Microsoft and Google in ‘Browser War’

August 20, 2008

At Onsite New Orleans Computer Services we are consumers and competition between well-heeled Microsoft and Google in the search arena implies better search results and advertising rates for consumers in the future.  Microsoft’s business strategy for competing with Google in the search business is beginning to congeal, and thus far their plans involve three main strategies: 

Use claims of price-fixing in an attempt to derail or delay the GoogleYahoo deal with government oversight.

Improve their Live Search product.

Change the advertising business behind Live Search

On Monday, August 18, 2008, representatives from Microsoft and Google presented their arguments regarding the proposed Google – Yahoo deal during a panel discussion of online advertising at the Aspen Summit.  As the Department of Justice examines the Goohoo deal, Microsoft contends the proposed merger amounts to price fixingGoogle claims price fixing is impossible because online advertising rates are determined by a competitive auction process.  Regardless of whose claim is correct, Microsoft’s strategy is to erect cost-effective barriers to completing a successful Goohoo deal and divert Google resources to addressing a DOJ examination.  

Microsoft is aware of Google’s superiority in the search engine arena and Microsoft’s goal is to improve its Live Search. Microsoft research reveals 50% of search queries involve 30 minute sessions of user search refinements to acquire desired information.  Microsoft believes an efficient search engine should understand the needs of a particular user by remembering and analyzing prior searches.  At present Live Search only considers information obtained from one previous search; however Microsoft plans to include the historical information from many searches to understand the exact needs of a user and provide improved targeted results.

Finally, Microsoft is innovating change for the search industry in an effort to improve the advertising business behind searches.  Presently, advertisers pay search engines when users click on ads.  This model is known as cost per click (CPC) and Microsoft believes a change in the model to cost per action (CPA) will add efficiency to search advertising.  CPA requires user actions or product purchases before the advertiser is charged.  An example of CPA is the Microsoft Live Cashback program which rebates ad revenue to users who purchase products through Live Search.  

Who will win in this Microsoft – Google brouhaha?  Onsite hopes consumers, both advertising and search consumers, will benefit from this competition.  Only time will tell.  Stay tuned as Onsite loves competition for consumer benefit.

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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One Response to “Microsoft and Google in ‘Browser War’”


  1. I believe Google has never been good with applications it has developed on its own except for the success of the search engines,it has a history they launched google video but had to buy You Tube to capture the market.


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