Doubts about the impact of Microsoft's search technology

Doubts about the impact of Microsoft's search technology

Mary Meeker, one of the most influential analysts on Wall Street, believes that the imminent launch of Microsoft's new search engine is not going to substantially change the current situation led by Google. The Morgan Stanley internet analyst doubts Microsoft's ability to steal a significant share of the search engine market currently held by Google and Yahoo.

Microsoft search engine launch imminent

After 14 months of work, Microsoft is expected to launch its search technology in December to replace Yahoo's. The launch could be scheduled for the middle of the month, coinciding with a conference sponsored by MSN in Chicago. Even after launch, MSN will continue to rely on Yahoo services to provide paid search listings. This agreement will work in 2005.

Microsoft has allocated $ 100 million to develop its own search technology to be able to compete with Google and Yahoo. Microsoft Chairman Bill Gates has admitted that his company disregarded the importance of search engines while Google took a clear lead in this market.

During this time, Google and Yahoo have continued to innovate. Both have developed local search engines, while Google has broken into desktop search, or work to bring book content into a searchable online database, responding to user needs.

Doubts about the impact of Microsoft's search technology

Meeker cited Yahoo's experience to argue Microsoft's difficulties in capturing a significant market share from Google. Meeker recalled that since Yahoo launched its search technology in February, its search engine enjoyed a short rise in market share and soon after returned to its initial levels.

Meeker asks: “The challenge is: Can it be that much better than Google? Can it be much better than Yahoo! " For Microsoft to improve its market share, it should clearly and noticeably launch a search technology that is 50 percent better than Google and Yahoo's. For this very reason, an initiative like Amazon's A9 is unlikely to pose a serious threat.

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  • Google, Yahoo and Microsoft

References to people and companies cited:

  • Mary Meeker
  • A9
  • Google
  • Microsoft Beta Engine Link
  • Yahoo!

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