Comscore report published that Bing combined with Yahoo has now 41% search market share. This result is doubtful. However, it is possible for Bing to get increased search share from Facebook queries.
The MSFT's search strategy began with an ambition to make another search engine like Goog. I believe that Gates thought about using their PC domination, friend company network in gaining market from Goog exactly the way they killed Netscape. However, Goog rises into a giant business with increasing advertising dollar.
In phase one of the search war, MSFT had their own loyal engineers working in search. But, the leadership soon realized that search has more "algorithms" and "AI" and it is development of "distributed systems" and internet services which is certainly different that PC based software applications. In second phase, MSFT started following Goog's recruitment pattern hiring PhDs and scientists. They also replaced the position of head of search with someone who has more academic background in IR. However, the strategy of making a better Google search remained same. Goog at the same time made better email service, a better translation service and many other new services that MSFT leaders could not think ahead of time. In the third phase, MSFT leaders realizes that Goog has a platform and two sided effect has already made them very powerful and it is almost impossible to gain search market share without innovation. Traditionally innovation is weakest in MSFT's product development. They then hired veterans from falling Yahoo to run their search business and they started making "Bing" as a decision engine. This is a new phase for MSFT's search and also it is a new generation for MSFT's strategy. They still lack an out of the box original something that can make Bing attractive choice for search and unfortunately, this is hard unless MSFT makes it strategically important to make innovation in search and can spread across their org. An example of such innovation by MSFT is "kinnect" and "xbox live".
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