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Microsoft with Yahoo! could throw open market offerings

In the near future you are trying to download a Yahoo application. But every time a window pops up asking you to validate the Microsoft Windows operating system as genuine.

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But PCs with pirated Windows may not be able to use services despite being available free of cost

MUMBAI/HYDERABAD: Just consider the scenario. Some time in the near future you are trying to download a Yahoo application. But every time a window pops up asking you to validate your copy of the Microsoft Windows operating system as genuine. That is because big brother has just acquired Yahoo and everybody knows old habits die hard.
 
That could well be one of the fears that come true particularly for users who power their PCs with pirated Windows and may not be able to use these services despite being available free of cost. For the record, 90 per cent plus desktops in India run on illegal operating systems.

Notwithstanding such a possibility industry watchers stress the consumer will be king if the high profile $44.6 billion bid does pass muster running the gauntlet of Yahoo! board members, shareholders and perhaps even the US anti-trust regulations. A long time Microsoft detractor Venkat Kumar Tangirala, CEO Blue Lotus Software Solutions Pvt. Ltd, says “We are watching the situation but I expect Microsoft to strengthen Yahoo in its bid to beat Google. And this will be good for the common consumer who can expect more services on Yahoo”.

But then while branded services like Yahoo Mail and Hotmail are expected to continue, duplicity in many offerings including some components of Windows Live could render many of them redundant. Though a bit early in the day to predict, the same could also apply to some of the 1500 software engineers employed by Yahoo in India and the 1400 odd working on the same technologies at Microsoft’s India Development Centre (MSIDC), in Hyderabad. “It is premature to comment on such issues as the proposal is yet to progress”, responded a Microsoft spokesperson.
 
However, the market could see some path breaking technologies and offerings emanating from the combined entity. For instance Internet TV could see a massive fillip with Yahoo’s consumer interface and Microsoft’s technologies providing the much needed platform for video content from other players. Something that Google does not boast of as yet. The mobile space could be another area where one could see a winner from the combination with a clone of Microsoft Windows Mobile and Yahoo’s mobile search, maps and email leveraging the tie ups that latter has with most mobile operators across the world.

Ashish Kashyap, founder & CEO, ibibo.com, and ex-country manager, India sales operation, Google India says, ‘For Yahoo it is the right opportunity to exit looking at its existing financial condition and the way MS would pitch against the likes of Google.’ More importantly if the acquisition does come through it will give Microsoft a bigger opportunity to aggregate online advertisement inventory thanks to Yahoo’s strong presence through mail, IM, and multimedia tool such as Yahoo Launch. “MS will move from its desktop centric approach to being more web based. ‘Thus it would be an appropriate acquisition should MS finally get it,” says Kashyap.

However, the battle is in the search space where late entrant Google owns 57% of the market, and Yahoo and Microsoft together own 34%, according to some estimates. 

t_amit@dnaindia.net

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