February 2008 is already here…The big technology news over the weekend has been the potential Microsoft buyout of Yahoo. Even though Google has a 58.4% search market to Microsoft/Yahoo combined share of 32.7% (source), it was interesting to see how strong Google's reaction was. They are concerned that if the merger is well executed the combination could become a formidable competitor. Is that not what capitalism is all about! With great ideas and execution Google came out of nowhere to become the number one search engine. Google's corporate culture and ethos has been to be different than the rest of corporate America, now they seem to be joining in lock step, launching preemptive salvos because they fear competition by an industry behemoth. According to a well written post on TechCrunch, it looks like Yahoo has few options and given the combined search market share of Microsoft/Yahoo is 25.7% less than Google's share I will find it hard to believe that Google will be able to stop it, although they could slow it down. I think the threat to Google is overblown; the task of merging incompatible web properties and ad systems together will be daunting. The likely hood of Microsoft succeeding on its first try is minimal. Any misstep will provide Google with the opportunity to grab users and thus a larger market share. I think Google should see this as an opportunity rather than an assault.
I received a Verizon SMT5800 Windows Mobile Standard smart phone to review for pocketnow.com. This is my first opportunity to spend a lot of time with Windows Mobile 6 Standard edition (no touch screen). This means using the dial and D pads extensively. So far I like having a smaller device in my hand. It feels more like a regular candy bar phone, although thicker because of the slide out keyboard. I just posted the unboxing on pocketnow.com and will follow with video reviews over the next two weeks.
Two camps are confusing the whole Jailbreak process for the iPhone's new OS version 1.1.3 firmware. This is confusing users, breaking applications, could just throw the whole Jailbreak movement into a tailspin once Apple releases their SDK. Here is a post describing the issues. As a user waiting for the 1.1.4/SDK release at this point makes sense.
This week:
- Post more thoughts on the AT&T Tilt and how I used it on my trip.
- Listening to Sirius on my Tilt.
Video reviews of Verizon's new SMT5800 Windows Mobile 6 Standard phone on pocketnow.com.
Google's concerns have little to do with protecting its search and advertising dominance from competition. Instead, it's voicing questions about other areas of the deal: email and instant messaging.
It's not seeking to lock others out of its market through political wrangling. Instead, the company, which knows it needs to expand, is trying to make sure it won't be locked out of other markets itself.
Now to be fair, Google's no saint. There are plenty of instances to call Google to task over its behavior in protecting its market. This just doesn't happen to be one of them.
Posted by: Chris Carlin | February 04, 2008 at 10:53 AM
I disagree with Google's and your assertion. On the IM front Microsoft + Yahoo is still smaller than AOL. On the email front, this is a free service subsidized by advertising. Google advertising revenue is much greater than Yahoo and Microsoft. I think there are enough players to balance the playing field and let the best innovator win...
Posted by: Stephen Skarlatos | February 04, 2008 at 06:03 PM
The distinction between email and IM is inappropriate as Microsoft, Google, and others are headed toward a seamlessly integrated platform. Total accounts is what matters, not email or IM, and the one with more has a serious high ground.
Also irrelevant is the source of funding. That advertising supports these offerings has nothing to do with it: the company still wants and needs users regardless of who writes the checks.
One distinction you neglect is the fact that one party owns the gateway. As we saw in the various platform wars of the past (office, browser, etc), MS isn't afraid to use its position as the source of the dominant PC OS to stand in the way of its competition. Combine that with the fact that MS-Yahoo isn't far behind AIM in terms of IM users and the huge inertia of such a social platform and there's plenty of reason to worry.
Again: this is Google looking to enter a market soon and seeing Microsoft, the company who's known for playing dirty, making moves that will, at best, make it slightly harder to find a level playing field.
There's no doubt at all that innovation is at least threatened by this environment.
Posted by: Chris Carlin | February 06, 2008 at 09:43 PM