Google appears to be confirming – at least unofficially - Wall Street’s fear that its advertising is not recession-proof after all. This is Tim Armstrong, head of advertising in the US, when asked at a Bear Stearns conference today how search advertising performs in an economic slowdown:
“It does reflect the macroeconomic environment… From a macroeconomic viewpoint, people do search what’s on their mind and what they’re thinking about” (Translation: if they’re tightening their belts, they’ll probably do fewer searches for the latest hot gadgets.)
Nick Carr has been wondering whether Microsoft is about to embark on some “vast data center push” that will advance it much faster down the road towards cloud computing.
Not so, says Ray Ozzie. When I spoke to him last week, Microsoft’s chief software architect was nothing if not ambitious (one day, he said, “most major enterprises and many, many, many independent developers will be running their services in our datacentres” - this is the report of the conversation.) But this is what he had to say about the pace at which those datacentres will get built: