Microsoft has launched its new product “Bing”, which is supposedly a new search engine. From a product positioning standpoint, it appears that it designed to compete with Google’s search engine. I do not know the nuances of Bing’s capability, and I do not intend to make a relative comparison for pros and cons. In this product launch what caught my attention is the amount of money being spent on its branding exercise, its promotions, its marketing, etc. Media reports suggest that Microsoft has allocated $80million to $100million for this exercise.
In my post on opportunities of technology dividends, I had mentioned that I am wary of Microsoft’s habit of squandering cash in meaningless acquisitions (i.e. meaningless projects). I believe this is a perfect example of squandering cash on meaningless projects. continue reading rest of the article….