August 1, 2009

When Yahoo gives in to Microsoft!

This was the talk of the town for the last six months - the Yahoo! Microsoft Deal! And finally it is done. Yahoo sells its user share in search to Microsoft for 88% of commission on advertisements sold on search results through Yahoo! Together they make 28% of market share in search, way lower than Google 65%.

In a few days from now, after the US Government approves the deal, you will see Bing on Yahoo! Both Steve Ballmer and Carol Bartz seem to be very happy about the deal and the notion of taking on the Search Giant, Google. I read the Bio of Carol and found that she was the lady who turned Autodesk around and made it into a profit making company. And I also understand that Steve lived Microsoft his entire career. Both are capable people. But I am wondering, what good can come out of Microsoft Yahoo Alliance!

28% in user share is not good enough to beat Google right now. But Yahoo and Microsoft can now focus more on their core competencies. Microsoft can focus on Improving Search. Yahoo can focus on their Social Networking Ideas. I think we are going to see a new era of Internet Search and Social Networking, as this alliance grows for the next ten years.

And I also think we are going to hear more from Google. In an attempt to strengthen their hold on the market, I hope they are going to come up with more search features.

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