The history of Microsoft is one of eternal vigilance and a tendency toward total dominance. When it broke through the operating system clutter with MS-DOS in the early days, it did so by total commitment to gaining every desktop in the U.S. and around the world. When it saw that it was being left behind in the GUI world, it promulgated Windows as the singular interface that tied together PC systems from hundreds of producers.

Microsoft "missed" the Internet in its early days, but roared back with Internet Explorer to reclaim what it sees as its rightful position at the top of the pyramid. Now, in the burgeoning area/era of search, Microsoft again plans to be the market leader, apparently taking square aim at current industry leaders Yahoo and Google. The move should do nothing to increase the company's popularity in Silicon Valley, home of former Microsoft foes Digital Research, Apple, and Netscape.

Microsoft is "serious and committed" about expanding its Web search presence, according to company CEO Steve Ballmer during an analyst presentation at company headquarters in Redmond, WA.  "It is a Job 1 priority for our company, this transformation to services and the competition that it brings with Yahoo and Google and everybody else," he said.

Furthermore, the company sees growth potential in its newer product areas, such as software for cellular phones, and even believes it can expand its market share in its core products such as the Windows desktop and server operating systems and the Office programs, according to a report of Ballmer's remarks in the San Francisco Chronicle.

The company's bold ambitions impressed Rob Horwitz, co-founder of research firm Directions on Microsoft in Kirkland, Wash.