Ads by TechWords
Subscribe to our e-mail newsletters
For more info on a specific newsletter, click the title. Details will be displayed in a new window.
Computerworld Daily News (First Look and Wrap-Up)
Computerworld Blogs Newsletter
The Weekly Top 10
More E-Mail Newsletters 
Preston Gralla's picture
Preston Gralla

Seeing Through Windows

New Search engine report: Microsoft-Yahoo has no chance against Google

Microsoft is betting that a buyout of Yahoo will help in its battle against Google, but a new search report shows that's purely wishful thinking. Google continues to gain market share, while both Yahoo and Microsoft lose ground. Microsoft needs to learn that adding together two negatives doesn't equal a positive.

comScore just released the results of its February 2008 search engine survey, and for Microsoft, the results aren't pretty. Microsoft's share of search dropped from 9.8% in January to 9.6% in February. Yahoo took an even larger dip, from 22.2% to 21.6%. That means the combined Microsoft-Yahoo share dropped from 32% to 31.2%, a drop of .8%.

Both those drops are almost entirely attributable to Google gains, which went from 58.5% to 59.2%, an increase of .7%. You can see the chart, including results for other search engines, below.

Clearly, buying Yahoo won't solve Microsoft's problems. If Yahoo's market share is dropping even faster than Microsoft's how, exactly, will that help Microsoft? Buying Yahoo will only saddle Microsoft with another company whose clock is being cleaned by Google.

Rather than diverting its money, resources, and attention to the Yahoo buyout, Microsoft needs to rethink its online strategy, and build from its strength, instead of trying to add to its weakness. That means building some online version of Microsoft Office, and extending the links between the client version of Office and the Internet in general. Right now, Microsoft dominates the Office suite market, and that's its Trojan Horse for succeeding online.

If, instead, it buys Yahoo, and hopes that will help in its battle against Google, it's bound to fail.

What People Are Saying

Rate this
Rated -80
566 Votes

We agree - Yahoo won't do much for Microsoft

"Buying Yahoo will only saddle Microsoft with another company whose clock is being cleaned by Google"

We agree wholeheartedly. Yahoo is sinking, fast, and their desperate attemt to "renew" their search engine with RDF support will pale in comparison to what Google will do with the same concept, in traditional Google fashion.

It may be remotely possible Microsoft could benefit by scooping up all the Yahoo services, groups et al, but just what would that get Microsoft that it doesn't already have?

Moreover - What economic sense does it make to buy a "competitor" who is failing .. ?

The Team
http://iserviceshop.blogspot.com

Rate this
Rated +1
527 Votes

yahoo buyout for microsoft would be advantage

according to me , yahoo buyout was goodthing do by micrsoft, but microsoft needs to use yahoo by thinking broadly ... expand the search engine , because search result of google are far much better than yahoo ,well microsoft is not focusing on it.
yahoo buyout would be a great advantage for microsoft but miscrosft need think in that way eg: online shopping should be made more efficient ,easily acessible and for online shopping choices should be available so best buy would be possible for users

Rate this
Rated +25
341 Votes

The problem is ...

Microsoft's problems in this arena come from the top, so it doesn't matter who they buy, they'll louse it up. I remember when they bought Hotmail when it was #1, and then proceeded to cut back on what was offered to users and to transition from an open source stack to their own products.

There were several months of extreme flakiness, with frequent outages. This was followed by a push to make the site unappealing for those using non-Microsoft browsers and operating systems.

This product-tying is the way that Microsoft works on the client side, but it is exactly the opposite of how things work on the Internet. There, the way to get more users in is to make it easier for them to go somewhere else from your sites.

In the case of search, MSN/Live is the default search when you install Windows (or upgrade to IE7), so their continued losses are because their results are chasing users away. Because they haven't yet delivered the useful results that users want, they are losing share.

Yahoo! didn't always clearly mark paid "search pollution" results to distinguish them from legitimate search results. This may have been an early cause of their loss of share. But their results are generally good, just not always as good as Google's results.

I don't see how buying Yahoo! is going to help arrest MSN/Live's slide when the problem is at the top of MSFT as a whole. Until that changes, I think that any MSFT online properties are destined to keep falling.