Microsoft puts money behind Web strategy talk
May 1, 2006 from Yahoo News - "Microsoft is backing up its talk of investing in Web services with cash, months after chairman Bill Gates called the company to arms over an Internet "sea change" in which software and services become delivered over the Web. Next year the company will invest $2 billion more than expected in a variety of technologies, and the clearest goal is to transform its way of doing business on the Web, analysts and investors said...
"We believe Microsoft has been working to implement a strategic vision to leverage some unique advantages and become a player along with Google and Yahoo in the market for online advertising," Sherlund wrote in a note to clients. Microsoft sees paid search as the first test in a larger ongoing competition for Internet ads.
Online advertising continues to win over clients abandoning television, newspapers and other traditional media. Forrester Research projects the online advertising to grow to $26 billion in 2009 from $15 billion now. At the core of Microsoft's software services vision is Windows Live, an advertising funded one-stop shop for Microsoft's web services from e-mail to instant messaging to blogs.
In order to support such a platform, Microsoft is expected to spend heavily for computer servers and data storage. Local media reported earlier this week that Microsoft bought a 75 acre property in central Washington state to build a "server farm" that will hold thousands of data-serving computers.
Merrill Lynch expects Microsoft online unit MSN to get a significant share of an estimated $2.4 billion in additional spending by the company. MSN expenses would increase by $891 million in the upcoming fiscal year, compared with $1.1 billion for Google and $708 million for Yahoo.
Google and Yahoo have become household names, but Microsoft is still larger by far, from a financial perspective. Before the stock fall on Friday Microsoft had a market capitalization of $282 billion and revenue in its latest full fiscal year of $40 billion, while Google had a market cap of $125 billion and revenue of $6.1 billion. Yahoo had a market cap of $47 billion and revenue of $5.3 billion."
180 View - This article comes from a new service offered by Yahoo Technology News. There is some interesting information in this article including the importance of online advertsising (follow the cash...) and the market capitalization of Google, a company that started operations in 1998 with 3 employees.
May 1, 2006 from Yahoo News - "Microsoft is backing up its talk of investing in Web services with cash, months after chairman Bill Gates called the company to arms over an Internet "sea change" in which software and services become delivered over the Web. Next year the company will invest $2 billion more than expected in a variety of technologies, and the clearest goal is to transform its way of doing business on the Web, analysts and investors said...
"We believe Microsoft has been working to implement a strategic vision to leverage some unique advantages and become a player along with Google and Yahoo in the market for online advertising," Sherlund wrote in a note to clients. Microsoft sees paid search as the first test in a larger ongoing competition for Internet ads.
Online advertising continues to win over clients abandoning television, newspapers and other traditional media. Forrester Research projects the online advertising to grow to $26 billion in 2009 from $15 billion now. At the core of Microsoft's software services vision is Windows Live, an advertising funded one-stop shop for Microsoft's web services from e-mail to instant messaging to blogs.
In order to support such a platform, Microsoft is expected to spend heavily for computer servers and data storage. Local media reported earlier this week that Microsoft bought a 75 acre property in central Washington state to build a "server farm" that will hold thousands of data-serving computers.
Merrill Lynch expects Microsoft online unit MSN to get a significant share of an estimated $2.4 billion in additional spending by the company. MSN expenses would increase by $891 million in the upcoming fiscal year, compared with $1.1 billion for Google and $708 million for Yahoo.
Google and Yahoo have become household names, but Microsoft is still larger by far, from a financial perspective. Before the stock fall on Friday Microsoft had a market capitalization of $282 billion and revenue in its latest full fiscal year of $40 billion, while Google had a market cap of $125 billion and revenue of $6.1 billion. Yahoo had a market cap of $47 billion and revenue of $5.3 billion."
180 View - This article comes from a new service offered by Yahoo Technology News. There is some interesting information in this article including the importance of online advertsising (follow the cash...) and the market capitalization of Google, a company that started operations in 1998 with 3 employees.




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