NEWSLETTERS
 

CIO.com updates, insights and advice on technology, management and your career.

 
 
 
SUBSCRIBE TO CIO
 
Are you involved in setting the direction for your company's IT budget or strategy?

Apply today for a FREE subscription to CIO Magazine!

 


Wed, Sep 5, 2007 13:07 EDT

What if Yahoo and Microsoft Merged?

Topic: Applications

Blog: The Collaboratory

Current Rating: 5 Comments: 3

When Yahoo went public in April of 1996, no one suggested that Microsoft take the internet start-up under its wing. Wall Street would have laughed at such an idea.

Eleven years later, such a move is not only a possibility, it might be vital for both companies.

According to the New York Times' Dealbook, rumors of a potential merger between Microsoft and Yahoo have resurfaced because of a recent report by Robert Peck, an analyst at Bear Stearns, who contended that the internet company would be an attractive acquisition candidate for either a technology vendor or a traditional media company.

Let's hope that 1) it's a technology company rather than a traditional media company (which would surely ruin Yahoo) and 2) that the company would be one that knows something about software (like Microsoft). Such a merger would ensure better competition among the internet and software companies of the future in a climate that, as it stands now, Google seems poised to dominate pretty one-sidedly.

That must sound strange: Microsoft should merge with another company to become more competitive. Don't they still dominate the software landscape?

The short answer is yes, but there are some more complex factors at play here:

Google already dominates search and ads. And though it has exerted only minimal pressure on Microsoft's domination of the office productivity software space, some recent announcements indicate that Google has plans to be a force there as well. For one, its addition of Sun Star Office to Google Pack was a clear shot across Microsoft's bow, offering its customers a place to author documents other than in Microsoft Office (and for free, by the way). And two, it acquired Postini in order to offer CIO-worthy security for e-mail.

Those moves, coupled with the fact that Google doesn't have the legacy baggage of starting their business before the web became a force in business, makes them a strong and nimble competitor in the software space.

As it stands now, Microsoft doesn't have that same luxury, but it's working to counter it, and a deal with Yahoo would be a good shot in the arm in that endeavor.

For Microsoft, the advantage of a merger with Yahoo is they could climb the ladder a bit in search (Yahoo is still number two) and work with a company who has never done business without the web being central to its business model. Though Microsoft's new strategy of offering software plus services might be a good temporary solution to wean tons of their customers and partners off the old install and packaged software model, Yahoo's strong consumer presence on the web would offer Microsoft a good springboard to develop more web-only applications that operate on a free or very cheap model.

So do you Yahoo -- or, I mean, like the idea of this deal?

You do not have flash or javascript support.
Average (3 votes)
5
 
 
Thu, Sep 6, 2007 10:55 EDT
Anonymous user
Posted by: onejetjock
Rating: 30

Why merge Microsoft and Yahoo.. MSN certainly has had the ability to overshadow and ourperform Yahoo for years.. While keeping a finger in the pie and eye on market directon, both Yahoo and Google may be fleeting technology steps for information management as work by IBM to minipulate atoms for new storage capacities progresses (Moore's Law). Another reason this idea may not play is to look only a few years back to Time Warner's merger with AOL. Nice for the stock market players who put the deal together, bad for both companies who had to operate the structure.. Microsoft does have the capital to invest, make mistake and recover but why go there in first place.. Merging with AT&T for broader communication power or Time Warner for content and distribution may be better choices..

 
Fri, Sep 7, 2007 16:20 EDT
MSN
Anonymous user
Posted by: Anonymous
Rating: 90

The problem is that MSN has already had years of trying to beat Yahoo, but without success. They even had the default homepage pointing to MSN, but people still uses Yahoo and Google.

 
Tue, Sep 11, 2007 9:27 EDT
Anonymous user
Posted by: Kashif
Rating: 70

The whole issue here is the fact that all three companies have been around for quite some time now, but neither Yahoo! nor MSN has had any success in removing Google from its dominating position. Both the companies have tried to gain the number 1 spot in the Information Management sector but they just couldn't. MSN is trying to do it on its own through its Live search initiative but it cant really cut the cake. The only way for Microsoft to beat Google in its own area is to acquire the second largest name in that field, as Microsoft always tends to do. If it acquires Yahoo!, it can combine its resources, and should be able to grab the number 1 spot from Google.
Google has proved that it is not an easy opponent to beat, as its got Microsoft and Yahoo! scurrying about looking for ways to compete.
The recent interconnection of Yahoo! Messenger and Windows Live Messenger networks should be considered at this point. Did these companies need to merge their networks? They've dealt with pretty much every other messenger service out there, and still came out as the most popular, but ever since Google launched Gmail and Google Talk, they've been running around worried, and merged finally, after years of minor modifications and changes.

About this Blog

How mass collaboration and collective intelligence affects business and IT—from open source to wikis to IM

Start a Conversation
Click to post

Got something to say? We want to hear it! Click the Post button to get started. GO»

EXPERT ADVICE
See our roster of experts.

Advice & Opinion from more than 108 of IT's most insightful thinkers.

  PARTNERS       WEBCASTS    
 

Preparing for the Next Cyber Attack

Ensure you are up-to-speed on the latest security technologies available to keep your network safe in this Executive Guide. Get a thorough assessment of the corporate security threat landscape. Protect your network with data leakage protection, NAC and other technologies explained in this report.

Sponsored by Qwest  Read this Executive Guide »

 

Cloud Building: 8 Ingredients for Internal Clouds

Cloud computing: a fundamentally new way to deploy IT services and functions cost-effectively and quickly. Learn how the VMware vCloud initiative dramatically improves how consumers access their information and experience applications as well as the 8 ingredients to get you going.

Sponsored by VMWare  Read this White Paper »

 

Investing in Business Analytics Technology

You're thinking now is the time to take the plunge into business analytics, but you still have some unanswered questions. This research summary addresses the most common questions and concerns surrounding the successful launch of a business analytics initiative. It also includes real-world examples of organizations already getting return on their investment.

Sponsored by SAS  Read this White Paper »

Resource Alerts

Get instant email notifications by topic when white papers, webcasts, and case studies are added to our library.

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

Improving Transparency and Accuracy in IT Cross Charging

During this Webcast you'll learn how KBC Group implemented SAP BusinessObjects Profitability and Cost Management and realized many benefits.   View Now »

 

Cost Savings and Risk Reduction with Effective Systems Management

Join us and see how Novell can help you respond to today's economic challenges by increasing productivity, reducing costs and aligning IT initiatives with overall business goals.  View Now »

 

Capitalize on Your SAP Content

Learn ways to improve your content management by viewing these Open Text webinars today.  View Now »

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

 
NEWSLETTER

Sign-up for the Blogs & Discussion Newsletter

 
FEATURED SPONSORS
 
 
 
SPONSORED LINKS
 

Introducing the new HP ProLiant G6 server family

Accenture: Outsourcing for Competitive Advantage. More...

Better spam protection with Postini for just $1/user/mo

Introducing the new HP ProLiant G6 server family

infoBOOM! - The Mid-Sized Company CIO's Exclusive Community

Accenture IT Consulting: Logical meets technological. More . . .

The Fraudster Economy Model: Operating a Business in the Underground

Trade in your old laser printer and get up to $1000 back!

Taking the Service Desk to the Next Level

Revolutionizing Enterprise Application Deployment

Why Data Loss is Increasing--and What You Can Do About It

Data Loss Prevention: A Better Way to Approach Security

Learn how to managing client systems in the enterprise.

Build a High-Performance Open Web Platform

Mid-Sized Company CIO Community: infoBOOM!

Enterprise PBX Comparison Guide

Getting Value from Outdated Networking Equipment

Losing Ground: 2009 TMT Global Security Survey

Stop Application Fraud at the Source with Device Reputation

Learn about the VMware vSphere (TM) & Intel (R) Xeon (R) Processor 5500 Series

Learn how a virtualized enterprise can help your company reduce costs

Why Isn't Server Virtualization Saving Us More?

Learn how to save 30% through project & portfolio management.

How Open Source is Changing the Face of Enterprise Software

8 Key Ingredients to Building an Internal Cloud

Accenture IT Consulting: Enabling high performance. More...

Top Five CIO Challenges

Insight makes it easy to spend your Microsoft subsidy check.

Five minute business analytics assessment. Immediate results.

Dangerous Collaboration Practices: 5 Ways IT Can Minimize Risk

Accenture: Outsourcing for uncertain times. Click to learn more.

The Case for Investing in Business Analytics Technology. Read white paper.

Live Webinar: Applying Business Analytics. Click here to learn more

Seven Ways ITIL Can Help You in an Economic Downturn

Developing A Dynamic, Real-Time IT Infrastructure

Maximizing the Business Value of the PC Infrastructure

Communications and Collaboration Needs at Business Organizations

Using Open Source to Deploy Web Applications

Cloud Computing: Read about VMware's compelling vision & set of products

Enterprise PBX Buyer's Guide

Secondary Market Primer: Your Network at Half Price

How Interactive Viewer Reduces the Effort to Meet Visualization Requirements

Top-line Performance that's Bottom-line Efficient

White Paper: 8 Key Ingredients to Building an Internal Cloud

Read about virtualization and consolidation effort best practices

Building the Virtualized Enterprise with VMware Infrastructure

The Global Marketplace Today: Strategies for Tough Times

Top 10 Business and IT Drivers for the Wealth Management Sector

5 Steps to Automating Accounts Payable

Bottom-Line Benefits of Virtualization