I didn’t really believe anymore that those two companies would find themselves together. The press release is quite clear about the deal:

 

Microsoft will now power Yahoo! search while Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers.

In other words: Bing gets Yahoo’s search requests and Yahoo! sells the ads.

I am not sure if I like this deal or not. On the one hand it is good that there will be more competition in the search business, but on the other hand, I am afraid that Microsoft will neglect its core business.

Microsoft is big. But is it big enough to compete with Google in the search business and master the new challenges that Windows and Office face in the Internet area? In my view, both businesses have nothing in common and I only see a few synergies. Thus, I am afraid that the Windows platform will suffer under this deal in the long run, and this is not really good for Windows admins.

Google tries to compete with Microsoft in the OS and Office business, but sometimes I think they are doing this because they feel they have to fight back. I believe that Google wouldn’t have a chance against Microsoft in this field as long as Microsoft keeps integrating Windows and Office into the Internet. But with an unfocused Microsoft chances might be better for Google.

Mary Jo Foley runs a poll about the Microsoft-Yahoo deal. Last time I checked, the majority believed that Microsoft should "give up on search/online advertising and focus on its established core businesses". What do you think? Do you believe that Microsoft’s attempts to compete with Google endanger the Windows platform? I am undecided.