Microsoft Fast Says Google Not a Threat
December 17, 2008
Business 24-7.ae published on December 18, 2008, “Microsoft Eyes Google Turf” here. This is a wacky url, so the article by Nancy Sudheer may 404 by the time you read this. The premise of the article is that Microsoft Fast does not see Google’s enterprise initiatives as a threat. I have to tell you that I don’t agree. I think Google is a threat to Microsoft at this time, and the orange level is heading for red in 2009, gentle reader. As you may know, Microsoft paid $1.23 billion for Fast Search & Transfer in April 2008. About 45 days later, the Microsoft Fast programming team released a Web part. In October, Norwegian police raided the Microsoft Fast office and is investigating alleged criminal behavior at the company.
In the meantime, Googzilla has moved past 25,000 licensees of the Google Search Appliance. The customer count does not include educational institutions such as 1.5 million users of Google Docs in New South Wales or the thousands of organizations using Google Maps. I don’t believe that Google is getting 3,000 new sign ups for Google Apps every 24 hours. I think one of the Googlers was guzzling too much Odwalla juice at 3 am. I do believe that the GOOG is getting a steady flow of sign ups. Some are tire kickers and some are for real. The point is that Google is grinding forward.
Ms. Sudheer is reporting a story and relying on the information provided by her sources. I am not faulting her writing or her effort to be clear. I am not comfortable with her accepting the premise that Google is not a threat. For goodness sake, Microsoft is tangled in knots, spending hundreds of millions on data centers, buying companies with recycled technology and companies with lousy accountants, and changing search strategies more frequently than Tess, my technical advisor, rolls over in her cedar chip Orvis bed.
Ms. Sudheer quotes a Microsoft Fast big wig–Neil Garner, VP International Operations, Fast, Middle East–as saying:
“Google is not about enterprise search as they focus more on advertising, which is their revenue source. Microsoft is converse to that as our enterprise resource planning product SharePoint itself is a billion-dollar business issuing 100 million licenses, of which Fast will be an integral part,” he said. “Search will be able to service Microsoft’s present set of customers interested in e-commerce and provide specific capabilities to enhance business. Our new branding activities will also bring out this awareness as consumers have to go to a single vendor,” Garner said.
I have heard that Microsoft is putting pressure on SharePoint licensees to use the Fast ESP technology and abjure a third party solution such as Coveo or Isys Search Software. My hunch is that Microsoft may have to make the Fast ESP system financially attractive. What’s interesting is that Google’s enterprise pricing is headed the other way. Based on my analysis of search vendors’ pricing for 2008, Google is one of the most costly systems to license. Oracle seems to have retreated from the enterprise search market, but Microsoft is sticking with it. Which strategy is better? Fighting the GOOG or poking one’s head in the sand? Let me know your thoughts. Oh, if you have any update on the police action in Norway, please, let me know. Maybe the case has been dismissed? I hope so.
Stephen Arnold, December 17, 2008
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2 Responses to “Microsoft Fast Says Google Not a Threat”
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Excellent article. I have been a web developer and business man for over 8 years and have seen both companies move forward on technology. It is interesting to hear the detail of competition.
It still feels like there is room for 1st, 2nd and 3rd place winners in these spaces (search, web search marketing, ads etc).
Thanks for the post, it was excellent.
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