Anusha
01-26-2007, 09:28 AM
Microsoft is continuing to lose market share in the search business to industry rival Google, something the software maker's financial chief said Thursday he is "not happy" about. And things aren't expected to turn around any time soon. Microsoft said Thursday that its Internet services business will produce less sales growth over the next two quarters than the company had previously forecast. Where it once forecast that revenue might grow by as much as 11 percent, the company now sees full-year sales growth in its Internet services business of just 3 percent to 8 percent.
"Success continues to elude Microsoft in this market," Technology Business Research analyst Allan Krans said in an e-mail interview. He said Microsoft is hardly alone, with other rivals also struggling to keep pace with Google.
"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," Krans said. "However, Microsoft continues to take a long-term approach to this market, and plans to keep the investment dollars flowing into its ad business."
Full story: ZDNet (http://news.zdnet.com/2100-9595_22-6153584.html)
"Success continues to elude Microsoft in this market," Technology Business Research analyst Allan Krans said in an e-mail interview. He said Microsoft is hardly alone, with other rivals also struggling to keep pace with Google.
"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," Krans said. "However, Microsoft continues to take a long-term approach to this market, and plans to keep the investment dollars flowing into its ad business."
Full story: ZDNet (http://news.zdnet.com/2100-9595_22-6153584.html)