Microsoft’s Online Division Has Lost $10.9 Billion Since 2005

Microsoft is said to be on the verge of major restructuring, with CEO Steve Ballmer widely expected by many to announce a brand new reorganization plan on Thursday.

This new restructuring plan would integrate Bing and a few other products into a larger unit that is simply being called “Services”. The idea is to help Redmond’s empire to migrate towards the devices and services approach that Ballmer talks in almost every other media interview.

Now whether, or when, this reorganization plan is put into place remains to be seen, as is how it helps the technology titan streamline its offerings. But one thing is certain — the company is still spending a fortune on making Bing a powerful rival for the Google search service.

What is also certain is that Microsoft has been investing an awful lot of money into a division that is continuously declining.

A report by Business Insider reveals that Microsoft’s Online Services Division — which includes Bing and MSN — is posting huge losses every years. And yet, this is something that the software titan does not seem to care all that much about these losses.

Last year, for instance, this unit posted a loss of $262 million as Microsoft has invested a fair bit in an attempt to give Bing a chance against Google in the vitally important search engine wars.

The numbers are even more remarkable long-term. Since the first quarter of 2005, Microsoft’s online division has lost $10.9 billion. Again, the technology titan is said to have invested millions upon millions in advertising campaigns and custom programs with the aim of stirring interest in its online services.

Nevertheless, Bing is at the very core of Microsoft’s future ambitions, including both the Windows 8 and Windows Phone 8 platforms. Statistically speaking, comScore numbers indicate that Google commanded a 66.5 percent market share in April, while Bing reached figures of 17.3 percent.

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  • WillyThePooh

    Other people may still use google search but I have already used Bing for a long time. Google is a company whose main business is to sell my information. So I stay away from Google as much as possible.