While visiting Stanford Graduate School, Microsoft Chief Executive Officer Steve Ballmer makes interesting comments about Google and where they are in the “four stages of business”. If you ignore the fact that he is bashing one of his main competitors he actually shares good insight regarding Google.

Comments about Google vs. Microsoft

• [Google] trying to double in a year is insane
• Google only has does one thing well (search and advertising)
• Microsoft has done two things (Desktop OS, Server OS) and is trying to do two more (online effort, consumer electronics)
• Google is has not proven that they can add to core search and advertising business

Message: Google is still “one trick pony”

Ballmer explains four stages of business

1. Invent something
2. Get it to critical mass (most never get to this point)
3. Milk it when it is in critical mass (those who can’t get sold off)
4. Create culture to repeat top three

Message: Google is still/stuck at stage #3

Steve Ballmer’s overall message is that entrepreneurship is about taking one good thing and adding around it and then repeating. Growing 20% a year will not last forever unless a new core business line is added. Many very good companies never become truly successful because they can’t repeat process.

Check out video and let me know if you agree with his assessment of Google. In video, he also explains why he dropped out of Stanford to go work with Bill Gates at Microsoft.

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