Feeds

Microsoft wishes it could be a Google number two

Second place wannabe plays $5bn losing game

Intelligent flash storage arrays

Microsoft's hopeless pursuit to become the world's biggest search giant took a blow from an unlikely source yesterday.

The company's senior online audience biz veep Yusuf Mehdi confessed that once Microsoft closes its Yahoo! ad deal, the vendor will - by default - become "a credible number two," in that market.

He told Reuters on Tuesday that Microsoft hoped to see a reversal of fortune with its web ambitions. Especially seeing as the firm has lost over $5bn in the past four years in its efforts to become Google the internet kingpin.

"Really now, the goal is about share gain. If we grow share, we will grow our way into profitability, and we have confidence we can do that," said Mehdi, who added he was confident Microsoft would start to see some cash rolling in.

"There's no question we intend to make a profit," he said.

According to ComScore stats Microsoft currently holds 10.7 per cent of the US search marketplace, putting it in third place behind Yahoo! with 17.3 per cent and Google's hefty 65.7 per cent share.

Of course once Microsoft has scooped up Yahoo!'s troubled search estate, the company will grab close to 30 per cent of that market.

"At 30 points we are now a credible option, so that number matters," said Mehdi.

"The nice thing is we can say [to advertisers] you can be close to 30 per cent share in one easy buy. That 30 per cent carries a lot of weight in the marketplace."

Hitting that mark is, however, subject to US and European regulators approving Microsoft's bid to buy Yahoo!'s search engine business.

But 65.7 per cent share is whole lot beefier agreed Mehdi.

"Ultimately we want to be a major player at scale, so we're going to have to grow against Google at some point," he said.

But "we're still outmanned and outgunned by Google, they still have way more engineers than we do." ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Preview redux: Microsoft ships new Windows 10 build with 7,000 changes
Latest bleeding-edge bits borrow Action Center from Windows Phone
Google opens Inbox – email for people too thick to handle email
Print this article out and give it to someone tech-y if you get stuck
Microsoft promises Windows 10 will mean two-factor auth for all
Sneak peek at security features Redmond's baking into new OS
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
DEATH by PowerPoint: Microsoft warns of 0-day attack hidden in slides
Might put out patch in update, might chuck it out sooner
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.