And it was great for end users. Not only because it drove system costs down, but it also created a rich market of add-on products — everyone could mix and match hardware to create their optimal system, whether they cared about cost or performance or maintainability or upgradability or whatever. Corporations could spec out and build standard low cost machines, enthusiasts could build super-tweaked machines, verticals could build out specialty machines, all on the same open hardware platform.

In the last 15 years, though, the market has shifted dramatically towards the laptop form factor. This shift has been a relative disaster for MSFT. The industry has moved away from an open hardware chassis with mix-and-match components, to closed tightly-engineered all-in-one machines. This shift has played to Apple’s strengths in design and integration and has negated many of the benefits of the PC ecosystem. The PC industry is still struggling to figure out how to regain design and profit momentum — Intel’s Ultrabook effort being the latest scheme. But the Ultrabook is just a direct response to the MacBook, it does nothing to recapture the open hardware experience of the 90s.

The open hardware community still exists in various forms, but is no longer focused on the PC platform and is not much of an asset for MSFT. Enthusiasts still build PCs, mostly for gaming — Maximum PC for instance has a good guide to components, Newegg is the place to buy. But this isn’t mainstream any more. The “maker” community is vibrant but is focused on other platforms largely — Arduino, the Kickstarter community, etc. The vibe and energy around open hardware is great, but it is no longer tied to the PC experience and is no longer an asset for MSFT.

MSFT has always been great at chasing taillights and is hard at work supporting the Ultrabook, competing with the Apple stores at retail, pushing Windows Phone, etc. But chasing Apple’s taillights results in products that are more and more like Apple’s — fully integrated hardware/software/services, a captive retail experience. MSFT has to do all this, the mainstream of the market is here, but there is nothing distinctive about the resultant products and experience. The Ultrabook/Windows/Microsoft Store products may equal the Apple experience, and may offer users a few more choices of hardware brands (does anyone care?), but the experience won’t stand out. Necessary work but not sufficient to recapture thought leadership in the market — at the end of the day, MSFT will be able to claim parity but no more than that.

If I was in a leadership role at MSFT, I’d invest in strategies to recreate the open hardware platform dynamic around the Windows platform. It is not obvious how to do so with the laptop and tablet as the mainstream platform, but I would spend $100s of millions trying. MSFT clearly has the cash to spend on new frontiers and new adventures, a couple hundred million on an effort to change the basis of competition in the PC market seems like a wise bet, even if it fails.

How about putting a “maker’s corner” in every retail store with modified cases and modified machines, maybe even workshops? Get the energy of the PC gaming community into the store, let people see this energy. How can the laptop design be modified to support add on hardware — super high speed optical expansion busses, wireless high speed expansion busses, novel expansion chassis ideas? Sifteo cubes are kind of cool, can this idea be used to provide hardware extensions to laptops? Are there other ways to “snap on” hardware to extend the laptop or tablet, using bluetooth or induction or other mechanisms? Can MSFT seed the maker community with funds or tools? Can MSFT embrace Arduino somehow, or Kickstarter? Could the PC be the hub for thousands of Arduino-based sensors and actuators and gadgets? These ideas are all admittedly poorly thought out, and I am not sure any one idea is right, or if any will work.

But I would spend a lot of money chasing after any idea that would move away from closed all-in-one hardware designs, and I would experiment with many ways to reinject open hardware dynamics back into the PC/tablet market. Ultrabook is not this — it is a fine and adequate taillight chaser, but it won’t shift competitive balance back in MSFT’s favor.

This is not the only reason for MSFT’s stagnation in the last decade, there are many other aspects to consider, but the dwindling of the open hardware ecosystem has been a loss of MSFT. For another take on Apple’s success against MSFT in the last decade, check out Rich’s analysis – the observations about vertical vs horizontal integration ring true.

SOPA and PIPA are beyond dangerous — the whole tech industry has been railing like crazy against these, it sure would be good if the industry would focus instead on how to help content creators protect their IP and get paid for their work. I’d like to see authors and singers and movie directors get paid a lot of money, I think they should be allowed to charge whatever they want for their products, I don’t think any of us have the right to copy their works willy nilly. These industries employ a lot of creative people in good jobs in the USA and I think we should encourage this. It is easy to sit back and pee all over the movie industry and the Senate and House, but we should spend time on more productive activities that help solve the problems.

Apple blows it out. Ok I lied, I am not feeling contrary about Apple at all. Blowing it out of the water, customers love them, competitors in disarray, upside internationally and in PCs, iPad 3 and iPhone 5 and Apple TV opportunities ahead of them. Apple has only their own egos to fear.

I’ve been watching the #OccupyWallStreet activity with interest. In my heart, I have great empathy for the movement. Growing up in flyover country, I never felt very warm about the government and financial elite on the East Coast, I viewed them with suspicion. And then having spent most of my adult life on the West Coast, surrounded by entrepreneurial activities at work and liberal attitudes, I have not grown to feel any warmer about large corporations or government involvement.

So when I see people expressing their feelings of lack of justice, lack of representation, antipathy towards the entrenched financial and governmental powers, I tend to empathize with the people on the street. And I applaud heartily their active peaceful engagement in the political process — they have the right to take to the streets in peaceful fashion, they have the right to be heard, they are not doing anything to harm anyone. So without even really understanding the goals of the movement, I applaud and encourage the people involved. It is hugely positive to see people have this level of passion about the issues in our society, and to be fully engaging in participative democracy. Go go go!

A couple of smart and committed young people sent me this “Why Occupy Wall Street? 4 reasons” video as a way of explaining why they are participating in the demonstrations. It is a worthwhile watch. The video lays out 4 principles:

• Re-regulate the financial institutions by reinstating Glass-Steagall. I am not informed enough to know the exact form of banking regulation we should have, but the financial services industry has demonstrated that it is not effective in controlling its own risk profile, or limiting the impact of their risks on the rest of society. A discussion about regulation and risk limitation seems like a good thing.
• Audit the Fed. Certainly greater transparency around the Fed, and its relationship with major financial institutions, seems to be a good idea. The relationships between the Treasury, the Fed, and major financial institutions, based on people circulating between all three, need more openness and examination and perhaps regulation.
• Reverse #08-205 by amendment. I feel very strongly about this one. Corporations do not have the right to vote, they should not have the right to manipulate the political process, they should be barred from funding candidates and causes. I see nothing good from allowing corporations to spend money on politics, it is corrupting. Fully fully support!
• Overhaul 1%/Corp tax code. I am not sure exactly what this means, I can tell you I have paid a lot of taxes, a lot. I am not against paying a fair rate and I am not against a progressive tax. I’d be all for a simpler system because my tax return is a huge freaking disaster. I think there is a larger issue here though, I don’t think the problem is all on the revenue side, I think you have to look at the expense side too and rein in government spending. So — all in favor of fair taxes, but we need to look at the spending side too.

I know that not everyone in the #OccupyWallStreet demonstrations embraces these exact 4 principles, so I am not saying I approve 100% of the demonstrator’s goals — but these particular points seem like great discussions to have, and I fully support the efforts to confront us all with these issues.

One thing I am wondering now is this — what exactly do the 99% want those of us who are supportive to do? How can I be effective in advancing the discussions around these points? Demonizing the 1% is not an effective strategy, some of us embrace reform, and we need a way to engage on the issues in a productive manner. Don’t paint us all with the same brush. Help us to help you.

• OSU is in for a tough year. Yes they tackled better yesterday, but it was Colorado. If we give up 17 to Colorado, we will give up 24+ to MSU/Nebraska/Wisconsin, and the OSU offense does not have the firepower to score enough against those teams. I’m glad Braxton and other young players are getting the reps, this is a team for next year.
• USC shot themselves in the foot over and over again, and Erickson was clearly the best coach out there. The ASU offensive game plan and adjustments were very effective and USC could never crack it.

On broader college football issues, if you haven’t already seen the below, read immediately. As money continues to pour into the sport, the issues discussed are going to become more prominent, not less.

• If you haven’t already read the the Quad’s story on college football fan distribution, do so. Excellent explanation of the market facts underpinning realignment chaos.
• Study about poverty and student-athletes. Excellent, record revenues and expenditures in college football, but many players struggle.
• Of course. the Atlantic article on the inherently corrupt economics of college football.

And on a lighter note, Matt Sarz’s TV listings. Finding USC on the Root network last night was tricky.

I don’t know what evil is when applied to technology business models. I do know that I feel very comfortable with my Apple transactions — they ask me for a lot of money, in return they give me a product that is mine to own completely. They give me the option of signing up for services for more money, services where they keep data about me, but it is up to me. It feels like a transparent and respectful model. Similarly, I feel good about my Microsoft transactions — they ask me for money, in return I get a software or hardware product that is mine to do what I want with (excluding Bing which I rarely use, and excluding some of their new online service offerings).

I feel somewhat less good about my Google relationship. I do like and use their products. But the fact that they are “free” is bothering, I know that Google is making money off me somehow, but there is very little transparency around it. Who is looking at my data, what are they paying for it, are there certain things I do that are very high value, are there people using info about me that I would rather not, ?

I don’t know any of this and it makes me kind of queasy. Enough to abandon products that are actually useful? Well not yet — and for search,it is not like there are alternatives that are more respectful of me. But I can’t imagine ever having the kind of respect for and attachment to Google products that I have to products from companies with more straightforward business models.

• Coffee as economic health indicator. Yay Seattle! Contrast with…
• World Class Orchestras
• McKean’s Inversion. Whatever you publicly espouse to be — you probably aren’t.
• Wicked Problems.
• A one page explanation of the Higgs boson
• On the lighter side, Bacon Ipsum.

That said — we are talking about 4-5 days of inconvenience Amazon has caused readers and authors. Stupid but fixable.

As Charles points out, Macmillan is trying to put the screws to all of us big time and for the long run. They are grabbing for more dollars out of out pockets at a time when book costs are heading down. Now, if Macmillan was passing all this on to authors, I might be OK with it, but I suspect it is being absorbed by a bunch of corporate suits.

Who is our real friend here? Shame on Amazon for being so clumsy, but greater shame on Macmillan.

• Terry Tao math blog. Brain stretching.
• How Goldman profited on housing crash. Don’t know how reliable this source is but disturbing.
• Controversy about whether there is or is not a giant magma chamber under the state of Washington.  Probably not but a great disaster movie in the making.
• Thread on design versus iteration.
• Automated sports writing. Amazingly readable. (Thanks Phil).
• The Billion Dollar Gram. Another one via Phil.
• Gravitational Corridors. Cool.
• Nowhere are we more honest than the search box.
• NASA dollars pissed away on 2012 nutballs
• Why it is harder than ever to get into some colleges. Interesting question about whether this applies to other markets.

• The VC Math Problem — excellent discussion of the “macroeconomics” of the VC asset class.
• What to fear. The truth about what is going to kill you. The sensationalist news stories every night on random acts of violence and tragedy are scary, but they aren’t the threat.
• The Rhythms of My Life. One guy’s methodology for examining his life and how he lives it. Not the right methodology for everyone, but everyone probably needs some methodology.