE COP AS -- COMPETITION FOR APPLE, IT WILL COME FROM MICROSOFT I BELIEVE IN THAT. STEPHANIE: DO YOU HAVE TO TAKE MARKET SHARE FROM APPLE OR IS THE PIE GETTING BIGGER? NOBODY HAD A TABLET TWO YEARS AGO. IT LOOKED LIKE EVERY KID IN CENTRAL PARK HAD A DEVICE. >> YOU DON'T HAVE TO TAKE FROM THE OTHER GUY BUT YOU GOT TO AT LEAST TAKE THE NEW INNOVATIONS THAT ARE COMING. A SURFACE BOOK IS NOT AN IMAC OR AN IPAD BUT IT'S A NEW CATEGORY. IT'S AN INNOVATIVE CATEGORY. WHO WAS GOING TO GET TO THOSE CATEGORIES FIRST? THOSE OF THE ONLY TWO COMPANIES THAT HAVE THAT SOFTWARE/HARDWARE SKILLS. DAVID: WE ARE BOTH FROM MICHIGAN AND IS APPLE GOING TO BE A CAR COMPANY IN TENURES? >> YOU HAVE TO ASK APPLE. IT'S A MUCH BIGGER LEAP TO DO CARS THAN IT IS MOST OF THE THINGS THEY HAVE TRIED. ISOLATE TESLA BUT IT'S STILL RELATIVELY SMALL. WILL OTHER PEOPLE BE ABLE TO PUT INTELLIGENCE IN THEIR CARS? YES, BUT MAYBE APPLE GETS THERE. STEPHANIE: UBER, LOVE IT OR HATE IT? >> IT'S GREAT SERVICE SO I LOVE IT AND NO MARKET CAP COMMENTS BECAUSE I DON'T UNDERSTAND THE ECONOMICS VERY WELL. DAVID: STEVE BALLMER WILL STICK WITH US. WE WILL COME BACK AND HAVE TWO FORMER SPURS PLAYERS NEXT ON BLOOMBERG GO. ♪
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Ballmer: Intense Competition Between Microsoft, Amazon

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