That, at least, is what the Redmond, Washington software company clearly wants everyone to think. Lu, who headed Yahoo's search efforts before snubbing a Facebook job in favor of Microsoft, is described in today's New York Times as "self-effacing" and strict in his propriety. So it's safe to presume the Bing.com overlord is being pushed, not stepping, forward, and that it's all part of a Microsoft PR campaign.

The implicit message: We will iterate until we pass Google in the market, burying the company with the same persistent tactics we used against Netscape, done in by a steadily improved Internet Explorer, and Apple, trounced in market share by a steadily improved Windows. Li is to be the icon of ruthless self-improvement: Born poor in China, Lu couldn't even afford the application fee for Carnegie Mellon, where he ultimately earned a Ph.D.

He ended up at IBM, then "poured his heart and soul" into improving Yahoo search. Now he's president of online services at Microsoft, and the Times makes him sound like Drago in Rocky IV:

He sleeps three to four hours a night. One most weekdays, he wakes up around 4 a.m., goes through his e-mail and runs four miles on a treadmill while listening to classical music or watching the news.



He prefers to be in his office between 5 and 6 a.m. to have uninterrupted time to prepare for his day. He is often sending e-mail to his staff until midnight or later.

Do these work habits trickle down to Lu's staff? We'll answer that question with another nugget from the Times piece: Lu's daily staff meetings are at 9:30. At night.

There is no doubt an big element of caricature in this portrayal of Lu, but that doesn't make it any less clever a gambit by Microsoft's aggressive flacks. For all his superhuman strength, Lu has already lost once to Google, when he worked for Yahoo. That makes him the underdog. Now, thanks to Yahoo's defacto merger with Microsoft, he's in the ring again, building the technology behind Yahoo's search, and behind Microsoft's to boot. It's a grudge match, and a possible comeback story. If Lu wins, he's definitely not Drago any more. He's scrappy Rocky Balboa. At least until everyone remembers who he works for.

(Top pic: Randy Stewart)

In 2007, at the height of Facebook buzz, the startup was red-hot, a recruiting machine which could poach employees from a then-untouchable Google. Since then — and especially since Sandberg signed on — the company has been more known for the employees it's lost than the star hires it's made.

Qi Lu, formerly one of Yahoo's brightest tech executives, accepted the CTO job at Facebook, and then reneged on his agreement and joined Microsoft as its online chief instead. Pankaj Gupta, an algorithms expert heavily courted by Facebook, went to Twitter. And we hear there may be more defections in the business-development department, where Dan Rose's incompetent management is steadily driving talent away. We hear Richard Cooperstein, who gave up a senior vice president job at Disney to join Facebook as a director, is thinking about leaving.

The many people who passed on Facebook job offers must surely be congratulating themselves on their decisions. If they hadn't they'd now be filling out "awesomeness" surveys.

A tipster tells us:

[Ask] for results of the employee satisfaction/morale survey called the "awesomeness survey." You'll find that the results were not so awesome, in fact... Very not awesome.

Awww, buck up little Facebookers! Tell us what's got you so down.

And Sheryl? Before you haul off and shoot us, remember that violence never solved anything. Here's a good-will gift: some Successories posters you might want to put up around the office before the next "awesomeness" survey.

If so, Microsoft may have gotten Yahoo's search business on the cheap. Our tipster writes:

Today is the end for Yahoo Search. Sean Suchter just left for Microsoft. Everyone in the office is shocked. I've been on the Yahoo Search team for a while and he is the one key executive that it all depends on. If Microsoft has convinced him to leave and join them, they won't need to buy Yahoo Search. We will just all join Microsoft anyway. I am definitely going to send him my resume.

Rumor has it that Yahoo already lost a search executive, Qi Lu, to Microsoft; but Suchter commanded the loyalty of many within Yahoo's search group. These names may not mean much to anyone outside engineering circles in Silicon Valley, but they amount to this: If Microsoft has recruited Suchter, it has gotten the heart of Yahoo's search technology without the fuss of actually buying it.

That will please many on Wall Street who want Yahoo to get out of search; the company could save billions of dollars a year in expenses by dropping the business altogether, and serving up search results from Microsoft or Google's index of the Web instead, as sites like Facebook and AOL.com do today. Yang had an expansive vision of Yahoo as a one-stop shop for advertisers where they could buy both search and banner ads. But he dealt the image of Yahoo's search a blow when he tried to do a deal with Google to have the search giant sell some of the ads that appear on Yahoo's search results. Regulators in D.C. blocked the deal, but the damage was done.

Engineers like to be on a winning team — or at least one that's fighting the good fight. Microsoft may be an underdog in Web search, with a pitiable market share which keeps shrinking, but its top executives are obsessed with beating Google — and they seem more secure in their offices than Yang. Microsoft still has an unsavory image in Silicon Valley, but for coders who have been dealt a drubbing for years by Google, it's an adequate revenge vehicle.

Here's the memo on Suchter's departure:

From: Tuoc Luong
Date: 11/18/08 3:43 PM
To: Yahoo Search Team

Hi Everyone,

Unfortunately, I have to give some bad news to you. Sean Suchter has resigned. Sean’s last day will be December 19th.

Some of you will find this news shocking given that Sean has been a Gibraltar rock at Yahoo and in particular for the Search team. . I understand this.

I will point out that we’re on a good trajectory. We’ve released some good products and capabilities and the industry is beginning to take notice. We’ve closed the gap in Algo relevance and making great strides in building the next generation differentiated search experience and step function in relevance – not to mention infrastructure overhaul that prepares us for the future.

I came here to take on Google because I believe Yahoo above all is best positioned to take the battle to Google. I think we’re on the right path to changing the tide and would love to see everyone make the journey but I respect Sean’s personal decision. I’m committed to continue the battle against Google as long as Yahoo positions Search to be competitive (and I believe we are). I hope each and all of you feel the same way and stand with me to battle Google.

I’ve asked Arnab to step up and take over Sean’s role as head of YST. Just as Sean has been a strong arm for me, Arnab has been a strong arm for Sean. Although Sean casts a large shadow, I believe Arnab will step up to fill the hole with your support. Arnab will cast his own shadow as the new leader of YST and it’s the same YST team that has deliver great products like Search Assist, Secure Scan, SearchMonkey, BOSS, numerous MLR and QRW release to close the GAP in core relevance.

Sean and Arnab have been communicating to the YST leaders about the changes. Arnab has been thinking and discussing the new organization with people. He will send out an e-mail describing his organizational thoughts and plan for YST soon. I believe with the support of other leaders (myself, Bharat, Yongdong, Nam, ..etc), Arnab will fill the void and continue the battle with Google. I urge everyone to support Arnab in his new endeavor.

Tomorrow, I’ll be holding an all managers meeting to discuss the changes and Q&As.

Please wish Sean the best in his future endeavor and congratulate Arnab in his new role.

Thanks

Tuoc

(Image via donquijote.cc)

Yes, Microsoft. The software house is desperate to catch up with Google, and Lu was one of Yahoo's few standout talents. Nevertheless, Lu's rumored choice of employer is surprising. Kara Swisher spotted Lu dining with David Sze, a partner at Facebook investor Greylock Capital. At the time, she speculated that Lu might take a cushy entrepreneur-in-residence gig at Greylock — or fill the empty CTO spot at Facebook.

The fact that Facebook has yet to name a new CTO suggests they were holding out hope of landing Lu. For Lu to pass on the job would be telling. A year ago, Facebook could hire anyone it wanted, and they wouldn't have spent months dithering. if Lu takes Microsoft's job offer, it will show that Mark Zuckerberg's engineers-first culture at Facebook is fading fast.

We've heard Lu's been frustrated at Yahoo for some time now. Assigned to Project Apex, the advertising dashboard Yahoo wants investors to believe will save the company — Lu heavily recruited fellow Yahoo Eric Boyd to work on the effort. Didn't happen. Instead, in April, Boyd turned him down and joined ad startup Mochi Media. A blackjack star, Boyd has a knack for making good bets: Since then, the word has been that Apex is underfunded and undermanned — short on everything but flashy PowerPoint presentations.

The prospect of working on Apex, the promised "one ad platform to unite them all" which is mired in managerial turf wars, under Boyd's former mentor, rising tech star Qi Lu. Where's he going to? Mochi Media, an Accel Partners-backed startup which inserts online ads in Flash games.

Jerry Yang, CEO He'll be a large Microsoft shareholder after the deal goes through, so it's likely he'll get a board seat. And perhaps he'll get to keep the "Chief Yahoo" title.

David Filo, cofounder Might be named a Microsoft Fellow, working in datacenter operations — as he prefers.

Sue Decker, President Gone. There's no position Microsoft can give her that will suit her ambitions. Not to mention the hash she's made of things at Yahoo.

Blake Jorgensen. CFO Gone. Microsoft doesn't need another CFO, and he's a close Decker ally.

Ari Balogh, CTO Bad timing: Balogh just left VeriSign for Yahoo this week. If he'll settle for a title below CTO, Microsoft might grudgingly make room for him.

Marco Boerries, EVP, Connected Life Gone. He's widely disliked within Yahoo, and Microsoft already has plenty of mobile dealmakers.

Michael Callahan, General Counsel Gone. First, we fire all the lawyers.

Gregory Coleman, EVP, Global Sales Already announced his "retirement." Even more gone than he already was.

Usama Fayyad, Chief Data Officer A keeper. Microsoft needs better data analysis.

Qi Lu, EVP, Engineering Search A keeper.

Michael Murray, Chief Accounting Officer Gone.

Jill Nash, Chief Communications Officer Could stay. Microsoft desperately needs better PR in the Valley.

Ash Patel, EVP, Platforms and Infrastructure Division Gone. He's already checked out, insiders say, but it will take a takeout to dislodge him from his desk.

Libby Sartain, Chief People Yahoo Already rumored to be out.

Hilary Schneider, EVP, Global Partner Solutions Could stay, though she's a Decker ally. Microsoft lacks credibility with newspapers, Schneider's strong suit.

Jeff Weiner, EVP, Network Division Gone. Weiner, a Semel guy, has managed to hold onto his job against the odds. But he's not respected in Redmond.