Microsoft CEO Talks Economy, Unveils Bing

(CBS)  This story was written by Dan Farber, editor-in-chief of CBSNews.com.

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Microsoft CEO Steve Ballmer gave his take on the economy and how his company is responding to the downturn at the All Things Digital Conference.

"People generally agree this is a different recession," Ballmer said. "To think that things would be back in a year seems naive to me." He said Microsoft had a "gut check," and "flattened out the cost basis," which means cutting back on what he called the "future project investment stream." Microsoft still spends $9 billion in research and development. "We can still do a lot with $9 billion, but we'll do less new things," Ballmer said.

Ballmer also introduced Bing, Microsoft's latest attempt to take on Google and Yahoo in the search area. According to a poll by Penn, Schoen & Berland Associates, 54 percent of those survey preferred Google, followed by Yahoo at 22 percent and Microsoft at 8 percent.

"We flailed with Windows a lot of years before we got it right," Ballmer said, and added that it will be the same for search.

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CNET coverage of All Things Digital conference

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Bing - which comes along with references like "ba da bing," Bing Crosby, Dave Bing, and bingo - gives Microsoft's search, formerly Live Search, a unique name that unambiguously says search, Ballmer said. "If you don't have a name proposition, something that people can talk about, if it's just embedded as part of a portal, it won't stand out."

"The name Bing doesn't substitute for innovation, but innovation is not going to substitute for having a brand consumers can get their minds around," he added.

For a preview of Bing, check out CNET.

[MacOO7]

Who cares about Microsoft. They are the past.

[dfnj2009]

Hey Microsoft aholes, thanks for shipping all our computer programming jobs to india!

Better bring the troops home before the riots begin.

[s_squared]

They got Windows Right? Who are they trying to kid? It is Huge, with many patchs. If this is an example of "good" product, then what would a better one look like.....a mac?

[brianbwb-2009]

I'm liking the new look, CBS.

Now on to the subject, MS shot itself in the foot with Vista, as it doesn't work for those niche type market segments that are nonetheless important to for promoting MS, for example recording artists. Having spent several thousand on software for my studio, I cannot use Vista, either 32 or 64-bit, as the software is not compatible. But now, just as developers scraped up enough for their programmers to write for Vista, MS moves the goal posts with Windows 7, which is like now blowing off their own kneecaps.

I say we should take Windows XP64 into the public domain, as MS no longer sells or services it, so they cannot claim loss of revenue, and programmers will have a platform that allows us to take full advantage of a 64 bit OS on our 64-bit machines, without having to re-invent the wheel.

The computer era is being artificially held back by MS' and Mac's monopolistic tactics, and they will both end up just like the automobile companies, giants who died trying to stop the march of time, and in death, hindered the development of computers.

[whitemale08]

Wow, whitemale, I had no idea that Bill and Melinda Gates were the anti-christ and that Microsoft was the root of ALL evil in the world. Tell me, did your little tinfoil hat tell you this?
Posted by PVperson2 at 11:51 AM : May 28, 2009 --

Just google 'whistleblower--ex-Microsoft employee blows whistle on BillandMelindaGates' foundation.

P.S. I rather wear a tin foiled hat then a plastic wrapper around my head for being a 'sucker'.

[PVperson2]

Wow, whitemale, I had no idea that Bill and Melinda Gates were the anti-christ and that Microsoft was the root of ALL evil in the world. Tell me, did your little tinfoil hat tell you this?

[whitemale08]

Microsoft is a perfect example of why our Constitution its anti-trust laws are against monopolies.

Their software is garbage but no competiion is allowed to replace it and it lobbyed our government for years that this 'information-age' krap would be good for the economy.

Well here's a question for you computer wizards out there: "How in the hell can you sell computers if people lost their jobs due to globalization and free trade"?

You can't answer it no matter how much computer-powered caculations are done.

Do us and the world a favor and break up your company so competition can help develop better software that's not vulnerable to just one global-virus and shut down your eugenics operations @BillandMelinda Gates fund in Africa.

We know that you are using the cover of 'aid-to-Africa' to expand your population reduction programs and using little black babies for guinea pigs to experiment with drugs and eugenics technics.

Your organization makes me sick everytime I here the name.

[lost_america]

Anyone ask him how many jobs he has sent overseas?

never mind,

I'll just "google" it

[boatdocster]

Ballmer - "Vista is a great software product!"

Ballmer- "To think that things would be back in a year seems naive to me."

Since Ballmer seems to say exactly the opposite of the truth, we might hope for a quick recovery (i.e. sometime this year!!)