October 18th, 2010
Two Internet giants have consolidated their power in the search engine wars. Microsoft Inc. has gotten even deeper into bed with Facebook. This is not the first deal these two titans have joined forces through. Microsoft invested $240-million in Facebook in 2007, giving it a 1.6 per cent stake. The two have forged various other business collaborations over the years.
Microsoft, the world’s largest software company has stepped up its efforts within its online services division – which lost $2.3-billion last fiscal year – to challenge the dominance of Google, the world’s largest search engine. Its shares closed up 2 per cent at $25.34 on the N.Y.S.E. In an attempt to energize Bing search engine to catch up with Google.Inc . Google still remains the undisputed leader in search with 66.1 per cent of the U.S. market in September, according to research firm comScore. Yahoo is second with 16.7 per cent and Bing third with 11.2 per cent.
Starting September 20th, Bing will take data posted on Facebook – such as users’ “likes” or preferences wall postings, group postings, etc. – and use that information to provide more relevant search results. This new touchy feely partnership has the potential of pushing web searches in a new direction. This highlights the growing competition between Google and Facebook’s five hundred million member service. This deal allows Bing to differentiate itself, with access to information that Google doesn’t currently have. As part of their agreement, Bing will be able to access users’ Facebook profiles and their “likes” on the social networking service, and deliver search results tailored to individual preferences.
“Google owned the old Web, the content-centric Web. Facebook has early leadership in the new Web, the social web,” said Ray Valdes, an analyst at industry research firm Gartner. “This is the real long-term conflict. Microsoft in that sense, is a secondary player in this new battle.”
“Right now Microsoft is such a close partner to us that for the foreseeable future I think we just will be working with Microsoft,” said Taylor, in an interview following the announcement, which took place at Microsoft’s Silicon Valley offices.
Microsoft believes that Facebook data provides important “signals” to help refine search results, Microsoft Online Services Division President Qi Lu told reporters.
I bet they do it is called all our real time personal data. This opens up a whole new data mine that Bing can devour. This allows for new avenues of using our personal data against us. Just think about all the stuff you post on your wall, and post all over Facebook. Do you want Microsoft to know all that information? Do you want anyone to know all that data? They can now ultra-target you in their search results. On the surface that seems reasonable and possibly more helpful. The real threat comes from the possibility of abuse and the inappropriate access to our daily lives. In Facebook if you use their “Places” service they will know exactly where you are on top of all that.
The risk to our privacy has just gone through the roof with this deal. This gives all the more reason to be aware of what information you put online. Once it is online it is online forever. Keep that perspective when you update your Facebook status next time.
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