Monday, May 08, 2006

Microsoft Opens up its Wallet to Battle Google

Microsoft is doing everything it can to try and stop the rising success of Google -- the current search engine leader. Although many of Microsoft's latest tactics have not worked very well, the company is going to try something that always seems to help one way or another: spend more money. Most importantly, the company plans on dumping more money into MSN and other businesses while trying to keep Google in check. Yahoo, Microsoft and Google have been battling for quite some time, but Google is currently the most dominant. According to Bloomberg news:

"It's important for you to understand our deep commitment," Mr. Ballmer said. "Only two to three companies can really deliver the infrastructure that's required to keep pace with consumer demand and advertisers' needs."

Investors were not ready when Microsoft publicly announced that it would sacrifice billions of dollars in profits to funnel money into R&D of new business areas. It will be interesting to see if Microsoft's gamble is worth it in the long run. In related news, all of the above three companies are entering into agreements with cellular service providers in anticipation of the big Internet-over-cell phone market boon.

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