Gates Promises Tough Battle With Google [Bill Gates' First Trip to Israel]

Yahoo (AP) ^ | Wed Oct 26, 4:42 PM ET | By ARON HELLER, Associated Press Writer

[Thinkin' Gal]

Gates Promises Tough Battle With Google

By ARON HELLER, Associated Press Writer
Wed Oct 26, 4:42 PM ET

TEL AVIV, Israel - On his first trip to Israel, Bill Gates promised Microsoft Corp. would make an aggressive push into the fast-growing market for Internet searches, taking aim at archrival Google Inc.

Gates also said Israel's vibrant high-tech sector will play an important role in the global marketplace and pledged to strengthen cooperation with the country. He offered $1.4 million for local startups and pledged to connect tens of thousands Israeli children to the Internet.

"It's no exaggeration to say that the kind of innovation going on in Israel is critical to the future of the technology business," Gates told reporters.

He acknowledged the intense competition with Google, which dominates the highly profitable market for Web searches. But Gates said Web-search technology still has room to improve.

"Internet search as it is today will be dramatically better in a few years, whether it's us or Google," he said. "We're both going to be making dramatic improvements there."

Despite heavy investments in search technology, Microsoft remains a distant third in the area. Google processed 45 percent of U.S search requests in September, outdistancing 23 percent for Yahoo Inc. (Nasdaq:YHOO - news) and 12 percent for Microsoft's MSN, according to Nielsen/NetRatings.

Gates said Microsoft is quickly branching out beyond its core business of desktop software, saying the company is developing software for use in automobiles, videogames and cell phones.

He said Microsoft is looking for new ways to use its software, "particularly making it user-centric so you can move between these various devices quite easily," he said. "Our strategy has never changed. It's a dream about software and the empowerment that software can provide."

Gates met with Prime Minister Ariel Sharon, Finance Minister Ehud Olmert, Microsoft employees and business leaders before flying to neighboring Jordan.

[Thinkin' Gal]

Jordan's King Abdullah II, right, and Microsoft Chairman Bill Gates, left, attends an Iftar buffet at the King Hussein Convention Center at the Dead Sea resort, near south Shouneh, 35 Kilometers (21 Miles) west of Amman on Wednesday, Oct. 26, 2005. (AP Photo/Nader Daoud)

Microsoft Chairman Bill Gates (front L) joins Arab Gulf businessmen at King Hussein convention Center in the Jordanian side of the Dead Sea October 26, 2005. Gates arrived in Jordan on Wednesday on a short visit to get a first hand look on the IT sector development in the Kingdom. REUTERS/Ali Jarekji

Microsoft Chairman Bill Gates (L) speaks with Jordanian school children at King Hussein Convention Center on the Jordanian side of the Dead Sea October 26, 2005. Gates arrived in Jordan on Wednesday on a short visit to get a first hand look on the IT sector development in the Kingdom. REUTERS/Ali Jarekji

[jackson29]

I THINK ITS GREAT THAT HE SHOULD OFFER NET TO TENS OF THOUS AANDS AND NOT A MENTION OF A POOR PALESTAINIAN.

FRANKLY, FRANK gal, he should offer the exact formula to the impoverised backward barbaric seventh century people. Open their eyes and enlighten them to the world. Show their people equal opportunity, other economies and opportunity. Only problem is their mind set. They would probably use the google maps to target and desrtroy anyone successful. ie anyone in the G7

[sageb1]

Sounds to me like he's riding a dangerous fence.

[Prost1]

"He offered $1.4 million for local startups and pledged to connect tens of thousands Israeli children to the Internet."

As my former boss would say, "this is a peanut number..."

Really, anything under several $10ms is small in today's world!

[Richard Kimball]

Thought 1: Why do rich guys have such bad combovers?

Thought 2: Microsoft is no longer the quick, nimble beast that it once was. It dominates the OS and office suite, and has done a great job of retaining that. I think MS is going to have a difficult time competing with Google.

[goonie4life9]

Can't Gates comb his hair?

[glorgau]

I'm just waiting for the next "security update" of IE that breaks Google maps. ;-)

[upchuck]

If it doesn't break Google maps it will probably render Firefox and/or Thunderbird useless.

Ah, the glory of a monopoly! Ramming it down our throats.

[SJackson]

If you'd like to be on this middle east/political ping list, please FR mail me.

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