EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

03.23.09

Microsoft’s Very Own “Death Spiral” (on the Web)

Posted in GNU/Linux, Google, Microsoft, Search at 4:45 am by Dr. Roy Schestowitz

Microsoft is Dying Online, Desperate for Yahoo! Deal

“I’d be glad to help tilt lotus into into the death spiral. I could do it Friday afternoon but not Saturday. I could do it pretty much any time the following week.”

Brad Silverberg, Microsoft executive

Spiral stairway

Summary: In Microsoft’s latest attempt to “tilt Google into the death spiral,” it reaches out for allies

THE STRUGGLE to stay relevant in the Web era is a key one to Microsoft and the phrase “tilting <Company_name> into the death spiral” is rather common in the company’s internal communication. Since GNU/Linux is not tied to any one company, Microsoft’s current “tilt” attempt is directed at Google, whose market cap almost equates to Microsoft’s.

So what is a Steve Ballmer to do?

The company has gone as far as the manufacturing of lies, but figures that are not paid for by Microsoft indicate that the company’s steady decline carries on. The Wall Street Journal wrote about this in the context of ongoing talks between Microsoft and Yahoo.

But who needs a deal? Ballmer also set off a whole new round of Yahoo speculation, saying he would be open to discussing a search partnership with Yahoo’s new chief, Carol Bartz.

Sure, Ballmer’s statement isn’t really anything new; he has been panting after Yahoo’s search capabilities for months, and he reiterated at the software giant’s strategy update in late February that he preferred a search deal with Yahoo but no outright acquisition. And make no mistake: the only things that have changed since Ballmer last made eyes at Yahoo are the passage of time and the fact that the Sunnyvale, Calif., company has a new chief executive.

[...]

But on the flip side, both Microsoft and Yahoo still are losing market share in Internet search, and Standard & Poor’s analyst Jim Yin expects that Microsoft “will continue to lose marketshare in Internet search engine,” according to a March 11 research note. That decline has been visible over the past two years at both Microsoft and Yahoo, and there is little reason to expect that to ease or reverse itself.

That last remark is not exactly news. Going a week back, InternetNews claimed that “Microsoft U.S. Searches Sink to 12-Month Low.” This is representative of some other areas including Azure that's going offline, Hotmail that’s losing users (mostly to Google), and other units that are being shut down as part of a trend.

Microsoft’s share of U.S. searches last month fell to its lowest level in a year, according to Web tracking firm comScore.

The latest data show that Microsoft (NASDAQ: MSFT) garnered only 8.2 percent of all U.S. search queries in February, slipping from 8.5 percent in January. The company had previously held a 9.6 percent share in February 2008.

Microsoft is now leaning towards Yahoo! as a harbour [1, 2] that’s of little or no use, unless they wish to harm Free software.

A year ago — and only a month or so after Microsoft’s initial bid for Yahoo — Microsoft’s CFO seriously considered buying Yahoo and go into over $20 billion in debt. But no longer is Microsoft truly interested in buying companies for growth, maybe because Microsoft is in debt territories even without Yahoo [1, 2, 3, 4, 5]. According to Dow Jones (via CNN):

Microsoft CEO Sees Fewer Acquisitions

[...]

Microsoft Corp. (MSFT) Chief Executive Steve Ballmer said Thursday he expects less acquisition activity in the economic downturn since targets will be less likely to sell at depressed valuations.

Dina Bass, who has some inside connection with Microsoft, wrote the following in Bloomberg:

Microsoft will experiment with new business models and ways to present Web search results, Ballmer said. So far, its efforts haven’t made much headway with users. The company controls a smaller portion of the Web search market than it did four years ago, when it switched from using Yahoo! Inc.’s search technology. Building market share will be a step-by-step process, Ballmer said.

As Ars Technica shows in its new article, titled “Why Microsoft continues with search: it’s still not solved,” this is a purely technical issue. Microsoft is currently rebranding, once again renaming (Kumo), and changing the outside appearance of its search engine, but it’s the underlying engine which must change. Microsoft has already suspended plans to build a datacentre in Iowa, so its ability to expand and grow in this crucial business area seems highly limited.

Some days ago, one of Microsoft’s talking heads called Preston Gralla, started yelping — yet again — about Google being a monopolist. This is part of a strategy that began 2-3 years ago when Microsoft tried to portray Google as what a major newspaper called “evil empire” and Microsoft even donated money to this daemonisation cause. Gralla, who does Microsoft/Windows stuff for a living, is using his appointment in the Microsoft-funded IDG [1, 2, 3, 4, 5] to constantly attack Google and attack GNU/Linux, which are Microsoft’s biggest competitive threats. That is all Microsoft has left. It can’t compete based on quality, so it also sued Linux and encouraged companies to sue Google, maybe even Apple.

“Microsoft has already suspended plans to build a datacentre in Iowa…”Returning to Bloomberg, Bass also wrote this article about Microsoft trying to sneak its way into search using agreements (probably a reference to buying exclusivity, i.e. buying one’s way to market share). Mozilla complained about this tactic only a couple of days ago (direct link).

Steve Ballmer is still trying to form a partnership with Yahoo (like the one they so hypocritically blocked when Google came over to Yahoo's rescue). Mary Jo Foley informs that Microsoft claims to have held only a single meeting with Carol Bartz.

Although you’d never know it from most of the headlines today, Microsoft CEO Steve Ballmer said he has had only one meeting so far with Yahoo CEO Carol Bartz since she became CEO. And it sounds — at least according to Ballmer’s remarks — that he and Bartz did little more than exchange pleasantries.

There is a lot more news coverage about this at the moment. The last impression varies depending on the source:

Yahoo is already caving somewhat, having promoted Firefox 3.0 when it was new*. Here is some interesting news about IE8, which has just been released.

Microsoft IE8 Browser Seeks To ‘Accelerate’ Searching, Yahoo Adds ‘Visual Shortcuts’ To Search Box

[...]

The other development I wanted to discuss is Yahoo’s “visual search shortcuts.” This operates from the search box on the browser toolbar. Yahoo must first be selected as the search provider in the IE 8 search box (Live Search is the default). If you then enter a query you see search suggestions but also “shortcuts” for certain categories of information: stocks, movie showtimes, movie reviews and weather.

What is this technical linkage about and when did it come into play?

As one last and very secondary note, IE8 is nothing to care about. Despite Mossberg's good relationship with Microsoft, IE8 failed to impress him and the same goes for TechCrunch, which writes:

With IE8, Microsoft Ignores One Third Of The Market

[...]

[S]peed is really everything. Without speed, all the other features fall by the wayside. You can’t enjoy a WebSlice (which is a slice of a Webpage that is constantly updated) if it takes forever to load. And if you look at Internet Explorer’s market share, it has steadily been eroded over the past few years by its faster rivals Firefox, Safari, Chrome, and Opera. We’ll have to wait for new independent speed tests to see how IE8 stacks up, but speed does not appear to be its strong point.

Microsoft is doing what it always does: focusing on its massive installed base of users and ignoring the rest. If you’ve already left IE for a speedier browser, IE8 is not going to bring you back, and Microsoft knows it. For instance, Internet Explorer long ago turned its back the Mac and IE8 will be no different. There will be no Mac version, even though Macs continue to gain market share against PCs.

Bundling and integration that violate the rules seem to be the last card in Microsoft’s deck for renaissance on the Web. The best tagline for IE8 to have might be “too little, too late.” The same goes for Microsoft’s Web ambitions.
_____
* Yahoo was headed by Yang and Decker back then [1, 2, 3], but Microsoft fought them until its potential insider, Carl Icahn, played a role in pushing Yang out.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

3 Comments

  1. twitter said,

    March 23, 2009 at 9:21 am

    Gravatar

    Nice summary. It’s easy to lose the big picture with all of the BS M$ pumps out through their purchased and managed press. It’s also difficult to know where M$’s finances really are when you can’t trust what they put into quarterly reports, but the line drawn from $60 billion cash a few years ago points to less than zero today. Not much has changed to turn that line around. Xbox, Zune, web search, online services, Vista and Office 2009 all flunked out and Windows 7 won’t be much better. The company has started to fire people but that kind of cost cutting won’t produce the product they needed now, nor will that product be adequate in the future. Iceland, where things are worse for people, shows an interesting structural weakness in M$’s business operations that creates a cascading revenue failure, so the end may come sooner than anyone imagines.

    Ultimately, there’s no room for non free software in the era of affordable computing. Other people can and are doing what M$ used to do, and they do it for much less. There’s no room for a $60 OS fee or a $400 Office suite on a $200 computer. Analysts and people in industry see this clearly. As Intel Chief Executive Officer Paul Otellini bluntly put it, “Microsoft has to figure out: What’s their strategy?” The retail channels M$ squeezed to push Vista and fight EEE PC simply went out of business, a trend that started before the financial crisis which is cleaning out everyone left. The only thing they have left is patent extortion, an injustice informed opinion thinks is doomed to fail.

  2. David Gerard said,

    March 23, 2009 at 12:07 pm

    Gravatar

    This post inspired today’s NotN.

  3. amd-linux said,

    March 23, 2009 at 1:32 pm

    Gravatar

    “Me, too” would also very well summarize their business activities.

    They have long time ago given up to even try to invent. They now bully and copy.

    They’re done.

What Else is New


  1. Links 29/5/2020: Genode OS 20.05 and FSF Video Conferencing Service

    Links for the day



  2. Weaponised Media Promoting an Illegal Patent System (UPC), Exploiting Major Pandemic in the Process

    The whole 'unitary' scam/ploy (merely a Trojan horse for litigation and low-quality/invalid patents) is being promoted by Thierry Breton as EU Internal Market Commissioner (in spite of illegalities and constitutional issues), merely reinforcing the view that the EU is rather complicit in the abuses perpetrated by Team Battistelli; the media in the pockets of oligarchs and litigation firms (fronting for these oligarchs) plays along, as usual



  3. Links 28/5/2020: OpenSSH 8.3, New Mesa Release, Raspberry Pi 4 News, Fedora 32 Elections

    Links for the day



  4. The EPO Became a Very Radical Institution

    Projection tactics are doomed to say more about the people who utilise them than about anybody else; the EPO has become so autocratic and corrupt that corruption is seen as normal and workers who explain this corruption are framed as "irrational" or "crazy" or "radical"



  5. IRC Proceedings: Wednesday, May 27, 2020

    IRC logs for Wednesday, May 27, 2020



  6. Allegations That Microsoft Will Ruin Besieged Clinics and Hospitals to Retaliate Against Those Who Name the Culprit

    With a broader picture coming into view, as per the above index, we're starting to wrap up the series while issuing a call for more stories and eyewitness testimonies, exposing the nature of attacks on hospitals (those almost always target Microsoft and others' proprietary software, which is technically unfit for purpose)



  7. Microsoft Has Ideas...

    Based on the pattern of media coverage, composed by Microsoft MVPs and Microsoft-affiliated blogs/sites, confusing the public about the meaning of GNU/Linux is reminiscent of an "Extend" phase



  8. ZDNet Proves Our Point by Doing Not a Single Article About Linux (RC7), Only About Linus and Windows Clickbait Junk

    It seems abundantly clear that nobody wants to cover the actual news about Linux and instead it’s all about which PC Linus Torvalds is using (gossip/tabloid); ZDNet‘s latest two articles are an example of this…



  9. UPC Lies That Make One Laugh...

    IP Kat and Bristows (overlaps exist) are still pretending that the UPC is coming because reality doesn’t seem to matter anymore, only self-serving agenda



  10. Canonical Continues to Help Promote Windows Instead of GNU/Linux or Ubuntu

    Thrice in the past week alone Canonical used the official “Ubuntu Blog” to help Microsoft instead of GNU/Linux and it is part of a disturbing trend which lends credibility to jokes or rumours about a Microsoft takeover; it's not like many people use this thing, either (Canonical helps Microsoft shore up a dying/languishing EEE attempt)



  11. Links 27/5/2020: CoreOS Container Linux Reaches Its End-Of-Life, 2020 GNOME Foundation Elections Coming

    Links for the day



  12. IRC Proceedings: Tuesday, May 26, 2020

    IRC logs for Tuesday, May 26, 2020



  13. GNEW Seedlings vs. Free Software Deforestation

    “The idea of the GNEW Project really is about keeping the goals of the GNU Project alive — hopefully, they won’t destroy or co-opt too much of the GNU Project, that people like the Hyperbola devs can’t fix it with BSD.”



  14. Joi Ito Already Admitted on the Record That Bill Gates Had Paid MIT Through Jeffrey Epstein

    An important exhibit for the accurate historical record (because MIT has been trying to deny truth itself)



  15. It's Convenient to Call All Your Critics Nuts and/or Jealous

    Bill Gates antagonists are not motivated by hatred or jealousy but a sense of injustice; spoiled brats who break the law aren’t a source of envy any more than mass murderers are subject of admiration



  16. Real History of Microsoft and How It Became 'Successful'

    New video that contains a portion about the history of Microsoft -- the part paid-for 'journalists' (paid by Microsoft and Bill Gates) rarely or never speak about



  17. Hostility and Aggression Towards Staff That Does Not Use Windows After Windows Takes Entire Hospital Down

    Microsoft Windows, with NSA back doors, continues to take hospitals offline (with records copied by criminals if not stolen by effectively locking the originals out of reach for ransom money); but guess who’s being punished for it…



  18. They Came, They Saw, We Died...

    It cannot be overstated that we're under attack (or a "Jihad" against Linux as Bill Gates himself put it) and failing to act upon it will be costly as time may be running out and our groups are being 'bought off' by Microsoft in rapid succession, as per the plan/strategy



  19. The GitHub Takeover Was an Extension of Microsoft's War on GPL/Copyleft (Because Sharing Code to Anyone But Microsoft is 'Piracy')

    Licences that make it easier for Microsoft to 'steal' (or a lot harder for Free software to compete against proprietary software) are still being promoted by Microsoft; its GitHub tentacles (see GitHub's logo) further contribute to this agenda



  20. ZDNet is Totally a Microsoft Propaganda Machine

    The site ZDNet has become worse than useless; it lies, defames and launders the reputation of famous criminals (that's the business model these days)



  21. When Microsoft's Mask Falls (or When Times Are Rough)

    Microsoft loves Linux in the same sense that cats love mice (they might play with them until they get hungry)



  22. Careers in Free Software Aren't Careers in the Traditional Sense

    With historic unemployment rates and people 'stranded' inside their homes there's still demand and need for technology; these times of adaptation present an opportunity for Software Freedom



  23. Embrace, Extend, Extinguish 2020 Edition

    Embrace, Extend, Extinguish (E.E.E.) is alive and well, but the corrupt (paid by Microsoft) media isn't talking about it anymore; in fact, it actively cheers and encourages people/companies to enter the trap



  24. Links 26/5/2020: SHIFT13mi GNU/Linux Tablet, Linux Kodachi 7.0 and Some Qt Releases

    Links for the day



  25. EPO Propaganda on Steroids (or on EPO)

    What EPO management is saying and what is actually happening



  26. Breton (EU) 'Joins' Team UPC to Help His Buddy Battistelli... Again

    As expected, Breton acts as little but an EPO tool, looking to prop up supremacy of patent litigation over science and innovation



  27. Removing Free/Libre Software as an Inadequate Response to Microsoft Windows (With Back Doors) Getting Compromised, Killing People

    GNU/Linux takes the blame (in a sense) for incidents that are purely the fault of Microsoft and its deficient software with deliberate back doors; it's believed that this boils down to opportunistic retaliation against those looking for a solution to the problem (or merely speaking about the problem)



  28. IRC Proceedings: Monday, May 25, 2020

    IRC logs for Monday, May 25, 2020



  29. Under Distributed Denial of Service Attacks Lately, But We're Too Robust For Those

    Efforts to take Techrights offline have been ramped up lately; but it's not working and it hardly even distracts us from publishing



  30. The Art of Giving: Why Free Software Will Inevitably Survive Attacks Against It

    Societies that share and look after their peers/neighbours will always be better off than predatory societies, which breed exploitation, distrust, discord and eventually systemic collapse


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts