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Microsoft dumps $2 billion into web battle

by Administrator

Microsoft is way behind Yahoo, Google, and others in the web business, and they know it. Their plan is to put some serious money into their web business to combat the problem. It’s not the first time Microsoft has been way behind in important technology. They’ve managed to catch up before and a huge capital infusion can’t hurt.

The company recognize they’re at a strategic crossroads:

A Bill Gates memo sent to top executives in October marked a strategic turning point for the world’s largest software maker, which had built its business on selling boxes of software to customers to install on computer desktops.

Microsoft’s earnings outlook this week fell well short of Wall Street expectations, and analysts said the company would use increased income from updated product lines, most prominently its update of the Windows operating system and Office business software suite, to build an online platform of software and services available any time over the Web.

The $2 billion that Microsoft is infusing in their online business is largely directed at Google, who is successfully selling ads online. Microsoft plans on making their context sensitive ad network a major competitors to Google.