Gates bids farewell to fulltime work at Microsoft with tears

ByABC News
June 28, 2008, 10:36 PM

REDMOND, Wash. -- On his final full day at Microsoft, Bill Gates went on stage to reminisce with his longtime friend Steve Ballmer, and neither man could hold back tears as Ballmer handed Gates a large scrapbook as a farewell present.

Gates, who is stepping back to focus on his philanthropy, sat with CEO Ballmer in a Microsoft conference room and meandered through moments in Microsoft's history. They stopped to get in a few good digs at IBM Corp., whose first personal computers were loaded with Microsoft's DOS operating system before IBM adopted its own operating software and their relations strained.

"They went off with OS 2, we were left with good old Windows, and sure enough the David versus Goliath story came out with the right ending," said Gates, eliciting laughter from the crowd of 830 Microsoft employees.

Gates, who founded Microsoft with Paul Allen in 1975, admitted that Microsoft has faltered along the way, and certainly isn't perfect today.

"When we miss a big change, when we don't get great people on it, that is the most dangerous thing for us," Gates said. "It has happened many times. It's OK, but the less the better."

Gates, who will remain Microsoft's chairman on a part-time basis, said he would still take on Microsoft projects picked by Ballmer and two other executives who have assumed most of his day-to-day tasks, Craig Mundie and Ray Ozzie.

One of those will be Web search, where Microsoft lags far behind Google Inc. and Yahoo Inc. in market share. With an acquisition of Yahoo now again apparently off the table, Gates threw his weight Friday behind a strategy of assembling a team of smart people and combining Microsoft's own breakthroughs with what competitors are already doing.

"Search is the place where people probably really think, will Microsoft ever do anything there? We'll be the very best," Gates said. "That is in full motion."

Gates also reinforced his intent to stay out of the company's day-to-day affairs.

"I do think with my not being here full time there is some opportunity that people will really step up. There's somewhat of a vacuum created there," he said. "I have got to get out of the way, and let that new thing step in there."