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The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. —BILL GATES,

KIMURA Tokyo Station is packed. It’s been a while since Yuichi Kimura was here last, so he isn’t sure if it’s always this crowded. He’d believe it if someone told him there was a special event going on. The throngs of people coming and going press in on him, reminding him of the TV show he and Wataru had watched together, the one about penguins, all jammed in tight together. At least the penguins have an excuse, thinks Kimura. It’s freezing where they live. He waits for an opening in the stream of people, cuts between the souvenir shops and kiosks, quickening his pace. Up a short flight of stairs to the turnstile for the Shinkansen high-speed bullet train. As he passes through the automated ticketing gate

I remember walking up an inclining street in Hebron and reaching a large metal fence with a revolving gate. At the top of the gate was a device about the size of a shoebox with a tube protruding from it. It looked like a camera. In fact, it was a turret designed to lock on and immobilize a target using “nonlethal” rounds fired via remote control. The device’s name—“Smart Shooter”—was written on the side. This was oppression’s avant-garde—the first initial steps to automated imperial dominance—and I had little reason to feel that such trailblazing efforts would remain in Palestine. And at that I despaired.

The word automaton first appears in Western literature in Homer’s Iliad, where it’s used to describe the “self-moving and intelligent machines fabricated by Hephaestus,” the blacksmith god of technology, according to the Stanford folklorist and historian of ancient science Adrienne Mayor. Around 700 BCE, Homer wrote about Hephaestus’s various automated inventions, which included “a fleet of driverless three-wheeled carts that delivered nectar and ambrosia to the god’s banquets,” automatic gates, bellows that self-adjusted their trumpet blasts as needed, and a crew of artificially intelligent golden female androids that could anticipate the blacksmith god’s every need. And the Greeks were drawing on even older oral traditions.

The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. —BILL GATES

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The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.

By 2008, storm clouds were gathering over Microsoft. PC shipments, the financial lifeblood of Microsoft, had leveled off. Meanwhile sales of Apple and Google smartphones and tablets were on the rise, producing growing revenues from search and online advertising that Microsoft hadn’t matched. Meanwhile, Amazon had quietly launched Amazon Web Services (AWS), establishing itself for years to come as a leader in the lucrative, rapidly growing cloud services business. The logic behind the advent of the cloud was simple and compelling. The PC Revolution of the 1980s, led by Microsoft, Intel, Apple, and others, had made computing accessible to homes and offices around the world. The 1990s had ushered in the client/server era to meet the needs of millions of users who wanted to share data over networks rather than on floppy disks. But the cost of maintaining servers in an ever-growing sea of data—and the advent of businesses like Amazon, Office 365, Google, and Facebook—simply outpaced the ability for servers to keep up. The emergence of cloud services fundamentally shifted the economics of computing. It standardized and pooled computing resources and automated maintenance tasks once done manually. It allowed for elastic scaling up or down on a self-service, pay-as-you-go basis. Cloud providers invested in enormous data ​centers around the world and then rented them out at a lower cost per user. This was the Cloud Revolution. Amazon was one of the first to cash in with AWS. They figured out early on that the same cloud infrastructure they used to sell books, movies, and other retail items could be rented, like a time-share, to other businesses and startups at a much lower price than it would take for each company to build its own cloud. By June 2008, Amazon already had 180,000 developers building applications and services for their cloud platform. Microsoft did not yet have a commercially viable cloud platform. All of this spelled trouble for Microsoft. Even before the Great Recession of 2008, our stock had begun a downward slide. In a long-planned move, Bill Gates left the company that year to focus on the Bill & Melinda Gates Foundation. But others were leaving, too. Among them, Kevin Johnson, president of the Windows and online services business, announced he would leave to become CEO of Juniper Networks. In their letter to shareholders that year, Bill and Steve Ballmer noted that Ray Ozzie, creator of Lotus Notes, had been named the company’s new Chief Software Architect (Bill’s old title), reflecting the fact that a new generation of leaders was stepping up in areas like online advertising and search. There was no mention of the cloud in that year’s shareholder letter, but, to his credit, Steve had a game plan and a wider view of the playing field.

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