A lot of folks have already declared Google the winner of the search engine battles.  For all intents and purposes, they have for now.  They get right at 50% of all search traffic.  The nearest competitor, Yahoo, gets half of that.  And Microsoft, the distant third player in the war, holds on to about 8%.  More advertisers use Google's AdWords search advertising system than any other similar product.  Microsoft and Yahoo have both released new versions of their advertising platforms to compete.  But so far, the Google control of search remains undented for the most part.

SiliconValley.com is running a story from the Mercury News that details Microsoft's efforts to increase its measly 8% market share in search.  The story, called Hooked on Google, offers an excellent look at Microsoft vs. Google to date.

According to the story, Microsoft has released a ton of new online offerings in the past two years.  Many of those products are direct competition for Google and several have received a lot of great feedback from customers and the industry.  But so far, Microsoft's visitor numbers remain virtually identical to those of last year and it's search share has continued to decline.  Microsoft says it's too early in the game to make any determinations about the outcome.  And as I've said before, it's never a good idea to count Microsoft out of any game.

One analyst told the Mercury News:

Google is the next Microsoft because Microsoft is the next IBM.  Just as Microsoft superseded IBM, Google is superseding Microsoft.

And although Google hasn't taken many direct jabs at Microsoft, the company's chief executive, Eric Schmidt, has made many a comment that has been subtly directed toward Redmond.  The Google approach to software, called clouded computing, is a direct reaction to the Microsoft way of doing business.  Instead of software installed on a user's computer, and available only on that computer, Google's approach is to create online applications that store user's information online and make it available to them anywhere.

Microsoft feels that it is a good position and has everything in place to stage a direct assault on Google.  The man in charge of the company's online properties is the same one who is credited with the Ask.com turnaround.  His vision is fresh and a different approach for Microsoft.  And the company as a whole has changed in an attempt to become more nimble and create "agile" software that can ship much quicker than previous Microsoft endeavors.

To compete with Google's "cloud computing" approach, Microsoft has created a line of services called collectively called "Windows Live".  Like their Google counterparts, these servers live on the Internet and, in time, will augment and connect to existing Microsoft software.

But, as the Mercury News article suggests, Bill Gates' slow and steady departure from the company might have something to do with the company's inability to conquer Google like it has so many other companies.  That connection of software that Microsoft so often touts is a Gates hallmark and, as the Mercury News puts it, his slow release of the reins has manifested "in a sometimes puzzling lack of integration of the company's products".

What do you think about all of this?  Does Microsoft have a chance?  Are they fighting a loosing battle?  Is Microsoft really the next IBM or can the company adapt to the changing landscape of an Internet-dominated tech industry?