Microsoft's proposal for Yahoo is most likely to shake up the online advertising, Web 2.0 and open-source markets. As now a days Google comes up as a un-disputed chief player in current web 2.0 market, which cannot be compressed by Microsoft alonewith product such as sharepoint, though is a good challenger to google API . Both MS and yahoo dominate free (Web 1.0) online e-mail services, Hit wise data showing Yahoo Mail / Yahoo! Address Book at 58 percent of market share (#1) and Windows Live Mail (#2) at 25.5 percent share.Yahoo is on its way to being a real player in the Web and open source world., They have released tons of code via their developer programs and pushed some really innovative services aimed at Web developers some examples could be maps and flicker. This tie-up willprovide a good competition to google, specially some required features such as enhanced security and experts eye.Hope this proposed merger will add a new dimension in web 2.0 Development and also bring some more for developer and ultimately to end-user.
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Whatever the idea behind the proposal is, it has Google scared. Personally I don't feel like Google has to much to worry about but Google seems to feel a different way.
Google doesn't fear a combined Microsoft/Yahoo because of Open Source or a Web 2.0 view. What they fear is Microsoft leveraging the desktop OS to drive proprietary technology or traffic to Yahoo and partners website. I'm not sure this is even possible, but Google should ring alarm bells now rather than wait to get Netscaped by Microsoft.
Latest news: Yahoo rejects the bid
Yahoo will get a higher price and the deal will go happen. Here is a very insightful look at this potential deal.
The Men Behind the Curtain: What's really happening in the proposed Microsoft-Yahoo merger
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