Just as chief executive Steve Ballmer boosted Zune market share by banning his kids from owning an iPod, his company has hit on a strategy to increase use of Windows Mobile devices.

From now on, according to Silicon Valley Insider, Microsoft employees will not be able to expense mobile data plans unless they use a cellphone that runs on Windows Mobile software.

That means the Apple iPhone, Palm Pre or any RIM BlackBerry are out, among other models.

Microsoft’s search engine, which was renamed, retooled and relaunched last week, has gained on Google - a little - according to the latest ComScore.

Microsoft gained in US search market share to 11.1% with Bing’s debut last week.
The previous week, Microsoft had 9.1% share.

The software giant has confirmed its search engine will be re-named “Bing” and re-launched by Thursday next week, backed by a $US100m re-branding campaign.

But Steve Ballmer is downbeat about its immediate prospects.

Microsoft shares are up, and SAP’s down, after Steve Ballmer seemingly dissmissed takeover talk fuelled by his company’s first ever bond issue.

"That is just market rumour and market talk, and I will leave it at that,” Mr Ballmer told a press conference, before adding, “I have nothing to say of rumours of acquisitions, positively or negatively”.

Yesterday Microsoft - one of a literal handful of US companies to enjoy a AAA rating from both Standard & Poors and Moody’s - successfully placed a $US3.75 billion bond issue.

Google says all systems are back online after last night’s three-hour Gmail blackout. The outage hit at 8.30pm New Zealand time, and saw home and business users worldwide lose their email access.

In an online statement, the company says:

Yahoo's stock is up more than 10% in midday trading on the Nasdaq today following its CEO's shock resignation overnight. The surge bucks a general market decline, and rides on at twice Yahoo's usual volume of trades.

Mr Yang's move leaves Yahoo effectively leaderless. But the market seems to strongly prefer no leader to Mr Yang as leader, sensing the opportunity for Microsoft to reinstigate takeover talks.