Microsoft General Counsel Brad Smith has responded to today’s missive from Google on the Microsoft-Yahoo acquisition by highlighting Google’s dominance in search and advertising:
The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.
Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.
Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals.
(That’s the entire response above, emphasis is mine).
The figures used by Smith are accurate and highlight that no matter what Google says about IM and Email, regulators will be more concerned about advertising revenue and competition in the areas that count (search) than email.
The “Microsoft is committed to openness, innovation, and the protection of privacy on the Internet” may cause some people to laugh, but if you take the desktop out of the equation Microsoft has a reasonable track record online in terms of openess and despite its small market share has innovated with some great technology such as Silverlight. Michael said he wasn’t feeling the love towards Google, and he’s not alone.
people complain about microsoft, but one day we will wish google never existed. mark my words.
Bricks are starting to crumble under the Google camp. =)
Microsoft has a long way to go as far as “openness” is considered even if you take desktop out of the equation. To give you an example even though Microsoft says Silverlight as a “cross browser,cross platform plugin”, it doesn’t even list linux in its supported OS. Where’s the openness here?
Linux and Google is the future.
The reason Bill Gates quit at M$ is cause he knows this and would like to not be blamed by the upcomming disruption of the established PC/software monopoly.
It’s funny how the tables have turned.
I couldn’t agree with Arrington’s opinion piece more; Google is the new Goliath (or should I say Goooooliath?).
The only bad thing is the consolidation. We are moving from 3 players to 2. This is bad news for regular Joe’s like you and I.
We need to add 1-2 more players to the game. Maybe Facebook will take off (once they get a mature and seasoned CEO?). Perhaps an outside behemoth will enter the playing field more directly (NewsCorp??)
Either way I don’t like the MSFT-Yahoo! acquisition deal. It is even sadder to see Goooooooogle going Waaaaaaah over it.
http://www.gabbr.com
Next time let Mike on the Google Jet or this happens. I guess.
Like all companies, Google needs competition to keep them honest.
Google is out for Google and Google shareholders and no one else.
Any nativity that gets people to help Google suppress competition will only be bad for the consumer, especially creators of content and those paying the ad bills. I have personally seen keyword costs go from .25 to over $10 in 2 years.
Since several of the people reading this blog work for development firms trying to make money on the “openness” of Google, they most likely will not see the forest from the trees and will try to rally against the “dark side” in MS.
I have to believe that the government will not be so narrow sighted. We all better hope they are!
Spez — I think I’d rather have a more well positioned #2 (Microsoft + Yahoo) than #2 & #3 fading into obscurity.
First of all Google did a terrible mistake by speaking upon the acquisition. Looks like they are a little scared of the Microsoft Yahoo merger.
Next year, we’ll all have Linux based $100 laptops to access free web applications. Microsoft will have to open-source Windows XP.
Built-in ad-blocker plugins in the browsers will block most advertising.
“if you take the desktop out of the equation”
I guess that also means taking IE out of the equation?
You’re left with a pretty unbalanced equation at that point.
I think its Googles strategies and tactics we need to keep a short leash on when it comes to using its power to horde information for buying habits.
I would rather have more players than a few but then again more players against a giant like Google may not make that difference.
I have to agree with Microsoft. However, I don’t see acquiring a mediocre company as enabling them to compete with Google (or anyone else). There are plenty of top quality companies Microsoft SHOULD go after: Adobe, Cerner, Autodesk, Salesforce.com, VMware, and Electronic Arts to name a few. If Microsoft wants to complete in search, they need to grow the solution organically because technology competitive to Google cannot be bought at this time.
It’s damn funny and sad, that you mention silverlight. Oh yeah, you forgot xps, ooxml and my favorite the revolutionary new IE8 tag. You fail to understand what open really means.
Microsoft or Google?
Choose your poison. I choose the latter.
My, how the tides have changed. Google is resembling a corporate entity more and more these days, using it’s mass to stifle innovation and create barriers of entry. Their shareholders must be proud!
@14, those are some scary thoughts! The companies you mentioned are doing very well but are in rather unglamorous industries. MSFT buying Adobe would be a fantastic idea for MSFT for a number of reasons, but as a consumer/developer I am not a fan.
how is silverlight an innovation?
im no techie, but my limited understanding is that it’s just a rip-off of adobe’s flash
even the name is ridiculously close
a flash of silver light
2 things:
1 – “Microsoft is committed to openness, innovation, and the protection of privacy on the Internet” – total BS, we all know it.
2 – “Michael said he wasn’t feeling the love towards Google, and he’s not alone.” – total arse-kissing Duncan,we all know it.
@9
Yes… That’s my opinion also…
Each and every one of you have absolutely no clue what-so-ever.
Trust me.
At least Yahoo know who the good guys are…
http://www.reut...362915520080203
#21, for an “ex-Googler” your comment is very vague. So, no, I don’t trust you.
Google is DOMINATING the internet and that’s flown under the radar for so long because of the good will they’ve earned from the masses. They’ve been recognized as the “little company that could”…they look like they’re trying to maintain that image.
Instead of wasting $44 billion on Yahoo in an effort to fight a battle lost to Google long ago, why not invest in developing office applications for Silverlight? This would allow simultaneous releases on Windows, OSX and (soon) Linux under a subscription and/or advertising model. This approach would greatly reduce the cost of maintaining office on multiple platforms. Google’s online office productivity apps are getting better every month. I think Microsoft should be concentrating on this area rather than flailing around in the search space.
Microsofts ‘Live’ package is a great example of internet software.
Live Writer for example provides a great experience for bloggers using blogger and wordpress aswell as Microsofts own blogging service.
All the bloggers I’ve spoken to who have tried it think that it’s excellent.
Whether is it Mircosoft, Yahoo or Google merging whatsoever, the open source/internet community is the next generation of software developers and drivers of the internet. Companies are generally for profit and if it hurts their bottom line (directly or indirectly), then the technology is not good – this is a fact of life.
Microsoft is committed to openness. God pull your head out of your ass.
Duncan, there is this thing in journalism called bias…a bias is bad, being unbiased is good. You could have not put points in Microsoft’s response in bold and let the readers assume their own position on their response but you are just forcing your own opinion on us in an incredibly poor way.
What I want to know if everyone is whining about lack of competition (not Google’s fault), what will you say when this merger if it goes through, fails and there is no main competition to Google? It will be Microsoft’s fault, not Google’s.
Still, Yahoo is responsible for their own demise as is Microsoft. They could have bought Google back in the day for $1 million but passed. The problem with Microsoft is that they just have to be number 1 in everything and if they aren’t, they bitch about it and try to buy their way out of the #3 spot. I await the day when Microsoft wants to be the number one airline, the top home builder or maker of home appliances.
I hope this fails, I really do. I hope Ballmer just poured the gas all over Redmond and in a few years, lights the match. It will be great to see this once mighty company let it’s greed get the better of it and crumble worse than Enron. Hilarious.
I suspect that this will turn political (as in the Democrats). With Gore a Senior Advisor to Google, what better way to throw a monkey in the pot than to push for something like Congressional hearings? This is only true if Yahoo and Google can’t come up with something themselves. If it keeps moving so that Google is at a disadvantage, then the Democrat/media machine will weigh in so as to delay things until after the election.
A big question is what does Yahoo want to do?
I smell blood…
http://tecnocit...n.blogspot.com/
I’ve seen better FUD from Microsoft than this “All your ads are belong to Google”. What about 90% in desktop OS or 70% in browsers market share?
Though I have no illusion of what would Apple or Google or whatever really big company do in the same situation.
Brad Smith was right. And Microsoft has learned anyway. Microsoft technologies are generally pretty good. At least much better than those Linux stuffs.
Bill Gates gained a lot of money and retired. “Microsoft is committed to openness, innovation, and the protection of privacy on the Internet” HAHAHHAHA >>>>>>
Just remember that given the chance, Microsoft wiped Netscape off the internet using their considerable power. I highly doubt that Microsoft would think twice about doing it again with Google this time.
What did Microsoft call it? ‘Embrace, extend and extinguish’. They did it with Netscape, Java, Networking (Kerberos), IM, Adobe, Opera. Why should Google be any exception?
Come on, Microsoft isn’t any different than it was in the 90’s. Honestly, part of me thinks a reason behind Bill Gates trying to do so much good is because Microsoft did so much evil when he was at the helm. Nothing buys better publicity than $100 billion to charities.
lets see the competition between Microsoft and Google as competition will give benefit to internet users now.
Kelli, this feeling that Microsoft is “evil” doesn’t make sense. Computing is huge market. Microsoft is one player, yes a big one, but one of thousands. Yes, they used their market power on Netscape, but what would you expect them to do? What would you have done? And the last I heard, Java was doing pretty good. The same goes for IM. And Adobe isn’t exactly in Microsoft’s vice!
Maybe Google should even things out by directing certain searches to competing search engines? Or maybe they should share their secrets to make things equal.
So I wonder where the word evil can be applied to Microsoft. Hitler was evil. Bin Laden was evil. Socialism is evil. But Microsoft?
Would you rather have the entire computing industry regulated? Say like telephony or cable? If it was, say with a Federal Computing Administration, the whole industry would dramatically slow down as the power of government overwhelms many of the market forces that drive things. Even if it starts out slow, say with Net Neutrality, it will only expand as politicians and activists fight over perceived inequalities that were taken care of in the market.
The reason things are so cheap is because of the freedom. When markets are regulated the small companies can’t compete and we are then stuck with the big guys – who have budgets for lobbying. To make all of this work, companies need to follow rules, but we need to make sure that we are teaching our kids about right and wrong, etc. so the people running these companies are good people and we don’t get many Enrons. I’m not saying Microsoft is perfect and but where does Google fit in? How many people have they steamrolled over the last few years?
I’m not a fan of Microsoft. I’m also no longer a huge fan of Google. They have had their fair share of shady deals. AOL-Europe was in the market for a new advertising platform and both Yahoo and Google put in bids. In the end, AOL made the announcement that they would use Yahoo. Well, so it seemed to Yahoo. When Larry and Sergey found out, they flew to London, and did everything they could to get in the door to talk with the president of AOL-Europe about the deal. In the end, they undercut the deal with Yahoo and won the AOL-Europe search advertising solution. If that is not shady and underhanded, I’m not sure what is. It also puts into question the “Don’t be Evil” motto, because in my opinion, that’s pretty damn evil. “Fair” and “equitable” would have been to agree that they lost the bid war, count their casualties, and move on. Not “…[order] Kordestani [head of worldwide sales at Google at the time] to guarantee Rowley [then, head of AOL-Europe] that he and AOL would benefit enormously from meeting with [Sergey] and Page.” Don’t believe me, buy the book:
http://www.amaz...1507&sr=1-1
“The Google Story”, by David A. Vise. Read chapter 19.
I’m not saying that Microsoft is better than Google, but I am most surely aware that they are no worse, either. As for freedom. Like a previous post stated – I can use Firefox or Safari on my Window’s based system. I can use Mac or Linux if I don’t want to use Windows. I’m not limited in my access to the internet. But when it comes to search, Google has the lion’s share. To hear them call foul is laughable.
The real difference between Microsoft and Google is simply perception. Google hides behind their motto “Don’t be Evil”, all the while branding Microsoft as the “Computing Dictator.” We buy into this hand-over-fist. Both companies have their merits, strengths, and advantages, but both are just as guilty of deceit and dirty tactics. Google needs a search competitor. It will keep them honest, it will provide us, the users, with fair choice, and let’s face it – stiffer competition means that both have to be that much more innovative to stay ahead.
But, in the words of one of my favorite Demotivators (R) – “If a pretty poster and a cute saying are all it takes to motivate you, you probably have a very easy job. The kind robots will be doing soon.” Good luck with that.
http://www.desp...motivation.html
I lost the love towards Google when it blocked my Adsense account without giving any explanation whatsoever. This was a telltale sign of arrogance due to domination.
Boy this Google post annoys me. I might have been able to swallow it if it came from Sergei or Larry. But who did it come from “David Drummond”. Yeah I’m sure he joined Google in 2002 because he saw a great opportunity to fiercely uphold web standards and be a champion for the interests of web users throughout the world. Or maybe he just wanted to make a lot of money . And maybe he wants to make sure that he can keep making a lot of money. Which do you think it is?
It’s depressing f it’s true that either of these companies is ‘evil’. Evil is a strong word. Think about the damage it’s already done politically. What you’re saying is that big is evil. Big can’t be good. That’s a very depressing outlook for America, and for the planet.
So basically Microsoft is complaining that because they could not build a competitive (read live failed) product they need to buy yahoo to compete (read destroy what’s left of yahoo) with Google?
guys,
wake up u all learned how to use google only ms operating system,most of u all would be computer illeterates with out ms
Huh?
Saying “if you take the desktop out of the equation Microsoft has a reasonable track record online”, is like saying “if you take out the killing animals part, a butcher is otherwise a really peaceful guy”.
Folks who are arguing both sides of this story, remember the fact that MS is a proven abusive monopolist, whereas its just a conjecture at this point that google will be so in future.
If MS really cares about creating a strong alternative platform for online ads and is sincere about not abusing its desktop monopoly, it should spinoff its online arm and merge it with yahoo. Run it as an independent company and compete with google on merits, without the OS and Office monopoly to support the online arm.
Disabling Javascript by default. Now that would be a good strategy for Microsoft….
Does anyone actually use Silverlight? Anyone? Anyone?
If you call “openness” to push down our thoats .net, silverlight, live id and try to crush open document format, sabotage html5, svg and any other standard proposal, well, we have a very different understanding of “openness”
M$ will fail, we are legion
we should try to find a new name for the merged company, since MicrosoftYahoo is as bad as PriceWaterhouseCoopers …
my idea: MicroHooo
in this way, they would have 1 o more than google and previuosly yahoo, showing the development
Google should better attack Microsoft where it hurts, and launch Google Linux (why not Goobuntu) to hit hard on Windows and Office that brings billions in profits to Microsoft.
http://tech-tal...ttack-goobuntu/
from nytimes blog…
If the Google management team has a weakness, it is an obsession with Microsoft. That’s understandable perhaps. Eric Schmidt, Google’s chief executive worked at Sun and Novell, two companies that did battle with the Redmond, Wash., giant. And much of the rest of the top management are veterans of Netscape, which was essentially done in by Microsoft.
This oversensitivity may well cloud their reaction to the prospect of Microsoft buying Yahoo. On the face of it, the combination of its two largest rivals doesn’t look good for Google.