Microsoft: Bing’s Loss Making Days Are Over, Time To Reap The Benefits

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Microsoft was under constant criticisms from various people on the financial performance of Bing. The Online Services Division at Microsoft started losing money in the past 4-5 years. In the last year, Microsoft lost about $1.5 billion in Bing and its services. But, Microsoft is committed to Bing and in the recent financial analyst meeting Dave O’Hara, the Chief Financial Officer for Microsoft’s Applications and Services Group confirmed that Bing is about to make money soon. He hinted that the investment days are over and its time to reap the benefits out of it.

Starting about six years ago, O’Hara said, Microsoft began making substantial investments in building out its datacenters, infrastructure and in writing its underlying search algorithm. Those investments were reflected in constant operating losses reported by Microsoft’s Online Services Division.

But now Microsoft has built the foundation required for Bing. Infrastructure investments for it will now be “incremental,” O’Hara said, as Microsoft now has adquate capacity to run and maintain its search service. Microsoft will continue to make substantial investments in building out Office 365’s and Windows Azure datacenter backends now, he said.

O’Hara noted that under Microsoft’s new reporting structure, the company isn’t breaking out its Online Services profits and losses. (Online Services was comprised of Bing, MSN and online advertising in the old reporting structure.) In some ways, he said he wished Microsoft still did because the company is now “on course or ahead of course” at breaking even

Also he revealed Microsoft’s plan to make Bing to play “bigger and more visible role than in the past” on devices. Read more from the link below.
Source: ZDNET

About Author

Pradeep, a Computer Science & Engineering graduate.

  • Nham Thien Duong

    Great, Bing F.T.W.

    • jaylyric

      What does “F.T.W” mean? I’m guessing it’s For The Win?

      • Adrian

        When i first seen it, I thought Fark The World

        • jaylyric

          Lol.. I’m still not sure what it means.. I was just guessing

      • grs_dev

        For The World

  • jimski27

    So all these new Bing ads are just phase one. Good news.

  • DigTheNoise

    I think even if it continued to have direct losses or break even, MS wouldn’t want to kill Bing — it contributes to the profitability of other products.

    • LexiconRed

      “It contributes to the profitability of other products”…
      And specifically those products are…WindowsPhone, Xbox,? Let’s stop kidding ourselves Bing is a financial loser for the whole company.

  • blackhawk556

    How about making Bing better in other countries? People from other countries always complain about how bad it is. Also, how about adding Bing rewards into the search button in windows phone?

    • jack frost

      Yes Bing reward should be everywhere on anything Windows, everybody should use Bing for that reason alone, this is how I buy all my apps for both windows phone and Windows 8.1, I have never gotten anything for using Google.

  • Tips_y

    I’ve been using Bing exclusively for two years now so this news is a good thing!

  • RoadOfMajor

    There’s a reason why Bing struggles. It does not know how to hire the best people. Google’s figured it out though.

  • grs_dev

    This is bad news. It means that Bing will be run with profit expectations which means research and development will be pretty much eliminated as it is typically not related to revenue.

  • blakjedi

    Bing is the backend of facebook, yahoo and soon to be Cortana… This is VERY good.

    • SategB

      Facebook is yesterday, yahoo is dead and Cortana is another day late Ballmer product like Bing itself, none of it is VERY or even sorta good. It is all just pissed away shareholder value.

      • VHMP01

        Blakjedi forgot iOS, which uses Bing too!

  • LexiconRed

    It will continue to lose big bucks, they are just going to hide the loses better.

  • tomakali

    Pay indian MNC/Corporates to set bing as default in their IT Policy
    1/3 problem solved
    improve Bing site search for website etc like tools and encourage webmasters with monetary benefits
    2/3 problem solved
    Announce random free recharge/topup for mobile credits to those who uses bing
    3/3 problem solved
    *it works in India