Episode 23: NeXT (Live show at the GeekWire Summit)

Oct 23, 2016

Covering Apple's 1996 acquisition of NeXT, including Steve Jobs' hero story, the launch of the NeXT computer and its lack of product market fit, NeXT's transformation into a software company, the acquisition and integration of NeXT by Apple, and the importance of strong leadership in a company.

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ANECDOTE

NeXT's Origin

Steve Jobs, exiled at Apple, met Nobel Laureate Paul Berg, who needed cheaper workstations for his students.
This inspired Jobs to resign and found NeXT, aiming to make powerful computers affordable for education.

ANECDOTE

Apple vs. Jobs

Apple sued Jobs for stealing trade secrets and breach of fiduciary duty after he left to start NeXT.
Jobs responded: "It is hard to think that a $2 billion company [...] couldn't compete with six people in blue jeans."

ANECDOTE

NeXT's Lavish Start

NeXT adopted an "anti lean startup" approach, with lavish spending on branding and office space.
Jobs implemented a "community" model with salary transparency, reflecting only two salary tiers.

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Ben & David broadcast live from the 2016 GeekWire Summit covering one of the all-time greats, Apple’s 1996 acquisition of NeXT. This episode has it all: the Steve Jobs hero story, Apple, I.M. Pei, Ross Perot, Aaron Sorkin, Nobel Laureates and… Gil Amelio? Does NeXT rank atop the best acquisitions ever? Our own heroes cast their votes.

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Topics covered include:

1980’s era Apple, entering the age of the “workstation”, with John Sculley as CEO and Steve Jobs leading the newly formed SuperMicro division working on building the “BigMac"
Jobs’ exile to "Siberia”, and chance meeting with Nobel Laureate Paul Berg that sowed the seeds of NeXT
Jobs’ resignation from Apple on September 13, 1985 to start NeXT, taking with him SuperMicro division employees Joanna Hoffman, Bud Tribble, George Crow, Rich Page, Susan Barnes, Susan Kare, and Dan'l Lewin
Apple’s subsequent lawsuit against Jobs and, Steve’s classic quote in response: "It is hard to think that a $2 billion company with 4,300-plus people couldn't compete with six people in blue jeans."
NeXT’s “anti lean startup” approach, spending $100k on brand identity and moving into I.M. Pei designed offices
Ross Perot’s $20M investment in NeXT
The first NeXT computer (fun unboxing video) product launch, dubbed "The NeXT Introduction” on October 12, 1988 (one of the three scenes in the Aaron Sorkin Steve Jobs movie)
The NeXTSTEP operating system as the first “modern” OS (including Object-oriented programming), and like the Mac equally descended from Xerox PARC
Major technologies developed on NeXT computers, including the first web browser and Doom
NeXT’s exit from the hardware business and transition to a software-only model with OPENSTEP
Apple’s failed internal projects to develop a modern OS, culminating in the acquisition of NeXT in December 1996
Steve Jobs’ return to Apple, public lack of faith in the then-current board and management, and maneuvering to return to the CEO role
The transformation of NeXTSTEP/OPENSTEP into OS X, and ultimately iOS, watchOS, tvOS, etc.

The Carve Out:

Ben: Stewart Butterfield (Cofounder/CEO of Slack) on the The Ezra Klein Show
David: DJI and the Rise of the Robomasters