Microsoft to Spend $2.5 Billion a Year To Keep Pace in Race With Google

Microsoft plans to spend at least $2.5 billion a year for the foreseeable future to compete with Google because the opportunity in online advertising is too big to ignore, Microsoft chief executive Steve Ballmer said yesterday. (bloomsberg news).

So microsoft clears why they are behind yahoo , its to kill google...

share your opinions

 

Microsoft is way behind now,sad...really.

 

I think the new Adcenter BETA where instead of PPC but only PPA is something promising.. I'm a Google fan over MS but its never good for some company to be so dominant especially when it comes to search..

I cant stand Balmer he comes across as a gorilla.

 

It takes long time and more dollars before microsoft can compete google.

 

Dollars are good. But when you've got dollars, a virtual monopoly on internet advertising and innovation like Google, that's pretty hard to beat. I think as we enter the new age where software and more fluid systems take precedence over hardware, we may see Microsoft increasingly falling behind unless they radically change their business models.

 

They are going to be fighting up a very large hill(I should say mountain). I think they could do it if they took over Yahoo and pooled their resources. I hope they fight against Youtube too because I am not to impressed with Youtube anymore. The quality of the videos is horrible.

 

This will be great for webmasters that make use of programs like Google Adsense. There will be more choice for us in the future if Microsoft enter the market, meaning each company would have to compete with each other and of course there are chances of making more money, then what we are currently earning .

On another note thanks for telling me about this and it is a lot of money Microsoft are planning to spend. It is a shame how they got left behind, when they had so many opportunities before. No wander they want Yahoo, if they take Yahoo, they can use their Adsense program and catch up in the market!

 

I feel they (Microsoft) got left behind because they never concentrated on search. Search market was very niche few years ago and there was no competitor for MSFT at that time. Google came in between and galloped the whole search market like a big monster. Google realized the opportunity at the right time and turned into successful enterperneurs..Microsoft is trying its way hard to keep up with Google. It is becoming difficult day by day since Google is taking giant leaps not only in search domain but in whole Web scenario...difficult to beat.....

Mohit Valecha
http://mohitvalecha.wordpress.com/

 

Mohit, I'd agree and feel that is another big reason why they got left behind, together with the advetising. I used to be in CRM and at that time Search was niche as you said. Then I moved into Search and I discovered the power of its application potential. Search lends itself well to adaptable and highly scalable systems. And guess what Microsoft did to solve the problem, they went and bought my ex-company, a leader in search at the time. Now they're busy figuring out just what they've gone and bought.

 

Its a shame I haven´t been able to get in touch with someone important in Microsoft. I have an idea for an undeveloped software that could destroy Google and make Microsoft king of online ads. The whole software fits perfectly with Microsoft´s assets and it is not so hard to develop.

 

Its good to hear that. ..it would be great if you find ventures to convert your software into a business model or you could go for it yourselves. Why sell it anyways if the idea is too good. Idea is one time source of money, could be any number but a good business model is continous source of money.. Hope you agree..

 

I think this is an excellent move right now. Google has a major control on everything "Internet"

 

Its definently needed.

Without competition to Google, google is able to do just about whatever they want to whoever, and the people can't do anything about it. With a competitor in the picture, Google can't do that, because they'll risk loosing the busniess to whoever is competing with them.

 

It's good that Microsoft are looking to compete with Google for a stronger position in the search market because nobody like a monopoly with all the power and no competition. The real problem with Microsoft though is that
it seems to be full of "box thinkers" they're asking "How can we compete against Google?" when really they should as "How can we provide a better service then the one we already do to attract users from our competition
and build enough hype around it for them to dismiss that competition?" .

 

What a waste of 2.5B $... I am wondering when they'll understand that... Microsoft is losing credibility on every front: Software, Hardware... they think they'll be good at Online Advertising?

 

With that huge amount of money they are willing to spend, looks like it's a desperate attempt to stay in pace with Google. I wonder whether that would make any difference at all.

 

Microsoft can never beat google. Google is simple...and simple is always better.
But ofcourse we can't deny many wonderful things microsoft has given us...

 

it's normal. just more competition is getting into the race against Microsoft on all type of aspects, that doesn't mean Microsoft will fall or stay behind. it just means the market is more flexible and technology is moving forward and new companies pop up each day. the investment is a wise choice because a company like microsoft can't stay behind, not in online advertising.

 

Silver dont give up trying to contact them, Try to look around and eventually someone at msn will hear ya. If its this big they ont ignore it for that long.

 

Money don't makes victory...Microsoft needs a little common sense along with it