A9 switches sides in the search wars
Microsoft Corp. scored an important win against rival Google Inc. earlier in the month, as Amazon.com began using its technology to power the Internet retailer’s A9 search unit.
Amazon’s search engine, A9, breaks down searches into various categories, such as Web searches, book searches, and blog searches. It is a stand-alone search site, www.a9.com, as well as the search technology used on the www.amazon.com, – which were previously "powered by Google".
Results will now be provided by Windows Live Search. The change is a big win for Microsoft which usually trails behind Google and Yahoo! in web searches. Microsoft’s new Windows Live is at the core of the company’s efforts to win online advertising dollars away from Google Inc. and Yahoo Inc.
MS is widely expected to go head-to-head with Google with the release of Vista and IE7.
With Amazon switching the technology powering its A9.com search engine to Windows Live, Microsoft has claimed a major victory over search rival Google. No sign remains on A9 of Amazon’s former partnership with Google.
A9 Chief Executive David Tennenhouse told Reuters that Windows Live presented a "very interesting, powerful Web search option" that had previously been featured on the A9 site.
Since the day after Amazon’s contract ended with Google, A9 users have been searching the Web with Microsoft technology, knowingly or not. The A9 interface lets users narrow their searches by selecting certain content types, such as books, blogs, yellow pages, and movies.
Bigger Footprint
According to Krishna, the contract is a huge coup for Microsoft, but amounts to only a small loss for Google.
Krishna said the switch might have resulted from Microsoft’s willingness to strike a deal with Amazon that is more attractive to the online retailer.
"Microsoft is known for being very creative when it comes to making key deals to create a larger footprint in the market," Krishna said, noting that the technology of the two search engines is quite comparable.
Whatever Amazon’s needs were, they probably were looking at comparable functionality that suited them, Krishna postulated. "I would not be surprised if Microsoft underbid everyone specifically to get that business and gain a lot of market penetration."
Microsoft’s new search engine and user interface consolidates a variety of the software giant’s Web services such as search, e-mail, instant messaging and security at its Live.com site.
No Particulars
Google, for its part, must be scratching its head at having lost an established client to its archrival, said Krishna.
Tennenhouse said the Google search was removed from the site following the expiration of that contract. He would not comment on the terms of the Microsoft deal, or whether a new contract with Google had been an option.
Both Amazon and Microsoft have refused to disclose the particulars of the new contract, but the two companies did indicate that they plan to derive revenue from advertising placed alongside search results.
Senior product manager at Microsoft’s MSN Internet unit, Justin Osmer, confirmed that Google’s contract with Amazon.com had expired, but did not elaborate on what was behind the switch.
"It is another opportunity to reach a new segment for us and get people acquainted with the Windows Live search brand," Osmer said.
If in fact the switch was the result of Microsoft’s ability to offer a reduced price, Krishna went on to say, the deal might be the first battle in a new war of the search engines.
"It is a matter of trying to get as much penetration as they can," he said. "This is a huge deal for Microsoft and it shows a lot of potential."
Google and Yahoo built multibillion-dollar businesses supported mainly by online ad sales from search, while Microsoft lagged behind. But Microsoft now aims to close the gap with Windows Live and a new pay-per-click advertising system called adCenter.
"We view this as more of a marathon than a sprint," said Osmer.
It also emerged that Google has complained informally to competition authorities in Europe and the US.
Google did not return a phone call seeking comment. Financial terms were not released.