Microsoft made the right move in backing off from the Yahoo deal. Yahoo are in a mess. Yahoo know they are disjointed and screwed, their Y!OS is proof enough of that. Until Yahoo can reassemble their offering into something cohesive, and reunite all that they have, Yahoo will still have the same problems it has now. Yahoo, also believed that Microsoft had undervalued them. I believe that the market quite aptly demonstrated that Microsoft overvalued them, otherwise Yahoo’s share price wouldn’t have collapsed 20% yesterday. The market sets the price Mr Yang, not you.
Microsoft have similar problems. Not many people know where to find Microsoft’s search engine, even though it is easier to type than both Google and Yahoo. It is simply live.com, but who would know that? Microsoft changes and rebrands their offering so often, the consumers have got completely lost, and given up on them. I don’t believe it is for any other reason that live.com has such a dire market share.
What Google does well, is simply that it delivers everything consistently, and makes it simple to use their tools. I have one Google account, and that account page shows we all the services I am using. It makes that easy. Yahoo has a multitude of web sites under its umbrella that look different and act different. Y!OS needs to fix this for starters.
The search engine market isn’t dead yet, but I for one am happy to see three players left in the market. I’m happy to use whichever service I feel is the best. I’m certainly not brand biased. I’m one of the floating voters Yahoo and Microsoft need to win over. Bring it on guys.