Microsoft owns the computer and the Web browser. Buying Yahoo, world-class brand with key Internet technologies, will create new business opportunities in emerging markets Microsoft to offer Yahoo has surprised some, but it makes sense when the history of these companies and their respective technologies are considered. The important question is the strategy that the merged company will take in order to compete with Google? Microsoft's strategy to compete with Google Google dominates the search market in the United States and Europe. Microsoft's post-merger strategy would be to allow Google to be the leading Internet search engine in these territories, preferring to fetch the web page contextual advertising, display advertising and research on emerging markets. Microsoft's strategy could be to allow Google to direct users to a Web site, but Microsoft would take the recipe when the user clicks on ads on the Web page. Microsoft could increase their presence in this market by providing the website owner a greater portion of any income earned by a click-throughs, contextualizing ads on the page with greater accuracy and providing a better experience advertiser. Research in emerging markets such as India, China, South America and Africa is where the turnover in the medium and long term must be earned. The income earned here will allow Microsoft to compete in research and more established territories. Google vs. Microsoft's vision of computers Google want a future that is based on the web, where all users of services (such as e-mail, office applications and social interaction) are based on servers hosted by Google. If this vision a reality, the operating system and desktop-based software becomes much less relevant. Microsoft derives most of its revenues from the sale of operating systems, desktop-based software and services thereunder, Microsoft is rightly concerned about the new web-based department is taking. Microsoft original internet strategy based around MSN did not work as Internet users do not want to use a network exclusively, rather they want to consume services and they need a search engine to find them. Google would like to see a future where the computer becomes only four things: a screen, keyboard, mouse and a Web browser. Microsoft and Yahoo will benefit advertisers and Web users Microsoft buys Yahoo Yahoo to use technology online advertising and other Internet technologies. The company is able to compete seriously with Google, growing competition in the market, which should bring down prices for online advertising and improving the customer experience and the user. The vast majority of Google's net revenue is derived from online advertising. An entry by a combination of Microsoft and Yahoo in this market Google could hit hard. Google, net income in 2007 was $ 4.20bn. Microsoft has $ 14.06bn. Although Google is very powerful in online advertising and is a well-known supplier of certain online services (youtube and GMail), the scope Google is currently limited to the Internet. A combined Microsoft and Yahoo would be a second player in online advertising, as well as the dominant player on the desktop and in business. Microsoft can then take advantage of their control of IE, the operating system and its software business to build a smarter combined office and computer online, an experience that will leave Google play catch up. And that's what frightens Google.
Damn, i hate it when it talks about online advertising. I think in the next few years, all search engines will be full of crap e-commerce websites (sponsored links). Natural listings will be dead.
If that happens then a new engine will emerge that works and looks like Google once did to provide searchers the best results. With a lean, mean engineering team and no public shareholders to worry about, they could easily outmaneuver the behemoths just as Google did in the early days ;-)
Hey, that was a great article. Thanks for posting! I am sure, competition of this kind would benefit the consumers (that is us) the most.
Thats nice but google is always one step ahead of the game, they are launching their ppc video ads sometime by the end of this year and THAT will mean serious revenue for google, think about it instead of advertising for 10 seconds on TV that would cost millions you can advertise on google to a targeted audience with the advantage of tracking your responses. This yahoo microsoft merger is not even close to threatening google, the real people threathened today are the huge media coorporations who are going to lose out big on advertiser revenue.
Google is too strong, microsoft needs something innovative to beat Google. Well, i don't really agree with this. People from different generations watch TV but only young people watch YouTube. You can see that beside politics, funny, entertainment, games, music, sport, and sexy girls, videos in YouTube are not popular at all. This mean you can't really convert at YouTube if you promote something which is not related to entertainment or political things. Different from TV, you can always market your products there because everyone watches TV. I hope so but I really skeptical about this. Vista is not good enough for me and I can get linux for free but people still trust Vista despite they know it's slow and buggy. Many people still trust various of popular products despite they actually are not happy with these items. I even think sony ericsson is the worst hand phone brand ever but it's still very popular. Google, yahoo, and microsoft brand are too strong but I hope what you said would happen.
Hm, why google should be scared, both yahoo and microsoft search engines are crap. And if microsoft will buy yahoo, nothing with yahoo will change, just their profits will now go to someone's esle's pocket. Thats how i see this prospective
+1 ! Youtube will never replace tv, when you watch TV your ass remains still and brains are 100% in receiving mode, while watching youtube, you are limited to 10 minutes (or 100 MB) of still ass sitting. Plus you comment the video like crazy and mix other people with sheet there.
If Microsoft had a way to compete with Google, the market will be better for everyone (publishers and advertisers). So i hope they can get a new way of competing with Big G.
As Steve Jobs said, Microsoft wasted 6 billions of dollars trying to copy google and apple. Thats the good example of "money isn't everything"
That used to be true. Not so any more. That's not going to be true for long. I've watched much longer shows than that on other sites, why not youtube?
This is a great article, thanks for posting it. It seems like the search engine industry is constantly changing.
really a good article and thread as well...domainpubber,amedno1,wokaka; you all posted your comments nicely... --Thanks
You have changed few lines of the original article internet.suite101.com/article.cfm/search_isnt_important Don't u think its a bad idea to just copy some thing from the internet and paste it here ?
Message for devsdalover I am the author of the article that you copied from internet.suite101.com/article.cfm/search_isnt_important. You have just copied what I wrote and have passed it off as your own work. If you wanted to comment on the original article it would have been better to quote the above URL and add your own comments. Everyone, please visit the above web address to read the original article which does not have the mistakes in it that the copy here does. Thank you Huw Evans