The Seattle Post-Intelligencer is running an article on Microsoft's cash reserves that caught my eye this morning.  The article expressly looks at the reduction in cash that Redmond has experienced over the past couple of years.  From a peak of over $64 billion in 2004 to the company's current $29 billion cash count, Microsoft has been systematically spending its extra money for years.

I think this post brings to light yet another reason that Microsoft will eventually win the Internet search war. 

For the time being, no one else can come close to Microsoft's disposable cash.  Even at half what it used to be, $30 billion is a lot of cash.  That cash can buy a lot of other companies and a lot of time.  With little to no competition for a dominating checking account, Microsoft is in a unique position.

Plus, they have paid out a lot of money to employees and shareholders over the years.  That makes for happy employees.  Google, on the other hand, has most of their money tied up in stock and other investments.  That's not to say that Google's employees aren't happy.  But until they reach the point where their worth is enough to include billions of dollars in employee/shareholder payouts, they'll trail behind Microsoft in that regard.

As I said before, this is simply one of the many facets of Microsoft that makes it hard to beat.  They have the money, the resources, and the determination to keep at something until they get it right.  And few companies have the will, let alone the finances, to have as many "redos" as Microsoft.

So if you're counting Microsoft out of the Internet search race already you're jumping the gun.

Doubleclick… AOL… Yahoo… who will Microsoft buy next?

- Matt