Monday, October 1, 2012

Microsoft Corporation (NASDAQ:MSFT) to invest in social-media vendor, Klout

On the 27th of September, the decision by Microsoft Corporation(NASDAQ:MSFT) to invest in Klout, was disclosed over the Bing Community. Microsoft is to invest in the social media-vendor, although the amount of money which Microsoft wants to put in, has not been disclosed, as of yet.

According to the plans, the Klout data will be displayed on the Bing page. This will include Klout scores for individual people, as well matters which they are well-versed in. this display, according to sources, will be on the Bing Sidebar pane. Conversely, on Klout, highlights from Bing will keep popping up on the ‘moments’ section on the profiles of different people.

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While many may want to look down upon this decision by Microsoft, the company has full faith in its investment, and they believe that it will pay off, ultimately. The company is trying to build on the Bing search engine, and they believe that social search results are also important. These results will be displayed via the sidebar, as it is with Quora and foursquare.

Microsoft is confident about the investment, as they believe that such investments and partnerships can only do well for them, at such a nascent stage of the development of Bing. The big data accumulation as a result of this arrangement with Klout will help Microsoft collect a lot of data which will be essential to Bing, which will in turn, generate a lot of data for Microsoft to store, and use later.

The company believes that the collection of social data through this system is essential for them, but what they do not realize is that people are bound to feel uncomfortable about their social data coming up on search results. Klout is based on scoring one another depending upon the amount of knowledge and grasp people have about certain issues which they like to speak about, or are knowledgeable about.

However, the Klout results popping up on the sidebar of the Bing page may not be welcomed by everyone. We just have to wait and find out for ourselves when this project gets incorporated. 

Shares of MSFT are flat at $29.75.

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