Memo to Microsoft: Avoid Yahoo like the plague
- TAGS:Google, Microsoft, Yahoo
- IT TOPICS:Applications, Desktop Apps, E-Business, Enterprise Apps, Internet, Operating Systems, Windows
Reports say that Microsoft may still be interested in buying Yahoo or parts of it. Even though Microsoft may be able to buy at fire-sale prices, it should avoid Yahoo like the plague.
The Associated Press reports that there's renewed speculation that a Microsoft-Yahoo deal may be in the offing because Yahoo's CFO  said the company is "not opposed" to selling its search business. He added, though, that it would be tough to sell just the search business --- clearly, he'd like to sell the whole thing.
Ballmer previously this week said that Microsoft is still interested in talking with Yahoo.
Microsoft should stay away. It's this simple: Microsoft will never catch Google when it comes to search. It shouldn't spend billions of dollars trying.
Instead, Microsoft should focus on where it's stronger than Google, in the application business. It should create online versions of its applications such as Office, and fight Google there. Microsoft also has many very good online applications that few people have heard about, such as Live Mesh and Live Sync. It should pump money into them as well.
Buying Yahoo would waste billions, force Microsoft to spend up to a year to integrate the company with it, and still leave Microsoft well in back of Google.
It's an instance where one plus one doesn't equal two: It equals zero.Â
Free Insider Guide