Skip to main content

Microsoft sees Google's $500m, raises $500m

Microsoft Corp will spend over $1bn on R&D just in its MSN unit, for the fiscal year starting in July, chief executive Steve Ballmer told an audience of would-be advertising customers.

The money, part of the surprise spending package that recently gave Microsoft's share price its biggest single-day drop in five years, comes as the company struggles to catch up to Yahoo Inc and Google Inc in the search and online advertising market.

Ballmer and MSN chief Yusuf Mehdi introduced adCenter, Microsoft's answer to Google AdWords and Yahoo's Publisher Network, gave some hints at what features are coming up in the near future, and promised to put its money where its mouth is.

"Our R&D spend just in our online MSN area has gone from a $500 million in our fiscal year '05, to a projected $1.1 billion in our fiscal year '07," Ballmer said. "We will invest as much in this online opportunity in R&D as any of the other big players in the market."

Last year, Yahoo invested about $547m in product development and Google invested a more modest $484m in R&D, according to those companies' financial reports.

Microsoft's total investment in R&D, across all its business units, in the company's fiscal 2007, will be $6.2bn, Ballmer said. Unlike Yahoo and Google, Microsoft has obvious cross-pollination advantages due to the breadth of its product catalog.

"We have told our R&D folks that our number one priority, number one priority is software as a service," Ballmer said. adCenter is one such service.

Mehdi demonstrated the features of the service, currently restricted to search-based advertising, and previewed context-based advertising features that will compete with AdSense and YPN. He said it will differentiate itself in two key ways. [CBR Online]

Comments

Popular posts from this blog

US says world safer, despite 11,000 attacks in '05

The U.S. war on terrorism has made the world safer, the State Department's counterterrorism chief said on Friday, despite more than 11,000 terrorist attacks worldwide last year that killed 14,600 people. The U.S. State Department said the numbers, listed in its annual Country Reports on Terrorism released on Friday, were based on a broader definition of terrorism and could not be compared to the 3,129 international attacks listed the previous year. But the new 2005 figures, which showed attacks in Iraq jumped and accounted for about a third of the world's total, may fuel criticism of the Bush administration's assertion that it is winning the fight against terrorism. Asked if the world was safer than the previous year, U.S. State Department Counterterrorism Coordinator Henry Crumpton told a news conference, "I think so. But I think that (if) you look at the ups and downs of this battle, it's going to take us a long time to win this. You can't measure this month ...

Al-Qaeda number two in new video

Al-Qaeda's number two Ayman al-Zawahiri has appeared in a video saying that Iraqi insurgents have "broken the back" of the US military. He praised "martyrdom operations" carried out by al-Qaeda in Iraq in the video, posted on an Islamist website. And he called on the people and army of Pakistan to fight against President Musharraf's administration. This is the third message from prominent al-Qaeda leaders to emerge within a week. A tape from Osama Bin Laden was broadcast on 23 April, followed two days later by a message from Iraqi insurgent Abu Musab al-Zarqawi. Pakistan focus Zawahiri, who wore a black turban and a white robe in the video, described the leaders of Egypt, Jordan, Saudi Arabia and Iraq as traitors, and urged Muslims to "confront them". He praised Iraqi militants, saying that the US, Britain and allies had "achieved nothing but losses, disasters and misfortunes" in Iraq. "Al-Qaeda in Iraq alone has carried out 800 ma...

Does light have mass?

The short answer is "no", but it is a qualified "no" because there are odd ways of interpreting the question which could justify the answer "yes". Light is composed of photons so we could ask if the photon has mass. The answer is then definitely "no": The photon is a massless particle. According to theory it has energy and momentum but no mass and this is confirmed by experiment to within strict limits. Even before it was known that light is composed of photons it was known that light carries momentum and will exert a pressure on a surface. This is not evidence that it has mass since momentum can exist without mass. [ For details see the Physics FAQ article What is the mass of the photon? ]. Sometimes people like to say that the photon does have mass because a photon has energy E = hf where h is Planck's constant and f is the frequency of the photon. Energy, they say, is equivalent to mass according to Einstein's famous formula E = m...