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Microsoft's Live Search to replace Yahoo! on Hewlett-Packard's PCs

Hewlett-Packard Corp. (NYSE: HPQ) has just dealt Yahoo Inc. (NASDAQ: YHOO) a huge blow at the worst possible time. The world's leading PC maker and largest seller in hot laptop PC category will be replacing Yahoo! with Microsoft Corp. (NASDAQ: MSFT)'s Live Search services starting next January.

It's been my experience that a majority of PC users use the default portal and search engine services that come installed on their PCs. Moving Yahoo! off the world's best-selling PC line won't do anything to help Yahoo! but will do everything to help Microsoft compete more head-on with Google, Inc. (NASDAQ: GOOG). That little web browser toolbar many of us use is billion-dollar real estate, and Yahoo!'s is about to be booted off in favor of Microsoft's.

Microsoft said that the upcoming search partnership with the world's largest seller of PCs would deliver "a very high" volume of search queries. This is just what Microsoft needs to more effectively compete in the internet search arena with Google, but it won't mean serious competition with the search leader either. Still, more search revenue for Microsoft will definitely be seen as a good thing. Meanwhile, Yahoo! will be pondering options on where its future rests, but we'll probably get a better idea before 2009 once the company has its annual shareholders' meeting some time in July.

Microsoft's (MSFT) new search guru: stop using Google (GOOG)

Microsoft Corp.'s (NASDAQ: MSFT) struggle in the internet search business has not been entirely its own fault, or has it? Innovation and first-mover advantage have been all with Google, Inc. (NASDAQ: GOOG) in recent years, as the company has put the proverbial icing on the search cake with its unobtrusive and workable advertising model that just seems to resonate with consumers.

Microsoft even responded to Google's growing dominance this year by launching the "Microsoft Search and Win" initiative that gave searchers rewards for using Microsoft's search engine. Is that move desperate for a company wanting to improve its position in the search marketplace or some type of experimental gimmick? The jury is still out on that one.

Microsoft also wants to get into the business of tailored search, which gives custom answers to searchers based on many factors and supplies niche information about entertainment, news and other items that are unique results for each searcher. The only thing is that Google is already there with its personalized search results and this is quickly not becoming a product differentiator for Ole' Softie.

But, hold the presses: Satya Nadella, corporate VP of search at Microsoft, has a feeling that Microsoft can turn its organic 70 million search visitors into more by offering a more complete set of services and tools every time they visit Microsoft's search properly. But, that area is fragmented in my estimation. MSN Search and Live.com are two brands, and customers could be confused. Google has one brand. Although Microsoft caught up to some of the core services Google is offering, that does not mean Microsoft can overtake the leader. In fact, if Microsoft wants to be neck-and-neck with Google when it comes to internet search, it may be the toughest battle the company has ever faced.

Google says Microsoft stealing search with new IE7 browser

msn search in ieMicrosoft's next-next-next gen browser, Internet Explorer 7, has a search box in the upper right corner of the browser window. It goes to Google, right? Heh. I was just testing you. No, it goes straight to MSN's search engine - where, of course, Microsoft gets all the ad revenue.

According to a New York Times article, Google is complaining about this tactic to both the U.S. Justice Department and the European Commission, insisting that it smacks of Microsoft's infamous anti-competitive practices in the '90s. Currently, MSN has an 11% share of the search market, whereas Google rocks a 49% share. (Yahoo! is at 22%, in case you're keeping track.)

None of the previous IE browsers had included default search tools, although Firefox, Opera and Safari have included them (featuring: Google, but offering a drop-down menu) for a while now. Microsoft argues that, after all, a user can change the default search engine (and I'm sure I'm not the only one who realizes the typical consumer, won't).

I'm not a fan of anti-competitive practices but... who's the monopoly here? Did someone say something about 49% of the market? That's awfully close to a majority. If the consumers don't like it, there's always Firefox, where Google still reigns supreme.

[Image Haipunk]

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