Thursday, August 27, 2009

Yahoo Bites Microsoft!

As details of Yahoo's deal with Microsoft surface, it becomes clear that Microsoft is desperate. Desperate to gain a decent share of Internet business. Microsoft has agreed to pay Yahoo a bundle, just so Microsoft can post market share for the next ten years.

Under the deal, Microsoft pays the bills but gives Yahoo 85% of revenues. Yahoo will continue to offer search services separate from Microsoft and the hat trick is that the deal did not include Yahoo international mobile search properties. Indeed, Yahoo just made a deal allowing Google to provide search on British Telecom. The new CEO of Yahoo is to be congratulated for making a shrewd deal. Buy Yahoo!

Google is a winner too. Over the next 10 years, the desk top computer is likely to become the equivalent of the land line telephone. The growth is going to be in mobile services. The deal for BT gives Google another place to grow.

Blackberry just joined most other cell service providers in using Google Web Kit for development . The use of GWK, by most mobile developers is a coup for Google. All of the developers are enjoying huge time savings and the only real loser is Microsoft. The consumer wins big!

In related news, Nokia will offer smartbooks that use a Linux based OS. Does Chrome OS give legitimacy to Nokia or does Nokia's OS give legitimacy to Google? I think both win. Together they show the world that Microsoft is not the only game in town. Google is not the only large company gunning to take out a piece of the Microsoft monopoly. Microsoft is like a powerful old Grizzly Bear surrounded by a pack of hungry dogs. Yahoo just brought blood.