I don’t often like to talk about the state of different companies and their actions online, but when it’s about Microsoft, a company that all computer users are almost indebted to, I just had to write about their current stance with the online world.

At my university Live Search is the default choice on Internet Explorer’s search area, whereas on single computers not handled by the department all search areas will point to Google. It’s interesting to see someone search for something in the search box, expecting a Google page to turn up, to be greeted by this strange, alien page that they feel doesn’t help them in the slightest. I’d go as far as to say the most popular search term used in Live Search is probably Google. Let’s face it, at the moment Google IS search.

Despite their strong position I still don’t think Google is unbeatable at search.

In many ways you can’t blame Microsoft for wanting to get into the lucrative online world, what with Google being the new sugar-daddy of the software world simply through providing advertising along with free products. I’ve often become somewhat confused by many students’ ultimate goals in Computer Science to work for Google. I’m sure it’s a fantastic company to work for, but the online world is a world that is still very premature and closed, and Google work within a smaller subspace of that world. The only thing we can blame Microsoft for is how they’re damaging their own credibility through jealousy and greed.

Don’t get me wrong, I love Microsoft. I think they’re a fantastic company that makes great software. The one thing I cannot get my head around is why they feel the need to pick fights with Google, especially by announcing their intention to purchase Yahoo for their search business.

Microsoft have nothing to gain by buying Yahoo apart from large volumes of traffic. As a search engine, Yahoo is no better than Live Search, yet Microsoft seem to believe that by purchasing them they stand a better chance of gaining ground. The amount of money Microsoft want to offer is obscene, especially for a company that won’t even give Microsoft half of the market. They’re using old methods in an arena with new rules. A simple acquisition won’t help Microsoft in the slightest, and by doing so Live Search has already admitted defeat.

With a fraction of that money Microsoft could’ve invested heavily in research. We’re currently in this bubble of useless websites called Web 2.0. If Microsoft had any sense they’d build for this new version that everyone seems to think is coming yet we don’t have any idea of implementing named the Semantic Web. If Microsoft want to be a future competitor they need to build for the future. In many ways it seems they already are.

I don’t even know why people seem to think that Yahoo is a lost cause. The last time I checked they had some impressive software and websites in their online portfolio. Yahoo search is still second best, and with the engineering power behind them they could easily look to build bigger and better software and websites. Yahoo don’t NEED to own the best search engine!

The reason that Microsoft won’t succeed in search is because they don’t care about it, they only care about monetising it. In many ways why should they care about it? Sure, it’s a lucrative business, but Microsoft are the kings of Operating Systems and Office software. No online Google effort is going to touch that. By trying to fight Google in its own terretory Microsoft is losing its iron grip on the industry. Apple and Linux will never take the OS top-spot, and despite a confusing and poor MS Office release they’re still in command of that.

If I were Microsoft I would ditch all desperate attempts to buy Yahoo and stick to creating great software and technologies for the web. If they’re that desperate to buy a company for a crazy amount of cash why don’t they buy Adobe? Flash, Dreamweaver, Photoshop, Illustrator? They’ll have a foothold in the online world and Apple will become their bitch.

Just a thought…