Microsoft – Trouble In Paradise?

It makes one wonder. Should Bill Gates come back to steer the good ship Microsoft? Maybe Microsoft needs a Jerry Yang of Yahoo fame to help out. No matter what your opinion of Microsoft might be, the once mighty corporation is feeling the sting of the Microsoft – Yahoo deal gone sour. In fact we may see more employees leaving the Redmond software company as the head of Windows tries to regain its direction. A direction which includes a bigger presence on the Internet.

But can Microsoft achieve their goal, without buying a piece of Yahoo? I think Microsoft has two problems. First, without Yahoo their search hopes may be damaged and second, they need to make Windows 7 the best Windows yet. In an article from Boomtown it states:

But, most of all, it has zeroed in on Yahoo, which has a share in the mid-20s, in order to give it a better chance to compete with Google, the dominant market leader.

After first trying to buy Yahoo in a bit of a ham-handed manner, it turned to a plan to buy its search business.

That proposal has been rejected by Yahoo twice as not good enough for a variety of reasons, some better than others.

The hubbub sent Yahoo into the arms of Google, with which it struck an outsourcing ad search deal, which has attracted a lot of controversy, but will likely go forward.

Welcome to Microsoft’s nightmare!

So what do you think? Should Microsoft do what it does best and concentrate on Windows 7 development? Or do they need to diversify and catch up with Google?

Comments welcome.


Ballmer’s Memo

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I have been writing for Lockergnome for eight years.

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  • Sean

    Don’t they already own a search engine, that funky thing called “Live”, whatever that name means. As with all Microsoft turkeys, they keep renaming it until it finally has been around long enough to accrete enough changes to finally start becoming useful.

    Buying Yahoo won’t be like buying Spyglass and turning it into Internet Explorer, a long journey that has been fraught with bugs, tearing of web developer’s hair and that horrific thing called ActiveX.

    It will be even more disappointing if it ever happens. I doubt that YahooSoft would survive the clash of corporate culture and would just make Yahoo search more ignorant and waste Microsoft’s money. So now we have Yahoogle instead.