Amazon Drops Google for Windows Live

Walaika K. Haskins,
newsfactor.com
Tue May 2, 8:50 PM ET
source: http://news.yahoo.com/s/nf/20060503/...NlYwN5bmNhdA--



With Amazon switching the technology powering its A9.com search engine to Windows Live, Microsoft has claimed a major victory over search rival Google. No sign remains on A9 of Amazon's former partnership with Google.

Since Sunday, the day after Amazon's contract ended with Google, A9 users have been searching the Web with Microsoft technology, knowingly or not. The A9 interface lets users narrow their searches by selecting certain content types, such as books, blogs, yellow pages, and movies.

According to Mukul Krishna, an analyst at Frost & Sullivan, the contract is a huge coup for Microsoft, but amounts to only a small loss for Google.

Bigger Footprint

Krishna said the switch might have resulted from Microsoft's willingness to strike a deal with Amazon that is more attractive to the online retailer.

"Microsoft is known for being very creative when it comes to making key deals to create a larger footprint in the market," Krishna said, noting that the technology of the two search engines is quite comparable.

"Whatever Amazon's needs were, they probably were looking at comparable functionality that suited [them]," Krishna postulated. "I would not be surprised if Microsoft underbid everyone specifically to get that business and gain a lot of market penetration."

No Particulars

Both Amazon and Microsoft have refused to disclose the particulars of the new contract, but the two companies did indicate that they plan to derive revenue from advertising placed alongside search results.

Google, for its part, must be scratching its head at having lost an established client to its archrival, said Krishna.

If in fact the switch was the result of Microsoft's ability to offer a reduced price, Krishna went on to say, the deal might be the first battle in a new war of the search engines.

"It is a matter of trying to get as much penetration as they can," he said. "This is a huge deal for Microsoft and it shows a lot of potential."

__________________