Richard's Rant

Principal .NET Consultant, MCSD Certified

Microsoft's Bid for Yahoo

 So Microsoft has place a largish bid for Yahoo. (see link). So what does this mean for Microsoft? Well , for what it's worth, here is my 1 cents worth

Microsoft has, in my opinion, been falling in the minds of consumers for the last few years. On one side they have Apple, which produces a great product (although overpriced and locked to one vendor for your hardware, which is kinda sucky), and Google, which *gets* the internet. Now, just for a momnent, let's look at the consumer market that we have now in teh Western world. We live in extremely prosperous times. My generation's kids have not (in general) had to want for much. They have cable TV, they have the internet, cheap music, cheap Chinese manufacturing. They have grown up with a software monopoly of Microsoft.

So, as with all generations, they have grown up with a set of terchnology that is now percieved as "old hat", crusty, and created by and for the "old" people.  Leading the charge of those companies that are doing this is Microsoft. So, if I was to put myself in the shoes of a young consumer/adult, Microsoft would seem so stuffy and boring.

Along comes a credible alternative that looks and acts differently. (Apple and Google). So people start looking towards these as agents of change, of "getting" their generation.

So, Microsoft, in an attempt to "get it", buys Yahoo. To me, that is a sign of a desperate company, one that has run out of ideas, one that feels that it is losing, and the only way it sees that it can stay relevant, is to buy a company that is at least a bit more relevant that it has managed to be in an effort to stay in the game.

These will indeed be interesting times for Microsoft and Yahoo employees. 

Posted: Feb 04 2008, 01:36 AM by admin | with 2 comment(s)
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Comments

Sausage said:

I dunno.  Credible alternatives have always existed.  I see Microsoft's current malaise as a result of their inability to execute, their dearth of innovation, and being run by marketing guys rather than technology guys.  

Their copycat culture ensures that they will never produce an iPhone when it matters, instead Windows Mobile 7 will have iPhone competitive features in a couple of years time when it's released.  Uh but the iPhone has those features already, and has done for 9 months now.  Doh.  If only they could delay those iPhone purchases for another 2 years with some well placed FUD.

If they buy Yahoo, what are they going to do with all that embarrassing Linux, BSD, PHP, MySQL tech?  Another expensive and time consuming rewrite like they did with Hotmail, and MSN TV (nee WebTV)?

When will the Xbox start making money, instead of losing them billions?

If they didn't have their Windows and Office monopolies, what would they have left that was profitable?

Their outrageous wasteful spend on diversifying into every market they can just in case they lose their cash cows only quickens their death.  Why not use these wasted billions in actually improving Windows, so people would want to upgrade?  But then why spend money on a product that is automatically sold whenever anyone buys a PC, whether they want the damn thing or not?  

Why did they leave IE6 untouched for 5 long years?  It's not like it was perfect.  It's support for web standards, CSS2, HTML4, was mediocre at best.  But that cobbled together C++ sat in SourceSafe untouched for 5 years.  Why?  Because after killing the competition off, why would they spend money on building a better browser?

Microsoft is not interested in building products that people actually want to buy.  They are only interested in building products that people have no choice but to buy, unfettered by competition.  Boring, hard to use products that barely work.  That's why Microsoft are slipping down the slope to obscurity.  And thank god, it's about f**king time.

# February 4, 2008 2:04 AM

Rob Mills said:

I'd have to agree with your comment about Microsoft being desperate for buying yahoo.  Instead of earning a larger market share by offering something to the market they're trying to buy the market share.  Even if they have a most of the internet after this purchase I think we'll see their part start to fall again.  Google just really understands the web.

# February 8, 2008 8:35 PM
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