Why is Microsoft giving away web traffic and abandoning users? | Hacker News Reader

Why is Microsoft giving away web traffic and abandoning users?

itwriting.com

24 pointsbensummers13 comments

Microsoft was able to attract 7 million users, and 30 million visitors - and decided that there wasn't enough value in that to continue developing.

I'm wondering if they came to the same conclusion that Ning did when they decided to shut down their free web hosting properties?

What was Ning's conclusion?

Ning decided there was no profit in "Free" web hosting - even with all the advertisements they plastered over the pages. They shut it all down and only support paid hosting.

OK. That sounds like a reasonable conclusion. I wouldn't be surprised if they came to a similar one.

I must admit that I find it amazing that blogs or even Facebook make as much money as they do from advertising. Google I get. I semi-regularly click a Google ad, because they are relevant. But I've almost never seen a blog ad or Facebook page ad that had content worth clicking. The exception to this are specialty blogs, like Engadget. But most blogs aren't Engadget.

With that said, clearly Facebook is making a ton of money. I'd love to see the data on what actually gets clicked.

Facebook and Google can target users more accurately than a blogging platform.

I'm confused about Microsoft's strategy and directions. They appear to be as well.

The correct word for that is "stragedy".

Despite the negative connotations of the word, it'll be fun to watch.

Yes, this seems like a major surrender in the consumer space which brings into question any of their other consumer-focused web properties.

Related: "2010 acquisitions--Microsoft: 0, Google: 23" http://news.cnet.com/8301-13846_3-20017823-62.html

These two data points put together make me think something is Seriously Wrong in Redmond. They both speak to uncoordinated business unit strategy and paralysis in executive management. Perhaps Balmer is finally on his way out, resulting in this lack of focus.

it could be that MS wants to re-focus on its strength: desktop OS. This might be a sign that MS position its software to be the traffic directors to preferred 3rd-party partners who are the best-of-the-breed in their respective market. In Windows past, MS first releases OS w/o important applications/features, let 3rd-parties fill in the niche, then develops features that won market acceptance. A modified version of this strategy might be simply making deals w/ 3rd-party web-sites to monetize the traffic.

If this is the thinking behind closing MS Live Blogs, then, yes, it's a tactical retreat but actually a step forward in their strategy.

The more interesting question might be how much of Windows Mobile OS influences this decision.

>Now, I thought the Live ID was a single sign-on for Microsoft’s online services, and the basis of a network of friends and contacts. Perhaps Microsoft is now ceding that concept to Facebook or others? This does seem to be a move in that direction; and while it may be acceptance of something that was inevitable, it is a bad day for Microsoft’s efforts to matter online.

I disagree. The sooner they kill off unpopular products and focus their efforts the better. Google has no qualms about quickly terminating projects that haven't gained traction, and MS shouldn't either. Especially now that they are going "all in" on search.

A rare moment of clarity, maybe? Let's stick to things we can do for a profit?

I thought they were going to offer wordpress-powered blogs on their own domain(s). Was I wrong?

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