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Once dominant Microsoft forced to rally in key markets

COMMENTARY: The Byte Bit

Managing editor

Published: Wednesday, March 10, 2010

Updated: Wednesday, March 10, 2010 16:03

Microsoft has been getting plenty of practice playing catch up. It remains to be seen if the company is getting closer to the competition.

CEO Steve Ballmer said his company will dethrone Google as the leader in search engines.
The question then becomes when, if ever, this will happen.

In an appearance at the Search Marketing Expo, Ballmer said the company “someday” would overtake Google. Trying to avoid appearing either arrogant or doubtful about Microsoft’s capabilities, Ballmer did not give timeframes. Instead, he noted Microsoft’s intention to grow its share of searches.

Microsoft has a good deal of ground to make up. Google boasts a market share of 65 percent while Microsoft’s percentage barely reaches double digits. An expensive advertising campaign for Microsoft’s Bing, launched in June 2009, and a partnership with Yahoo has boosted its market share, but Google still holds an impressive advantage.

While working to close the search gap, Microsoft has responded to its shrinking share of a growing technology by rebuilding its mobile software.

With smartphones projected to outsell PCs by 2012, Microsoft restructured its smartphone software division. The product of the restructuring, the Windows Phone 7 Series, was released with the hope that a more user-friendly operating system would help Microsoft catch up to Apple.

Surpassed in search and phone software, Microsoft has long trailed in personal media player sales. The Zune, launched in 2006, has had almost no effect on the Apple iPod’s dominance.

During the late ‘90s and early 2000s, Microsoft faced many accusations of operating as a monopoly. Still one of the most recognizable names in business, Microsoft’s struggles in the personal technology markets, and the failures of giant projects like the Vista operating system, have humbled the technology giant.

A decade later, the question is not if Microsoft is a monopoly. The question now focuses around its ability to compete.

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