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.




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They should give up. Even with Bing integrated on their own website, I still have to use Google in order to find downloads and TechNet information on the microsoft.com website.
Owning any kind of search engine and results doesn’t help them make better servers, desktops or applications on any platform.
It also doesn’t help them sell their brand, it’s a huge waste of “advertising” money.
Google is a competitor, but not in the dimension that Microsoft is trying to compete with them.
Yeah it is funny. I also use Google to search on Microsoft pages. I’ve been using Bing for a few days. I like the user interface but the search results are not as good with Google. Google indexes faster and their ranking is better. Besides, Google ranks 4sysops significantly higher than Bing, which is reason enough to say with Google.
Like all large companies, they start out small. Many even have CEOs that tell the world how they will remember their humble beginnings and the roots from where they came. Later, they forget and grow powerful, and while their pockets are lined with gold, their hearts have become bankrupt. Competition is the only way that in a democracy nobody grows too powerful, because it means companies must never stop striving to get better while staying relatively fair.
We have allowed this country to monopolize its assets, and this has already shown to be both unwise and unhealthy. Microsoft, Yahoo, and Google should never be allowed in a position to dominate and consolidate their wealth and power. It ultimately translates into greed and insensitivity and reduces democracy to a meaningless word.
Micro$oft will NOT give up up the search and advertising spaces. In fact I expect them to focus on it.
Consider what is happening to Office and all live applications they are moving into the ‘cloud’. There have been rumours on and off about a future cloud os that would run on everything from the xbox to your msmobile.
Bundling advertising with free / semi free services is potentially very lucrative look at Google.
I would be very interested to know how countries like China might react to this. Information controlled by two very large, very powerful foreign companies. I wonder if they would set up or assist a Chinese competitor or even make trouble for both MS and Google as a way to remind them to ‘not grow to big for China’………… if you know what I mean.
Stu, why do you think did these companies become so big? Because the majority buys or uses their products. Search engine users “vote” for Google every day. If they decide to change the search engine from one day to the other then Google is out of business. Don’t you think that this is democracy in its purest form?
moiecoute, agreed. Microsoft is always persistent when it comes to new markets. Google’s market share is only about 20%. They already have their own search engine. Baidu has a market share of 65% in China.