Yahoo was once the No. 1 search site on the Internet, but no one remembers now. That’s because the company farmed out its search engine, the core of its brand and largest source of its traffic, to upstart Google. Yahoo’s increasingly cluttered home page shooed Web users away to the faster, cleaner Google interface which delivered the same search results more quickly and effectively.
In 2009, Yahoo didn’t need to make the same mistake again with Microsoft. In fact, it’s Microsoft that needs to grow the audience for its expensive Bing search engine. Instead of outsourcing, Yahoo should have done what Microsoft did: Acquire a bunch of core technologies and build a Google rival. But no, Yahoo took their eyes off the prize by ceasing to innovate and trying to bizdev their way to success. That’s why the founders of Flicker and del.icio.us, prize Yahoo acquisitions of innovative Web 2.0 sites, have left the company, as did chief scientist of search Marc Davis last week. Microsoft, meanwhile, invested in building the search engine Yahoo should have developed.
Carol Bartz is a competent dealmaker and operator, but not a product genius like the Google kids. Without innovation, Yahoo will now die on the vine. The End.This deal may be good for Microsoft and will cause big problem for yahoo in long run. Don't know how much people remember from 2000-2004 Yahoo search was powered by Google then Yahoo built its own search technology but people moved out with Google. same will happen if Microsoft search is good enough. if not people will move to Google. Eitherways Yahoo is the loser.
And Microsoft has no focus no strategy and keep following the new popular kid in town. It was AOL, Yahoo, and now its google. with big cash from windows + office business they are tring to do everything and anything but nothing good. and I feel best of Microsoft is behind them.