Friday, July 06, 2007
Microsoft Will Fight For Search
Microsoft executives like to say we're still in the early stages of the lucrative business of Internet search. They contend that as wide as Google's lead may seem now, it's not insurmountable. However, for all of Microsoft's protestations, and the money it has pumped into building a better way to seek out information online, the world's largest software company continues to come up short in search. In May, for example, only 8.4 percent of all searches among U.S. Web surfers went through Microsoft's MSN or Windows Live engines, compared with Google's 56.3 percent share, according to research firm Nielsen//NetRatings.
Microsoft isn't going to give up the fight any time soon. However, the software giant is savvy enough to know that it may need to shift the battle to a different front. In recent months, Microsoft has been spending money to boost its efforts in what's known as vertical search, those niche markets where Netizens go when they're looking for specialized information. Think Monster.com or CareerBuilder.com for job seekers or Technorati or Feedster for blog info.
Microsoft's vertical search acquisitions aren't that well known. They certainly don't have the same kind of traffic as the Monsters and Technoratis of the Web. However, they may form the foundation of a different way to keep Google in check.
In February, Microsoft bought MotionBridge, a Paris-based provider of search technology for mobile phones. A few weeks later, Microsoft picked up Medstory, a small Foster City (Calif.) startup focused on dishing up health-care information. In March, Microsoft announced plans to buy voice-recognition leader Tellme Networks, whose technology could help Microsoft bake voice recognition into its mobile search efforts.
The acquisitions -- along with Microsoft's efforts to build its own niche search engines to find images, classified ads and other content -- are aimed at finding a chink in Google's seemingly impenetrable armor. 'There's a lot of opportunity in domain-specific areas,' said Microsoft Chief Software Architect Ray Ozzie at a February investment conference highlighting the Medstory purchase. 'That search technology is first being woven into MSN Health & Fitness, and ultimately it will be woven into the mainline search.'
It's clear that Microsoft will look for more opportunities to refine search in hopes of convincing searchers to click on its Web sites instead of Google's. Adam Sohn, a director in Microsoft's online services group, refers to the tactics as 'flanking maneuvers' in the ongoing search competition. 'Getting the vertical expertise down is a hugely important effort for us,' Sohn says.
Google is hardly standing still. It too has built or bought a stable of niche Web search engines -- everything from product pricing information to news to blog posts. It spent a whopping US$1.65 billion to acquire the king of Web video search, YouTube . However, while Google rules the core search business, there are plenty of niches where surfers go elsewhere to seek information. That's why analysts think that if Google is vulnerable it may be in those specialized areas where there isn't an established leader. Despite Microsoft's best efforts to compete in generic search, vertical search may prove more strategic. 'You've got to find a way to change the rules of the game,' says Eric Enge, founder of Stone Temple Consulting, a search engine optimization business in Southborough, Mass.
There are plenty of other niches for Microsoft to mine. With its deep pockets, Microsoft could buy the search engine leaders in such vertical markets as job openings, comparison shopping , classified advertising , travel information and more. 'They are going to nibble around certain areas where they think they can make inroads and establish leadership,' says Greg Sterling, founding principal of Sterling Market Intelligence, an Oakland, Calif., consultancy.
With the recent acquisitions and its May 18 announcement of plans to spend $6 billion to acquire Web advertising giant aQuantive, Microsoft seems willing to shell out whatever it takes to compete with Google. That's bound to amount to a lot more money and won't happen overnight. However, with proven staying power and a cash pile of $28 billion, Microsoft is one of the few companies that can afford this fight.
Join The SSL Privacy Program, Increase Online Sales!
Microsoft isn't going to give up the fight any time soon. However, the software giant is savvy enough to know that it may need to shift the battle to a different front. In recent months, Microsoft has been spending money to boost its efforts in what's known as vertical search, those niche markets where Netizens go when they're looking for specialized information. Think Monster.com or CareerBuilder.com for job seekers or Technorati or Feedster for blog info.
Microsoft's vertical search acquisitions aren't that well known. They certainly don't have the same kind of traffic as the Monsters and Technoratis of the Web. However, they may form the foundation of a different way to keep Google in check.
In February, Microsoft bought MotionBridge, a Paris-based provider of search technology for mobile phones. A few weeks later, Microsoft picked up Medstory, a small Foster City (Calif.) startup focused on dishing up health-care information. In March, Microsoft announced plans to buy voice-recognition leader Tellme Networks, whose technology could help Microsoft bake voice recognition into its mobile search efforts.
The acquisitions -- along with Microsoft's efforts to build its own niche search engines to find images, classified ads and other content -- are aimed at finding a chink in Google's seemingly impenetrable armor. 'There's a lot of opportunity in domain-specific areas,' said Microsoft Chief Software Architect Ray Ozzie at a February investment conference highlighting the Medstory purchase. 'That search technology is first being woven into MSN Health & Fitness, and ultimately it will be woven into the mainline search.'
It's clear that Microsoft will look for more opportunities to refine search in hopes of convincing searchers to click on its Web sites instead of Google's. Adam Sohn, a director in Microsoft's online services group, refers to the tactics as 'flanking maneuvers' in the ongoing search competition. 'Getting the vertical expertise down is a hugely important effort for us,' Sohn says.
Google is hardly standing still. It too has built or bought a stable of niche Web search engines -- everything from product pricing information to news to blog posts. It spent a whopping US$1.65 billion to acquire the king of Web video search, YouTube . However, while Google rules the core search business, there are plenty of niches where surfers go elsewhere to seek information. That's why analysts think that if Google is vulnerable it may be in those specialized areas where there isn't an established leader. Despite Microsoft's best efforts to compete in generic search, vertical search may prove more strategic. 'You've got to find a way to change the rules of the game,' says Eric Enge, founder of Stone Temple Consulting, a search engine optimization business in Southborough, Mass.
There are plenty of other niches for Microsoft to mine. With its deep pockets, Microsoft could buy the search engine leaders in such vertical markets as job openings, comparison shopping , classified advertising , travel information and more. 'They are going to nibble around certain areas where they think they can make inroads and establish leadership,' says Greg Sterling, founding principal of Sterling Market Intelligence, an Oakland, Calif., consultancy.
With the recent acquisitions and its May 18 announcement of plans to spend $6 billion to acquire Web advertising giant aQuantive, Microsoft seems willing to shell out whatever it takes to compete with Google. That's bound to amount to a lot more money and won't happen overnight. However, with proven staying power and a cash pile of $28 billion, Microsoft is one of the few companies that can afford this fight.
Join The SSL Privacy Program, Increase Online Sales!
