August 2, 2009 – 3:14 pm
Yesterday morning, the two giants of the computer world, Yahoo! and Microsoft have reached an agreement about the major Internet search engines and their two respective Yahoo! Search and Bing.
The agreement in detail
As I announced, Yahoo! and Microsoft have decided to formalize their alliance. It is a ten-year agreement, which deals exclusively with research on the Internet. It states that Microsoft will be in charge of Yahoo! Search, and therefore invite Bing to be present in Yahoo portal. The latter, meanwhile, will be responsible for managing the advertisers of both companies.
Let’s see now the impact of this alliance.
Microsoft will thereafter deal full of research on the Internet for both firms and may also use all the technology of Yahoo! Search. The unique search algorithm used for all Yahoo! sites will be that of Bing. However, engineers from Yahoo! continue to work on improving results, but all changes will be sent to Microsoft that integrate with its own engine. The agreement is therefore that the two companies do not waste their time and money on two engines, so they have a major common target.
Yahoo also provides that this agreement will be beneficial “to society, but also for users and the industry.” A redesign of services will enable Yahoo! reduce its workforce and thus to save $ 700 million per year, while increasing its turnover through the alleged gained market share that this alliance should provoke. Indeed, Microsoft has an obligation to pay for 5 years 88% of revenues earned through doing research on the Yahoo! portal or its affiliate sites.
This agreement should, theoretically, make a great good to the finances of the company in California.
For its part, Yahoo! will focus on the development of advertising marketing, vital search engines. The company will focus mainly on management of advertisers, and this will be done via the platform Microsoft Ad Center.
It is therefore not a merger but rather an agreement. In any case the two companies seek to do that. Instead, on a division of labor on a large scale method has the merit of having proved its worth in the industry. In addition, both companies clearly indicate that there will be no violation of your privacy, and you might, for example, to see any data on your Yahoo! Mail be used by Bing. Only information vital to the smooth functioning of Bing and his development will be transmitted to Microsoft. It was important for the two giants to clarify this point because privacy is a sensitive issue and neglect is a mistake that could lead users to turn to other search engine competitors.