Edwin Perello discovered that Bing, the Microsoft search engine, could find addresses in his rural Indiana town when Google could not. Laura Michelson, an administrative assistant in San Francisco, was lured by Bing’s flight fare tracker. Paul Callan, a photography buff in Chicago, fell for Bing’s vivid background images.

Like most Americans, they still use Google as their main search tool. But more often, they find themselves navigating to Microsoft’s year-old Bing for certain tasks, and sometimes they stay a while.

“I was a Google user before, but the more I used Bing the more I liked it,” Mr. Callan said. “It’s more like muscle memory takes me to Google.”

Bing still handles a small slice of Web searches in the United States, 12.7 percent in June, compared with Google’s 62.6 percent, as measured by comScore, the Web analytics firm. But Bing’s share has been growing, as has Yahoo’s, while Google’s has been shrinking.

And while no one argues that Google’s dominance is in immediate jeopardy, Google is watching Microsoft closely, mimicking some of Bing’s innovations — like its travel search engine, its ability to tie more tools to social networking sites and its image search — or buying start-ups to help it do so in the future.

Google has even taken on some of Bing’s distinctive look, like giving people the option of a Bing-like colorful background, and the placement of navigation tools on the left-hand side of the page.

When Microsoft introduced it last year, Bing made a splash with its vivid background images.
In June, Google presented searchers the option of a colorful background rather than the stark, white page.

The result is a renaissance in search, resulting in more sophisticated tools for consumers who want richer answers to complex questions than the standard litany of blue links.

The competition is a remarkable and surprising twist: Microsoft, knocked around for so long as a bumbling laggard, has given the innovative upstart Google a kick in the pants. As the search engines introduce feature after competing feature, some analysts say they have set off an arms race, with the companies poised to spend whatever it takes to win the second phase of Web search.

“There is a cold war going on,” said Sandeep Aggarwal, senior Internet and software analyst at Caris & Company, who watches both companies. “Clearly, you can see how Bing’s competition is forcing Google to try and catch up in some places.”

Google officials agree there is more competition, but say they are not simply reacting to the younger search engine.

Google’s new features have not been in response to Bing, said Marissa Mayer, the company’s vice president for search products and user experience. “A lot of these things have been in the works for a long time,” she said. “Left-hand navigation we worked on for almost two years. We wanted to make sure we had it exactly right.”

Microsoft’s gains are far from staggering. Its share of searches has grown to 12.7 percent, from 8 percent, since Bing was introduced in May 2009, and Yahoo, which has a search deal with Microsoft, still handles a larger share of searches than Bing. And in the newest search frontier, mobile devices, Google has even more market share than on the Web at large.

Still, Bing’s gains have impressed analysts, who have watched Google fend off repeated assaults on its lucrative search and ad business, which accounts for some 95 percent of its revenue.

Building a more comprehensive, faster and more accurate search engine than Google is a daunting challenge, and a long list of big companies and start-ups have failed in their attempts. Microsoft endured plenty of ribbing as it spent years building and then scrapping search systems meant to help it compete against Google. But it kept experimenting until it found a way.

Microsoft has spent billions of dollars building the computing centers needed to power search and advertising systems and acquiring start-ups with niche expertise. In addition, it has thrown money at consumers, through cash-back programs on purchases, and at partners willing to promote Bing ahead of Google. Over the last year, Microsoft’s online services division lost $2.36 billion on revenue of $2.2 billion.

With Bing, Microsoft has tried to attract people like Mr. Callan by excelling at answering frequently asked questions, like those related to travel, health, shopping, entertainment and local businesses. For example, Bing has flight search and prediction tools that reveal price fluctuations for certain routes, and advises customers whether to buy or wait. Bing Health uses data from sources like the Mayo Clinic and Healthwise.

The hope is that “somebody would come back just for that and then, down the line, they would do other types of searches, too,” said Danny Sullivan, a longtime industry analyst and editor in chief of the blog Search Engine Land.

People do not always want to click on links and dig through pages to hunt out information, so when Bing started in May 2009, it pulled relevant information and stuck it on the top and left-hand side of the results pages. Search “Angelina Jolie,” for instance, and see a slide show and a list of her movies on top and related links on the side.

“We said, ‘Let’s change the entire way we lay out pages,’ ” said Yusuf Mehdi, a senior vice president for Microsoft’s online audiences business. “We will not be shackled by blue links.”

Google, meanwhile, has quietly introduced its own new features that have in several instances looked a lot like Bing’s.

For example, in May, it too added the left-hand navigation tools — though Ms. Mayer of Google pointed out that many of the tools had already been available, just not easily visible from the search page.

“Certainly there’s been increased competition in the space,” Ms. Mayer said of Bing. “When there’s more competition, everyone’s search gets better, that serves the users a lot better.”

Bing’s travel tool uses technology from Farecast, which Microsoft bought in early 2008. In July, Google announced plans to acquire ITA Software for $700 million; ITA makes the same comparison shopping software for flights that Bing’s Farecast uses.

Then there is the look of the main search pages for each site. Microsoft has argued that the vivid images ever-present behind the Bing search box have helped its appeal; young people and women have shown a particular fondness for Bing. In June, Google offered people the option to have a colorful background image like the Golden Gate Bridge on its main search page rather than the stark, white page that helped make Google famous.

Google has also played catch-up to Microsoft in offering ways to search for and digest more images in one go, and has trailed in adding some tie-ins to social networking sites.

“Google’s new innovations have come at a slower pace,” Mr. Aggarwal said. “There was no one challenging Google until Microsoft decided it was a business they would not give up.”

Still, Mr. Sullivan and other analysts also say Google has been making many significant but subtle behind-the-scenes changes that make it better at responding to obscure and complex queries. Google made 500 tweaks to its secret search algorithm last year and introduced personalized search, which customizes results based on what users frequently click on.

Google executives often chide Microsoft that it overengineers software like Office and bombards people with needless features. But now Google has swapped its clean, simple approach to search in favor of a feature war with Microsoft.

“Google seems to do things because Bing has done something,” Mr. Sullivan said. “It’s a kind of knee-jerk thing — we have to do this product now because we don’t want people to think we’re weak.”

Source: http://www.nytimes.com

[QUOTE]
Apple's MobileMe and Google'sGmail online e-mail services suffered hours-long outages Monday, leaving millions of users unable to access their accounts.

Google restored service within about two and a half hours, but it took Apple approximately seven hours to restore full access to its online mail service.

Apple users first reported trouble accessing the service's servers from their desktop mail clients around 2 p.m. Eastern, and in the next several hours, posted several hundred messages on the MobileMe support forum about the outage.

A notice on the service's main support page acknowledged the problem. "MobileMe members are intermittently unable to access MobileMe Mail using a desktop e-mail application, iPhone or iPod touch," said Apple. "Access to www.me.com/mail is unaffected. Service will be restored ASAP. We apologize for any inconvenience."

By 9 p.m. Eastern that notice had been replaced with an all-clear indicator.

Google's Gmail, meanwhile, went offline around 5 p.m. Eastern, and greeted users with a message reading in part, "We're sorry, but your Gmail account is currently experiencing errors."

A little over two hours later, Google added a notice to its Gmail help page that attributed the outage to "the contacts system used by Gmail which is preventing Gmail from loading properly. We are starting to roll out a fix now and hope to have the problem resolved as quickly as possible."

Shortly after that, at about 7:30 p.m., Google declared the outage over. "Users who were temporarily affected by the 502 errors should now be able to access their account," read a message posted to the Gmail Help Discussion forum. "Thanks for your patience while we worked to resolve this issue for everyone."

Apple users were especially livid, in part because they, unlike Gmail's users, pay for their service, and also because of the multiple problems they had with MobileMe since its launch a month ago.

"I'm so disgusted with Apple right now I don't even know what to say," said a user identified as "Furi0us.Bee" in a message posted to the longest forum thread on the subject.

"This is crazy," said another user, "mac_wa," on the same thread. "I have had more down time with my mac/me mail than any other service I've had... and I pay for this."

But Owen Schultz had one of the best takes of any user. "Dear MS Outlook," Schultz started, "I am so sorry about our breakup several year ago. I have been thinking about you a lot since then. Will you please consider taking me back? Just one more chance? I'm sorry about all the horrible things I said about you and your operating system. You were the best I ever had! MobileMe and I are finished!"

MobileMe's travails -- ranging from an extended migration from its predecessor, .Mac, to an 11-day mail outage last month -- prompted Apple's CEO, Steve Jobs, to issue a memo to company employees last week in which he called the rollout "not up to Apple's standards."

Jobs shook up Apple's management team over the series of snafus, and handed responsibility for the service to Eddy Cue, who heads iTunes.
[/QUOTE]

Source: www.infoworld.com

[QUOTE]
[...]
"It's about time. Great for Microsoft. Great for Yahoo shareholders. These Internet markets are winner-take-all markets and they cannot be built. Time is too valuable. Yahoo has one of the best positions on the Internet because it's integrated brand (advertising) with search.
[...]
"They have to do it because they've tried everything they can do to fix MSN. Yahoo is the most visited site in the world, so it goes without saying that given the current valuation, this is the perfect time for them to buy it. "Google is running away with the search market and that's obviously the best part of the market. The likelihood that Google gets caught is slim to none. "You might not catch Google, but you can still be a legitimate player."
[...]
"We think it is great for Yahoo shareholders. This consolidates the marketplace down to Google versus Microsoft. Their multiple areas overlap -- not just search but also applications. Google's been pushing hard into the application space. "Yahoo mail continues to be much slower than the Gmail product. Yahoo search continues to lose share to Google. Asked whether Google might counterbid for Yahoo he said, "There is really nothing there that Google wants that they (Google) don't have."
[...]
"Microsoft has been getting more aggressive with acquisitions. We've seen them start to step up and buy large public players. Strategically, it makes sense. "It's a fair price. Clearly Yahoo shares have been under pressure. Microsoft wants to get it done, and get it done quickly. Trying to offer them a 10 percent premium would be kind of foolish. You'd create a problem, you'd let other bidders get into the fray.
[...]
[/QUOTE]

More on: http://www.reuters.com/

[QUOTE]
The openness of the Internet is what made Google -- and Yahoo! -- possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It's what makes the Internet such an exciting place.

So Microsoft's hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets.

Could the acquisition of Yahoo! allow Microsoft -- despite its legacy of serious legal and regulatory offenses -- to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers.

This hostile bid was announced on Friday, so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first -- and should come first -- as the merits of this proposed acquisition are examined and alternatives explored.
[/QUOTE]

Source: http://googleblog.blogspot.com/

[QUTOE]
Google has announced the acquisition of communications security and compliance company Postini for $625million.

Postini offers a number of on-demand communications security and compliance solutions and serves more than 35,000 businesses and 10 million users worldwide. Postini’s services include message security, archiving, encryption, and policy enforcement tools which can be used to protect a company’s email, instant messaging, and other web-based communications platforms. Notably Google was already utilizing Postini technology with Gmail; the acquisition would appear to be a case of Google wanting to own a technology it was already using under license.

The acquisition of Postini comes as a surprise following rumors in June that the company was working towards an IPO.

Dave Girouard, Vice President & General Manager, Google Enterprise wrote on the Google Blog of the need for Google to deliver products that support complex business rules, information security mandates, and an array of legal and corporate compliance issues.

We realized that we needed a more complete way to address these information security and compliance issues in order to better support the enterprise community. That’s why we’re excited to share the news that we’ve agreed to acquire Postini, a company that offers security and corporate compliance solutions for email, IM, and other web-based communications. Like Google Apps, Postini’s services are entirely hosted, eliminating the need to install any hardware or software. A leader in its field, Postini serves more than 35,000 businesses and 10 million users, and was one of our first partners for Google Apps. Their email and IM management services include inbound and outbound policy management, spam and virus protection, content filtering, message archiving, encryption, and more. We will continue to support Postini’s customers and we look forward to the possibilities ahead.

The acquisition is expected to be finalized by the end of the third quarter 2007.
[/QUOTE]

Source: http://www.techcrunch.com/

[QUOTE]
We've officially acquired Postini
9/13/2007 03:07:00 PM
Posted by Dave Girouard, Vice President & General Manager, Google Enterprise

Source: http://googleblog.blogspot.com/