Ballmer: We need to be more disruptive in search

PALO ALTO, Calif.--While trailing Google badly in search has lots of disadvantages, it also opens some doors, says Steve Ballmer. And, he said, it's time Microsoft starts walking through more of those doors.

"We are going to have to be more disruptive," Microsoft's CEO said in response to a question at the end of a speech at Stanford. He pointed to Live Search Cashback as one example and hinted of changes to come in terms of the search user interface and new types of partnerships with content creators.

Google has the economies of scale and the money to invest in more areas than Microsoft can afford to, he noted.

"We're not just a No. 2 or 3 player," Ballmer said. "The No. 1 player is a lot bigger than us."

Ballmer said Microsoft can't afford to outspend Google in the search business or participate in each facet of the business.

At the same time, he said, Microsoft has less revenue to protect and can afford to take more risks.

"There are some things we have an opportunity to do precisely because we are not the market leader," he said. "We can experiment with new business models. We have less to lose than the market leader does."

Not everything will work, though, he said.

"We'll try some new products that are going to be a disaster," he said, pointing to Microsoft Bob as the canonical example from the company's past. "It wasn't terrible...it flopped miserably, but I am glad we did it."

He was also asked about Yahoo, with which the company had unsuccessful acquisition talks and with which Microsoft has continued to have on-and-off negotiations over some sort of a search partnership.

"I still think there exists an opp to have a better search product by having more customers," Ballmer said. "That may or may not at some time happen. There may or may not be appropriate discussions (happening now). I choose not to comment."

[Mr. Dee]

Search is just one of those things Microsoft has to concede defeat to, just like how Linux has to concede defeat to Windows on all PC form factors similar to Steve Jobs conceding years ago, Windows/PC's won.

[t8]

That comment is only true on the desktop. Linux is more viral and on more systems than Windows. It is even on Mars running the rovers. As for the desktop, that is Microsoft's domain today, but I doubt they will be able to hold onto it as more and more people require only a browser for the Web platform. In that case, Android and other free Os's should grow.

[JasonCe]

@t8: That comment is true on both client and server. Even though Linux fanboys won't like to admit, Linux has never been able to take market share from Windows. Linux grew in expense of other Unix flavors, resulting in most of them fading away, latest example Sun Solaris. Linux just replaces other Unix, and that was only because it is free (as in beer). The reality is Windows Server market share is growing faster than the market itself. The server business at Microsoft grows more than 10% every year.

I don't think that "people require only a browser" idea will ever come true. That idea is 10 years old now, and there still aren't any good "web app"s that will make people replace their desktop apps. Maybe email clients, and only to some extent, but that is it.

[rapier1]

The idea is older that 10 years to be honest. Its just that before then they called them 'thin clients'. The idea has waxed and waned in the industry for at least 30 years now. It's somewhat more feasible now but there are a lot of issues that are insurmountable due to the inviolable nature of the speed of light in fiber. Delay sensitive applications will almost always need to be run locally. Locally might expand to include the LAN or MAN but some apps just don't work over the WAN.

[amigosito]

Or, hey, gee Steve, maybe instead of dragging us all through the mud with you, you could instead GET OUT OF THE SEARCH BUSINESS and re-focus on your deteriorating OS market?

[Brunis2k]

/agree, i'm a dot net developer and i have to turn to google to find ANYTHING on Microsofts site!

[Super2online]

To forget search would be an astronomical mistake, as there are billions to be made in this market. In fact we have barely scratched the surface of searches potential for the future. What they do need to do is quit following Google's 1.0 example of links and descriptions of sites and create a search engine that just gives you the results you want based upon the information contained in sites even if that search takes a little longer. Create that, and you find yourself at the top of the heap very quickly.

[stockyjoe]

Forget the search and focus on windows, windows mobile, your game division, Zune (which has great potential), the browser (IE is way behind get it up tp speed), dev tools, .net etc.

[jlm429]

who abbreviates opportunity?

[TigaAyes]

It's nice to know that Linux is on a couple of rovers on planet Mars, but for most of us they're totally irrelevant to our daily lives.

Windows is inside several display panels on every platform on every suburban railway station in Sydney, the same system is installed on many other suburban railway systems all across planet Earth.

Windows is inside most supermarket checkout registers used in the developed countries on planet Earth

Windows runs many of the ATM's all across planet Earth.

None of these planet Earth uses of Windows are what I'd call desktop systems.

[JCPayne]

LOL.
Perhaps Live is just soo badd you have to pay a caveman to use it?