SAN FRANCISCO: Is Microsoft Corp. getting desperate? The company is offering financial incentives to large enterprise customers to encourage their employees to use the MSN Live Search service.
Microsoft said in a statement it is testing a program that will offer service or training credits to its business customers based on the number of web searches conducted by their employees using Live Search. The trial program also allows the company to collect feedback from the users regarding web search patterns in an enterprise, the statement added.
It said as search involves into more of a productivity tool and revenue sharing becomes more commonplace across the industry, it is engaging in mutually beneficial partnerships.
The company did not provide any other clarification about the extent of commitment from a participating enterprise or the rate at which the incentives are being paid.
According to Nielson NetRatings, Microsoft had an 8 per cent share of the search market in January 2007, up from 2.5 per cent. However, its rivals are way ahead -- 54 per cent market share, which is a 45 per cent growth for Google, and 23 per cent market share, which is a 29 per cent growth, for Yahoo.
Some blog postings allege that Microsoft is offering $2 to $10 per PC per year to the participating companies.
Several analysts appeared to be critical of Microsoft's strategy. They feel the compulsion on the part of superior officers in a company on its employees to use Live Search in place of Google or Yahoo searches may become counterproductive. Besides, the quality of the product too is a determining factor.
Meanwhile, Microsoft has finalized an arrangement with computer maker Lenovo Group to pre-load Windows Live services on the latter's products, including ThinkPad notebooks and ThinkCentre desktops.
Google already has such arrangements with some PC makers to have its search toolbar and other software loaded on PCs.
Microsoft said last week its corporate vice president of Windows Live Search Christopher Payne is leaving the company.
