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May 2, 2003 3:48 PM

Microsoft's Hardware Unit Turns 20



When you think of hardware, you seldom think of Microsoft. But there is a fairly 200-person hardware team operating inside the company.

May 2 marked the 20th anniversary of this hardware division. We asked Matt Barlow, Microsoft hardware director for worldwide marketing/business development a few questions about where the division's been and where it's going.


MS Watch: Could you revisit the history of the division a bit?

Barlow: We have created a flash timeline to commemorate the past two decades of the division - this can be viewed here. This timeline shows the long history the hardware group has enjoyed of introducing innovative products to the market that strengthen the connection between the computer, the software and the user.

The group was formed in 1982 and introduced its first product in 1983 (May 2nd to be exact) -— the Microsoft Mouse. (You may have heard this referred to as the "green-eyed" mouse for its two green buttons.)

The group was actually formed to supplement the company's software business, specifically to create a device that would make it easier for consumers to navigate the company's new computer processing program - Microsoft Word. Since then, Microsoft Hardware has continued to look for ways to strengthen the user-computer connection, and develop hardware that makes the software experience even better. We now employ nearly 200 people, including ergonomists, industrial designers, engineers, technologists and business professionals. We're a small group, in relation to other groups at Microsoft, and it may be interesting to know that we actually have more patents than people.

The majority of the employees are located in the RedWest B building in Redmond. We have a few field representatives in Asia and Europe, and a small engineering team in Colorado.

MS Watch: Are there particular hardware areas that Microsoft has made a definitive decision to ignore (say, PCs or PDAs)? Or is the company constantly reevaluating where it makes sense to be a player?

Barlow: Even though we are a small group, we typically take a very large look at the opportunities to develop devices that deliver better software experiences.

Our team has been instrumental in developing reference designs for many new PC platforms, including the Tablet PC. Also, our team works closely with the Windows team to develop prototype hardware that delivers revolutionary experiences. More often than not, we choose not to build these devices ourselves, instead helping to evangelize the design to OEM manufacturers for them to improve upon and build. Their core competency is building and improving these devices. Our core competency is concepting, designing, developing and marketing innovative device peripherals - like mice, keyboards and Broadband Networking equipment - that supplement these great PC experiences.


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MS Watch: Does Microsoft actually do any hardware manufacturing itself? Or is everything — keyboards, mice, joysticks, home networking kits —outsourced?

Barlow: We do all of the research, concepting, designing, developing, testing and marketing. The manufacturing is done by a number of third parties, worldwide.

MS Watch: How much collaboration is there between hardware team and the various software/services groups at Microsoft? How do you decide when the teams should collaborate?

Barlow: There is a significant amount of collaboration between the hardware division and other groups here at Microsoft. The hardware division collaborates with other teams at Microsoft when we can share expertise or knowledge to help make a product or service more valuable to consumers. Two good examples of this collaboration are:

  • Office Keyboard: Introduced in 2001. We learned the most frequently used functions in Office applications from research conducted by the Office team. This enabled us to introduce the first keyboard with enhanced F-keys, now commonplace throughout the industry.

  • Wireless Optical Desktop for Bluetooth: Introduced in 2002. We worked closely with the Windows team to support Bluetooth by developing the first commercially available Bluetooth Desktop that worked on the profiles found in Windows XP.

    MS Watch: How does Microsoft come up with some of its more innovative hardware designs — such as the Intellimouse and natural keyboard?

    Barlow: Our designs are borne out of customer input, research, and are generally the evolution of our existing designs over time. Our design team has been a solid group for a number of years, and uses history to their advantage. They know what shapes appeal to people's sense of style. They know what curves and elements provide comfort. We prototype hundreds of these shapes, curves and designs and take them out for worldwide testing, gathering feedback and iterating our designs. They may be just mice to some people, but to us, they are the most important devices people use each and every day.

    MS Watch: How much input does Chairman Bill Gates have in the hardware group?

    Barlow: We work closely with a number of Microsoft executives, gathering input and gaining insight to develop products that map to the overall strategy of the company.



    MS Watch: Where is MS taking the hardware division? What kind of challenges/areas are you examining as potential areas of interest?

    Barlow: The one thing I can tell you is we will continue to innovate like no other company in this category. We brought the first scroll wheel integrated with desktop software, affordable ergonomic keyboards, optical tracking technology, Bluetooth and simplified Broadband networking to market first in our past 20 years.

    Our next 20 years will offer more of the same innovation. Our products will be more productive and intelligent that ever before, yet will be simpler to use. We will continue to remove clutter from the desktop by actively bringing wireless technologies —27MHz, Bluetooth, and WiFi — to lower price points with higher performance. At the same time we will address people's growing need for comfort and personalization with an unprecedented variety of materials and colors.


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    MS Watch: Are add-ons — say something like add-ons for Windows Media Center PCs or Tablets or PocketPCs or Smartphones — something that the hardware division thinks much about?

    Barlow: We will work with other product teams, such as the ones you name above, to lend them our expertise for design, comfort, user experience, etc. But add-ons for those products probably wouldn't be something you'd see coming out of the hardware division.

    MS Watch: What else should we know about Microsoft's hardware division?

    Barlow: I think the most important thing is that we're not planning on resting on our laurels. We've had a string of industry firsts — as I mention above. But we're not just going to sit back now and think that all of our work is done. No, I think the most important thing for readers to know is that Microsoft hardware will always be looking for innovative ways to make the computer experience even better for consumers.

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