Bing Bungle Won't Faze Google

BING, which is the third iteration of Microsoft Search, includes a number of helpful search features. However, we do not believe that the launch of Bing will result in a sustainable material shift in search market share for a number of reasons: None of Bing's features are highly differentiated, Google has a meaningful library of proprietary data, particularly in Maps, which would likely take Microsoft several years to replicate; Google has an estimated 8 times more search traffic than Bing, which gives the company an advantage in improving the relevancy of results; Google has a larger advertiser base, allowing it to deliver better targeted ads; Google is outspending Microsoft's online business in research and development; and the previous marketing initiatives of Microsoft Search fizzled after an initial bump in traffic. Google's last 12 months R&D is $2.6 billion, compared to $1.4 billion for Microsoft's Online Services Business. Google invests 70% of resources on its core business, which includes search, AdWords (Google's search-advertising platform), and related products. Microsoft's total fiscal-2009 R&D budget is estimated at $9.3 billion and the company could choose to invest additional resources in search. However, we think it would be hard to justify transferring R&D dollars from its core business into the online division, given that Microsoft OSB is generating a run-rate operating loss of $2 billion.

Rajeev Motwani expires

Professor Rajeev Motwani, the computer scientist who has died aged 47, advised the founders of Google, the world's biggest search engine, and became one of their earliest backers. Motwani was best known for mentoring Sergey Brin and Larry Page in their student days at Stanford University in California, where he was professor of computer science. As their search engine took shape, Motwani became their technical adviser and guided several other computer-based companies including PayPal, in which he was an early investor. A shrewd businessman as well as an acclaimed computer scientist, he also owned an undisclosed amount of stock in Google.

Google launches software to track mobile users

Google Inc released software on Wednesday that allows users of mobile phones and other wireless devices to automatically share their whereabouts with family and friends.Users in 27 countries will be able to broadcast their location to others constantly, using Google Latitude. Controls allow users to select who receives the information or to go offline at any time.Google's new service is similar to the service offered by privately-held Loopt.