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  • >> [MUSIC PLAYING]

  • >> [AUDIENCE CHEERING AND APPLAUDING]

  • >> DAVID J. MALAN: This is CS50, Harvard University's introduction

  • to the intellectual enterprises of computer science

  • and the art of programming.

  • We are so excited to have an amazing alum here with us today.

  • He was a member of the Harvard class of 1977.

  • He concentrated in applied math economics.

  • And he was a resident of Currier House.

  • >> [AUDIENCE CHEERING]

  • >> He was manager of the Harvard football team,

  • advertising manager of the Crimson, and publisher of the Harvard Advocate.

  • And upon graduation, he headed off for a to Stanford's business school,

  • but didn't stay long, as he was quickly recruited by a friend of his

  • to a little company we all know now as Microsoft, where he served first

  • as business manager, later as CEO, and is now the owner of the LA Clippers.

  • >> [AUDIENCE CHEERING]

  • >> CS50, this is Steve Ballmer.

  • >> [CHEERING AND APPLAUSE]

  • >> STEVE BALLMER: Well, thanks.

  • I'm honored to have a chance to be here with you today.

  • When I first talked to David about this, he said,

  • I'd really like you to come on in and give an advanced lecture

  • in machine learning and computational thinking.

  • We didn't dwell on that idea very long.

  • >> So I thought I'd give you a little talk--

  • if I can figure out which space bar I'm hitting--

  • what do we need to do to change?

  • I won't touch that one.

  • This one I won't touch.

  • There we go.

  • OK.

  • >> I thought I'd give you a little-- you've got to be a competitor in business.

  • Anyway, I thought we'd talk a little bit today,

  • just a few thoughts, on most of what I learned

  • I learned at Harvard University.

  • I thought I'd try to summarize that in about nine easy steps and then four

  • things I learned after I got out of this place,

  • and hopefully get all through that in about 25 minutes-- just

  • to give you a little bit of food for thought.

  • And then we'll do Q&A.

  • >> I am 99.999999999% sure that nothing we talk about today

  • will matter for your grade or will appear on the final.

  • I think you're as safe as rain on that today.

  • But hopefully, get you thinking about a couple things as we go through.

  • First thing that's probably important for you to register-- this

  • is sort of academically dangerous-- of all those many important things

  • I learned at Harvard, it wasn't in the classroom.

  • As I listened to David do the introduction, I thought to myself,

  • it sounds like I majored in extracurriculars when I was here.

  • That's actually true.

  • I attended all of one class session senior year.

  • Junior year was a little bit better.

  • >> With modern technology, I don't know what the possibilities are,

  • but they would seem to be even greater today

  • for mischief outside the classroom.

  • But I will tell you it was really very, very formative and seminal.

  • I arrived here in 1973.

  • And I was hell bent and determined that I was going to get my Ph.D.

  • in either math or physics.

  • And about the only thing to figure out was

  • whether it was going to be math or physics.

  • That was it.

  • That's all that needed to be figured out.

  • >> Freshman year, the big decision was whether to take

  • Physics 55-- I don't know if that course still exists-- or Math 55.

  • I thought I'd take both, and the kindly adviser said, young Steve, big mistake.

  • I won't allow you to do that.

  • So I took one of them and did an independent study in the other.

  • And thank god I did.

  • >> First lesson, I learned very, very early.

  • Freshman year, I took my first exam.

  • I took my first exam.

  • I walked out of it.

  • I called my parents and said, I think I just flunked out of school.

  • I was already involved with the Harvard football team doing statistics.

  • I was supposed to go down to Penn, so it must have been about this time of year,

  • since the schedule for football hasn't changed in 50 years.

  • >> We were supposed to go down Penn.

  • I didn't go, because I was crest fallen that I had flunked out of school.

  • I got my exam back the next week, and sure enough, I

  • had gotten a 33, which was about fifth or sixth in the class.

  • The guy who got 75 is Ph.D. in physics, is a professor of physics,

  • and is a genius.

  • So it took me about two months to learn I wasn't a physicist

  • and I wasn't a genius.

  • And everything good started right there with my first big failure, so to speak.

  • >> I just finished giving a class, actually, at the business school

  • at Stanford.

  • And I worked with a lady who had been a professor here at Harvard in economics

  • and now is at Stanford Business School.

  • And I took the opportunity to look back and reflect on, let me say,

  • important lessons that I've learned over the time of my life,

  • but particularly that mattered to me as I was running Microsoft.

  • >> And I'm not going to try to go through the detail of each,

  • but I summarise them in short form.

  • And when I stopped and looked back and I said, how many of those

  • relate to something concretely that I got out of my experience at Harvard,

  • the answer turns out to be very high.

  • >> Small show of hands-- how many freshman do we have in the class?

  • Sophomores?

  • Juniors?

  • Seniors trying to get that last CS in before you leave?

  • OK, good.

  • >> I will tell you that in reflection, the amount you can get out of this place

  • is stunning.

  • My best friends, many of them I met to this day while I was here.

  • The formative experiences, I got here.

  • And everybody tells you, but it's amazing

  • what you can get out of the place.

  • >> Number one for me, life lesson, is ideas matter.

  • Now, people say, of course ideas matter.

  • What kind of stupid life lesson is it that ideas matter?

  • The truth of the matter is this is both under and over appreciated.

  • Most people think every idea is a good idea as long as they had it.

  • The truth of the matter is not every idea is a good idea.

  • Not every idea matters.

  • And not every idea should be pursued.

  • >> And if you're in a field like I am or was of innovation,

  • not every idea is a good idea, even if it strikes you that way on first blush.

  • In fact, most people are lucky to have one idea that

  • really matters in their whole life.

  • That's not a criticism.

  • But earth shattering, life changing ideas

  • are very few and far between-- research insights, investment insights,

  • innovations.

  • A good idea needs to be cherished and nurtured.

  • And in some senses, you could say I learned that here at Microsoft-- here

  • at Microsoft-- here at Harvard.

  • >> [LAUGHTER]

  • >> I actually know what's on the slide, though.

  • I learned it here.

  • Microsoft was started here by Bill Gates and Paul Allen when I was here.

  • When I finally joined the company, it was five years

  • after Microsoft got started.

  • Some people would say it got started up at the Currier House, but it really got

  • started up at the housing project up at Ringe,

  • which is where Paul Allen was living.

  • >> But this notion, which Microsoft started,

  • was the idea that software represented a form of free intelligence,

  • and that if you coupled it with this new essentially free intelligence

  • in the form of the microprocessor, unbelievable things would happen.

  • And that basic idea that software was a mobilizing force

  • for this new microprocessor, which was free-- that obviously was a big idea.

  • >> And that was the idea that Paul Allen and Bill

  • Gates had when they started the company.

  • And ideas do matter.

  • And it is worth considering and not falling in love

  • with every idea you have, whether you're trying to solve a problem set

  • or you're trying to do something else.

  • >> Second thing I learned is there is an advantage

  • to being what I like to call now hardcore.

  • Hardcore-- I don't know quite how to describe it.

  • It's a combination of tenacious and dedicated and passionate and

  • committed-- something like that, hardcore.

  • >> I learned about being hardcore from math concentrators at Harvard.

  • >> [LAUGHTER]

  • >> I'm not going to ask whether we have any math concentrators here.

  • But I would say that's where I got my lesson.

  • People could just go crazy-- focused.

  • And it wasn't just that people were genius,

  • but working and working and working and working.

  • I'd sit in my room working on a problem set, and after three hours--

  • I'm a little ADD-- I just couldn't take it.

  • The most hardcore people could just power through anything.

  • >> And the advantage of being that tenacious and dedicated

  • and committed-- I claim it helped us at Microsoft.

  • It was fundamental at Microsoft.

  • But I learned it here at Harvard.

  • >> Passion-- I think it's probably fair for me to say at this stage in my life

  • that basketball is a passion.

  • I started keeping track of rebounds and assists.

  • $12 a game I used to get paid.

  • I went to every Harvard basketball game, which I would have gone to anyway.

  • But I got paid $12 to keep track of rebounds and assists.

  • >> And I will say that finding your passion is something

  • you get to do almost in a unique way in college.

  • And finding the things that you are passionate about

  • is probably the most important thing that you

  • get to really start doing when you get to college.

  • Before college, everything's about getting to college.

  • It's unfortunate, but I know it's true.

  • >> Here, take the time to explore your passion.

  • I now this year will probably go to about 200 basketball games.

  • I think it's fair to say it is a passion.

  • But sitting there in the old IAB, which I think is called the Malkin Center,

  • marking down-- there's a guy named Lou Silver

  • who played on the Harvard basketball team in 1975.

  • I gave him the benefit of the doubt on every rebound ever.

  • I think I was part of his All Ivy success.

  • And who was one of the first guys to email me when I bought the LA Clippers?

  • Lou Silver-- passion built early in life.

  • >> Own the results.

  • This is actually, I think, one of the hardest things for college kids to get,

  • especially kids at Harvard, which is at the end of the day,

  • it's not just about whether you have a good idea

  • and whether you're really talented and really smart.

  • That's enough to get you into a lot of good colleges, including this one.

  • >> But all of those things are not really measures of success.

  • You have to do something other than make grades and get measured on them

  • in life.

  • That's generally how the world works.

  • And really being accountable for outcomes

  • makes you better at everything you do.

  • I comped for the Crimson and had to go sell $1,000 worth of advertising.

  • That was a lot of money.

  • I don't know what the numbers would be these days-- but $1,000 of ad revenue,

  • and then took on ad sales.

  • >> And feeling the pressure, particularly at an institution

  • that basically has no money-- at least that's

  • where the Crimson was 35 years ago-- it's good for you.

  • It's good for the soul.

  • And it actually makes you better at everything you do to own outcomes.

  • >> Time-- how many people in the room would say they are too busy?

  • Not busy enough?

  • That's a politically unpopular place to put your hand,

  • but God bless you for putting your hand up over there.

  • The truth of the matter is, thinking about time as something

  • to be managed, whether it's how long-- for those of you who are seniors,

  • I'm sure you'll ask the question, how long will I do my first job?

  • How long?

  • Will I stay in my job six months, a year, five years?

  • >> How long before I decide whether I really like my career?

  • How long before I really like my major?

  • How am I really managing my time?

  • >> I got involved in a lot of extracurriculars.

  • The one that broke the bank for me was becoming publisher of the Advocate.

  • I'm not even sure why I did.

  • Really, I'm not sure why I did it.

  • It was another resume build.

  • I was already busy with football and the Crimson.

  • >> But I did it.

  • And then time management really got into my vocabulary.

  • I really did have to manage-- and I don't even measure it.

  • I started skipping class.

  • I already confessed to that.

  • But managing time even amongst the extracurriculars

  • got to be a big, big deal.

  • >> Today, I actually keep a spreadsheet, a bunch of them.

  • These are all the things I'm going to do in my life.

  • Here's how much time is budgeted to them, and allocate it.

  • I record everything into Outlook.

  • I have a macro that spits it out in Excel.

  • And I do budget versus actual comparisons.

  • >> It's a little different since I've, quote, retired, unquote.

  • But at Microsoft, I could tell you I was going to have 12 one on ones with Harry

  • this year.

  • And then I would track them.

  • How many did I have?

  • I was going to spend 10 hours a year talking to customers over the telephone

  • versus in person.

  • And I just measure everything, because I think time is so important.

  • >> Storytelling-- I think in whatever you choose to do in life,

  • even if you're going to be the most hardcore, dedicated computer engineer,

  • learning to tell a story, whether you do it with my-- I can't write a lick,

  • but I'm not bad at a speech, but my speech style

  • is very different than people standing at podiums.

  • It's very different.

  • >> Being able to tell a story through your work, through your speech,

  • through your writing is so important.

  • You want a grant application?

  • You better tell your story.

  • You want your start up idea funded?

  • You better tell your story.

  • You want to be the top engineer on the team who's

  • compelling vision about where the product should go?

  • You better be able to tell a story.

  • >> And in general, I don't think people come out

  • of school well versed in storytelling.

  • On the other hand, as Harvard football manager,

  • I had to get up every team meal-- listen up, everbody-- and make announcement

  • for the coaches.

  • And I got to tell you, being a manager is not a lofty, revered position.

  • At least, it wasn't 40 years ago.

  • I'm sure now it's very different, because the whole system has changed.

  • But you'd get up there and you'd say, how do I tell this story?

  • What am I really going to announce?

  • What am I going to do?

  • Even learning to give speeches-- I was very shy as a kid.

  • And being a Harvard football manager for me

  • was like this huge, transformative experience.

  • >> The last lesson I learned at Harvard is-- not literally,

  • but figuratively-- it's get in the weight room.

  • The weight room in sports is where you get in shape.

  • You build new muscles.

  • You build new flexibility.

  • You learn to do new things because you have new capabilities.

  • >> In life, you have to stay in the weight room.

  • You have to keep evolving, building new skills, learning new things.

  • And that's easy to say, but a lot of people don't do it.

  • You could say, OK, well, people who go into the tech industry

  • all do-- not true.

  • >> I'll just give you one big transformation

  • that's happening in the world today.

  • Most people who are my age learned a form of computer science

  • where you wrote a program that took inputs and gave

  • you outputs that were correct or incorrect.

  • Most modern programming says, give me a bunch of inputs

  • and I'm going to statistically guess about what might be interesting here.

  • >> That's a very new skill.

  • And if you find people who are, let's say, 10 or 15 years out of college,

  • they don't think that way technologically, even to this day.

  • And so the need-- whether it's in your career or in your life-- for me

  • at Harvard, I taught Math A?

  • Does Math A still exist as a course?

  • It was pre-calculus.

  • >> Suffice it to say, because I thought of myself as some super math guy,

  • I had to learn to take concepts and explain them simply.

  • I was teaching pre-calc, something I had done five years earlier.

  • And the ability to build new skills-- I point

  • to the experience of doing that at Harvard.

  • >> Beyond Harvard-- yeah, there were still a few things to learn.

  • I know this is the best institution, absolutely, in the world.

  • I was at the Boston Globe today talking about Harvard,

  • number one in everything.

  • I bleed Harvard.

  • But I actually learned a couple things after I got out of Harvard.

  • >> The first message I would say is in life,

  • you want to be your own quarterback.

  • See the playing field.

  • Many people like to get myopically tied into one thing,

  • and they have a hard time stepping back.

  • Being CO of Microsoft is this amazing, wonderful opportunity.

  • It turns out, everybody in the world wants to tell you what to do.

  • And they'll educate you.

  • >> You want to learn about any field of technology?

  • As long as you don't act like a know it all, somebody will educate you.

  • And you have a unique ability to see broadly across the technology field.

  • Right now, I'm spending a lot of my time studying government and the economy.

  • >> It turns out the number of places you can actually

  • read about the totality of government in the United States is almost zero.

  • What is the total spent in government in this country,

  • and what does it get spent on?

  • There's no government report on that topic.

  • >> The best site happens to come from some random blogger who I met,

  • who I think it's great, by the way.

  • But I found him through our Bing search engine, not surprisingly.

  • >> [LAUGHTER]

  • >> That's my only plug for today.

  • I'm still a shareholder-- but seeing the field.

  • In life, it's always good to be the first person to achieve something.

  • It turns out the guy who wins is the guy who was doing it last.

  • So it's always best to invent a new idea, be the first to do something.

  • But ultimately, it's about committing to be successful and to stay at something.

  • It's sort of a corollary of being hardcore.

  • >> And certainly, there are fields of Microsoft's success,

  • like selling to large enterprises, where when we started on that in the '80s,

  • people said, you'll never do it.

  • That's all IBM's purview.

  • And today, that would be 70% or 83% of Microsoft profits

  • come because we failed at something for 20 years but we kept at it.

  • >> Corollary to ideas matter-- it's hard to have a second idea.

  • If you really study the tech industry, most tech companies have one idea,

  • and as long as the idea is hot, they stay hot and then they fade to black.

  • If you look at all the companies that were important in technology

  • when I got to Microsoft in 1980, only IBM is still around.

  • And I might argue it's not a tech company anymore.

  • >> And my great dream for Microsoft is that it is, so to speak,

  • a two, three, or four trick pony.

  • I said someplace that I thought Apple and Microsoft were amazing

  • because they were two trick ponies, and somebody thought I was bashing Apple.

  • No, that's my ultimate compliment.

  • >> Anybody who can have two good-- if you have one idea, I think you're amazing.

  • If you have two ideas, you're lionized in history for your success.

  • It's really interesting.

  • >> Optimim-- Colin Powell came to speak one year at our executive retreat

  • after he had been Head of the Joint Chiefs of Staff.

  • And he has this quote that I have come to love.

  • "Optimism is a force multiplier."

  • And particularly amongst technical people and really smart people,

  • the chic, chic, cool thing to do is to be cynical and skeptical

  • and pick things apart.

  • >> I know that would never happen in CS50, but you see that

  • amongst certain kind of high IQ technical people.

  • And yet, optimism is a force multiplier.

  • So how are you brutally realistic and be optimistic?

  • It's very, very important.

  • >> I figured this out after a while at Microsoft.

  • Salespeople at Microsoft are naturally optimistic, probably everywhere.

  • Just tell us where to go and we're gonna run!

  • And I know we're gonna succeed!

  • Because people want to believe.

  • Engineers, you say, here's where we're going to go,

  • and the first thing they say is, oh, come on.

  • >> [LAUGHTER]

  • >> That's not right.

  • That's not the right way to go.

  • But I have found-- and this might belie my fundamental optimism--

  • that the engineer's optimist is sometimes

  • a little different than the salesman.

  • While the salesman just says, where to go, charge, the engineer likes to say,

  • the world is all screwed up, but I can fix it.

  • That's an engineer's optimism to me.

  • Everything's-- but I can fix it.

  • >> Luck-- this is the one that really doesn't always

  • play well amongst Harvard guys.

  • It turns out that as smart as you are, as privileged as you

  • are to be at a place like this, and as hard as you work,

  • luck is still going to be a factor in your life.

  • Whether you're Bill Gates, Mark Zuckerberg, or the man in the moon,

  • luck is important.

  • It really is.

  • >> Why is that important to know?

  • Because it means you better like what you're doing.

  • You better not be doing things just because it will make you successful,

  • because you're going to need some luck to make yourself as successful as you

  • want to be anyway.

  • So find something where your passion wins out,

  • where you're really satisfied.

  • And then understand-- I know this.

  • >> I think I'm really talented guy.

  • I think Bill's a genius.

  • I think Paul Allen is amazing, insightful guy.

  • And I say, boy, how lucky we were.

  • Apple-- I've seen their success, and yet,

  • how lucky they were in many dimensions.

  • We're a company that gave them $500 million

  • when they were almost bankrupt in '97-- confluence of factors.

  • And then they did great things with it.

  • But luck always factors in.

  • >> And then last, but not least, because I think I'm about out of time,

  • everything in the world-- and this comes from a guy with a real bias--

  • everything is a technology problem.

  • Innovation and technology is the heartbeat

  • that leads to progress in the world.

  • >> I read this book in the last six months.

  • It's called Inequality, Capital in the 21st Century

  • by a French economist named Piketty.

  • It was kind of controversial.

  • It turns out, if you look at the Amazon statistics,

  • hardly anybody finished the book.

  • It sort of reads like a socialist diatribe in the end.

  • But it's got all this great analysis in the beginning.

  • >> But a fundamental point he makes, looking back

  • over thousands of years of history, is GDP growth

  • is only a function of three things.

  • So the improvements in life are a function

  • of population growth and innovation.

  • That's it-- population growth and innovation.

  • >> Today, the hot technology, the operating system of all innovation,

  • is computer science.

  • And as I guess David likes to say, I'm Steve Ballmer.

  • This is CS50, the most important class you'll take at Harvard.

  • Thank you.

  • >> [APPLAUSE]

  • DAVID J. MALAN: So Steve has kindly left an enormous amount of time

  • here to take questions.

  • We have two microphones here.

  • We have two microphones in the balcony.

  • So you are encouraged to meet Gabe and Davin and others here

  • if you would like to be the first and second to ask these questions.

  • STEVE BALLMER: Or you can shout out.

  • I've heard that's standard protocol in this class.

  • >> DAVID J. MALAN: All the better.

  • >> STEVE BALLMER: That also works.

  • >> DAVID J. MALAN: Our first question over by Gabe here.

  • >> AUDIENCE: What was it like for you making that decision

  • to drop out and go to Microsoft?

  • Because obviously, there was a lot of uncertainty.

  • >> STEVE BALLMER: OK.

  • It's 1980.

  • I'm at Stanford Business School finishing up my first year.

  • Bill Gates calls as I'm trying to decide what to do for a summer job.

  • He says, hey, look, how are things?

  • Yeah.

  • Yeah, oh, you're not finished yet.

  • Yeah.

  • Too bad you don't have a twin.

  • We could kind of use a business person around here.

  • That was the pitch.

  • >> [LAUGHTER]

  • >> I thought about it, and I said, well, shoot.

  • I guess I could tell him.

  • So I called him back the next day and said, well, maybe we talk.

  • We should talk.

  • And my instincts were actually right.

  • The most risk-free decision you'll ever make

  • is the decision to drop out of college.

  • No, why?

  • I say it for a reason.

  • >> Colleges let you drop back in.

  • All my friends, professors-- oh, you're not gonna do that.

  • You're gonna go to work for McKinney or blah blah blah-- I can't remember

  • who I had offers from-- Brownstone Consulting Group.

  • >> [LAUGHTER]

  • >> And I said, I might go join this friend of mine who's got this small start up.

  • Well, what do you know about that place?

  • And I said, it's the world leader in something called software.

  • And I had written a couple programs, but it's not like I-- I did not take CS50.

  • The only programs I had written was for AM115 or something like that.

  • It was a mathematical modeling class.

  • >> And they looked at me kind of funny.

  • And I told my mom and dad.

  • My dad was an immigrant.

  • My dad did not go to college.

  • My mom did not go to college.

  • My dad was an immigrant from Switzerland.

  • The only college he really grew up hearing about was Harvard.

  • Even when I went to Stanford to Business School,

  • he was afraid I was making a mistake, because it

  • was some place unheard of to him.

  • And I said, I'm going to drop out.

  • And this company is the world leader in software for personal computers.

  • And my dad said to me, what's software?

  • Well, that was not an ignorant question in 1980.

  • It would seem funny now.

  • >> And my mom asked me an even more prescient question,

  • which is why would a person ever need a computer?

  • Because remember, we're in a time of room-sized computers.

  • But I said, look.

  • I made a deal with Bill that said if it didn't work, he could fire me

  • or I could drop back into Stanford at the end of the summer.

  • >> After a month, I decided I'd made a mistake going to Microsoft.

  • I was basically the bookkeeper for a 30-person company.

  • I told Bill we were 30 people.

  • We needed to add 18.

  • He said, you're gonna bankrupt this place, Steve.

  • I didn't ask you to drop out of Stanford to bankrupt Microsoft.

  • >> And we had a huge fight.

  • We were good at that.

  • >> [LAUGHTER]

  • >> And then he said, come on.

  • We're going out to dinner with my dad.

  • Bill's dad's sort of a scary looking dude-- not really, but he's 6'7".

  • 6'7" doesn't look that tall anymore either to me,

  • but that's a Clipper thing.

  • >> But anyway, I went through my shtick for Bill and his dad.

  • And that's where Bill invented what I think was the theme for the company.

  • He said, you don't get it, Steve.

  • We're going to put a computer on every desk and in every home.

  • >> And I settled down.

  • I stayed.

  • Stanford would still take me back.

  • It turns out, to this day, I could go finish my MBA.

  • It just isn't that risky a proposition, because these great schools

  • let you take time off as opposed to drop out of their memory banks.

  • It turns out, I'm still a Stanford alum, too, when it comes to alumni giving.

  • >> [LAUGHTER]

  • >> [APPLAUSE]

  • >> DAVID J. MALAN: Another question from Ian at the mic here.

  • >> AUDIENCE: So you've made a series of comments about net neutrality,

  • particularly speaking against it, most recently in a tweet.

  • And that's a particularly unpopular opinion

  • amongst a lot of young people and tech people,

  • so I was wondering if you could elaborate that

  • in maybe more than 180 characters.

  • >> STEVE BALLMER: Yeah.

  • Well, first, I haven't made a lot of comments.

  • I made one little tweet yesterday, because I

  • was kind of annoying on the plane and had nothing to do.

  • So I tweeted.

  • And boy, did that tweet get more attention than I ever expected.

  • >> But look, I can explain.

  • What is net neutrality about?

  • I'm not quite sure.

  • But it's not necessarily about keeping down the price of internet access.

  • Competition keeps down the price of internet access.

  • Net neutrality is merely deciding who's going to pay.

  • If the providers who are making money on the internet-- the Googles,

  • the Netflixes-- the Clippers, for example,

  • if we were to go over the top with the Clippers broadcast,

  • we too would be a broadband content provider.

  • We're looking at that at the Clippers.

  • >> But by saying you can't differentially charge for the traffic, what it says

  • is all consumers should pay a higher price

  • for the people who need the services that actually cost more.

  • So if you watch Netflix, there's two approaches.

  • You can tell your neighbor who doesn't watch Netflix, ha, ha, ha, ha.

  • You pay more, even though you don't watch Netflix, than I do.

  • Or you can let the market compete in differentially priced.

  • >> I think we're going to get better service, more pricing

  • options, and a better overall deal by having competition

  • between broadband providers than by regulating the price.

  • So this, to me, is not about low prices versus high prices.

  • It's about letting free enterprise solve the problem versus thinking

  • a few thinkers in DC can invent complicated pricing and tariffing

  • schemes that are superior in creating opportunity than the market.

  • >> Ultimately, what we really want is more investment in broadband infrastructure

  • that leads to better service at lower prices.

  • I'm with you on that.

  • I'm 100% in on that.

  • I'm making a statement in terms of how I think the world will best achieve that.

  • And I feel clear in my thinking about that.

  • DAVID J. MALAN: Up next, our microphone by Anton.

  • STEVE BALLMER: And I'll say that even though I know we probably

  • will wind up-- if we go over the top with our Clippers TV broadcast,

  • we will wind up paying more and our customers will pay more

  • and we will make a little less profit, but everybody else

  • will get lower prices for fundamental broadband access.

  • AUDIENCE: Thanks for your time.

  • What do you love most about owning the Clippers?

  • Who's-- wave your hand so--

  • >> AUDIENCE: Up here.

  • STEVE BALLMER: Oh, hi.

  • AUDIENCE: What's up, Steve?

  • STEVE BALLMER: It seemed like God speaking.

  • Go ahead.

  • >> AUDIENCE: Voice of a deity.

  • >> STEVE BALLMER: What do I like best about owning the Clippers?

  • >> AUDIENCE: Yeah, exactly.

  • >> STEVE BALLMER: I don't know.

  • Three months in, I can find the bathrooms now in the stadium.

  • That's my level of sophistication.

  • There's a lot of things that have been fun.

  • It turns out it's even more fun to think about the team dynamics

  • and hear about those from the coach than I thought.

  • >> Worrying about the fan experience in the arena--

  • I didn't-- the song you were playing before this started,

  • I don't know the name, but I need to get the name from you.

  • I was thinking, that's a great song.

  • We could really use that song for pump ups coming out at time outs.

  • >> [LAUGHTER]

  • >> No, seriously.

  • You could say it's my-- I still am I a "We Will Rock You" kind of guy.

  • But we have 150 possessions in a basketball game.

  • And let's say at least on half of them, we

  • want to do something to keep the crowd engaged.

  • How do you do that?

  • How do you orchestrate that kind of busy environment?

  • What do you want to do on the Jumbotron?

  • >> The technology in basketball-- unbelievable.

  • Every MBA arena now has six cameras in the ceiling

  • that are taking pictures of the action.

  • And there actually are start ups that have machine learning technology that

  • looks at the video and characterizes the action

  • so it uses computers to decide that was a pick and roll versus a pick

  • and pop with Chris Paul and Blake Griffin.

  • That was a blitz by Jamal Crawford.

  • And every arena is equipped with this technology.

  • >> And literally-- it's a company called Second Spectrum.

  • And one of the key guys is a 6'9" hooper out of MIT who never played basketball

  • after college, but he's doing machine learning algorithms across vision

  • recognition on basketball stuff.

  • That's been kind of fun.

  • The in arena, thinking about going over the top and what

  • do the economics look like-- it turns out

  • there's a lot of pretty cool things.

  • >> It's much more complicated business than it is large.

  • Microsoft, we have 100,000 people.

  • We got about 130 at the Clippers.

  • And yet, the breadth of problems we get to think about is actually-- well,

  • it's not 1,000 times less complicated.

  • It's probably 500 times less complicated than Microsoft.

  • >> DAVID J. MALAN: Next question from Gabe's mic here.

  • AUDIENCE: Oh, hi.

  • My name is Larson Ishii.

  • I write for Clips Nation, so I was going to continue with the Clippers

  • questions.

  • But I was going to ask about how you're incorporating the rest of technology.

  • I've seen that you guys have an increased proportion of statistics

  • within games, such as showing the four factors that

  • produce the probability of victory within the game, which I don't think

  • any other teams are doing in the league currently, which is really awesome.

  • >> So I just want to know how, from your math background,

  • you're incorporating more of the technology and statistical side

  • into the game of basketball in what is scene as more than emerging field,

  • and if that can help solve the Clippers' small forward problem right now.

  • STEVE BALLMER: With a little edge in the end of that question--

  • [LAUGHTER]

  • What we're doing right noq-- and the tech is just not quite

  • there-- is for every game, we produce a couple

  • of plays that actually take some key play from last time we played

  • an opponent, and it shows statistically what the probability was

  • of success and the expected points, depending

  • upon the decisions the player makes.

  • So you see the guys on the court.

  • Chris is with the ball.

  • If he throws it to Blake Griffin, 30% chance.

  • On this one, he'd have a 40% chance of making a basket with an expected two

  • point or three shot point shot.

  • And we're using that to demonstrate.

  • >> What you want to do, of course, is get it so comes back real time.

  • So we can take a play that just happened and have the visualization

  • based upon the data that's coming out of the sensors happen in real time

  • so fans can really track just how amazing the speed and the decision

  • making at that speed is.

  • >> But we're working our way up to that.

  • The thing that we've done that actually gets a lot interest

  • is the thing we call our Clipper Tron application.

  • You just go to www.clippertron.com while you're sitting in the arena,

  • and you can pick your favorite player.

  • You can pick a kind of a play-- a pick and roll, a blitz, a this and this.

  • And we'll go throw the highlight up on the Jumbotron.

  • We're adding, now, Twitter and Facebook integration.

  • So we put your name.

  • We'll put your picture.

  • And we'll put the plays that you picked and we can--

  • people love seeing themselves on the Jumbo-- kiss

  • cam, all that kind of stuff.

  • >> At least, now, we're letting people throw up basketball action.

  • Eventually, I want to be able to do it in people's homes.

  • So with your phone, you go to Clipper Tron,

  • and we'll throw it up live in the broadcast to you

  • on TV-- so some of the stuff we're playing with.

  • >> DAVID J. MALAN: Another mic up by Dan Bradley.

  • >> AUDIENCE: Steve, after his contract with the Lakers is up,

  • would you consider signing Jeremy Lin as a backup for Chris Paul?

  • >> STEVE BALLMER: I support Doc Rivers 100% in his decision

  • making about our basketball team.

  • My job is to support, ask a lot of questions, and support.

  • How's that for not answering your question?

  • >> [LAUGHTER]

  • >> [APPLAUSE]

  • >> I did go to the Laker-Clipper game in LA last week, week before last.

  • I'm pleased to report two things.

  • One, Jeremy Lin played well.

  • And two, we kicked them.

  • >> AUDIENCE: So I'm Bobby.

  • I'm from LA, just in case you guys need interns this summer.

  • No, I'm just kidding.

  • [LAUGHTER]

  • >> But seriously--

  • >> STEVE BALLMER: Bobby, sballmer@clippers.com,

  • in case you need an internship this summer.

  • >> [LAUGHTER]

  • >> Luck, opportunity, take advantage of it.

  • You got to feed the aggressive instinct.

  • Go ahead, Bobby.

  • Run with it, though, babe.

  • >> AUDIENCE: So you mentioned your 33 on your first exam or whatever.

  • But can you tell us more about other examples of failure in your career

  • at Microsoft or in your life and what you've learned from it

  • and how you responded, et cetera?

  • STEVE BALLMER: Yeah.

  • I'm funny.

  • I don't actually-- it turns out, I got a B plus on the test with the 33,

  • because it was the fifth highest grade in the class.

  • Although I do to play golf with a guy in LA who reminds me he got 50 on the test

  • and beat me.

  • He remembers that to this day.

  • >> So everything's relative.

  • I'm a guy who's so optimistic, in a way, I never think I fail.

  • I just haven't succeeded yet.

  • I say be first, but commit to be last.

  • OK.

  • Well, that's not going well.

  • And you can see it in Microsoft behavior.

  • People used to say we don't get things right till version three.

  • I don't know whether to take that as a criticism or praise.

  • Get it right early is good, but commit to getting things right.

  • >> So I've certainly had setbacks, whether it was at school.

  • Certainly, when we and IBM split ways, I thought

  • our company would probably go out of business.

  • That was about 1990.

  • Certainly, I've been told many times that we'd never

  • succeed in the enterprise business.

  • I was told that you can't do a start up video game.

  • >> I was told no search engine will ever succeed versus Google.

  • There's still more of an element of truth to that one than I'd like.

  • >> [LAUGHTER]

  • >> I was told that the mobile device market is locked up, which I don't believe.

  • It's partly because I believe in the power of innovation and the power

  • not only for people to change and improve themselves,

  • but that things do change over time.

  • And as long as you're prepared, as I said in my talk--

  • if you've been in the weight room and you have the capabilities

  • and skills to do something and you stay in the game,

  • then you're prepared to take and seize on the next idea.

  • >> It's kind of like saying, hey, look, we don't know how to beat the-- I

  • won't take basketball.

  • I'll take football.

  • People don't know how to beat the Patriots or the Seahawks.

  • But that doesn't mean you don't stop training, working out, building skills.

  • You keep working on your game plan, but you're always

  • building your skills and capabilities.

  • Then you can be optimistic that failure will lead to success the next time.

  • DAVID J. MALAN: Why don't we take a couple more questions

  • and leave some time for hellos at the end?

  • Belinda?

  • AUDIENCE: Hey, thanks so much for coming.

  • So I really appreciated a lot of the things you said,

  • and I think three things in specific really resonated with me.

  • One, treasure your time.

  • Two, see the field.

  • And three, also explore your passions.

  • >> So the way I see it, the problem is that time is so finite

  • and that we have such limited time.

  • And explore your passions seems to me more depth-based,

  • whereas seeing the field is very breadth-based.

  • So taken in the context of also acquiring new skills,

  • how do you prioritize your time?

  • And specifically for you, when you said you created a budget for your time,

  • how did you decide what was important and what would be worth your time,

  • basically?

  • >> STEVE BALLMER: OK.

  • Let Two stories-- let me start as an undergraduate at Harvard.

  • I beg every senior I know do what I did, because I thought it really worked out.

  • When I was a senior, I interviewed with 35 different companies on campus.

  • >> I'm trying to get my son to do that.

  • He's a senior.

  • I've tried to get friends of mine whose kids went

  • to Harvard-- people don't do that.

  • But why was that good?

  • And then I got a chance to sniff 35 different companies, 35

  • different cultures.

  • I went back and visited.

  • I can tell you what it felt like to run a check processing room at Mellon Bank.

  • I can tell you what it would have felt like

  • to go to Minot, North Dakota and trade grain for Cargill.

  • I can tell you what it would have felt like

  • to run a small start up insurance company

  • in Cleveland-- Progressive Insurance, which is now,

  • of course, a major player.

  • I remember all these visits.

  • And I just think if you want to see the field,

  • you have opportunities to get what I would

  • call rapid little experiences that are really helpful before you get down

  • to your passions.

  • >> What I would say as a CEO I did is I blocked two kinds of time.

  • One was time that I would do whatever our people in a given country

  • wanted me to do or our engineers in a given product group wanted me to do.

  • That means they're telling me about things

  • I'm not necessarily interested in.

  • But I can always help the sales rep with a sale.

  • Hey, the boss is here, blah blah blah.

  • But I'm learning, learning, learning, learning.

  • >> And then I also blocked explicitly about call it a total of 20% of my time

  • where people couldn't schedule it.

  • And then I could use it for reading, exploring.

  • But even time to explore needs to be blocked.

  • And time to let others educate you needs to be blocked.

  • >> And I think that's part of how you can continue to see the field

  • and then develop the kind of passion-- so just a few thoughts.

  • >> DAVID J. MALAN: Last question from Davin's mic.

  • >> AUDIENCE: Hi, I'm J. Paul Meyer.

  • Over your years at Microsoft, what product or hire

  • or whatever it is have you been most excited about or you most excited

  • about?

  • >> STEVE BALLMER: It's kind of like asking which of your kids you like the best.

  • And it's kind of situational, timewise.

  • You look at Windows 1.0 when it came out-- I can't write a line of code,

  • but I was the development manager for Windows 1.0.

  • Of course that's my favorite product, and at the end of the day,

  • it's the backbone of Microsoft.

  • >> On the other hand, when you say slick and interesting,

  • I'd probably point to Excel.

  • Life changing for me, I'd probably point to Surface Pro

  • 3 and the pen and One Note.

  • I finally have the thing I really want to get my work done.

  • I really can be paperless.

  • I really have my life in the cloud.

  • >> For me, inking is very important, because if you're

  • the guy somebody's presenting to, you can't sit there and type.

  • If you want to draw and annotate, markup, you can't type.

  • So I might say Surface Pro 3.

  • If I was home with my family, because I have three boys of about the right age,

  • I'd say, well, of course, it was Xbox 360 and the Halo game.

  • My 15-year-old still believes that's the only worthwhile piece of work

  • I did in my working career.

  • >> [LAUGHTER]

  • Three weeks ago, he says to me, Dad, I'm very disappointed

  • in you leaving Microsoft.

  • I was worried about this.

  • Aaron.

  • I don't know whether you can still get me the new Halos when they come out.

  • >> [LAUGHTER]

  • >> So beauty's a little in the eye of the beholder,

  • but I'd probably point to the Surface Pro 3 in modern days

  • and Windows 1.0 in historic days.

  • DAVID J. MALAN: Well, let me wrap up with a little something

  • we've never done before.

  • But we, on behalf of CS50 TFs and TAs would

  • like to make you an honorary member of CS50's staff if you'll have us.

  • >> STEVE BALLMER: OK, absolutely.

  • >> [CHEERING AND APPLAUSE]

  • Nice!

  • >> DAVID J. MALAN: And for everyone here, you are all cordially

  • invited to a special event that President Drew Faust, Dean Cherry

  • Murray, and Steve Ballmer will be hosting tomorrow

  • at the I-Lab at 12:00 PM, for which there will be a puzzle hunt which

  • is inside of this packet which you'll be handed on the way

  • out, for which there's fabulous prizes, including several Xboxes

  • and also a pair of Clipper tickets.

  • >> STEVE BALLMER: Clipper/Celtic tickets for the game here on March 29,

  • visiting owners seats.

  • Do compete.

  • [CHEERING]

  • STEVE BALLMER: Thanks, everybody.

  • DAVID J. MALAN: CS50, this was Steve Ballmer.

  • >> STEVE BALLMER: This is CS50!

>> [MUSIC PLAYING]

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