Friday, September 23, 2011
Reports have come out that Microsoft has spent $5.5 billion to date in an effort to establish its search engine, Bing. From an economic perspective, one must ask if Bing is a business. Thus far, it is a money pit. Microsoft has enough cash to continue losing a billion a quarter for some time to come, but eventually someone has to make a decision to keep or chuck the search engine. If Microsoft elects to keep it, the firm needs to put Bing on a more economic basis. That will mean shrinking it or acquiring other search engines and migrating their users to Bing. Either way, there is a communications issue that Microsoft needs to confront -- proving that Bing is not a loser in the war against Google. There isn't much that Microsoft can say today.