A couple of months ago when Google purchased Jaiku for $30m I confided the following to one of my schoolmates who interned for a high-profile I-Bank in New York:
To be honest, this acquisition seems outright stupid to me; Google could develop its own…

“The openness of the Internet is what made Google — and Yahoo! — possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It’s what makes the Internet such an exciting place.”

This is not about Google. As a matter of fact – if it were, why isn’t Google trying to counter the bid. They are not – last I heard. They are trying to find other search companies to come together to counter the hostile bid. By the paragraph above it looks to me like Google likes Yahoo and its openness to search and usability. I believe that Google even likes it’s competitiveness. What they are talking about is Microsoft’s overwhelming desire to control something just like their previous track record has shown that they have done in the past and will do in the future. The tiger has not changed it’s spots. They want you to only use their browser, they want you to exclusively use their operating systems and be happy to have the newest versions even though they are so filled with bugs that most of your applications don’t work. Google is concerned with proprietary control.

What is going to happen to all those businesses on Yahoo.com when Microsoft starts to exert it’s proprietary controls on them to use only their business store interface or any other product that they can force on you. When you have tens-of-thousands of small businesses doing business with Yahoo right now – what effect is Microsoft going to have on their businesses – never mind Google. People moved to Yahoo to get away from MSN and Microsoft’s proprietary control – why should they be forced to use an inferior product again.

I like Google – I’m sure that could be surmised by my comments. But I also like Yahoo.com. I have lots of friends who use Yahoo’s business tools. I for one used Overture for years and Yahoo’s business keyword search analysis tools. I continuously use Yahoo’s marketing guidelines when I work with my clients in search engine optimization. But I do not support Microsoft or their continuously underhanded controlling practices. That is what is at issue here – not Google’s displeasure over the circumstances. If we stick to he facts we will see the problem – if we see he problem we can correct it – if we get distracted by side issues (like Google’s opinion) we will miss the point entirely.

Just like Google has an opinion – so do you – but that is all it is if it is not focused correctly.

I think the question is: What will Microsoft do to freedom on the Internet vs. them leaving Yahoo alone. I don’t think Yahoo is doing so badly – they do have 21% of the search engine market share. I think it is Microsoft who is afraid of losing the last vestige of control that they have so they are seeking to grab a hold of anything that possibly can. What are your thoughts?

David Drummond, Senior Vice President, Corporate Development and Cheif Legal Officer at Google is concerned about the potential acquisition of Yahoo! by Microsoft. Drummond posted to the Official Google Blog some questions that are troubling him and t…

Not passing messages across each network is only one part of the problem. Yes, its an important problem from IM using people, but that alone doesn’t solve the issue of the lack of innovation on messaging platforms.

Its very easy right now to build PHP client to converse with a PHP server over Jabber. That opens up interesting possibilities of distributed applications. Writing the same application to work inside Yahoo’s or Microsoft’s IM network – not possible outside of their respective Product Groups.

A gateway between the IM networks doesn’t solve the problem, it just means that automated IM clients and servers can practically only be written to work with Jabber.

Of course, with Google’s GTalk client built into GMail, all the Jabber clients and servers I wrote in PHP just worked. That’s openness, and that’s how openness doesn’t stand in the way of innovation.

Agree with Alex.

Has everyone forgotten that Microsoft abuses monopoly power and uses all the dirty tricks in the book?

Google may have monopoly power in search but have they abused it? I dont’ think so. They have not pulled any dirty tricks. As far I’m concerned, they are far from evil.

Would you trust the keys of the internet to Microsoft or Google?

Come on people, refresh your memory.

The fact that Google uses a published protocol means squat — you still have to authenticate to their servers. The fact that Yahoo and MS use their own dedicated clients is as irrelevant as is the capacity to create your own client for Google. (Never mind how many people are actually going to do this…)

The lock-in is at the server, not the client. And no one on the above list is in any different position from the other.

Microsoft CEO Steve Ballmer is presently under the influence of Neptune “negative” Jupiter. This influence governs the unrealistic, impractical, and shows no workable plan for success, the influence is purely emotional. This influence also shows a disregard for morals, ethics and values, which reflects the “take over” tactics of Microsoft as Yahoo begins layoffs and restructuring within. The chart of Steve Ballmer indicates that he is making a “big” mistake in timing and planning that will harm Microsoft.

Microsoft has always made complimentary acquisitions but this is the first time they are making an acquisition of a company exactly like it (and better than it). They will have 3 search portals, 2 major webmail destinations, 2 financial portals, 2 IM clients, 2 dating websites and of course, 2 ad platforms.

Please keep in mind who is making the offer. Microsoft said in their teleconference that they love the Yahoo brand, they didn’t say anything about the technology. The odds of Microsoft buying Yahoo then using all of their technology is unlikely, they will be cutting a lot of areas from Yahoo. Any bumbling will only force people to Google for everything they went to Yahoo for.

#18 I’m pretty sure Microshaft is fully aware of the affects this take over would have on the smaller competitors. They only want to make that gap between them and google closer. Maybe they feel if they get that close they could have a chance…

But long term Microsoft/Yahoo! could pose problems but not straight away because I think Google is far ahead already esp. in search revenue terms.

They could, but they will never do this. And we know this. Google is trusted.

“is concerned that Microsoft and Yahoo might do a similar thing with email and IM?”

Yes, ’cause they are able! Microsoft is able! And it WILL! (it showed us already) That’s the point.

Google made the best search – and people CHOOSE Google. Imagine you can’t choose on Internet as you couldn’t on PC just a few years ago.

So this is not about Google vs. Microsoft. It’s about “preserving the underlying principles of the Internet: openness and innovation” – as they wrote. I totally agree with Google.

To be fair to Google, their IM system uses Jabber – an open standard. Both Yahoo! and Microsoft have proprietory protocols which have the effect of locking people in. With Google, you can use their IM systems and not be locked in to their tools. MS and Yahoo! have both twiddled with their protocols deliberately to break other independent clients.

That is indeed a point of concern. How many great ideas for using instant messaging have suffered because of closed protocols that divide audiences?

“Duncan, I’ve read the letter and I don’t see anywhere in there where they said that a Microsoft and Yahoo combination would hurt Google. In fact I think such a merger would tickle Google pink with the almost certain promise of Yahoo and Microsoft failing miserably.”

The odds of Microsoft failing to monetize on the new assets is quite big. It gives them greater critical mass of users but the questions really remains how will they intend to make it return, Yahoo hasn’t been doing a very good job on that, MSN has been little more successful. Google has a great cash cow in paid search as long as it lasts but I think there is change on the horizon and it may not come out of Google.

I don’t like the idea of the takeover because it brings us closer to the question if internet will or can remain free for everyone.

Every Techmeme story is how the merger wouldn’t work, Microsoft will kill Yahoo’s great services, blah blah blah.

So if I’m Google, and I want this deal to happen, what better than to come out against it, which I have no incentive to do? Because now I can make everyone fight for it, even though we all know it’s a bad idea.