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June 29, 2006
Inside Fortress Apple
You probably won't be able to read it if you don't have a subscription, but the Wall Street Journal's story on Apple's secrecy culture under Steve Jobs is fascinating. Employees, partners and even major customers are kept in the dark, and workers are locked out of all campus areas other than their own. Entire projects - even entire departments - can co-exist on the campus for years with other workers being none the wiser. Code names are changed slightly between departments, to help identify the source of leaks.
The regime discourages major companies from committing to Apple products - according to one, "You could no longer strategically position the institution to take advantage of Apple products. You ran the constant risk of purchasing stuff that was soon to be obsolete." - but with the company focusing increasingly on the consumer market, it seems to work - when Apple does announce something new, it gets maximum PR.
What we also found fascinating was the indication in the story that Apple might be at odds with its employees over sales commissions. You can pick that up in the following excerpt from the story:
In late 2002, representatives of Argonne National Laboratory, a government research center in Argonne, Ill., visited Apple headquarters for a confidential product briefing, according to an executive summary prepared by Apple. The document was shown to a reporter by Stephen Bates, a former Apple sales official who says he was fired last year in a dispute over commissions. The representatives were eager to learn more about product plans for "high-performance computing," in which many PCs are linked together to handle complex computing chores. But Argonne representatives didn't learn enough to help them determine whether the products could fit into the lab's computing project, according to the summary.
"They were frustrated that Apple did not give them any indication of future directions," says the summary. "One of the attendees said that he didn't learn anything he didn't already know from the Web and chat sessions."
In written customer comments included in the document, Rémy Evard, now Argonne's chief information officer, said, "With other companies, ranging from small companies to Microsoft and Intel, I learn an awful lot more useful info for my time investment than we got here." In an email, Mr. Evard confirms his comments, adding that he has made such comments to Apple more than once.
Apple can be closemouthed about even seemingly picayune details. Several years ago, David Sobotta, Apple's former director of federal sales, says he accompanied a top technology official of a large National Aeronautics and Space Administration facility to Cupertino. In a meeting one Friday with an Apple product manager, the official wanted to know when Apple would release a version of one of its Mac laptops that could connect to Apple's external flat-screen displays. The product manager declined to say, according to Mr. Sobotta, who joined Apple in 1984 and says he was fired last year over a dispute involving sales commissions.
The following Monday, Apple publicly announced a laptop that included the very feature the NASA official had asked about three days earlier. The official didn't respond to requests for comment. But Mr. Sobotta says the NASA official -- a major customer, who spends millions of dollars a year on Apple products -- was miffed.
Posted by cw at June 29, 2006 10:29 AM
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Comments
"Code names are changed slightly between departments, to help identify the source of leaks."
Life imitating art. Tom Clancy's all-time hero, Jack Ryan, in the novel entitled Patriot Games, has Ryan talking about the "Canary Trap" where documents are rewritten slightly, and each version released is tracked so that if a comment is made public they'd know the source of the leak from the form of the text.
Has Steve Jobs been reading a little too much fiction lately?
Posted by: Newman at June 29, 2006 11:24 AM
Its not fiction. There are a number of products available that allow for a slight shifting of the type to allow identification of documents that are sent to limited audiences. The use of slightly different words or slightly different order of words is common in confidential documents which is why people who have had documents leaked always try to get a copy of the document that is leaked! Its actually a case of art imitating life...
Andrew
Posted by: Chooka
at June 29, 2006 04:23 PM
If you need a subscription to the WSJ then head to www.bugmenot.com
They have logins for many common sites requiring compulsory registration.
Posted by: Tim at July 2, 2006 06:47 PM

