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Year in review: The inside scoop from top techies

CNET News.com's newsmaker series goes one on one with luminaries, from Ballmer to Lockyer to Segway's inventor.

4 min read

Year in Review: Newsmakers

The Year in Review 2006

The inside scoop from top techies

The year 2006 began with Microsoft playing second fiddle to Google but promising big things in the not-too-distant future.

The year finished up much the same way, with Microsoft--again under pressure from Google, but still making big promises about breakthrough products over the horizon. In between, the past 12 months added up to a transitional year for the computer business as new technologies and new business models further scrambled the industry constellation of forces.

While Microsoft struggled to ship its already much-delayed Windows Vista operating system, the spotlight turned to the scores of new consumer Internet companies loosely grouped under the Web 2.0 banner. While Google tended to garner most of the attention, these no-name start-ups accounted for the biggest burst of Internet entrepreneurship since the heyday of the dot-com bubble era.

The increasing shift toward Internet-centric technologies also played out in Microsoft's reorganization in the wake of Bill Gates' announcement that he would slowly step out of day-to-day decision making over the next two years. Even as Microsoft continues to generate the bulk of its revenue the old-fashioned way, the company took steps to deliver more of its software as part of a stream of Internet services.

Silicon Valley also had its eye on the search for alternative energy supplies. As the cost of a barrel of crude oil touched record highs by mid-year, a political and business consensus grew up around the idea that the status quo is untenable. So it was that the venture capital community began sinking even more money into start-ups exploring ways of generating energy from non-fossil fuel sources. No breakthroughs were reported, but there also was no shortage of ideas. Maybe 2007 will be the breakout year everyone is waiting for.

In the meantime, 2006 was also the year of a bizarre high-tech whodunit as Hewlett-Packard became embroiled in a corporate spy scandal. An internal investigation designed to ferret out the source of a boardroom leak to the media ultimately forced the resignation of several top executives--including its chairman--and the filing of criminal charges by the California state attorney general.

As the year drew to a close, the game community had ample cause for excitement as it could now choose among next-generation consoles from Microsoft, Sony and Nintendo. This was much more than a competition for bragging rights. With huge investments at stake, the pressure to win this competition became ever more intense.

--Charles Cooper

2006 Highlights

Ballmer: IBM in the crosshairs

Selling to CEOs with a different "point of view" will translate to revenue growth, the Microsoft head says.
March 17, 2006

Sun's chiefs on the hot seat

Scott McNealy sees glory days ahead for new CEO Jonathan Schwartz, who's made a steady ascent.
April 25, 2006

'No alternative' to Microsoft fine

Wielding a $357 million charge, EU antitrust chief Neelie Kroes expects full compliance. And she has an eye on Vista.
July 12, 2006

An author with a 'long tail'

Wired Editor in Chief Chris Anderson's "The Long Tail" could be one of the biggest business books since "The Tipping Point."
July 17, 2006

Barrett: The shape of PCs old and new

The PC market saved Intel from becoming a technology industry footnote in the mid-1980s, and it hasn't looked back.
August 8, 2006

A blogger's battle from behind bars

First blogger jailed for refusing to cooperate with a federal grand jury says he aims to prevent the eroding of journalists' protections.
August 11, 2006

Let the PS3 games begin

Sony's Kaz Hirai talks about the future of the new PlayStation console and next-generation gaming technology.
August 29, 2006

With HD, it's a new ballgame for TV

Billionaire entrepreneur Mark Cuban high-fives high-definition sports viewing and boos slow movie downloads.
September 5, 2006

California's top cop wants answers

Attorney General Bill Lockyer discusses the controversial practice of pretexting and how his office is dealing with the problem.
September 6, 2006

Fiorina says board let emotion trump reason

Former HP chief executive talks about the dynamics of HP's board and lessons learned from its tribulations.
October 9, 2006

Taking 'Second Life' to the next level

Linden Lab CEO Philip Rosedale goes in-world to take on the challenges of the virtual world's explosive growth.
October 18, 2006

Gates: Ushering in Zune, spiffing up Office

Bill Gates looks ahead to how the music player might morph and tells why changes in Office 2007 are "a big deal."
November 16, 2006

 

Year in Review: Newsmakers

The Year in Review 2006

The inside scoop from top techies

The year 2006 began with Microsoft playing second fiddle to Google but promising big things in the not-too-distant future.

The year finished up much the same way, with Microsoft--again under pressure from Google, but still making big promises about breakthrough products over the horizon. In between, the past 12 months added up to a transitional year for the computer business as new technologies and new business models further scrambled the industry constellation of forces.

While Microsoft struggled to ship its already much-delayed Windows Vista operating system, the spotlight turned to the scores of new consumer Internet companies loosely grouped under the Web 2.0 banner. While Google tended to garner most of the attention, these no-name start-ups accounted for the biggest burst of Internet entrepreneurship since the heyday of the dot-com bubble era.

The increasing shift toward Internet-centric technologies also played out in Microsoft's reorganization in the wake of Bill Gates' announcement that he would slowly step out of day-to-day decision making over the next two years. Even as Microsoft continues to generate the bulk of its revenue the old-fashioned way, the company took steps to deliver more of its software as part of a stream of Internet services.

Silicon Valley also had its eye on the search for alternative energy supplies. As the cost of a barrel of crude oil touched record highs by mid-year, a political and business consensus grew up around the idea that the status quo is untenable. So it was that the venture capital community began sinking even more money into start-ups exploring ways of generating energy from non-fossil fuel sources. No breakthroughs were reported, but there also was no shortage of ideas. Maybe 2007 will be the breakout year everyone is waiting for.

In the meantime, 2006 was also the year of a bizarre high-tech whodunit as Hewlett-Packard became embroiled in a corporate spy scandal. An internal investigation designed to ferret out the source of a boardroom leak to the media ultimately forced the resignation of several top executives--including its chairman--and the filing of criminal charges by the California state attorney general.

As the year drew to a close, the game community had ample cause for excitement as it could now choose among next-generation consoles from Microsoft, Sony and Nintendo. This was much more than a competition for bragging rights. With huge investments at stake, the pressure to win this competition became ever more intense.

--Charles Cooper

2006 Highlights

Ballmer: IBM in the crosshairs

Selling to CEOs with a different "point of view" will translate to revenue growth, the Microsoft head says.
March 17, 2006

Sun's chiefs on the hot seat

Scott McNealy sees glory days ahead for new CEO Jonathan Schwartz, who's made a steady ascent.
April 25, 2006

'No alternative' to Microsoft fine

Wielding a $357 million charge, EU antitrust chief Neelie Kroes expects full compliance. And she has an eye on Vista.
July 12, 2006

An author with a 'long tail'

Wired Editor in Chief Chris Anderson's "The Long Tail" could be one of the biggest business books since "The Tipping Point."
July 17, 2006

Barrett: The shape of PCs old and new

The PC market saved Intel from becoming a technology industry footnote in the mid-1980s, and it hasn't looked back.
August 8, 2006

A blogger's battle from behind bars

First blogger jailed for refusing to cooperate with a federal grand jury says he aims to prevent the eroding of journalists' protections.
August 11, 2006

Let the PS3 games begin

Sony's Kaz Hirai talks about the future of the new PlayStation console and next-generation gaming technology.
August 29, 2006

With HD, it's a new ballgame for TV

Billionaire entrepreneur Mark Cuban high-fives high-definition sports viewing and boos slow movie downloads.
September 5, 2006

California's top cop wants answers

Attorney General Bill Lockyer discusses the controversial practice of pretexting and how his office is dealing with the problem.
September 6, 2006

Fiorina says board let emotion trump reason

Former HP chief executive talks about the dynamics of HP's board and lessons learned from its tribulations.
October 9, 2006

Taking 'Second Life' to the next level

Linden Lab CEO Philip Rosedale goes in-world to take on the challenges of the virtual world's explosive growth.
October 18, 2006

Gates: Ushering in Zune, spiffing up Office

Bill Gates looks ahead to how the music player might morph and tells why changes in Office 2007 are "a big deal."
November 16, 2006