Microsoft Kumo

As Microsoft readies the release of Kumo, some industry insiders speculate if new features in the Redmond, Wash. company's long-anticipated search engine will come too late. Yahoo unveiled the Smart Ads platform to make longer customized display ads on mobile phones. Google held Searchology, releasing a slide of services that pay closer attention to the way users view information. And then there's new comer WolframAlpha, the computational knowledge engine that attracted buzz by bringing up the search engine via live video online.

Microsoft's drive to release a revamped engine based on enhancements in video and images to provide a more universal approach and semantic technology demonstrates that consumers are ready for something new, according to sources who asked for anonymity. The search engine also will likely integrate technology from the natural-language search company Powerset, which Microsoft acquired last year.
"If it's as good as it looks in the demo, this will be the most impressive search experience Microsoft has offered," says David Berkowitz, Director of Emerging Media & Client Strategy at 360i. "The focus is on the right areas such as organic results, layout and advertising."

Berkowitz, one of the chosen few outside of analysts and Microsoft employees to get a briefing, took extreme precautions to select every word in describing his experience. "Historically, one problem for Microsoft has been serving up relevant ads," he says. Jay Bhatti, co-founder of the people search engine Spock, which Intelius bought in April, managed to catch a glimpse during a test run in Live Search. The site appears to have an emphasis on filtering data and ecommerce that would give consumers product-related information such as inventory in stock and prices at specific retail stores, Bhatti said. A search for "iPhone" would also return links to download apps, for example. "On the left side of the search query you'll find a navigation column that shows related searches, search history and filtering options," he says. Microsoft has been testing its search engine internally since March, but has not revealed when it would launch. The launch will also coincide with a major ad campaign.

Microsoft views search as an important piece to the company's business, but Nielsen Online reported that the Redmond, Wash., company held a mere 9.9% of the U.S. search market, compared with 16.3% for Yahoo and 64% for Google.