Denis Shapovalenko

As rumored last week, Microsoft has acquired Powerset, a much-hyped semantic search engine startup. No official word on deal price, but it's rumored to be about $100 million. Why would Microsoft bet on Powerset? More from Peter Kafka's June 26 piece:

What are semantic search engines, and why does Silicon Valley love them? Semantic search, or "natural language" search, is supposed to divine searchers' intentions more accurately than today's standard offerings -- which means Google. And creating a search engine that works better than Google would have obvious benefits for whoever figures it out. Hence Hakia, Twine, etc.

We've been skeptical about the ability of semantic search to deliver results that are significantly better than Google's, and think that Google does a very fine job of figuring out what we're looking for. But we had previously assigned a value of $80 million to Powerset, predicated primarily on the idea that someone who wanted to take on Google would find the company attractive. Now that looks like a reasonable hunch.

From Microsoft's announcement:

More importantly, Powerset brings to Live Search a set of talented engineers and computational linguists in downtown San Francisco. This is a great team with a wide range of experience from other search engines and research organizations like PARC (formerly Xerox PARC).

We're buying Powerset first and foremost because we're impressed with the people there. Powerset CTO and cofounder Barney Pell is a visionary and incredible evangelist. When he introduced our senior engineers to some of the most senior people at Powerset - Search engineers and computational linguists like Tim Converse, Chad Walters, Scott Prevost, Lorenzo Thione, and Ron Kaplan - we came away impressed by their smarts, their experience, their passion for search, and a shared vision.

That shared vision is to take Search to the next level by adding understanding of the intent and meaning behind the words in searches and webpages.

Earlier: Report: Microsoft Buying Would-Be Google-Killer Powerset For $100M

Greg asks:

When your product just launched and the user base is starting to grow, you’re happy about any positive feedback you receive from your first users. But just as soon, you start receiving feature requests from the same users. While it’s easy to say “No” to a feature as a team internally, I found it less easy to tell a customer that their suggestion won’t see the light of day anytime soon (for any number of reasons). How do you respond to such requests — especially when the feature “makes sense” as an extension but might be too much of a niche (a power-user feature) or not a top priority right now. The answer might be to just say it, but I thought I’d ask anyway to see what your experience has been and how users responded.

We say no to a lot of ideas — including most of our own ideas. But it’s important to remember that no can be temporary. No now may be yes later. Or it may be no forever. The trick is to figure out which camp a certain no falls into and then respond appropriately.

For example, if someone asks you to add something to your product that you absolutely know you won’t be adding (Gantt charts to Basecamp, for example), you can be clear. “We appreciate the suggestion, but we will not be adding Gantt charts to Basecamp. We’ve taken an entirely different approach to project management with Basecamp…” And so on. If you are going to give an absolute no, it’s nice to briefly explain the thinking behind that decision. It helps people understand that you’ve thought about the no.

However, if the idea sounds reasonable and interesting, but you just don’t have plans for it right now, you can turn that no into a thank you. “Thanks for sending the suggestion over. While we can’t guarantee we’ll be adding this feature, we can promise you we’ll review it and possibly consider it for a future version.” Even though we say no to just about everything by default, we do read and consider every suggestion. Some make it in, some don’t. Some show up in weeks, some may take years. Plans change, markets change, products change.

But most of all, being clear, direct, and honest is the best policy. Don’t string a potential customer along. Don’t make promises you can’t keep. Just be clear and set realistic expectations. Telling someone yes when you really mean no is a recipe for a bad experience down the road.