Monday 13 April 2009

Microsoft and Yahoo?

(By Richard Holway 4.00pm 13th Apr 09) I guess i should report that the press is full of the Microsoft to buy Yahoo story...again. Apparently, Yahoo's new CEO Carol Brantz has been meeting with Steve Balmer.

I've given my views on this so many times in the last year. Basically I think Microsoft are fighting yesterday's battles by continuing to want to buy Yahoo. I guess there is some value if they get Yahoo for a knock-down price. But the future is not search - that battle has already been won by Google.

The battle now is for who controls the access to the Cloud - particularly for consumers. Consumers are in love with status updates and will use use their preferred status update portal as their first port of call on whatever Internet Device (ID) they happen to use. I believe that control of that portal is key to controlling the access to Cloud. If I was Microsoft, I'd buy Facebook, Twitter, Friendfeed (or the whole lot!) rather than Yahoo.

Good related article - Real-time updates open a fresh frontier for social network sites - in the FT 13th Apr 09. It makes the point that neither Microsoft nor Google really 'get' the revolution that is taking place in the demand for instantaneous interaction between users.

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