MicroSoft Yodels Not So Softly; Boggles Google

The recent unsolicited bid from MS for YAHOO was not very surprising. Considering that Y has been ailing for some time now - with declining ad revenues and search statistics, along with a somewhat slow-and-bloated feel to the entire company, someone HAD to do something. MS decided to be that someone.

How much sense does it make? Not much. Not much at all. MS is known for its aggressive marketing, product growth, and pushing strongly into areas that have already been cleared for it by others - and very often overrunning the precursors in the process. However, it is not very much known for innovation.

Y, on the other hand, was one of the first true innovators on the Web, bringing a 'directory' approach to search. However, as the Web grew exponentially, people had little time or patience to look through subdirectories and such -- they just wanted the ability to type in something and see something useful come up quickly.

Google satisfied that need splendidly. Its simple, understated interface with just three or four links, and two simple buttons, did it all. Magic, nearly every time. Witness its torrid revenue growth and the merciless streak of profitability, a portion of which comes at the cost of others, mostly Y and MSN (which is, in my opinion, the most anemic of all search engines).

Others somehow stumbled along, while G, with the incredible muscle of its finances and the fantastic brains behind it all, simply left everyone dazed (and tottering).

Little wonder that it cried foul at MS's offer; and even less surprising that it offered a 'helping' hand to Y. But I think secretly G wants MS to get into Y the way a dying man gets trapped in quicksand. Y just announced it would lay off 1000 people worldwide; it has shut down its Photo division, and probably will shutter many others that are simply not contributing to the bottom line. That leaves a WHOLE lot of disgruntled, and in many cases, very talented people just waiting to jump ship.

Enter MS - to hasten the fall, and enter G - to welcome the jumpers.

Y is decaying; I have no doubt about it. Jerry or Terry - same results. Its Panama initiative is not going to get results anytime soon, and worse, MS may cause the most important property of any company - its developers - to quit, thus endangering significantly any future revenues.

Further, while Y has a startup-type outlook, MS is on the other side of the Net divide: Stodgy, self-important, dull, and a penchant for monopolistic tendencies. Therefore, a clash of the cultures is definitely not to be ruled out.

Overall, not a very rosy picture there.

However, as my wife will occasionally point out, not all of my notions are accurate to the last detail all the time. Besides, every now and then I'll come up with a non sequitur or two: Because both MS and Y are competition to G, combined they'll surely kill G.

Yeah, right.

Anyway, the mise-en-scene has been set - let's get the popcorn and watch the fun unfold!