Bonum Certa Men Certa

Microsoft's Very Own “Death Spiral” (on the Web)

Microsoft is Dying Online, Desperate for Yahoo! Deal

"I’d be glad to help tilt lotus into into the death spiral. I could do it Friday afternoon but not Saturday. I could do it pretty much any time the following week."

--Brad Silverberg, Microsoft executive



Spiral stairway



Summary: In Microsoft's latest attempt to "tilt Google into the death spiral," it reaches out for allies

THE STRUGGLE to stay relevant in the Web era is a key one to Microsoft and the phrase "tilting <Company_name> into the death spiral" is rather common in the company's internal communication. Since GNU/Linux is not tied to any one company, Microsoft's current "tilt" attempt is directed at Google, whose market cap almost equates to Microsoft's.

So what is a Steve Ballmer to do?

The company has gone as far as the manufacturing of lies, but figures that are not paid for by Microsoft indicate that the company's steady decline carries on. The Wall Street Journal wrote about this in the context of ongoing talks between Microsoft and Yahoo.

But who needs a deal? Ballmer also set off a whole new round of Yahoo speculation, saying he would be open to discussing a search partnership with Yahoo’s new chief, Carol Bartz.

Sure, Ballmer’s statement isn’t really anything new; he has been panting after Yahoo’s search capabilities for months, and he reiterated at the software giant’s strategy update in late February that he preferred a search deal with Yahoo but no outright acquisition. And make no mistake: the only things that have changed since Ballmer last made eyes at Yahoo are the passage of time and the fact that the Sunnyvale, Calif., company has a new chief executive.

[...]

But on the flip side, both Microsoft and Yahoo still are losing market share in Internet search, and Standard & Poor’s analyst Jim Yin expects that Microsoft “will continue to lose marketshare in Internet search engine,” according to a March 11 research note. That decline has been visible over the past two years at both Microsoft and Yahoo, and there is little reason to expect that to ease or reverse itself.


That last remark is not exactly news. Going a week back, InternetNews claimed that "Microsoft U.S. Searches Sink to 12-Month Low." This is representative of some other areas including Azure that's going offline, Hotmail that's losing users (mostly to Google), and other units that are being shut down as part of a trend.

Microsoft's share of U.S. searches last month fell to its lowest level in a year, according to Web tracking firm comScore.

The latest data show that Microsoft (NASDAQ: MSFT) garnered only 8.2 percent of all U.S. search queries in February, slipping from 8.5 percent in January. The company had previously held a 9.6 percent share in February 2008.


Microsoft is now leaning towards Yahoo! as a harbour [1, 2] that's of little or no use, unless they wish to harm Free software.

A year ago -- and only a month or so after Microsoft's initial bid for Yahoo -- Microsoft's CFO seriously considered buying Yahoo and go into over $20 billion in debt. But no longer is Microsoft truly interested in buying companies for growth, maybe because Microsoft is in debt territories even without Yahoo [1, 2, 3, 4, 5]. According to Dow Jones (via CNN):

Microsoft CEO Sees Fewer Acquisitions



[...]

Microsoft Corp. (MSFT) Chief Executive Steve Ballmer said Thursday he expects less acquisition activity in the economic downturn since targets will be less likely to sell at depressed valuations.


Dina Bass, who has some inside connection with Microsoft, wrote the following in Bloomberg:

Microsoft will experiment with new business models and ways to present Web search results, Ballmer said. So far, its efforts haven’t made much headway with users. The company controls a smaller portion of the Web search market than it did four years ago, when it switched from using Yahoo! Inc.’s search technology. Building market share will be a step-by-step process, Ballmer said.


As Ars Technica shows in its new article, titled "Why Microsoft continues with search: it's still not solved," this is a purely technical issue. Microsoft is currently rebranding, once again renaming (Kumo), and changing the outside appearance of its search engine, but it's the underlying engine which must change. Microsoft has already suspended plans to build a datacentre in Iowa, so its ability to expand and grow in this crucial business area seems highly limited.

Some days ago, one of Microsoft's talking heads called Preston Gralla, started yelping -- yet again -- about Google being a monopolist. This is part of a strategy that began 2-3 years ago when Microsoft tried to portray Google as what a major newspaper called "evil empire" and Microsoft even donated money to this daemonisation cause. Gralla, who does Microsoft/Windows stuff for a living, is using his appointment in the Microsoft-funded IDG [1, 2, 3, 4, 5] to constantly attack Google and attack GNU/Linux, which are Microsoft's biggest competitive threats. That is all Microsoft has left. It can't compete based on quality, so it also sued Linux and encouraged companies to sue Google, maybe even Apple.

“Microsoft has already suspended plans to build a datacentre in Iowa...”Returning to Bloomberg, Bass also wrote this article about Microsoft trying to sneak its way into search using agreements (probably a reference to buying exclusivity, i.e. buying one's way to market share). Mozilla complained about this tactic only a couple of days ago (direct link).

Steve Ballmer is still trying to form a partnership with Yahoo (like the one they so hypocritically blocked when Google came over to Yahoo's rescue). Mary Jo Foley informs that Microsoft claims to have held only a single meeting with Carol Bartz.

Although you’d never know it from most of the headlines today, Microsoft CEO Steve Ballmer said he has had only one meeting so far with Yahoo CEO Carol Bartz since she became CEO. And it sounds — at least according to Ballmer’s remarks — that he and Bartz did little more than exchange pleasantries.


There is a lot more news coverage about this at the moment. The last impression varies depending on the source:



Yahoo is already caving somewhat, having promoted Firefox 3.0 when it was new*. Here is some interesting news about IE8, which has just been released.

Microsoft IE8 Browser Seeks To ‘Accelerate’ Searching, Yahoo Adds ‘Visual Shortcuts’ To Search Box



[...]

The other development I wanted to discuss is Yahoo’s “visual search shortcuts.” This operates from the search box on the browser toolbar. Yahoo must first be selected as the search provider in the IE 8 search box (Live Search is the default). If you then enter a query you see search suggestions but also “shortcuts” for certain categories of information: stocks, movie showtimes, movie reviews and weather.


What is this technical linkage about and when did it come into play?

As one last and very secondary note, IE8 is nothing to care about. Despite Mossberg's good relationship with Microsoft, IE8 failed to impress him and the same goes for TechCrunch, which writes:

With IE8, Microsoft Ignores One Third Of The Market



[...]

[S]peed is really everything. Without speed, all the other features fall by the wayside. You can't enjoy a WebSlice (which is a slice of a Webpage that is constantly updated) if it takes forever to load. And if you look at Internet Explorer's market share, it has steadily been eroded over the past few years by its faster rivals Firefox, Safari, Chrome, and Opera. We'll have to wait for new independent speed tests to see how IE8 stacks up, but speed does not appear to be its strong point.

Microsoft is doing what it always does: focusing on its massive installed base of users and ignoring the rest. If you've already left IE for a speedier browser, IE8 is not going to bring you back, and Microsoft knows it. For instance, Internet Explorer long ago turned its back the Mac and IE8 will be no different. There will be no Mac version, even though Macs continue to gain market share against PCs.


Bundling and integration that violate the rules seem to be the last card in Microsoft's deck for renaissance on the Web. The best tagline for IE8 to have might be "too little, too late." The same goes for Microsoft's Web ambitions. _____ * Yahoo was headed by Yang and Decker back then [1, 2, 3], but Microsoft fought them until its potential insider, Carl Icahn, played a role in pushing Yang out.

Comments

Recent Techrights' Posts

Weeks After Microsoft Bankruptcy in Russia the Company Shuts Down in Pakistan, Too
Last month Windows' share in Pakistan fell to an all-time low
Crime and Corruption at Microsoft GitHub Cannot be Covered Up by SLAPPs in Another Continent
We'll write about this for a long time to come
Slop Videos Are Disappointing Garbage, Nothing New, Just Brute Force up on Display or a Pedestal of Slop
Slop videos aren't a new thing
 
Links 04/07/2025: Google Replaces the Web With Slop, "AI Might Kill Us All"
Links for the day
Gemini Links 04/07/2025: Mindfulness and F1
Links for the day
Rob Musial's June 2025 Additions of Malware in Proprietary Software
Via the GNU Web site this week
Links 04/07/2025: Microsoft's H-1B Visa Applications Show Another Crisis Unfolding, Many More Deep Cuts and Shutdowns Revealed, Complete Microsoft Exits
Links for the day
Gemini Links 04/07/2025: A Day To Remember and "Stop Killing Games"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 03, 2025
IRC logs for Thursday, July 03, 2025
The War on Local Storage (People Hosting Their Files Locally and Privately)
There's nothing wrong with controlling one's computing
What Digital Independence Means
Independence in the digital realms means abandoning platforms like GitHub, not just rejecting proprietary software
NVidia is a Bubble
they temporarily see fortunes and wrongly assume perpetuity thereof
Fedora Does Not Care About Diversity and Inclusion, It's About Optics (Corporate Image)
any notion of inclusion is superficial and misleading
Don't Buy the Excuses for Microsoft's Mass Layoffs
Back in the 90s, Microsoft bought a lot of companies to get and stay ahead
Happy Independence Day to Our American Readers
Maybe tomorrow will be a good opportunity to explain to American people - in terms of concepts, not brands - which tools respect their independence
Slopwatch: Linux Journal, Linuxsecurity, and Google News Getting Even Worse (More Slopfarms Added Which Attack Linux With Bruce-Force SPAM)
Google News is part of the same problem
Links 03/07/2025: More Cuts and Cancellations at Microsoft Revealed
Links for the day
Gemini Links 03/07/2025: Favourite Child and Launching WikiGem
Links for the day
GNU/Linux is Replacing Microsoft Windows. But We Need to Eradicate Microsoft, It's a Hub of Crime.
I have been writing about Microsoft since the 1990s when I was in school
Mystery Surrounding the PCLinuxOS Sites and PCLinuxOS Magazine
Let's hope this isn't something major
People and Companies Do Learn Some Lessons From Their Mistakes (Stubborn Ones Don't)
Brett Wilson LLP is an example of one that would rather drown in mistakes
Links 03/07/2025: 'Hey Hi' Slop Ridiculed Some More and Microsoft's Layoffs Tally for 2025 Reaches About 29,000 in Just 6 Months (Almost 5,000 Per Month)
Links for the day
Microsoft Staff Harassing Women, Strangling Women, Telling Women to Kill Themselves and Worse? Not a Problem!
Two women have left Brett Wilson LLP
The Slopfarms Are Losing the Plot (and Google is Propping Up Rogue Sites)
Google is part of the attack on the Web, on information, and on technology
New BetaNews Realises There's No Potential or Future in Slopfarms, Prior Editor Wayne Williams is Back
They realise that slop (so-called "AI") cannot replace humans
Claims That Microsoft Looks for Staff That Works More and Gets Paid Less (or Can Only Code by Grabbing Other People's Code, Under the Guise of "AI")
People can form their own opinion
Richard Stallman Was Right About Reasons Not to Use Microsoft
last updated 2017
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 02, 2025
IRC logs for Wednesday, July 02, 2025
Gemini Links 03/07/2025: No to Cloudflare and Small Web July
Links for the day
Links 02/07/2025: Deep Microsoft Cuts, Macron Speaks to Putin
Links for the day
Confirmed: Microsoft Shutdowns Today, Not Only Mass Layoffs
"The Initiative is the only studio closure planned today, although some other teams have seen cuts of varying degrees."
Microsoft Windows Nosedives in Switzerland While GNU/Linux Leaps Above 6%
sooner or later they might have to make the move anyway
Anxiety at Microsoft: Many Workers (Maybe Over 10,000) Still Don't Know They're Being Laid Off Just Before US Independence Day
"Has anyone gotten the notification yet?"
Microsoft "Declined to Say How Many People Would be Laid Off," According to Associated Press
Some other prominent publications said they reached out for comment from Microsoft and received none
The X War is Over and the "Wayland People" Lost
People will gravitate towards what works for them
20 Years Since My Thesis
It's still online
GNU/Linux is Replacing Windows in Laptops/Desktops
The world will move on while Windows and Microsoft shrink
Now Comes the Expected Webspam, Framing Microsoft Layoffs as "Hey Hi" Success Story (False Marketing That's Piggybacking the Layoffs)
falsely marketed as "intelligence"
Hungary: Microsoft Windows Sinks to 17% "Market Share"
In many nations in Europe it seems like the era of Windows is coming to an end
Microsoft Media Operatives and Bill Epsteingate-Funded Sites Said Microsoft Lays Off 9,000, But Other Sites Say More (Including 2,300 in Redmond Alone)
We might never know the real number/s (Microsoft will keep the cards close to its chest) until there are leakers or unless there are whistleblowers with hard proof
Microsoft Layoffs in Spain, Portugal Record for GNU/Linux
in Portugal we see GNU/Linux at record levels
GNU/Linux Reaches All-Time High in the United States of America
Windows is trending down
Yes, Microsoft is Again Using Its Favourite Liars (Stenographers) to Seed Fake Layoff Numbers, Much Lower Than What's Really Happening
It is Jordan Novet again, just as we predicted
Will Microsoft Once Again Choose Its Favourite Liar to Spread Lies About Today's Layoffs, Quickly to be Replicated and Spread by Slopfarms?
What lies is Microsoft briefing its media moles to tell today?
"OSS Fetishism" Wins After Ferenc Zsolt Szabó Ousted (Microsoft Mole From Capgemini)
Many people said 2025 would be the "year of Linux on the desktop"
There is Nothing That LLMs Can Offer Honest People
LLMs are a passing fad; they're expensive and offer poor "value" for energy; they usually offer no value at all unless you are a cheater, spammer, and liar
What statCounter Shows Today Helps Explain Microsoft's Helplessness, Mass Layoffs
Since many US journalists are already away on holiday almost nobody will dare ask the difficult questions or give a voice to whistleblowers
Microsoft Gets the Chop in South America
The notion of digital sovereignty gained a lot of popularity
Europe Has an 'Exit'
Let's see what happens the rest of this year
El Presidente Talks, Canada Walks (Away From Windows)
GNU/Linux rising
Cities in France and Germany Move to GNU/Linux and statCounter Detects Big Differences
Will governments lead by example?
Microsoft Lost Its Foothold in Africa
How many of these are "old" Windows machines converted to GNU/Linux? Probably a lot.
Led by Europe, GNU/Linux Makes Big Gains This Month
statCounter started showing new/fresh stats
Links 02/07/2025: Massive Microsoft Layoffs About to Commence, "Tesla's Robotaxi Program Is Failing"
Links for the day
Why the Microsoft People Who Started SLAPPs Against Techrights Could Very Well be Sent Back to Prison
White-collar crime is also a crime
The Company Run by Former (and Last Proper) Red Hat CEO, Promoting Microsoft Mono, Faces Shock as Senior Partner Jailed for 33 Sexual Offenses Including Pedophilia
"As reported by The Oxford Mail in April 2025, the offenses include rape, sexual assault, engaging in non-penetrative activity with a child, and more."
Microsoft Lost 29% of Windows Users, Based on Microsoft, Now Come Massive Layoffs
Microsoft collapse is today
Slopwatch: Google Serves to People Linux Slop and Linux FUD (Made by Bots)
"Slopwatch" finds it difficult to ignore Google's role in encouraging LLM slop
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 01, 2025
IRC logs for Tuesday, July 01, 2025
"Wayland People" Behave Like the Googles and Microsofts of This World
Published yesterday by Igor Ljubuncic
Gemini Links 02/07/2025: Arch Linux and Fulfillment in Gemini
Links for the day