Leaving Microsoft

I am leaving Microsoft to start my own company. My last day at Microsoft is next Friday, August 18. It’s uncertain whether Microsoft will continue the feed platform work I started, but it’s some good stuff so I hope they do.

Ray Ozzie

RSS is the internet’s answer to the notification scenarios we’ve discussed and worked on for some time, and is filling a role as “the UNIX pipe of the internet” as people use it to connect data and systems in unanticipated ways.

I joined Microsoft in April excited to change the world and build an Internet-scale feed platform to power the experience of Microsoft’s hundreds of millions of users as well as opening up the feed experience to outside developers to leverage in their own applications. The opportunity presented to me was extremely unique and a way to change how the world interacts with syndication technologies such as RSS, RDF, and Atom. The launch of Windows Live and Ray Ozzie’s vision of Internet services disruption made me believe Microsoft was serious about the space and not being left behind in yet another emerging industry as they had been with the web browser and search.

The Windows Live initiative got off to a huge start, with lots of new services created and an “invest to win” strategy in the new division. There were so many new programs created and headcount opening up Microsoft told Wall Street it would be spending $2 billion more than anticipated in the short-term to cover these new costs including over 10,000 new hires over the last fiscal year.

Microsoft stock price April 2006 - August 2006

The stock plummeted on the announcement Microsoft did not have its costs under control. Microsoft’s market cap lost close to $59 billion in the six weeks after I joined and second quarter financials were released, more than the GDP of Ecuador and over half the market cap of Google. What do you do when the market responds to your 6 month-old online services strategy by reducing your valuation by 1.5 Yahoos? Windows Live is under some heavy change, reorganization, pullback, and general paralysis and unfortunately my ability to perform, hire, and execute was completely frozen as well.

I’m happy with what I was able to accomplish as a team of one attached to the Windows Live Alerts group. If we had the resources I truly believe we could have tackled the number of users Hotmail, Messenger, Spaces, or even Internet Explorer might supply, and then ask for more by opening up the platform to the world. I was able to borrow resources here and there, but there was no team being built around the platform in the foreseeable future. I could have stayed at Microsoft, waited for the other 85% of the company to ship their products, and then hope support for my group might be back on track again, but I didn’t want to sit around doing little to nothing until Vista, Office, and Exchange ship. It’s easier to get funding outside Microsoft than inside at the moment, so I am stepping out and doing my own thing.

So what’s next? I had a few startup ideas before joining Microsoft and those never went away. I want to change the way the world thinks about personal data, publishing, and search and I might have the right opportunity to do just that. The product(s) will hopefully be profitable in under a year and not rely on advertising revenue to get there. I fully own my IP rights again on August 19, so I won’t be talking much about past inventions until then to limit legal hassles (I invented this before Microsoft, but still playing it safe).

I’d also like to help out my friends with startups a bit more, and make sure they have everything they need to succeed. It was great to see Automattic engage the WordPress community last weekend at WordCamp and I’m proud of the work Om is doing with his new media empire. As long as I have a successful business paying the mortgage I’d love to continue helping out local startups in various ways without the many conflicts of interest that come with being part of a big company. On a similar note I’ve received a good response from people wanting to work together on a new venture and can see the tremendous opportunity ahead from many talented people building smart small agile businesses focused on thrilling users.

I’m driven by the many opportunities ahead to develop new user-centered products. I’ll be writing lots of Python in the coming weeks and months and I have a few good blog posts on feed syndication planned in the next week as I wind down at Microsoft. My personal contact information remains the same.

99 comments

Commentary on "Leaving Microsoft":

  1. eric Lin on wrote:

    good luck niall. although i was so happy that msft had the intuition to hire you, i suspected this was going to happen. i’m glad you’re moving on to do something instead of waiting around for microsoft’s proverbial aircraft carrier to turn.

  2. om malik on wrote:

    nice … now go forth and really change the world. I am happy to see you strike out on your own.

  3. Jeremy Zawodny on wrote:

    Well… that didn’t take long!

  4. raffy on wrote:

    Best of luck, Niall. No doubt great things are in your future.

  5. kurt brockett on wrote:

    niall, good luck in your new venture. we’ll all be anxiously watching the blog and waiting for the next “tech sessions” to see what you have up your sleeve.

  6. John Furrier on wrote:

    Bummer man.. Good luck on the new move. Open door at PodTech. :-)

    or Try Jason Calacanis

  7. Andrew on wrote:

    “It’s easier to get funding outside Microsoft than inside at the moment, so I am stepping out and doing my own thing.” Ouch. That bullet Microsoft just fired into its own foot is going to really sting before too long.

  8. Robert Scoble on wrote:

    I’m bummed for Microsoft. But, looking forward to seeing what you do next! Let’s get together soon.

  9. mamund on wrote:

    wow!

    i sensed msft “live” was having problems, this seems to confirm it.

    sonds like a good move for you. definitely a(nother) loss for msft.

  10. Zach Coelius on wrote:

    Good Luck, The team at Triggit is rooting for you

  11. Jared Kim on wrote:

    Good luck and welcome to the startup bandwagon!

  12. Thomas Hawk on wrote:

    Good luck in your upcoming ventures.

  13. Gabe on wrote:

    Good luck Niall. Wow, you totally didn’t let on yesterday at SES!

  14. John Koetsier on wrote:

    Best wishes as you go it alone …

    I’m hoping you’ll be blogging the journey to share the learning for those of us who are thinking about following.

  15. Sean Alexander on wrote:

    Niall- thanks for your efforts while at Microsoft. We’re rooting for you. :)

  16. Ted Rheingold on wrote:

    Change breeds growth! Have at it and best success!

  17. Scott Johnson on wrote:

    Niall, congrats on the move. I look forward to your coming posts on your next project.

  18. Chris Radcliff on wrote:

    It’s Microsoft’s loss and your gain. Here’s to the next rev of Hat Trick!

  19. Christian Cadeo on wrote:

    Niall,

    Truly sucks that we are losing you, but I know you will kick some ass whatever you end up doing.

    Best,

    Christian

  20. Jason Kolb on wrote:

    Sorry to hear about the problems you had there. I was really excited for Microsoft when Bill threw his full support behind Ozzie, I kinda figured they knew the stock was going to drop like a rock when they had to spend a small fortune to catch up to Google’s infrastructure. Too bad the company went into paralysis, that doesn’t bode well for the future–good call getting out now.

  21. Dominic Jones on wrote:

    So is it really all Wall Street’s fault? Sounds more like a weak, dazed and confused executive team to me.

    Your post should be required reading for every analyst who has a “buy” rating on MSFT.

  22. fred on wrote:

    It goes without saying that you’re a smart guy, and you’d be wasting your time (and consequently, your money) by staying at a company that doesn’t really want to keep up with the rest of the market. Honestly, were I still in the valley, I’d be paying for coffee and getting you in on our plans.

    Best of luck!

  23. Scott Johnson of FuzzyBlog, Ookles on wrote:

    All my best Niall. You’re going to do great — of that I have no doubt. I’m sorry the Microsoft thing didn’t work out but I’m glad to have you back in StartupVille. We’ve missed you.

  24. Geald Buckley on wrote:

    Mr. Kennedy -

    Much success to you. Sorry to see you leaving MSFT so soon. Do whatcha gotta do man and do it exceedingly well!

    Gerald in Tulsa

  25. Alex Castro on wrote:

    Good Luck. I totally understand how you feel. I left MSFT and started my own thing as well. Many of the same issues you outline, were a problem for me as well. Heck, I had resource problems and I was working on Vista.

  26. Otis Gospodnetic on wrote:

    Nice. Teaser! Beware Ruby fanatics.

  27. Ryan Block on wrote:

    I, for one, welcome my new Microsoft-free… that joke just won’t fly. Good luck man, drinks! Drinks!

  28. Kevin C. Tofel on wrote:

    Best of luck to you Niall. Can’t wait to see what you do next; too bad Microsoft isn’t truly seeing the potential and neccessity of syndicated information. They’ll continue to come around slowly, but will have lost those with the raw passion like yourself.

  29. Michael Pate on wrote:

    If Wall Street really understood what just happened, the valuation would plunge again. But sice they don’t…

  30. Fergus Burns on wrote:

    Hi Niall

    Best of luck with the new venture

    Microsoft dropped the ball bigtime with you.

    Onwards and upwards…..

    Talk Soon
    Fergus

  31. Michael Pate on wrote:

    I had really felt that Microsoft might be back on the upswing. It certainly does not seem that way now.

  32. Steve Rubel on wrote:

    Niall, congratulations and lots of luck to you. I am sure you will go far and I do hope one day we can work together.
    steve

  33. dtc on wrote:

    Wow that was fast. I meant to say hello yesterday at the party at the Tech Museum – hopefully I can catch you in the cafeteria one of these days before you leave!

  34. Sterling Camden on wrote:

    Yeah, this doesn’t look good for Microsoft and the Live initiative. But it does look like a good move for you, Niall. Good luck!

  35. John Herren on wrote:

    Well that was quick. Looking forward to seeing what you drum up next. Best wishes!

  36. Alex Barnett on wrote:

    Sorry to hear the news Niall.

    :-(

    Good luck…

  37. Hiten Shah on wrote:

    Niall, wow, congratulations on your decision, your good at keeping a secret :-)

  38. Scott Beale on wrote:

    Wow, just catching up on my feeds right now. Congratulations! See you at your new office in Ritual Roasters.

  39. Pete Prodoehl on wrote:

    Good Luck Niall! I’m glad to see you leaving Microsoft. I sure you will have more impact elsewhere.

  40. Alan Lewis on wrote:

    Good luck, Niall. Sorry to hear that things didn’t work out like you’d hoped they would at Microsoft.

  41. Jeff Clavier on wrote:

    OK, now, that makes (more) sense. I always thought you would go for a startup after leaving Technorati and could not help being surprised of the Microsoft move.

    Good luck with the “idea formation” phase. Let’s chat when I am back.

  42. Chris Messina on wrote:

    Welcome to the world of independents. And best of luck!

  43. Tara 'Miss Rogue' Hunt on wrote:

    Excellent! Another indy citizen!

    The market is hot right now and you’ll do awesome. We should definitely chat. We’ve been swamped and had to turn potential clients away lately. Although I’m sure you will be swamped with your own inquiries, coming together as ‘small pieces loosely joined’ is good for many of these projects. ;)

    Tara

  44. Dave Forde on wrote:

    Niall – The world has seen you succeed and there is no doubt that we’ll continue to see your succeed in your new venture. Hopefully you keep up the podcast.

  45. Paul Kedrosky on wrote:

    Congrats Niall. That’s great news.

  46. Narendra on wrote:

    Wow! I’m glad to see you have the determination to make a decisive change instead of wasting your cpu cycles…

  47. paul on wrote:

    Good luck Niall, we’ll follow your progress on d’blog.

  48. George Nimeh on wrote:

    Keep believing, and dare to think big!

    Think of it this way: Whilst it may seem a pity to have spend time toiling at Microsoft, at least you weren’t at AOL. ;)

    Best of luck.

  49. Jeffrey McManus on wrote:

    Wow, congrats and good luck Niall!

  50. Satchidanand Haridas on wrote:

    Good luck Niall! Looking forward to hear/read about your ventures in the Web2.0 world.

  51. Matt Trentini on wrote:

    Heya Niall, sorry it didn’t work out for you at Microsoft – I know how excited you were about the potential to make a big difference. But I’m wrapped to hear that you are still thinking positive and am very excited to see what you can do with your own business!

  52. /pd on wrote:

    All the Best Naill !! keep beliving and go and change the world :)_

  53. Phil on wrote:

    Good Luck! You always seemed more of the entrepreneur type. You’re passionate about blogging, and I’m confident that you can make a successful business out of your ideas. I’m looking into branching out on my own, too, got any advice?

  54. Lloyd D Budd on wrote:

    Congratulations on freeing yourself from the shackles of Microsoft! Best wishes in all your endeavors (not working for proprietary monsters)!

  55. MattY on wrote:

    Good luck Naill! It has been a pleasure working with you the last months. Best wishes, go cook up some killer technology and keep the bunny glowing! :)

  56. Will Pate on wrote:

    Go get em, Niall!

  57. Cameron Olthuis on wrote:

    You must have been itching to get this one out last night :)

  58. Dennis Howlett on wrote:

    Well done Niall – says an aweful lot about MSFT and innovation.

  59. aldamiz on wrote:

    Niall, good luck in your new venture– congrats!

  60. Fumi on wrote:

    Good luck Niall!

  61. Jason on wrote:

    Best of luck to you as you pursue your own personal initiatives and projects.

  62. Harrison Hoffman on wrote:

    Hey Niall, sorry to see you go, but good luck wherever you end up.

  63. Randy Charles Morin on wrote:

    I thought for sure you’d take Robert’s reign as the face of Microsoft in the blogosphere. Too bad for Microsoft. Two great bloggers gone in a couple months.

  64. Kiran Max Weber on wrote:

    I’ve read and listened to you for a long time now so the news that you were moving to MS came as surprise – philosophically. I just said “I knew it!” to myself as I just read your post. I wish you much success Niall!

  65. Josh Elman on wrote:

    Congratulations Niall. Taking great ideas and turning them into products doesn’t always have to be a startup, but it’s good to hear we don’t have to wait too long to get to see your ideas come to fruition if it wasn’t happening at MS.

  66. Brian Shields on wrote:

    Gee, I’m glad I ran into you at Blogher or I would have been two employers behind! Good luck on your new ventures.

  67. Alfred Toh on wrote:

    Congrats Nail.. We know the feeling.. We are in the same boat too.. Welcome to stealth country.

  68. Jeff Barr on wrote:

    I’m clearly late to this party reading this post at 11:06 PM, but let me be one of the last to wish you good luck on your new venture. Microsoft’s loss is undoubtedly the rest of the world’s gain.

  69. Babu Priyavrat on wrote:

    I’m more relaxed than ever. I hate MS at the first place but still felt that it can help me to fulfill my dreams.

    I really want to thank Niall forclearing my inhibitions.

    During my interview, I tried my best to convince them that RSS is extremely helpful especially when RSS generation is automated in web-servers.

    I think MS is left only with one option: Quit Web services & technologies and have an alliance with Yahoo!

  70. Sean Ness on wrote:

    Best to you in your new venture!

  71. PJ Blue on wrote:

    Good luck Niall. I had to leave a sinking ship many years ago so I know how you feel.

  72. Ian Kennedy on wrote:

    What an amazing couple of days it’s been! AOL is a little *too* free with its data. Google slaps down a huge commitment of cash to get invited to a party they missed. And now Microsoft lets one of its more creative minds wither on the vine!

    Good luck to you Niall. Spread your wings and fly!

  73. Dave on wrote:

    Time waits for no man, even Ray Ozzie…

    (best of luck niall :)

    - dave mcclure

  74. Sam Clement on wrote:

    Good luck with the move. Quick pendantic pet peeve – “extremely unique”. You can’t qualify the word unique, it either is or isn’t.

  75. Frank Barnako on wrote:

    Niall:

    The alumni group from MSFT, in just a year, is pretty high-powered. You’re making it more so.

    Keep up the podcasting.

    Frank

    (This list of commenters looks like a roster of a Web 1.0 and 2.0 Hall of Fame.)

  76. Leon on wrote:

    Good post. Snap decision. All those things require an intelligent man to figure out! Best of luck to your venture!

  77. Guillaume Champeau on wrote:

    That is with no doubt a loss for Microsoft but I’m sure you did the right thing and I wish you the best in your new venture.

  78. varun on wrote:

    Are you going to start something related to RSS ?

  79. Danny Thorpe on wrote:

    Sorry to see you go, but I look forward to seeing what you come up with next!

    Keep in touch,

    -Danny

  80. HonorGuy7 on wrote:

    You should get in touch with Steve Jobs. .Mac needs some help and I’m sure they would be willing to work with you.

  81. Eugene Chan on wrote:

    Congrats on your next adventure, Niall.

  82. Cameron Reilly on wrote:

    Good decision Niall. Best of luck with the new venture. Never look backwards.

  83. Steve Portigal on wrote:

    I haven’t been following along too closely – when I saw you at Dcamp I wondered what it was you were doing then; didn’t know what it was – I guess I know now. Congrats on the move and good luck!

  84. Manoj Ranaweera on wrote:

    Niall, I only came to know your existence today thanks to Dennis Howlett. You are doing the right thing in following what you believe is right! Have you run a start-up before? Its my 20th month. I am sure you do not need my advice, but I am going to give it anyway – just simple common sense:

    Try not starting on your own like I did. The burden is too much to bear at times. Find one or two partners and share the risks and joys!
    Have enough money. Bootstrapping is part of the game. But you need to be realistic
    If you need VC, angel money, grants or other, get a competent person to take the responsibility of raising the money. Otherwise you will not have any time to realize your (now yours and your partners) dream

    There are lot more, but above should do it as you did not ask for help.

    I like the idea when you said you like to help your friends with start ups. Ace! I blog at http://manojranaweera.wordpress.com. Do drop in sometime. Who knows there might be areas we can collaborate in.

  85. Paulino Michelazzo on wrote:

    Niall, all the best for you. The Internet community needs people like you, freely.

    Regards from Brazil.
    Paulino Michelazzo

  86. Dave on wrote:

    Thanks for being honest in this post. It seems some commentators are asking whether your comments are just those of a disgruntled former employee. But after reading your post and the comments, I think it is safe to say you are trying to present all the facts, and your reasons, without letting sour grapes become a factor.

    Good luck!

    P.S. I assume you either already have VC connections or that VCs will be knocking on your door. However, if you find yourself wanting to check out other VC options, I’ll be glad to make a couple introductions for you. Make sure you select VCs the way you would choose any other partner – personal compatibility is a top criteria.

  87. Gen on wrote:

    Best of luck Niall! We all look forward to your next move. Please let me know if I can help.

  88. Justin on wrote:

    I like that you decided to do what’s right for you, however I find it interesting that you go on about market cap drop etc.

    That shouldn’t be a focus on whether your work etc is going to succeed, just because investors want a return immediately.

    4 months seems like hardly any time to make any impact or even understand fully what is going on anyway. Would take a month just to get up to speed with day to day processes and work out who’s who.

  89. otto on wrote:

    Good news for innovation – bad news for microsoft. I think you can make a better and more creative job outside this company.

  90. Luminus on wrote:

    Whoa! some really tough luck for Microsoft. Their loss. Good luck Niall, I wish you all the very best as you strike out on your own.

  91. Sanjay Seshasainam on wrote:

    Hey Niall,

    Good Luck on your new job, you can always count on a job in Houston for you.

  92. Roberto on wrote:

    Good luck Niall. If you will need collaboration for your future projects, especially for marketing in Italy, I would help you. Ciao! And support the soccer in the world!

  93. Timothy Wong on wrote:

    Good luck Niall! I’ll check back to see your updates on the 18th :)

  94. Ocira on wrote:

    Niall, that was a short time to make significant impact let alone get to know workmates strengths and work environments. I tried used live.com and would was impressed by the upcoming improvements.

    waiting on your next big innovation … :) best of luck

  95. monadjemi on wrote:

    I cannot approve your career move. You were leaving to soon leaving important things unfinished. This has also something to do with loyalty. You said that the opportunity presented to you was extremely unique. How can this fade away so quickly?

  96. Andrew on wrote:

    Niall: Good luck!

    My colleague Paul left MS on Aug 11 to join a start-up in San Francisco called wallopcorp.com.

    I left MPG group on Aug 14, 2006. I believe I can build software in a different way: stress free, good work/life balance, highly focused, very productive and innovative.

  97. abdul on wrote:

    Good L U C K. Anyway buddy if you need sincere partner for your business let me know.