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Do they want to rule the PC/Internet world ?

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Microsoft goes after Google

REDMOND, Washington (Reuters) -- Microsoft, which is trying to drive growth
by investing in everything from small business software to video games, has
quietly set its sights on a new industry -- searching the Web.

Chairman Bill Gates, Chief Executive Steve Ballmer and a handful of other
executives sat down in February to answer a question asked countless times
before in the world's largest software maker's 28-year history. Should
Microsoft build or buy?

What they decided was to build technology that would eventually surpass
Google Inc.'s ability to sift through the Web and return results relevant
enough to make it the top Internet search destination.

"The decision to build or buy came down to our ability to innovate," said
Kirk Koenigsbauer, strategy manager at Microsoft's MSN Internet portal.

"Our ability to innovate is predicated on our ability to own the platform,"
he added, a clear sign that Microsoft thinks it can only beat Google if it
owns the technology.

Company-wide effort
For now, however, Microsoft won't comment on how widely it plans to use
search technology. While it is a company-wide effort, Koenigsbauer said that
any developments will be led by MSN and used to enhance the portal.

But analysts have interpreted the decision to build as a sign that Microsoft
has greater ambitions for search, including plans to make it part of the
Windows operating system, the company's main cash cow.

"Any time Microsoft builds something into the operating system, they don't
want to get that from anyone else," said analyst Matt Rosoff of Directions
on Microsoft, an independent research group based in Kirkland, Washington.

Koenigsbauer, who attended the February meeting, declined to discuss
Microsoft's plans for search beyond MSN. Nor did he disclose the number of
people or amount of money the company will invest in the project.

Can Microsoft pull it off?
Jupiter Research analyst Joe Wilcox, however, said that with its large
concentration of software talent and nearly $50 billion in cash, Microsoft
could out-invest any competitor for years.

The company is "very, very serious about search," he said.

At the core of Microsoft's decision is a belief that search technology is
still in its infancy.

"Search engines are doing a good job but not a perfect job," said
Koenigsbauer, adding most search results today "don't deliver the results
people are looking for."

Part of Longhorn
Search results tailored to individual users based on a history of their
interests and searches is one area that Microsoft is looking at,
Koenigsbauer said.

Analysts said such a service would be ideal for Microsoft since it could
leverage its control over the Windows operating system, which runs on more
than 95 percent of the world's PCs.

Moreover, they said Microsoft's real motive is to build search into its
various software products and most likely into the next Windows version,
which is code-named Longhorn.

Gates has promised that Longhorn, which is expected to launch in 2005 or
2006, will include database technology to make it easier for users to track
and find information on their computers.

"Long-term, all roads lead to Longhorn," Wilcox said.

Targetting users
This isn't the first time that Microsoft has put the search market in its

In 1997, the company looked into developing search for MSN, but decided to
team up with Inktomi instead.

"We'll continue to partner with Inktomi in the near-term but at some point
we'll go on our own," Koenigsbauer said.

That also brings into question MSN's alliance with Overture Services Inc., a
leader in search-based advertising.

Koenigsbauer said the partnership is continuing for the "medium-term," and
Microsoft is happy with its relationships with both companies, which are set
to become part of Yahoo Inc., an MSN competitor.

Yahoo, under pressure from Google, has been buying search technologies and
marketing its services in television commercials to attract visitors to its

Reply With Quote
Patrick FitzGerald
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Microsoft has a subtle plot to take total control of the Internet and
that plot is called Palladium.

By the use of that plot they will eventually be able to charge your
each and every time you access the Internet

Their ambition is to take what is now free and make it Microsofts by
putting a control in edvery computer which will give them

(1) Effective ownership of the Internet

(2) By the use of the evil of Palladium take away your freedom to do
what you will with your own computer.

(3) Make you the untrusted person in your own computer


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Nathan Mercer
Posts: n/a
"Olson Johnson" <(E-Mail Removed)> wrote in message
news:WSKab.2487$(E-Mail Removed)...
> > REDMOND, Washington (Reuters) -- Microsoft, which is trying to drive

> growth
> > by investing in everything from small business software to video games,

> has
> > quietly set its sights on a new industry -- searching the Web.

> Who wants their operating system to be an electronic billboard ?

Who said that? Making it easy to search, whether you're looking for
something on the web, or some photos or music off your local machine, and
making it easy to use as well as actually finding what you're looking for is
a great idea. Make that a feature in Windows.

> Its like paying for Sky and still having to put up with the ads.

And don't Sky TV here in NZ have around 900 000 subscribers?
They seem to put up with ads as well as forking over $60 a month for their
IV drip of chewing gum for the eye balls.

> Perhaps MS will let you pay extra for the banner free option, but so far
> every installation directs you to MSN MSN MSN whether its mail, instant
> messaging or browser.

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