Posted by: badarrow
Barbara Darrow, Microsoft, Software as a service (SaaS)
Microsoft finally made its move on Yahoo early Friday, offering north of $44 billion for the Internet portal pioneer.
This the day after board member and former Yahoo CEO Terry Semel hit the road and within days of Yahoo announcing a 1,000-person layoff. Also a day after Yahoo co-founder Jerry Yang said that the company is facing “headwinds.”Yahoo says the offer is unsolicited. Microsoft chief software architect Ray Ozzie says he can’t wait for the Yahoo engineers to join what is no-doubt becoming his “cloud computing” fold.
For bread-and-butter Microsoft infrastructure or apps solution providers, Yahoo may seem beyond the pale. But they must watch what Microsoft is doing here. For one thing, the lines between “consumer” and “business” applications are disappearing. That’s what the “Web 2.0,” mash up, hype fest is all about.
Microsoft is spending tens of billions in its quest to thwart Google’s incursion into what it views as its business-apps-and-OS core while also trying to make itself a software-as-a-service, cloud-computing yadeyadeya power.
If that doesn’t show its priorities, I’m not sure what does..
Steve Ballmer said at one of the big events this past year that when it comes to search sites “Microsoft has the most visitors, Yahoo actually has [people] spending the most total time with them. And Google makes the most money.”
We should have known then and there that this deal would be done.