
Consider some questions that come to mind often when we read about Microsoft and its desperate sounding recent announcements:
- What is it about Google and Yahoo! that causes world's largest software company Microsoft (MSFT) to twitch?
- Is it the coolness of being world's most visited Search Engine or Web Portal or Auctions provider that Microsoft misses in not being a Google (GOOG) or a Yahoo! Inc. (YHOO) or even an eBay Inc. (EBAY)?
- What is it that made Microsoft ready to pledge US $ 2 billion in trying to compete with Google and Yahoo!?
In May of 2006 during its annual MSN Strategic Account Summit, Microsoft pitched hard to advertisers. A week earlier Microsoft anounced plans to invest roughly $2 billion in its new businesses, largely MSN and Windows Live.
What is common in Yahoo! and Google is their multi-billion dollar (and growing) advertising revenue model. But why is an Ad based business model a threat to Microsoft which dominates 90% of world's PC desktops? The reason is that this model could potentially make the current model of Microsoft (as a provider of OS and Software) obsolete.
Continued... Microsoft Corp V/s Google V/s Yahoo! Inc.







A couple of things. First of all, Microsoft makes roughtly twice as much bottom line profit as Google or Yahoo make in REVENUE. Why? Well all businesses run Microsoft products and those businesses don't want to switch to open source software or ad-supported software, so let's just throw that idea out the window. You don't make $40 billion selling software and services to consumers, you make that by selling software and services to businesses, which Google and Yahoo have no hope in denting.
Second, and more importantly, Microsoft's AdCenter is awesome. It's a very solid advertising system that is more advanced than Yahoo's and has a lot of really great potential. It's not as popular as Google's yet, but as a user of all three systems I have to say that Microsoft's offers the best return on investment.
Your blog post is lame and you don't know what you are talking about.
Posted by: Blackbeard | October 12, 2006 9:34 AM | Permalink to Comment