Tuesday, February 05, 2008


Yeah, so Microsoft has search engine envy. Google must be going up its ass sideways the way Netscape did with that whole "browser thing" back in the 90's. Not only is Google way younger, it's got 58% as big of a market cap, it gets way better press (mostly), it has a bunch of free online products that - gasp - people use, and most of all - it makes money by serving web pages with ads.

What? No CD's? No tech support? No rushing out consumer boxes and multi-million dollar consumer advertising?

Hmmm.... daddy like.

So - the first thing is - let's build it ourself. We all know how much MSN sucks - so that didn't work out so well.

Plan #2 - who can we buy?

Let's see.... Google? No, that would take all the income Bill Gates makes in 18 months... hmmmm... hmmmm.. hey, I know! Let's buy the other company that was totally blind-sided and pissed off by Google getting all the attention - Yahoo!.

But is that really the reason? Does Microsoft really have "ad envy" on that scale? I don't think so.

I think it's all about SaaS (Software As A Service). Yahoo! is a multi-national company, it's market cap is (only) $40 billion - and they really know how to build and deliver web pages. Plus, they already own Zimbra a spiffy AJAX-y email app - maybe we can just buy it and get into this here "saas" game... before someone else (eg Google) eats our online services lunch like Netscape almost did with the browser.

Spiffy idea, guys!

Meanwhile both Google and Yahoo! are going on the offensive defense. Google has already filed a motion with Federal Regulators noting any objection "...should this deal happen." and the founders of Yahoo! are urging all the nervous (perhaps to be "assimilated") employees that it's all "business as usual."

How will it all shake out? Who knows. The important thing - is that the 800 pound gorilla has been awakened - and it's also betting the future on SaaS.

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