Bing, Bong Yahoo Search Is Dead!

The on again, off again business relationship between Microsoft and Yahoo appears to be on again once more, perhaps finally heading to some sort of completion by early next year. No, unlike as had been proposed in the past, the two companies will not merge. Instead, Bing will become the search engine for Yahoo (as it is for Microsoft) while Yahoo Publisher Network ads will appear on search requests on its site while also retaining the right to sell ads on some Microsoft sites.

Microsoft Wins Big

Microsoft clearly comes out ahead in this ten year business agreement as the technology company doesn’t have to fork over any cash to complete the deal as Yahoo once hoped would happen. Even though it has only been in operation for two months, Bing has received high marks as a search engine and is considered to be better than Yahoo Search which currently controls 20% of the US search market, well behind first place Google Search who has 65%. By replacing Yahoo Search, Bing will suddenly have 28% of the market, positioning itself to chip away at Google market share.

Since it got started, Bing has been grabbing market share from Yahoo, not Google. At the same time, Google’s share has been increasing at the expense of Yahoo, not Bing. Getting squeezed from both sides, Yahoo probably figured that Bing would one day eventually pass Yahoo Search so why not monetize the situation in exchange for getting out?

Surrender, Yahoo Search!

In exchange for surrendering to Microsoft, Yahoo will get to keep 88% of revenue generated from all ads that run alongside search requests on its website for the first five years of the deal. In addition, Yahoo will have the right to sell search ads on as yet to be determined Microsoft sites. If Microsoft is smart, they’ll turn over the ad space for the unpopular Windows Vista microsite to Yahoo, the worst operating system in the world! Just kidding.

Yahoo has been rocked by bad management decisions and an unfortunate economy, turning down a bid a few years back to sell itself to Microsoft for $47.5 billion. With a current value of $22 billion, Yahoo is struggling to find its place on the internet, steadily falling behind Google and struggling with its stock which is trading at just over $15 a share. You have to wonder if some Yahoo heads will roll over the deal too as Bing absorbs what was once the number two search engine.

Sources: TechCrunch, Microsoft, Yahoo

See Also — Bada BING, Bada Boom: Microsoft’s New Search Engine Emerges

Finally, Gmail Exits The Land Of Beta

I wouldn’t have noticed it had I not read about it first on Tech Crunch and a couple of other technology sites. Google’s email program – Gmail – which has been around for five years now and of which I am a committed user, finally has exited beta. Gmail along with several other Google applications (apps) no longer are sitting in beta which means they are ready for your review.

Say that again?

Gmail has long past AOL mail in the number of worldwide users and should soon overtake AOL in the US market alone. Hotmail and Yahoo mail are still out of reach, but Hotmail’s numbers are declining at least in the US. Yahoo seems to have its top position secured for right now, but as we all know Google will do whatever it can to increase its market share at the expense of everyone else.

Bye, Bye Microsoft Office

I long ago quit using Microsoft Office products, having embraced OpenOffice a few years back. Along with Gmail, the suite of Google apps being touted make Google a worthy Microsoft competitor especially if you like to share files and documents. Currently, Google’s apps include Google Docs, Google Talk, Google Calendar and other stuff, something Google charges businesses just $50 per year per user which is about one-third the price of Microsoft.

Lots of businesses have gotten rid of in-house email, choosing to sign up their employees to Gmail which means that they can outsource some of their Information Technology needs. I once used Hotmail (got banned for spamming so they locked down my account….grrr) and I still used Yahoo Mail for one or two back up email addresses. Honestly, I think Gmail is the best email product hands down especially since I can use it as an email aggregation where I can pull in mail from various accounts. Oh, by the way, Outlook has failed me miserably too on several occasions.

A Beta Label Freaks Some People Out

Tech Crunch reported that Google removed the beta label for its customers who may have viewed it as a stumbling block to Google Apps. Some business folks freak out when they see the word “beta” used, thinking that they’re getting a test product that is flawed and certain to crash. Believe me, I can relate to this as I have customers who aren’t particularly web savvy, but see beta as an obstacle worth avoiding.

Of course, if you miss seeing the beta label with Gmail you can get it back by visiting Google Labs, click on settings where you can enable the beta label.

Photo Credit:  Svilen Mushkatov