Friday, November 28, 2008

Microsoft VS Google

Few days back, Comscore released a new data clearly shows how Microsoft is losing its market share despite of its die hard efforts and Google’s market share is raising high very fast. Year after year, Microsoft‘s search share went down to 8.5% from 9.7%, while Google’s searches went up to 63.1% from 58.5%.

A question that Microsoft executives and shareholders should be asking themselves is how viable their $1.2billion/year search budget actually is. In fact, I think Microsoft could do more damage to Google by leaving the search space than if they stuck around.

Spending extra cash on areas like mobile, their operating system and retaining enterprise clients could help keep Google from growing in those areas. Who knows, if they leave the space, that extra 8.5% search share (assuming they go back to Google) could help raise concern from legislators about potential anti-competitive issues — something Microsoft would love to see happen.

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