Microsoft is positioning Live Search as a disrupting element on the search engine and online advertising marketplace, betting big on the organic growth abilities of its search engine. With the recent partnership inked by the no. 1 and no. 2 search and online advertising players, Google and Yahoo, Microsoft's mission will be that much harder, if not impossible. Still, the Redmond company is applying an old recipe, which is now nothing more than a traditional way of reacting, by throwing financial resources at the issue. In this regard, the investments into Live Search are increasing with the opening of a new search technology research and development center located in Europe.

The new European Search Technology Center will be opened by mid 2009, Microsoft informed. "Today Microsoft has 68 percent reach to Internet users throughout Europe through our online assets and strengths in display advertising; however, we're not yet where we'd like to be in search in this critical geography," said Kevin Johnson, president of the Platforms and Services Division at Microsoft.

The Redmond company is currently enjoying its best positioning on the search engine and online advertising markets in the U.S, where it is the bronze winner in the race with Google and Yahoo. Worldwide, however, Microsoft is performing poorly, and this is an aspect which the new R&D center is designed to resolve, at least in Europe. "Success in search in Europe is paramount, and we see the investment in this new Search Technology Center as an important step in doubling down on our long-term investments," Johnson added.

Microsoft made it clear that the new center would work for the benefit of Live Search, which would ultimately serve to deliver a comprehensive alternative to what Google and Yahoo have to offer. Microsoft has yet to disclose the actual location of the center, the company revealing only that it is considering various cities across Europe.

"Searchers have different expectations and experiences in every geography in the world, so we believe it is critical to make deep investments in physical locations in multiple markets to ensure that we're applying the best local expertise to our research and development efforts. We're already doing some great work in Europe in the enterprise search space through our January 2008 acquisition of Fast Search & Transfer SA, and we're looking forward to opening the European Search Technology Center to further our investments," stated Satya Nadella, senior vice president of the Search, Portal and Advertising Group at Microsoft