Specialized Search Engines: Finding the Right Niche - Microsoft Wants In
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The potential advantages of a vertical or niche approach haven’t escaped the notice of Microsoft. A monopoly player on the desktop, the software giant places a distant third in the search engine field. In May, less than nine percent of all searches by U.S. web surfers went through Microsoft’s search engine, according to Nielsen/NetRatings. In the same period, Google snagged more than 50 percent of the same market.
The fact of the matter is that Microsoft’s share of the search market has been declining, and if it hopes to become more competitive, it’s going to have to think differently. The company seems to realize it too, judging from its recent purchases. For example, in February Microsoft bought MotionBridge, a provider of search technology for mobile phones. A month or two later it grabbed Medstory, a startup specializing in health care information. About the same time it also bought TellMe Networks, a leader in voice recognition technology. When I wrote about that particular acquisition for Microsoft, I reflected that it could give the software giant an edge in the mobile search market.
When you add those acquisitions to Microsoft’s home-grown efforts to build niche search engines focusing on images, news, and other content, the picture that emerges is of a competitor desperately looking for chinks in their opponent’s armor. Still, desperation aside, the move is sensible. “There’s a lot of opportunity in domain-specific areas,” notes Microsoft Chief Software Architect Ray Ozzie.
A recent Business Week article speculated that Microsoft has deep enough pockets to mine many niches. The article suggested that the software giant might look into buying search engines in such vertical markets as job openings, comparison shopping, classified advertising, travel information, and more.
Microsoft might be one of the biggest players in this fight, but it’s not the only one. The biggest prize might still go to Google. That doesn’t mean alternative search engines are going to lose; the pie could grow to be big enough for everyone. It all comes down to which slice and what kind of pie you want. And if you’re one of those people who’d rather have cherry pie from time to time instead of a steady diet of apple, then you already know why having so many niche search engines is a good thing: it’s always good to have options.
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