Bing(o) or B(or)ing? 30 Jul 2009Posted by Tony Law in Consumerization, Impact of IT, ITasITis, Tech Watch, Technorati.
Tags: Bing, Google, Microsoft, Yahoo!
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Lots of developments recently for Microsoft-watchers to get their teeth into. I’ve not picked up the individual announcements here, because lots of other people do it; but it’s time for a round up.
So the most recent announcement is Microsoft’s at-long-last deal with Yahoo! which will move Microsoft’s Bing search technology into Yahoo’s space. Subject to regulatory approval it might go live next year.
Well I haven’t seriously tried Bing, so this isn’t a technical evaluation. But for a business analysis of the potential impact of the deal (or lack of it), there’s an interesting discussion on Knowledge@Wharton. In brief, they suggest, the real target of Bing wasn’t Google but precisely to achieve the kind of deal now done with Yahoo. And that the impact on market share will be negligible despite the marketing deals. People like Google. And perhaps that the smaller deal will “invite less anti-trust scrutiny” than last year’s proposal to swallow Yahoo entire.
There’s a joint website called “Choice. Value. Innovation”, set up as if it were a fully fledged independent company with “Investor Relations” and “Press Room”. Draw your own conclusions.
What else? BOPS of course; Microsoft’s Business Online Productivity Suite. The “Standard” package capitalises on existing brands (or tweaks them to work outside the office perimeter): Exchange Online, SharePoint Online, Office Live Meeting, and Office Communications Online.
So BOPS It doesn’t occupy the same space as Google Docs or other offerings like ThinkFree (who I visited with a study tour to Silicon Valley in 2006 and, I must admit, didn’t think they’d still be here by now). It does overlap Google Wave, which I reviewed recently. Gizmodo reports that Office 2010 Web apps will be free; Office Live, Windows Live and Azure exist. Either we can believe that Microsoft is still playing catch-up, when there’s so much technology already out there that’s integrated and works; or we can see the pattern of a lot of pieces about to come together and create something really powerful
Microsoft still owns the business IT mindset. Gartner quote a case study with a headlinecollaboration cost reduction of 20% So what do you think?
• Microsoft-Yahoo a Yawn for Google, Knowledge@Wharton, 29 Jul 2009
• Microsoft, Yahoo! Change Search Landscape, Microsoft Press Pass, 29 Jul 2009, featuring videos from both Ballmer of Microsoft and Bartz of Yahoo!
• Choice, Value. Innovation.
• Business Productivity Online Standard Suite, Microsoft
• Move to Microsoft BPOS Cuts Collaboration Costs by 20%, Gartner, 9 Jul 2009 (client access only to full document)
• Microsoft Office 2010 Web Apps Will Be Free; Testing Starts Today, Gizmodo, 13 Jul 2009
• Microsoft Windows Live
• Microsoft Office Live and Office Live Small Business Edition
• Microsoft Windows Azure
Tags: Forrester, Google, Microsoft, Yahoo!
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The news of Microsoft’s bid for Yahoo! broke in the Saturday papers, and there’s a mass of coverage. It’s worth collecting some of the initial comments. Both companies spread wide, and some people – and companies – will find themselves buying services from Microsoft when, perhaps, they deliberately chose not to. In the UK, for example, a lot of broadband internet is supplied by a BT/Yahoo! joint offering so there’s an immediate potential impact there.
Google certainly think it’s worth reacting to. They fielded David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer; and he immediately raises the spectre of Microsoft’s “legacy of serious legal and regulatory offenses” to encourage regulators, and consumers, to sit up and take notice. And to position Google as the champion of the open internet.
In business terms, does it make sense? What have Yahoo! got that Microsoft haven’t? The Guardian tagged the bid as and admission of failure by Microsoft and an attempt to “buy its way into the 21st Century”. Microsoft, it says, maintained its dominance of desktop and office software; but Google ate its lunch in search and, along with the open source movement, is making inroads into the applications market. Yahoo! dominated search until Google came along, but is there any way that pooling Yahoo! and Microsoft’s resources would magically create a Google-beater here? There’s analysis of this one from The Observer (that’s The Guardian‘s Sunday sister) and one interesting quote is from a financial analyst who says “We see Google as a search business, but it is a media company that makes all its money from advertising”. Would the combine challenge Google in this space? Adding their two market shares doesn’t win, and mergers don’t create new ideas automatically. But it’s perhaps a better indicator of why Microsoft’s made the move, and where it thinks the IT business is going. And of a shift in the media business too.
Forrester’s Charlene Li blogs about this in Groundswell and about the way both companies need to play catch-up in social computing.. She looks at the jewels in a potential combined portfolio: Flickr and del.icio.us, Microsoft’s investment in Facebook, and so on. She raises the possibility of Yahoo! selling Google its search advertising to defend itself (remember this is a hostile bid), raising the cash to stay otherwise independent. Google did this kind of deal with MySpace.
This isn’t an enterprise IT-oriented merger bid; indeed Computerworld‘s reaction is that it might distract Microsoft from the enterprise’s primary business with Microsoft which is precisely desktop and office software. It’s about the social web, advertising and media. But if (when) social networking finally gets adopted by enterprises – Faceforce, the link between Salesforce.com and Facebook, is a straw in the wind – then there would be an impact there too. As Charlene puts it, “people go where their friends are”. There’s a lot more comment out there, as you’d expect; no substitute for going looking for yourself – no doubt via your favourite search engine …
Yahoo! and the future of the Internet Official Google Blog, 3 Feb 2008
Microsoft tries to buy way into 21st century The Guardian expert comment, 2 Feb 2008; alternatively, go to the homepage at guardian.co.uk and search Yahoo Microsoft
Microsoft’s bid for Yahoo!: What it meansCharlene Li, Groundswell, 1 Feb 2008
Would a Microsoft-Yahoo deal out Google Google? Computerworld, 1 Feb 2008
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