
The older version of the Live Search API was such that which only supported SOAP for pulling search information into a site or application. This new version is better than that and supports JSON, RSS and XML.
This new version has expanded the capability of retrieving and using the search. It is good enough and allows access to the related searches and Encarta encyclopedia references in the things like the web search results, spell checks, image search, additional news articles in search.

By the help of this API you can also pull Microsoft ads, so developers can also produce money from these applications. It is the first time when Microsoft has allowed the Ad distribution in such high extent, so it is beneficial for the users of limited Microsoft AdCenter Program. They are trying to make it as Google where any person can sign-up and join the AdSense program for content and search.
Their new API seems like the Yahoo BOSS (Build Your Own Search Service). In this service yahoo hasn’t got success but Microsoft is introducing it because it has a strong developer community. Though these are more software developers rather than web developers. Perhaps they might see Microsoft grow as a search resource pulled into software applications.
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