Wednesday, May 28, 2008

404 for Microsoft's latest decision

In the middle of a gritty search war, did Microsoft's Steve Ballmer just commit the mother of all mistakes? I've been wondering about that ever since Microsoft said it would close its Search Books and Live Search Academic projects, thus ceding the field of book digitization to Google. (While both Live Search Books and Live Search Academic are going dark, both Google's Book Search and Google Scholar continue to operate.) Satya Nadella, who runs Microsoft's Search, Portal and Advertising Platform Group wrote in a blog post that "given the evolution of the Web and our strategy, we believe the next generation of search is about the development of an underlying, sustainable business model for the search engine, consumer, and content partner." I tried getting through to Nadella on Tuesday for a better explanation, but Microsoft pulled up the drawbridge. Left on my own to speculate, it appears that Microsoft was being penny-wise but pound foolish. (After all, the company was ready to buy nearly $45 billion worth of trouble integrating Yahoo.) Memo to Nadella: When you get sick of hunkering in the bunker, let's talk. Reading through Nadella's blog post, this much is clear: Microsoft wants to put its search marbles into programs like Cashback (the new Microsoft service that rebates people to buy products online) where there's better potential for a material payback...CNET

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