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  Yahoo, Microsoft Gaining On Google
Time: 08:50 EST/13:50 GMT | News Source: InformationWeek | Posted By: Brian Kvalheim

Google remains the search leader, but its Microsoft and Yahoo are narrowing the gap through improvements in customer loyalty and perception in the quality of search results. Google Inc. remains the search leader, but its fierce competitors Microsoft Corp. and Yahoo Inc. are narrowing the gap through improvements in customer loyalty and perception in the quality of search results, a research firm said Thursday.

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#1 By 8556 (12.217.161.186) at 1/14/2005 10:08:26 AM
Google has about 75% of the business to business browser market. That's where the money is due to the more expensive click through ad links. Now that they are public Google must make money to optimize its stock value. Like the major US broadcast TV networks where advertising is very expensive even though they have lost half of the market share in the last 20 years, Google is likely to remain the business to business search engine of choice for many years to come as long as they continue innovating. Yahoo, while clever, is yesterday’s news. Microsoft has too many irons in the fire to focus expensive resources for as many years as it would take to catch Google to be considered a threat, although they sure use FUD to convince people they will win every war. Look at Quicken vs. Money to see that MS won’t focus resources on low profit areas as long as they need to. MS has to first protect and grow their enterprise software business.

#2 By 37 (67.37.29.142) at 1/14/2005 10:13:31 AM
1. MS Money is a non-profitable business center for MS.
2. Google is unlikely to remain the business to business search engine leader as competition grows.
3. You mention FUD from MS. Such as?

#3 By 8556 (12.217.161.186) at 1/14/2005 2:50:41 PM
Brian: In my opinion, which is worth what you are paying for it, MS's marketing is so powerful that the mention of their goal to be number one in any give market creates FUD in many minds about using or upgrading competitive products. MS does not need to send out disinformation. The stomping of Word Perfect, Netscape and other competitors either crushed or bought out, has created a general sense that anything MS sets out to do will be wildly successful. A recent example is the decline in Goldmine and ACT! purchases since Microsoft’s CRM was release even though the sales of CRM are very low. Many users of competing products are waiting for Microsoft to improve CRM so they can import their existing data effectively from ACT, Goldmine and possibly the lesser programs. I heard this while at the Microsoft office in Saint Louis two days ago.

Believe what you will. FUD exists in the minds of consumers whenever Microsoft enters a new market. How can one not wonder “why should I buy a different product if Microsoft is now entering that market? I’ll wait and see what happens. Maybe if I buy the latest upgrade of product X it won’t be around in a couple of years”.

#4 By 37 (67.37.29.142) at 1/14/2005 5:00:14 PM
Bob,

"S's marketing is so powerful that the mention of their goal to be number one in any give market creates FUD"

AFAIK, it's anyone's goal to be number 1.

But I agree with your analogy.

#5 By 2960 (156.80.64.203) at 1/17/2005 1:30:38 PM
“why should I buy a different product if Microsoft is now entering that market? I’ll wait and see what happens. Maybe if I buy the latest upgrade of product X it won’t be around in a couple of years”.

That's not a problem for me any more. I just don't trust them to keep the products around...

Three times now they have pulled the 'rug' out from underneath when I bought into their product line (UltimateTV, SideWinder and Networking).

Third-party looks much better to me now days.

TL

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