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The big deal here is a lack of efficiency. Apparently revenue is $2.5 bln and losses are also $2.5 bln. That means with double the revenue (i.e. nearly Google
by Steko 15y ago
The big deal here is a lack of efficiency. Apparently revenue is $2.5 bln and losses are also $2.5 bln. That means with double the revenue (i.e. nearly Google's market share) they'd barely be in the black.
Maybe we're missing something. How much of these billions in losses are not Bing? I mean most of it is surely Bing but Azure and Win 365 are probably substantial investments.
- contextfree 15y agoMy understanding is that neither Azure nor Office 365 are in the online services division. Azure is part of Server & Tools and Office 365 is part of Office. btw, Hotmail (and the rest of Windows Live) isn't part of OSD either, it's counted as part of Windows. OSD is pretty much just Bing and MSN.
- dmnd 15y ago> That means with double the revenue (i.e. nearly Google's market share) You're assuming search revenue and market share are linearly related. The whole point of the Bing/Yahoo deal was that they are not - as market share increases, revenue increases superlinearly.
- robryan 15y agoYeah, most marketers don't want to put the time into the platform because it won't get them anywhere near the amount of traffic as Google does. I think this is slowly turning around though as the tools around bing are catching up and marketers are seeing pretty good returns on the traffic they actually do get on there. Also tools that let you manage the same campaign on Google and Bing are getting better.