Saturday, September 26, 2009

Will Google encash Microsoft and Yahoo deal?





The long discussed Microsoft Yahoo deal is on the verge of closure and is now with anti-trust authorities for the final decision. The concerned authorities are scrutinizing its pros and cons, and closely analyzing its implications in the short and long term.

The deal had undergone many phases and many considerations. It was picked up last month again after its failure last year due to Yahoo not agreeing to the Microsoft payment terms. Where reviewers peg it as a deal to spell end for Google’s monopoly, others find it a chance for Google to improve on its offerings. Google is touted as one company that keeps constantly innovating and improvising; the deal will induce more momentum and zeal.
Google's benefits from the deal

With so much hype attached to Microsoft and Yahoo deal, it is speculated that Google will get benefitted from this alliance. On a brighter side, Yahoo will definitely add $500 million every year to its operating income and Microsoft will jump to second position but this joint venture has something that Google can really encash on - “Time” and new features.

Google is currently under scrutiny due to its privacy infringements and piling the data on users. With Microsoft and Yahoo deal coming in limelight, Google will definitely get time to improve on its image and perception by DOJ (Department of Justice). Google will get time to pull its strings and work on the efforts that can help it to abandon those claims. Where EU (European Union) and DOJ will remain busy in analyzing the impact of Microsoft and Yahoo deal on online business, Google can find ways to remove the label of “data capturing search engine.” The deal will put pressure on Google to make its privacy policies more stringent and at par with the other two leaders.

The story has more to it. Google can innovate rather than just iterate and can look for other viable options that can help it to get engaged with users more deeply.
Google's advantages over other
Google has the lion’s share of search market and earlier it has to defend its territories from Microsoft and Yahoo, but now its fears are just limited to Microsoft in Web search spectrum. In the ad spectrum, still it has to fight with Yahoo but now the competition has been trimmed to one candidate in a field.

Bing is worth a good bet on internet spectrum and in search gamut. In fact, the reports suggest that it had assimilated good market share in last two months where as the shares for Yahoo and Google have slipped.

What could be better than having the rivals’ workforce arriving at your doorstep and that is what Google can really look upto and can even target them. With Yahoo users going off the board, Google can make offers to them and can even exploit their talent hub for further improvements.
Conclusion

On conclusive note, we can say that its really too early to say these things but deal will lay foundation for Google to be more stronger than ever before.

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