Steve Ballmer Gets Egged

Microsoft CEO Steve Ballmer was egged by a protester during a speech he gave at a Hungarian University. As this video shows, the protester rose to his feet to challenge Microsoft for stealing billions in Hungarian taxpayer money, then started hurling eggs at Ballmer, who was forced to take cover behind a desk.

Microsoft Issues Statement Regarding Yahoo!

Microsoft and Yahoo are back at the table according to a press release Microsoft issued today.

In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.

There of course can be no assurance that any transaction will result from these discussions.

Windows and Windows Live chief Kevin Johnson sent this letter updating his team on an updated online and advertising strategy.

From: Kevin Johnson
Sent: Sunday, May 18, 2008 1:30 PM
To: Platforms & Services Division; APSP FTE – Adv & Pub Solutions Platform; Employees.all.corp.adf@main.corp; Employees.all.adf@main.corp
Subject: Online Services Strategy Update

We have been executing against the core strategy I first presented at our Financial Analyst Meeting in July 2007 to go after the growing opportunity in online services and advertising. Four pillars have formed the basis of our strategy:
1. Consolidate ad platform and win in display
2. Innovate and disrupt in search
3. Deliver end-to-end user experiences across PC, phone, and web
4. Reinvent portal and social media experiences We have many options that support acceleration of our strategy. As announced earlier today, we are also considering new alternatives for a transaction with Yahoo! which do not involve a full acquisition. At this time, we have not made a new bid to acquire all of Yahoo!, but we reserve the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo!, shareholders of Yahoo! or Microsoft, or with other third parties.

Regardless of the outcome of any new discussions, it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we’ve been in this position longer than we’d all like. To that end, we will be accelerating elements of our core strategy, and breaking ground in new areas.

On Tuesday, Brian McAndrews is hosting advance08, our annual advertising conference here in Redmond. Over 400 leaders from across the media, technology and advertising landscape will be here for two days to engage in dialogue on industry trends and opportunities. These leaders are some of our closest partners in the digital transformation of the advertising industry, and they recognize the increasingly important role Microsoft plays in this transformation.

We are very excited to have these customers and partners on campus.

Brian’s keynote will highlight our unique position in the advertising industry. It’s amazing to see how far we’ve come with the aQuantive acquisition in differentiating our advertising platform. This foundation is paying off, with Q3 advertising revenue growth of nearly 40%, a rate that has accelerated over the past two quarters while growth rates at Google, Yahoo and AOL have slowed.

On Wednesday, we will be announcing a major new initiative that our search teams have been driving. We are getting better and better with our core algorithmic search, and at the same time, we are investing to differentiate in vertical experiences and to disrupt the current model. You’ll hear more about our plans Wednesday.

advance08 will underscore our commitment to search and online advertising, and you’ll continue to see announcements demonstrating our progress in this space. Earlier this week, I spoke to leaders across our online services business about our core strategy, the importance of acceleration and a set of actions we are taking, including:

1. Innovate and disrupt in search – We will disclose some elements of our plans with this week’s release of search and sharpen our focus on user experience and business model innovation. The work we have done over the last 4 years on search has established a solid foundation to build upon.
2. Win targeted distribution – With this release of search, we are now ready to throttle up broader distribution initiatives.
3. Reinvent portal and deliver new experiences across PC, phone and web – We are building our new releases of Windows 7, Windows Live wave 3, Windows Mobile 7, Internet Explorer 8, Search and MSN with an eye towards optimizing and unifying experiences and scenarios.
4. Fix our online branding – Our brands are fragmented and confusing today, and we recognize a need to clarify and align our online branding. We are now driving forward to address this opportunity.
5. Win in display advertising – We have an advantage in tools, agency assets/relationships and a team laser-focused on capturing the display ad platform opportunity. As we build from a position of strength, we will increase engineering resources to drive even more innovation.
6. Build on our strengths in Europe – As measured by comScore in March, our online business in Europe is doing well. We have over 3 times the page view volume and nearly 7 times the minutes of usage compared to Yahoo!, and 68% reach to internet users throughout Europe. We will double down on our investments in Europe and expand on this strong position.
7. Expand strategic partnerships – In addition to our organic innovation agenda, we will expand strategic partnerships that increase inventory on our display ad platform, enable new paradigms in search and accelerate growth in key geographies.
8. Pursue small, targeted acquisitions – Looking forward, we will focus on small, targeted acquisitions that support our work in search, complement our value in the ad platform and help us grow scale in key geographies. Recent acquisitions including Rapt and YaData are examples of these types of acquisitions.

The PSD leadership team is actively working on the FY09 budget, including resources and investments to support the actions above. Additional elements of our work will be revealed in the coming weeks, leading to our Financial Analyst Meeting in July where I will share more details on our strategy and business/financial outlook.

As we move forward, I want to remind everyone that we are well positioned to compete. We have some of the industry’s best assets on our side: technical and business talent, global scale, a culture of self-criticism and tenaciousness, a healthy balance sheet and an unparalleled product portfolio. It’s time for us to seize the opportunity.

Thanks again for your continued leadership and focus on our business. If you have any feedback or thoughts, please feel free to send me mail.

Regards,

Kevin Johnson

Microsoft Worldwide Telescope

microsoft worldwide telescopeMicrosoft released today what you may call a “space version of Google earth”, a free software application called WorldWide Telescope that allows everyone from space novices to astronomy professors to easily explore galaxies, star systems and distant planets.

The WorldWide Telescope stitches together 12 terabytes (the data equivalent of 2.6 billion pages of text) of pictures from sources including the Hubble Space Telescope, the Chandra X-Ray Observatory Center and the Spitzer Space Telescope.

The experience is similar to playing a video game, allowing you to zoom in and out of galaxies that are thousands of light years away. It allows seamless viewing of far-away star systems and rarely-seen space dust in breathtaking clarity.

The software allows users to develop their own guided tours of the universe to share with others or take part a guided tour created by astronomy experts.

Download it here.

Google serioulsy pisses me off

What I think of Google is no secret. They are evil. Very little people realize it yet but I can tell you that in a few years from now, we will see more and more anti-Google groups popping up.

I just read an article on CNN.com about the Yahoo/Google ad deal, and here is what pissed me off:

Schmidt said he wanted to keep Yahoo out of Microsoft’s hands largely because he was concerned the world’s largest software maker would abuse the added power it would acquire in e-mail and instant messaging to limit consumer choices.

Ohhhhh, Google was “concerned” people wouldn’t have much choice…. Well, Google doesn’t seem to be much “concerned” about dominating the ad market. They don’t seem much concerned about not leaving web publishers much choice about generating revenues (Adsense is pretty much your only choice).

Google actually shit their pants! They knew if Microsoft was gonna get Yahoo, Google would have taken a huge slap in the face (and a huge drop in ad revenues).

Microsoft online branding issue

LiveSide took a look today at all the different bits of Microsoft’s Live.com search universe and found that it doesn’t provide a common, unified experience. LiveSide found four different search boxes, two different Live.com “orb” logos (in four different sizes), and six different header backgrounds. While the slight differences in design may not be a very substantial issue, it is indicative of the confusion Microsoft has created around their Live brand.

MSN Hotmail vs. Windows Live Mail vs. Windows Live Hotmail…. Many names for the same service. It seems they have settled on Windows Live Hotmail, but there is still a lot of overlap in the Windows Live family that makes it confusing for consumers.

The design differences across the Live Search sites highlighted today on the LiveSide blog may be minor, but taken as a whole they’re a good metaphor for the branding confusion that Microsoft has created across its collection of online sites and services.

Microsoft feeling FaceBook!

Microsoft gauged Facebook’s interest in a possible acquisition after the software giant’s failed takeover attempt of Yahoo, the Wall Street Journal reported today.

The newspaper reported on its Web site that Microsoft’s bankers put out subtle signals to Facebook, the social networking Web site, to see if it would be open to a full acquisition.

Microsoft going the independent way…. Really?

Microsoft Chairman Bill Gates said Wednesday the company isn’t pursuing other deals following the withdrawal of its $47.5 billion takeover bid for Yahoo.

He said in Tokyo that the company put “a lot of effort” in the talks with Yahoo and has decided the two should pursue “independent paths.”

Microsoft’s intense pursuit of Yahoo was widely seen as an acknowledgment of weaknesses in Microsoft’s solo Web search and advertising strategy, and the software maker now needs to prove it can innovate without Yahoo as a partner.

Possible partners for Microsoft in the future might include large Internet companies such as Time Warner Inc.’s AOL and News Corp.’s MySpace and promising startups such as Facebook Inc. (Microsoft already owns a 1.6 percent stake in Facebook) and LinkedIn Corp.