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May 5, 2006

Microsoft Found How To Win Google Battle

"Microsoft will increase investments in MSN and its other online businesses to $1.6 billion next year as it escalates a battle with Google, its chief executive said Thursday." writes New York Times.

"Only two to three companies can really deliver the infrastructure that's required to keep pace with consumer demand and advertisers' needs." said Steve Ballmer in a speech to advertisers at Microsoft's headquarters. Those companies are, of course, Google, Yahoo and (maybe) Microsoft.

Ballmer also introduced Microsoft adCenter, Microsoft's answer to Google AdWords and Yahoo's Publisher Network, that brings a greater ability to target ads at specific user demographics.

"Our R&D spend just in our online MSN area has gone from a $500 million in our fiscal year '05, to a projected $1.1 billion in our fiscal year '07," Ballmer said. "We will invest as much in this online opportunity in R&D as any of the other big players in the market."

Bill Gates admitted that Google has done a "great job" in search and advertising, but said that Microsoft will show it was underestimated in these areas.

I wonder if doubling the budget is the key to obtain a better performance. Last year, Yahoo invested $547m in product development and Google invested only $484m in R&D, but Google had better financial results.

Related:
Google vs Microsoft
Amazon drops Google for Microsoft
Microsoft hires Ask.com CEO

4 comments:

  1. Why don't Microsoft just work on Windows Vista?
    Why MS just want to compete with successfull companies like Google instead to cooperate with them?

    Google is clean, plain, fair and friendly (all their services and as a whole company). MS is not, that's why their services will never be better than Google's.

    And as far as I can see, MS(and other companies too) is copying fom Google. Eveybody is just walking after Google.

    Google made/is making the internet better :)

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  2. I wish Microsoft can focus more on its core business of MS Office and Vista and other operating systems. They have market lead in this areas and why wont they focus on investing more on R & D in this field ?? Why spent more money in something which is already dominated by other players ?

    If Micrsoft invests even 50% of $1.1 billion into OS security then online world would surely be a better place.
    --Sid

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  3. MS can't just focuse on it's core products. There isn't enough growth left in those areas. No growth, stock prices stay the same. If the prices stay the same, then there's no point in investing and people start to dump MS stock. MS is so big that they HAVE to move into many different areas in order to survive.

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  4. i think that googleµsft

    are too closely friends lol

    and both companies has a great success and we all love them

    and what about agloco

    isnt it between micrsoft and google pr what :)

    ReplyDelete