Microsoft Not Expecting Much Growth In It's Search Business

Recently a report was released by ComScore Networks which showed search business of Microsoft in United States coming down to 10.5% while Google saw a growth of 47.3%. Microsoft is also lagging behind in it overall share of search market and it seems that the company is well aware of the fact. According to CNET Microsoft is expecting less sales growth in internet search business in the next two quarters. The company had earlier predicted that revenue might increase by 11% but now it is expecting to be around 3% to 8%.  Microsoft CFO Chris Liddell said “On the search side you are correct we lost market share.” He openly admitted that he is “clearly not happy with that.”

Speaking on the topic, Allan Krans, Technology Business Research analyst said “Success continues to elude Microsoft in this market.  Given Google's large head start in the market and its ongoing momentum, we think it will be very difficult for Microsoft to have a real impact in the online search market during 2007.  However, Microsoft continues to take a long-term approach to this market, and plans to keep the investment dollars flowing into its ad business.”

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