Microsoft Unveils New Web-Based Platforms to Challenge Google, Yahoo

Strategic Insights -

Microsoft Corp. has introduced two new Web-based, advertising-driven software platforms aimed at helping the company catch up with Google Inc. and Yahoo Inc. The platforms, Windows Live and Office Live, offer personalized Web portals, improved messaging and e-mail services, and the ability to create company Web sites and corporate e-mail accounts for small businesses. These new offerings are designed to challenge the dominance of Yahoo's and Google's Web sites, as well as their free Web-based e-mail services.

Key Takeaways:

  • Microsoft's Windows Live platform allows users to create their own personalized, constantly updated Web portal, including searching the Internet for topics of interest and streaming music, news, photos, and video.
  • Office Live promises to let small business users create a company Web site and corporate e-mail accounts for free, with the option to pay a subscription fee for additional applications and features.
  • Both Windows Live and Office Live are linked to Microsoft Ad Center, a system that displays advertising related to every Internet search performed.
  • The new software platforms are designed to work interchangeably with computers, cell phones, and other portable computing devices, many of which already run Microsoft software.
  • Microsoft is being careful not to include its flagship software programs on Office Live, instead offering related programs.
  • The free Windows Live platform was made available on the Internet on Tuesday for both Windows and Apple users, while the free Office Live platform is scheduled to be available early next year.
  • Microsoft's Chairman Bill Gates emphasized that the new software platforms represent a significant shift for the company, which still gets most of its revenue from software programs installed on individual PCs and office computer networks.
  • The new platforms are not completely different from current Microsoft offerings, but rather a significant change in the company's approach to providing online services.

Statistics:

  • The free Windows Live platform is available now for both Windows and Apple users.
  • The free Office Live platform is scheduled to be available early next year.
  • Microsoft's revenue from software programs installed on individual PCs and office computer networks still accounts for the majority of the company's revenue.

Sources:

  • "Microsoft Unveils Two New Platforms to Challenge Google, Yahoo" by Bob Keefe, WEST COAST BUREAU SAN FRANCISCO
  • Google's announcement to step up its support of Open Office, an initiative led by Microsoft rival Sun Microsystems Inc.