Microsoft targets Web with Yahoo or alone: Gates
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Microsoft Corp plans to invest heavily  in Web search to compete against Google Inc, even if it fails  to acquire Yahoo Inc, the company's chairman Bill Gates said on  Monday.
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While dealing logistically and technically with their overlapping online offerings will certainly prove troublesome&#160;if its bid to purchase Yahoo&#160;succeeds, Microsoft will at least have an immediate outlet for bringing more of its traditional desktop portfolio to the Web and to a broader customer base.Microsoft has been trying for more than two years to find a critical mass to adopt new online services beyond search, e-mail, and instant messaging under the Windows Live brand -- with little success. Its early MSN e-mail and IM offerings are popular enough with Web users; however, users of Google and Yahoo online services have been loath to adopt the revamped Windows Live offerings in favor of the ones they&#39;re already using.Not only could that change if the company purchases Yahoo, but Microsoft also will have a ready-made Web front end for rolling out more of its desktop applications as services, said Paul Fox, CIO of Guy Carpenter, a New York-based reinsurance company.&quot;The Yahoo platform is really what they&#39;re buying,&quot; he said. &quot;With Yahoo, they&#39;re tapping into the base culture of the Internet online community that&#39;s matured over the last 10 years. It&#39;s going to make it easier for people to take a look at and try their services, whereas before it had to be a more conscious effort.&quot;Aside from the usual raft of consumer applications&#160;such as&#160;search, e-mail, maps, and the like, Microsoft already has brought some of its many business desktop applications -- such as Office and CRM -- online in hosted, though often scaled-down, versions.Access to Yahoo&#39;s estimated 500 million visitors per month will give it a new channel to deliver what the company now calls its &quot;software plus services&quot; strategy, as well as buy the company time to bring more competitive versions of applications that were originally coded for the desktop to the Web.Indeed, in the conference call discussing the Yahoo bid Friday, Microsoft CEO Steve Ballmer made a pointed reference to efforts to shed its desktop legacy and move even aspects of its Windows OS to the Web, a trend the company started with some features in the latest version, Windows Vista.&quot;The Windows user wants to be live, the Windows experience needs to increasingly embrace the Internet,&quot; he said. &quot;There will be a Windows Live, there will be an Office Live as we continue to bring out innovations in which Office transforms and is transformed by the Internet.&quot;Ballmer also likely had the rising popularity of Web-hosted productivity software, such as Google Apps, Zoho, and&#160;Yahoo&#39;s Zimbra, in mind when considering how to Web-enable Microsoft&#39;s desktop software. So far, Microsoft&#39;s Office Live has been more of a way for small businesses to get up and running with a Web site and basic hosted business applications&#160;such as&#160;accounting and CRM; however, bringing a full productivity suite to the Web has been Microsoft&#39;s plan for some time.Microsoft also can leverage its own strength among business customers to bundle and technically link applications so that customers buy an all-in-one package rather than individual products. For instance, Microsoft has created tight links between a new unified communications product, Office Communications Server, and its Office and SharePoint collaboration software so that customers must buy them all together to create comprehensive infrastructure. Microsoft can make similar attachments between online versions of its applications -- or just bundle them together in creative ways -- and market them to a broader audience.&quot;If Microsoft does something well, it&#39;s bundling products and services,&quot; said Ned May, director and lead analyst of marketing research firm Outsell. He joked that if Microsoft purchases Yahoo, there might come a day when you start up Windows and &quot;up pops Yahoo, and it takes you three days to remove that functionality.&quot;&quot;Yahoo provides a platform in many regards -- an audience of 500 million people to which you can bundle products and new offerings,&quot; May said.Doing quick math, May figured that at &quot;500 million a month for about $44 billion,&quot; it will cost Microsoft about $86 a head for acquiring each member of its new audience of Web users. &quot;Not a bad deal,&quot; he said.
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Google Inc. CEO Eric Schmidt on Wednesday told industry analysts the online search engine leader is unlikely to create its own Web browser, even though the company remains worried about being slighted by the next version of Microsoft Corp.&#039;s Internet Explorer.
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Microsoft confirmed&#160;a number of high-level executive changes, moves that could be designed to better position the company to digest an acquisition of Yahoo, an analyst said.In addition to a number of executive promotions, Microsoft announced that Bill Veghte, senior vice president of the Online Services and Windows Business Group; Satya Nadella, senior vice president, Search, Portals and Advertising Group; and Brian McAndrews, senior vice president of Microsoft&#39;s Advertiser and Publisher Solutions Group, are all taking on new responsibilities in running Microsoft&#39;s online services, including Windows Live, Search, and MSN.Microsoft may be positioning Nadella to take on the responsibility of the technical integration of Yahoo if the acquisition happens, said Rob Helm, an analyst at Directions on Microsoft. &quot;Microsoft is anticipating a shift in its online strategy around the purchase of Yahoo, which means, among other things, that they&#39;re replacing people running the old strategy,&quot; he said.If Nadella is being brought in to integrate Yahoo into Microsoft, he doesn&#39;t have the best track record, said Helm. He was the head of the Microsoft Dynamics unit and was charged with integrating a couple of other acquisitions, including Great Plains. &quot;On his watch, relatively little happened in the way of successful integration,&quot; said Helm. However, Nadella had the post for just a year, so perhaps he didn&#39;t have the opportunity to do more, he said.Steve Berkowitz, senior vice president of the Online Services Group, is moving out of a role in Microsoft&#39;s online group. He&#39;ll step down from his position in August, Microsoft said. He plans to stay with the company, but Microsoft did not say in what capacity.Despite these positioning moves, the Yahoo deal is still uncertain, Helm said. &quot;It&#39;s still up in the air, though it seems unlikely that Microsoft would walk away after a bid like this,&quot; he said.Microsoft also said that Andy Lees, who leads marketing for the Server and Tools Marketing and Solutions group, will take over for Pieter Knook as senior vice president of the Mobile Communications Business. Word of Knook&#39;s departure surfaced on Thursday with an announcement from Vodafone that he&#39;d joined the mobile operator.Lees&#39; appointment, as someone with a marketing background, seems to follow a shift in the mobile group toward a focus on consumers, Helm said. Microsoft recently announced plans to buy Danger, a youth-focused mobile software company, and appointed a new marketing executive to target consumers. Pressure from the iPhone, which has done remarkably well in a very brief time, could be driving the shift in strategy for the mobile group at Microsoft, Helm said.Other announcements from Microsoft include news that Brad Brooks will take over for Michael Sievert, who is leaving the company, as corporate vice president of Windows Consumer Product Marketing. Steve Guggenheimer will become corporate vice president of the Original Equipment Manufacturer Division, moving on from a marketing position with Microsoft&#39;s Application Platform effort.
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Microsoft launched its own Internet search engine in a move aimed at challenging market leaders Google and Yahoo.
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Business & money: Microsoft purchase of Yahoo would create an unacceptably dominant online business, says Google
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Yahoo CEO Jerry Yang Monday said Yahoo&#39;s goal for being users&#39; Internet home page is to keep it simple, and his pared-down first-time CES keynote appearance as the company&#39;s top executive reflected that.
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More competition courtesy of the proposed Microsoft-Yahoo! combo?
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Microsoft Corp. MSFT.O will  release a new version of Internet Explorer, the world's most  widely used Web browsing software, with stronger, built-in  security features, chairman Bill Gates said on Tuesday.
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Microsoft Corp.  said on  Tuesday it plans to introduce a Web-based version of its sales  and marketing software in 2007 as it targets rivals like  Salesforce.com , Oracle Corp. , and SAP AG   in a fast-growing market.
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REDMOND, Wash. - Microsoft Corp., stepping up its efforts to compete with rival Google Inc., will offer consumers a preview of its technology for searching the Internet, beginning Thursday.
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Redmond could choose its own ad platform and mobile, but stick with Yahoo's search engine, e-mail, and Web 2.0 applications.
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Microsoft rolled out its long-planned response to Google and Yahoo in the Internet search industry on Wednesday.
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Yahoo has not reached a decision about&#160;Microsoft&#39;s acquisition offer&#160;and is considering &quot;a wide range of potential strategic alternatives,&quot; Yahoo CEO Jerry Yang said in an e-mail to employees on Wednesday.In the e-mail, which was addressed to &quot;yahoos&quot; and filed with the U.S. Securities and Exchange Commission, Yang said the Yahoo board is still reviewing the deal and will &quot;take the time it needs to do it right.&quot;&quot;Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape,&quot; he wrote in the e-mail, typed in all lowercase letters.Microsoft made its unsolicited bid for Yahoo last Friday, offering to pay $44.6 billion for the company, or 62 percent over Yahoo&#39;s closing share price Thursday. The deal would greatly expand Microsoft&#39;s search and advertising business and could help it to compete better with Google online.Yahoo is understood to be lukewarm on the offer. The company hopes a rival suitor will emerge with a counteroffer or that it can forge a deal with Google that will allow it to remain independent, according to Wednesday&#39;s Wall Street Journal newspaper, which cited unnamed sources.However, analysts have said it is unlikely another company could match Microsoft&#39;s sizeable offer, and a business deal between Yahoo and Google could raise antitrust concerns because of Google&#39;s already dominant market position.In the e-mail, Yang thanked the Yahoo staff for staying focused on their work amid the turmoil. The company has hired &quot;top advisors&quot; to assist it through the process and is focused on maximizing value for its shareholders, he said.
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Microsoft Corp.  adopted a new mantra on Thursday, promising to work harder to make its software work better with other software systems and hardware, Chairman Bill Gates said in an e-mail to customers.
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Charles Arthur: Why Google might benefit from Microsoft's attempt to shoehorn Yahoo into itself
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Microsoft Chairman Bill Gates said Monday that the Windows application platform is to be fitted with "Fluent UI" ribbon capabilities now offered in Office 2007.The ribbon UI presents a new interface in Office 2007. "We usability-tested it massively, and fortunatel, it has had a very strong positive reaction," Gates said during a keynote presentation the 2008 Office System Developer Conference in San Jose, Calif. "We in the next version of Windows will be using this Fluent UI quite a bit across a number of applications," he said. "It turns out it's a user interface that works very well for the pen and touch [interfaces] as well as being a better way of revealing application functionality."The Fluent UI represented "a major risk that Microsoft took," Gates said. But the older interface with its dropdown menus was hiding so much functionality that the company was being asked for features that were already there but were concealed, he said.At the conference, Microsoft is promoting Office as a development platform with users able to write extensions. During Gates's presentation, third party applications were shown that extended Office with custom development, such as the MindJet MindManager planning application and FedEx's QuickShip for processing FedEx shipments from within Microsoft Outlook.During a subsequent question-and-answer session with the audience, Gates was asked to compare and contrast opportunities for developers working with platforms like Microsoft's with platforms like open source. Gates responded, "Our platform is a commercial platform where customers expect a very high level of service, a very high level of integration, but the nice thing about it is they are willing to pay for software."Free software has always been around, he said. "We've always had free software out there, it's not really a new thing. In fact, I'd say in some ways it's less of a factor than it's ever been," Gates said.Everyone has the same business model, he said: Software developers have free versions of their software, inexpensive software, and robust commercial versions of their software. "The commercial environment, I think, will always be the pre-eminent thing in terms of providing business productivity," said Gates.He advised those who want to develop free software to be careful which licensing model they choose and to select an option that does not restrict commercial versions of their software.Asked about Yahoo, which has rejected Microsoft's $44.6 billion acquisition offer, Gates said the question was whether Yahoo should be a media company or focus on engineering. In an ad model, scale is needed, he said. Yahoo's engineering could be combined with what Microsoft has done, he said.Gates's overall presentation did not impress one attendee, who nonetheless was impressed with Gates himself."Bill is definitely a visionary, and he's one of the greatest men in the 20th century, but I have to wonder how much of that was just reading from a script," said Aaron Alanen, senior consultant at Sogeti."I did see in his questions later on that he really had some deeper knowledge," Alanen said.During Gates's presentation, he also played a tongue-in-cheek video about what he would do during his upcoming semi-retirement from Microsoft. Included were possibilities such as getting into politics, joining the rock band U2, and becoming a rapper or actor. Guests featured in the video included, among others, Hillary Clinton, Barack Obama, Al Gore, Bono from U2, and George Clooney.