India, Feb. 23 -- Microsoft CEO Satya Nadella said that his biggest oversight was failing to anticipate the dominance of search, which Google capitalised on.

Stating that this was "one lesson learned," he added that "We (Microsoft) missed what turned out to be the biggest business model on the web, because we all assumed the web is all about being distributed," in a podcast with YouTuber Dwarkesh Patel.

"Who would have thought that search would be the biggest winner in organising the web?" he mused. "And so that's where we obviously didn't see it, and Google saw it and executed super well."

He mentioned that a big lesson in this was how "you have to not only get the tech trend right, you also have to get where the value is going to be ...