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After vague statements over the last weeks about internal investments that will allow it to compete in search without Yahoo, Microsoft on Wednesday laid out more of its vision for improving on its current “underdog” position in search.

While describing some new search technologies from Microsoft and some future ideas, executives were also cautious to repeat that theirs is a long-term vision that may take a while to spell success for the company. They spoke during an annual get together for advertisers, this year hosted on Microsoft’s campus in Redmond, Washington.

“I have to say, it’s kind of fun to be the underdog,” Microsoft Chairman Bill Gates confessed. The company has put an unusual effort toward building the team that’s working on search, he said. “We’ve done more on this to build a great team then on any effort I can remember,” he said.

Users should expect to see new features every six months from Microsoft’s search group, he said. “We have a long-term commitment,” Gates said. The company is willing to experiment, he said.

Wednesday’s launch of Cashback represents the latest new feature. When Web users search for a product on Live.com, results may feature a Cashback tag. If users end up buying a product with the tag, they’ll receive money back.

Microsoft expects that the concept will create a whole new business model, though it also expects that it might take some time for it to shake up the industry. “We understand this is a journey. When you change the user experience or business model, it takes time to percolate through to behavior changes,” said Satya Nadella, senior vice president of the search, portal and advertising platform group at Microsoft.

Gates pointed out how Cashback is different than existing search advertising methods. “In search, when you get those ads, in a sense you don’t get anything back in return,” he said. That compares to other media like TV or radio, where in exchange for advertisements, viewers and listeners get content.

Cashback “gives you a reason why you should use a particular search,” he said.

Over 700 merchants including eBay, Barnes and Noble, Sears, Circuit City, Home Depot, Zappos.com, Overstock.com and Kmart have signed up to advertise as part of the Cashback program. “That confirms there is this opportunity for change,” Gates said.

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This post was updated at 1:56 p.m. PDT.

Social network Facebook announced Friday the debut of Facebook Connect, a new technology for members to connect their profile data and authentication credentials to external Web sites. It makes the company the latest major Web site to embrace the concept of data portability.

The formal announcement was made through a post on Facebook’s developer blog by senior platform manager Dave Morin, who has been one of the company’s most visible evangelists in the developer community over the past year. Facebook Connect will launch within the next few weeks.

Through Facebook Connect, members will be able to use their Facebook identities across the Web–profile photos, names, photos, friends, groups, events, and other information. Facebook profile content, for example, could appear on other social sites, and Facebook event listings could theoretically connect with external event and invitation services.

Facebook will handle the authentication process, and while privacy controls have not been made clear, the company has stressed that user security will be a priority. And there’s reason to believe Facebook will be particularly careful: The company already partners with outside services to share data in its Beacon advertising program, and the PR missteps surrounding Beacon’s launch are something that Facebook likely does not want to repeat.

It’s a big move for the site. Until this point, Facebook has had a reputation for keeping its cards close to its chest–even banning the account of popular blogger Robert Scoble when he used a script to export his Facebook contact list to Plaxo. But Facebook has a representative in the Data Portability Workgroup, and executives have said that Facebook has wanted to bring its information outside the site eventually.

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