Microsoft, Yahoo and Google: The Competition for the Internet Search

The world in which we are living today is utterly based on information technology. Our generation X cannot even think of a living without gadgets like computer, television, mobile, PlayStation, iPod and many more things like that. Internet is a necessity of today’s world, from basic website surfing to airlines industry, corporate banking, health and education sector, etc. The services provided by the companies like Google, Microsoft, Yahoo, AOL are making our life better and better every day. These big search engine giants are giving us the opportunity to find information on the topic of our choice. We can search from an airline schedule to a local restaurant location, from major international news to the nearest medical health centre. Everything is within our reach.

Although, Google is dominating this search engine industry since its establishment in 1998, it’s global market share in search engine industry is about 78.45% (July ’09) with 8.87% of Chinese search engine ‘Baidu’ in addition to 7.16%, 3.17%, 0.58%, 0.09%, 1.68% of Yahoo, Bing, MSN, AOL and others respectively. Hence, the sheer dominance of Google is verified by these statistics. Since, Google is also challenging Microsoft in other fields like the Browser market with ‘Google Chrome’, the Mobile Operating System market with ‘Android’ (although in its initial stage) and the Operating System ‘Google Chrome OS’ (anticipated), Microsoft is facing a serious potential challenge in its software kingdom from Google. This is the reason; Microsoft has revised its strategy by tackling Google in its own search engine industry. And with Google in such a brawny position in this sector, Microsoft required help from someone. This is what forms the basis of the newly signed deal between the two software giants Microsoft and Yahoo.
Yahoo, a company established in 1995 was founded by Jerry Yang and David Filo, is a major internet service and software provider. Earlier, Microsoft tried to acquire Yahoo, but remained unsuccessful. After that Microsoft changed its approach and tried a partnership with Yahoo to challenge Google. According to this new 10 year deal, yahoo will keep 88% of the revenue generated by yahoo sites, while, the ads which will appear on these sites will now use Microsoft’s AdCenter technology in place of Yahoo’s Panama ad platform. This will surely help Microsoft in the long run as the data of online search and buying trends would eventually accumulate /reside in Microsoft’s servers, thus recuperating its ability to provide the most relevant ads. Commenting on this deal Microsoft’s CEO Steve Ballmer said “I am very enthusiastic, this is what I have basically been saying for the past 18 months: The world will be better served for consumers, advertisers and publishers, and there will be more competition for Google, if we can somehow figure out how to get Microsoft and Yahoo together in search.”

Prior to that Microsoft had changed its search platform from MSN to Bing (MS’ new search engine) with new user interface and search technology. The deal provided a boost for Bing by giving it a critical mass to stave off Google and providing Bing to gain some base.

So, for all of us it‘s Bing-o !!

Ashish Verma

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