Friday, April 20, 2007

Microsoft snookers Google

Windows software developers can be forgiven if they don’t take too much interest in the wacky machinations of the technology business. But we thought we would note a recent business deal that may indicate where Microsoft is ultimately headed, and which, though not accomplished, is a good sign for Windows developers.

Last week, Microsoft passed on the opportunity to buy DoubleClick, the major force in placing Internet banner ads. Rumors had Microsoft behind the scenes bidding for DoubleClick ahead of Google’s eventual $3.1-billion move. There seems little question that Microsoft’s interest pushed the price of DoubleClick up, far past the price paid earlier this year in the more touted Google buy of YouTube.

The latest deal shows that Google’s business, for all the buzz about its Ajax software and nifty productivity suites, is the advertising business. There was fear here that Microsoft would enter that same advertising business in a big way with the DoubleClick purchase, in order to counter Google, seen as its next big adversary. Pushing up the price and unmasking Google’s real character was an even better outcome. [On TheServerSide.NET]

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