Microsoft strikes deals to Live Search

Las Vegas - Microsoft hopes the two new distribution deals will give its Live Search much-needed momentum.

The company announced the deal Wednesday with the global Dell, which will see the Live Search the default search engine and Windows Live Toolbar in the set of basic consumer and small business PCs sold computer-Maker in the next three years. This case is in addition to the five-year deal with Verizon Wireless, the diversion of which earlier on Wednesday.

This is the last effort for Microsoft, which is trying to - and control - over the past four years to build the business of search, which may suggest the main competitor of Google. But the latest market share numbers indicate that Microsoft still falling behind. Search in Windows Live Search fell 16.7 percent in year after year that Microsoft 9,1 per cent market share in the U.S. in November, according to Nielsen Online released earlier this week. Google Search grew 21.7 percent to 64.1 percent market share, as well as in the search for Yahoo fell by 1.4 percent in the period from November 2007 to 16.1 per cent share.

In an interview, Microsoft senior vice president Yusuf Mehdi said the search for the product have been good enough that the time is right to start promoting it to a greater extent. Microsoft has already struck deals with HP and Lenovo to increase the spread of Windows Live and Microsoft search engine.

“We got to the point where the product is currently in a state that we want to start getting it more formally in front of more customers,” said Mehdi. “These two partnerships are very important to us, because … an opportunity to put our search offering to a wider audience is now a fairly basic way, and I think you have to think of it as a first step, we are slowly raising gain how we begin to promote our product.

Microsoft has also made other arrangements, including the establishment of ad serving engine, spending billions to acquire Aquantive, and tries to promotions, such as Live Search CashBack and its other efforts aimed at consumers of financial incentives to use its search engine.

Dell will decide to start next month, while the Verizon deal will begin in the first half of this year and includes both mobile search and other mobile services, advertising. “This is a big victory for us, and to date the largest mobile search and display the relationship we have with any mobile operator,” said Mehdi.

Mehdi admitted that Microsoft needs more than the distribution of transactions to truly compete with Google. “This distribution partnership is part of our strategy,” he said. “We know that we need to do a lot of other things, including improving the product, including the ability to market directly to consumers, as well as to build loyalty and around our brand offering.”

Mehdi would not say how much market share Microsoft is expected to get a deal with Dell or Microsoft to talk about other plans, including the rumor re-branding efforts. He said, Dell deal is flexible enough to accommodate the change of name.

Microsoft reportedly in the bidding war against Google for the Verizon deal, according to earlier reports from The Wall Street Journal. Verizon Wireless and Microsoft declined to discuss financial details of the transaction. But a source close to the company said the five-year agreement worth at least $ 650 million Microsoft Verizon to pay for a phone.

This is considered the largest mobile search and advertising on the date of the transaction. The magazine reported that in the past year, Google’s deal to offer search on Sprint Nextel phones was about half of what Microsoft is prepared to pay for the Verizon deal. More on Yahoo in the transaction with AT & T announced last year have not been disclosed either, but he believes that Yahoo has promised AT & T about $ 400 million in guaranteed income to become its default search provider.

With regard to the details of the Microsoft / Verizon deal, starting with the first half of this year, Microsoft Live Search will be preinstalled on the new Verizon Wireless phones and smartphones, to ensure that all local and Internet searches. Microsoft also will power search for Verizon Wireless’ VCast content that will allow subscribers to search ringtones, full music tracks, videos and other content VCast entertainment and news.

Depending on the device they use, Verizon customers will be able to search through the contents of a voice command or by typing their requests. A search tool will also provide location based on the results, that is, subscribers will be able to search for restaurants, movie theaters and other businesses in the neighborhood.

Also under the deal, Microsoft will manage all search and display advertising Verizon mobile Web services.

Today, mobile search is still at an early stage. Only about 9 percent of cell phone subscribers search the web from their mobile phones, according to ComScore M: Metrics. But the use is increasing, especially in the more consumers switch to smartphones, as in the Apple iPhone and Research In Motion devices BlackBerry.

Despite its small size today, the big search companies see the mobile market with more than 3 billion subscribers worldwide, as tremendous opportunities. The victory of Verizon Wireless, which is currently the second largest mobile operator in the U.S., is a big deal to Microsoft. Yahoo online search AT & T, the largest U.S. mobile phone carrier. And Google has a deal with Sprint Nextel, the third-largest U.S. operator.

But it remained unclear how important these transactions will be the carrier. Microsoft and Yahoo have already struck a similar multi-portal deals on PC side with Verizon Communications and AT & T, but Google still dominates the overall search market. And just as they can on the computer, users still have the opportunity to use any search engine they want from their mobile phone browsers.

Until now, Google has been able to continue the search for dominance in mobile devices, with 60 percent of mobile subscribers who search the Internet from their phones through its search engine. Nearly 36 percent of subscribers use Yahoo and 10 percent use Microsoft, according to ComScore.

Google may also have another advantage in the mobile, as carriers begin to grow more devices that use its operating system Android. Android is an open source mobile operating system, which closely integrates multiple Google services to phones, including Google search products.

Until now, T-Mobile is the only carrier selling the phone Google, G1. But other phones Android, is expected to hit the market later this year. HTC, maker G1 Android plans another device, like Sony Ericsson. Motorola also said that plans to use Android as one of its major operating systems in future phones. And LG and Samsung, the members of Google Open Mobile Alliance, is also expected to release Android phones.

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