Darwin’s popular statement “Survival of the fittest” mantra suits for both Microsoft (MSFT) and Yahoo (YHOO) preparation point to beat Google (GOOG) in search Ad Business.
So is the reason of diversifying Microsoft business for collaboration with YHOO finally hit the time.
Personalities like Mahatma Gandhi to Barak Obama all emphasized the word CHANGE so does the Corporatism and so did the MSFT from their traditional business stroked a CHANGE to a competitive customer oriented business through the new search engine "BING".
Bing a MSFT’s new renamed search engine oops “decision engine” is getting good reviews and is a big hopes for MSFT to position itself to beat GOOG.
World wide Search engine Advertising business will reach nearly $30 billion by 2009(Source: IDC) ,and till now GOOG market share is nearly 65% when compared to 29.6% of YHOO’s and 8.4 % of MSFT (Source: ComSource).
The raising popularity of GOOG not only through its search engine algorithm, but also its aggressive method of acquisition (Big eating Small) have become a competitive player.
Yahoo being the revenue players in Ad displays and Data contents lost their margin when GOOG took over their Content Management Strategy. Today YHOO can still crack a good deal with the collaboration of MSFT to revenge back the GOOG take away Strategy.
My view on this BING deal just makes me feel that it’s a mutual understanding between MSFT and YHOO .They still stand on the initial stage of a 10 year contract and they have a long way to commit on revenue, technology exchange and create a competitive market with GOOG.
I once remember Lakshmi Mittal saying “Acquisition is a Marriage deal” ….. But this deal for BING is just a starting step to a marriage deal and certainly not an Acquisition
MSFT will license YHOO’s search technology, allowing it to integrate certain aspects of it into Bing. MSFT’s advertising search product Ad Center, will replace YHOO’s equivalent product, Panama. It’s all so mutual sensing of capturing the customer views for BING. Though it’s a long wait and watch to capture the market share but a strategic step “not to give up easily”.
One of the standard aspects of life “ One’s loss is One’s gain “,no matter the techies from MSFT and YHOO might have cracked revenue this deal has filled others pockets as well ( definitely not GOOG) but the end users like : Ad Agents: Consider Dell for example initially it had to scan MSFT, YHOO, GOOG for its best laptop search query result now it can go to GOOG and MSFT. That is “From 3 party support to a 2 party support”.
MSFT and YHOO’s deal will create job opportunity since these strategic moves need to create a team to beat Mighty GOOG. Google might be closely watching the deal and its impact but as we know it’s a long battle to beat GOOG.
But Innovation is about creating change, not reacting to change, yet we Compromise for any thing to survive.
On conclusion would say “We can never be certain about the future and therefore we must continue to be flexible and adaptable so that we can react quickly to the needs of our clients and our market place”.
