Comments on: The Bentonville Mafia http://www.cringely.com/2009/02/the-bentonville-mafia/ Cringely on technology Fri, 10 Sep 2010 15:12:52 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: cheap VPShttp://www.cringely.com/2009/02/the-bentonville-mafia/comment-page-2/#comment-21464 cheap VPS Sun, 15 Aug 2010 13:20:58 +0000 http://www.cringely.com/?p=259#comment-21464 Bob, why would keeping Live Search(or whatever it is it’ll be called next, Kumo?) be a good idea but not keeping adCenter and DAP? Those are exactly how they get any revenue from Search. You suggest they should hire other companies to do this work for them? They did, and then they decided to buy them before Google or Yahoo could get a chance to(Aquantive/Atlas), primarily for the ad network technology and management and analysis tools that Atlas has. If Microsoft doesn’t have its own ads infrastructure it makes no sense to have a search engine anymore since they wouldn’t have any way to get revenue from it. Besides, the long term goal for them is to utilize the same ISV approach they have successfully for years with packaged software in the online advertising business. Microsoft has always been good at leveraging other people’s sales forces and their only hope is to be a technology platform for advertising and not an Agency. This is why within the next year they’ll probably sell Razorfish to WPP or Omnicom, they could probably get upwards of $1billion. Microsoft creates the platform, runs the infrastructure, but the ISVs/advertising agencies actually provide the campaign design, management and analysis services and the customer hand holding, much like Dell or HP might do for server products. Just like Azure will emerge as a platform with APIs for developers of grid based software and service offerings Microsoft’s advertising platform will be just a development and infrastructure platform for agencies to market their customers products in the most effective manner online(and in many other emerging advertising media that will be digitized) and large publishers to monetize their content, whether it’s websites, television, in-game advertising, etc. <a href="http://www.turbovps.com/" rel="nofollow">cheap VPS</a> The shortened version is Microsoft will ditch the content business and turn online advertising into a technology business that they can sell like any other server and tools product. At least that’s the only way I can see this being successful(in a profit perspective) long term. Bob, why would keeping Live Search(or whatever it is it’ll be called next, Kumo?) be a good idea but not keeping adCenter and DAP? Those are exactly how they get any revenue from Search. You suggest they should hire other companies to do this work for them? They did, and then they decided to buy them before Google or Yahoo could get a chance to(Aquantive/Atlas), primarily for the ad network technology and management and analysis tools that Atlas has. If Microsoft doesn’t have its own ads infrastructure it makes no sense to have a search engine anymore since they wouldn’t have any way to get revenue from it. Besides, the long term goal for them is to utilize the same ISV approach they have successfully for years with packaged software in the online advertising business. Microsoft has always been good at leveraging other people’s sales forces and their only hope is to be a technology platform for advertising and not an Agency. This is why within the next year they’ll probably sell Razorfish to WPP or Omnicom, they could probably get upwards of $1billion. Microsoft creates the platform, runs the infrastructure, but the ISVs/advertising agencies actually provide the campaign design, management and analysis services and the customer hand holding, much like Dell or HP might do for server products. Just like Azure will emerge as a platform with APIs for developers of grid based software and service offerings Microsoft’s advertising platform will be just a development and infrastructure platform for agencies to market their customers products in the most effective manner online(and in many other emerging advertising media that will be digitized) and large publishers to monetize their content, whether it’s websites, television, in-game advertising, etc.
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The shortened version is Microsoft will ditch the content business and turn online advertising into a technology business that they can sell like any other server and tools product. At least that’s the only way I can see this being successful(in a profit perspective) long term.

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]]> By: Richardhttp://www.cringely.com/2009/02/the-bentonville-mafia/comment-page-2/#comment-2074 Richard Wed, 25 Mar 2009 19:50:12 +0000 http://www.cringely.com/?p=259#comment-2074 Bob,As usual, you hit on some really great ideas. I particularly like the idea about dropping Office for the Mac. Microsoft could then offer Office over the web for Mac users who had to have access to the file formats. This would kickstart "Office Live" since Mac users are more likely to try something new. However, Microsoft should then recreate IE for the Mac and allow Mac clients to now participate in those parts of the web that require IE only browsers. It would also make it easier to bring Mac's onto Corporate Networks with very little support from the IT department. If possible, I would like to get your thoughts about this on another post in the future. Bob,

As usual, you hit on some really great ideas. I particularly like the idea about dropping Office for the Mac. Microsoft could then offer Office over the web for Mac users who had to have access to the file formats. This would kickstart “Office Live” since Mac users are more likely to try something new. However, Microsoft should then recreate IE for the Mac and allow Mac clients to now participate in those parts of the web that require IE only browsers. It would also make it easier to bring Mac’s onto Corporate Networks with very little support from the IT department. If possible, I would like to get your thoughts about this on another post in the future.

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