Ronna Abramson
Investors may typically ignore Microsoft's(MSFT Quote - Cramer on MSFT - Stock Picks) MSN division, but a recent flurry of news about the relatively small Internet business suggests its growing importance to the software giant's future.
"MSN is becoming its own development platform for providing services that will accentuate the value of other Microsoft products and platforms," says Joe Wilcox, a senior analyst with JupiterResearch who follows Microsoft. The oft-cited example is Microsoft's use of MSN to deliver updates and patches to its Windows operating system instead of spending years developing a massive overhaul, as is currently the case. "Right now, Windows is on a slower development cycle, whereas MSN is almost like a machine gun," Wilcox says. "MSN is a way to get some of these tactical technologies quicker to the consumer." Microsoft's MSN unit has shifted into a higher gear as Google(GOOG Quote - Cramer on GOOG - Stock Picks) has encroached more on Microsoft's turf, most notably with a desktop search product. Largely in response to Google's new desktop search program, Microsoft unveiled a competing product late last year, far earlier than planned. Last year, Microsoft also launched its own algorithm-based Internet search engine, which replaced the Yahoo!(YHOO Quote - Cramer on YHOO - Stock Picks) technology formerly used on MSN.
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