A sign of Defeat from Microsoft?
The drama lasted for 3 months, but the ending was very surprising.
What the hell?! Where’s the meet, blood, lawsuits, billions and hot daily search news? I was hoping Microhoo would supply us with hot lava blog material on daily basis! =). So now all is settled and…
Microsoft is walking away from its only hope in search?
To think that Microsoft can do it alone is to say that my neighbors dog will learn to dance tango! They’re hopeless, at least for now. Ballmer promised to topple Google 5 years ago. May 2008, Google market share is all times high, while MS is sliding in low single digits!
Some critics said that this is tactics, but search engine watch reported today that “Microsoft Releases Proxy Yahoo Board“. They must be for real?
Why this is a total defeat:
- Microsoft openly admitted they want to compete with Google in search. Many times, especially Mr. Ballmer.
- Microsoft rolled out Live search for that purpose.
- Microsoft came up with competing products such as Project Gatineau(Google Analytics), 3D maps(Google Earth) and a load of others.
- Microsoft signaled defeat in search with Yahoo bid. This is plain obvious.
- Now they walked away.
We’re defeated and we’re OKAY with it?
That’s unfortunately the message.
Of course there’s plenty of talent at Microsoft, but toppling Google or Yahoo is not easy challenge for a company with no search brand. Live search is unknown, while MSN is at 4%-5%. MSN is largely known as a messenger, not a search brand.
What could Microsoft Possibly do?
“The online display market is one that Microsoft appears to be increasingly focused on, in its ongoing battle with Google, as it walks away from the Yahoo deal. Yesterday, the company released its slate of alternative Yahoo directors indicating it was formally closing the door on the hostile takeover option.” – SE Land.
So it seems that Microsoft unofficially acknowledged defeat and is now focusing on its strong side – display ads. The recent purchase of aQuantive for $6 billion made Microsoft a leader in display ad market, followed by Google’s Double Click. This would seem logical. If you’re ugly but smart, don’t cry about your ugliness, focus on using the brains! A girl will eventually come along that will appreciate the brilliance of the brains. In Microsoft’s case, forget search, if it doesn’t work, after repeated failures. Not to say drop it, but focus on the strong sides and leave Google obsession. Google is years ahead and its brand is synonymous with search.
“Display is an area where Microsoft feels it can go head to head with Google and potentially win. However, DoubleClick reportedly has developed a similar model and analytical approach, which tries to show a more complete picture of ad exposures and their relative effectiveness. I heard yesterday, however, from one agency that has been exposed to both toolsets that the Atlas approach is better calibrated to what agencies want and the DoubleClick approach has too much complexity.”
Of course Google has it’s eyes open, but that’s an area where Microsoft can be formidable rival. And that’s a start for Microsoft. Small incremental steps get us to the destination.
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