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Microsoft 'to cut costs by $1bn'

..so, what about search?

     
5:58 pm on Jul 7, 2004 (gmt 0)

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An article from BBC [news.bbc.co.uk] today mentions Microsoft plans to save no less than $1bn starting this fiscal year (july to july).

That seems like an awful lot of costs to cut while launching a Search Engine supposed to combat Google, doesn't it?

Thought i'd just mention it.

6:44 am on July 8, 2004 (gmt 0)

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uhmmm....developing search is not that expensive if you take it in overall with the rest of the Microsoft operations.

Take Google. They have a 1 billion Revenue and a profit of 400 million which means that their cost is about 600 million USD.

That is for everything included (bandwidth, legal costs, employees, facilities and the rest).

Microsoft more easily cost down by changing other things in their company (like the free towels/medicine as they mention in the article).

8:01 am on July 8, 2004 (gmt 0)

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They have a 1 billion Revenue and a profit of 400 million which means that their cost is about 600 million USD.

But that is (I expect) operating profit. They may have spent quite a bit of money getting to that position - and even if they didn't, Microsoft certainly will / are.

I don't think Microsoft will need to cut costs in development areas though. They have such a large, sprawling empire they could cut a billion simpy buy changing the packaging on the disks the ship for Microsoft office! (OK - I am exagerating, but only a bit)

Microsoft will not leave this project totally underfunded, I am quite sure.

11:10 am on July 8, 2004 (gmt 0)

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Saving a billion for MS is like saving 100 USD for the average household in USA. It just means 1 day a week no steak on the table.