Do Microsoft have a UK internet strategy? If you search for any of their products on Google.co.uk (with the UK filter applied) it certainly doesn’t look like it! Below are some fine examples of where Microsoft should be at the top for both natural and paid search listings but surprisingly appear in neither. This is happening because they use a .com domain suffix hosted in the US, making use of www.microsoft.co.uk would get them listed naturally for all of the below searches and very likely #1 for each term, saving them money on both AdWords clicks and the direct sales from retail websites!
Google UK search for Microsoft:

Google UK search for Microsoft adCenter:

Google UK search for Microsoft adCenter:

Google UK search for Microsoft Office:

Google UK search for Microsoft Windows:

And it doesn’t end here, Overture’s UK keyword research tool shows the huge popularity of Microsoft searches in the UK. But instead of seeing Microsoft.com listed, users are given the choice of review or e-commerce websites instead. In many cases Amazon ranks #1 (e.g. Microsoft Outlook) so people may choose to buy second-hand software from Amazon Marketplace or eBay instead, costing Microsoft thousands if not millions of income from new sales.
While generally it’s good practice to use one domain name (consolidating all inbound links) in this case using www.microsoft.co.uk could have a massive impact on the UK search market, redirecting to www.microsoft.com/en/gb does little for their UK search traffic as the domain is hosted in the US.
The UK search traffic is obviously converting sales, you just have to look at the sponsored links to see how many sites bid upon Microsoft keywords. Interestingly many of these use the trademarked term “Microsoft” within the ad title or description, this seems to be appearing because the ad’s are using dynamic keyword insertion to get around the Google AdWords trademark policy but if Microsoft aren’t even bidding on the keywords themselves they’re less likely to be concerned about the sites which are.
Perhaps Bill Gates has made far too much money by now to be worrying about Microsoft’s UK sales and search traffic! 