Is AOL The Key to Microsoft 'Killing' Google?
VK writes "When Steve Ballmer yelled at a departing Microsoft employee that he would "kill Google" we had no idea just how direct a method he had in mind. Buying all or part of AOL may be the first part of the master plan, as Google relies heavily on the advertising pages that come from AOL, since it now syndicates its search to Google." Update: 09/23 19:20 GMT by J : As our readers pointed out, the original and Reg reprint both typoed "Yahoo" for AOL. Fixed.
I think you could have made this article cheesier by saying:
"Is AOL the quantum link to Microsoft 'Killing' Google?"
The main reason this can't work, is that Google already owns the mindshare of the internet. You can't buy what Google has going for it, IMHO. Consider the mindshare that AOL has...
People who don't like computers or the internet buy AOL, because they think they have to. They think it's the internet.
So Microsoft is going to waste billions on AOL. *tries to contain glee*
Microsoft can certainly buy that client base. They can milk it for all it's worth for maybe even ten years.
As information becomes more and more readily available online, as people read blogs and learn the way of the force, they change. They learn to despise the despots and the weasels. They retaliate.
And this lesson is something that Balmer et al have never understood. They aren't evolved enough to get it. So they buy it, but they can't possibly buy what Google has, and that is what's driving them crazy.
Microsoft needs a whole new mindset if they want to compete in this market, and it's not going to happen.
And as a final note on this deal-based waterfront, FTA: AOL has been losing subscription customers rapidly, which is why it recently switched its business from purely subscription based to increasingly advertising-based.
The dangers of knowledge trigger emotional distress in human beings.
TFA:
...Google relies heavily on the advertising pages that come from Yahoo, since it now syndicates its search to Google.
I think they meant:
Google relies heavily on the advertising pages that come from AOL, since it now syndicates its search to Google.
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this is a classic example of a company that is running low on the innovation batteries so it has to rely on buying out competitors to try and crush their opposition rather than working on new an innovative ways of moving the industry or product line forward.
At the end of the day ill pay all my advertising money to anyone BUT a microsoft or timewarner.
Sends all "free AOL CD's" to Google.
After a few months, Google is buried in CD's.
P.S. Remember the days when AOL floppies were actually useful since you never had to buy any? I actually had a useful purpose for an AOL CD cover recently as a free viewport on an outdoor webcam box.
Hulk SMASH Celiac Disease
It looks like the new CSS-driven slashdot has got a Random Slashdot Headline generator built into it!
Look out tomorrow for "Is <$NOUN> the Key to Microsoft Killing <$RIVAL>?"
Of course, in actuality, tomorrow's headline is likely to be "Is AOL the Key to Microsoft Killing Google?" again
Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
In true Mohammed Saees Al Sahaf style "Google is no more with us"..
If you keep throwing chairs, one day you'll break windows....
Oh, wait...
AOL has a huge customer base, but has been steadily eroded as telecoms roll out broadband to the sticks, and this is not really going to change. AOL has a reputation for sucking, and google has a reputation for being both smart and effective. Microsoft buying AOL just combines the strengths of two successful, or should I say "suckcessful" companies who have more or less reached their apex and do not have the same potential for rapid, sustainable growth as they did when they were rising stars in the industry. They're now bloated, hulking monstrosities desperately clinging to their marketshare and experiencing problems trying to remain relevant.
If this is google's biggest threat, they have little to fear.
You see? You see? Your stupid minds! Stupid! Stupid!
A merging of AOL with MSN will surely not "kill" Google. Yes, as the article states, Google earns roughly 25% of its profit from advertising on AOL but another article (http://www.theregister.co.uk/2005/09/15/aol_msn/) also states what's most important: "AOL - which has seen net users leave the service in their millions over recent years..." Yes, AOL is constantly losing customers and will likely continue to do so. While this move might put a dent in Google's current profit, it's certainly nothing as serious as made to seem.
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Huh? I suppose i could read the article but i'm just going to comment on the actual slashdot description..
What does MS buying part of AOL have to do with Google having advertising pages on Yahoo?
Is that like how like the AOL/TimeWarner merge caused my grilled cheese to burn?
p.s. slashdot with css is freaky, but i like it!
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Still true today!
The cases they send CDs in are sometimes clever being made of wood or metal and sometimes even having magnets in them to keep them closed. I naturally discard the paper ones unopened but the metal ones are great for sending DVDs you make to friends and family. Just make sure it's clearly marked as NOT FROM AOL. I also carry live linux dvds in case I need a quick boot. You can't be sure that a system will support booting from a USB fob, but DVD is universal and cheap.
As a company I still have no use for AOL, but they can send me their clever little boxes all day long.
Sorry about the writing. Robot fingers, you know? Cliff Steele in DOOM PATROL #23
Isn't there some kind of Monopoly law that prevents these things?
That's why the FTC can review large mergers like this and reject them. Although with the recent mergers of Sprint/Nextel and AT&T Wireless/Cingular and the Oracle/Little Fish you have to wonder what the hell is going on in their minds. Oh yeah, and Kmart/Sears.
Is there some reason why large companies can't resist the temptation to acquire AOL? First Time Warner's notoriously ill-fated merger, right as broadband was emerging... Now Microsoft? I realize AOL has a large number of subscribers, still the most of any ISP, but according to Business Week, they lost 900,000 subscribers just in the second quarter! As broadband becomes cheaper and cheaper, why would anyone stay with AOL? Are they even getting any new subscribers? That article also mentions AOL's goal to become a web portal, with AIM, AOL Music and MapQuest drawing users in. AIM I imagine is growing, as new preteens start using it all the time, but does this really make them any money? There's advertising on the client, I've never heard of anyone actually clicking it, or even really noticing it. MapQuest is okay, but I imagine people will gradually switch to Google Maps. I've never even heard of AOL Music, but it doesn't look like anything spectacular. And who would ever use AOL for search or free email? I think anyone under 35 wouldn't even think to look there. Perhaps that's what these companies don't understand: AOL, and really MSN as well, make most of their money off of customers' cluelessness. As customers get clued in by friends and relatives, they'll move to better services. The customers you have left will use one hour of Internet time a month and will probably eat up any profit AOL could make with their tech support calls alone.
2005: New organisation named MicrosoftAOL
2006: MS realised what a terrible mistake they have made and are renamed Microsoft
2007:????
2008: Profit!!! (at least for the investment bankers who arrange the merger and who are no doubt pushing it like crazy at the moment)
Now guess what:
Vinton Cerf works for Google now. Google wants to become a provider and they buy their own communication cables for an alternate internet. Ergo, Google will allow Vint to create a new Inernet protocol, which will have a number of features, which will make AOL/Microsoft cannot provide.
Of course, AOL/Microsoft can buy the market share, but if Google's protocols and Internet is the next generation, then Google will get its market share. And there is nothing that AOL/Microsoft can do about that.
Yes,it's called Antitrust. Named law is meant to avoid the creation of such a giant entity that could potentially, based on it's "dominant position", alter the market.
Apple iProduct. Non importa cosa sia, lo comprerete!
... "buy AOL", what the %@(&#!@% was the question??
Windows Inc. would be afraid that Google threatens it's dominance of the world's computing platform, but would not be able to use MSN Inc. to battle Google. Windows Inc would be forced to make Windows better.
Office Inc. would want their software running on all computers everywhere, it would make Office for Linux, maybe even Office for the internet -- Office Inc would have no interest in ensuring Windows was the dominant computing platform.
Internet Explorer Inc. would embrace technologies like Java and Flash ensuring seemless compatibility with their browser. They would ship a top notch version of IE for all platforms including Mac and Linux. They would not worry about these technologies threatening Windows' dominance of the world's computing platform.
And, MSN Inc. would have to compete fairly with its competition from Yahoo and Google, and would not have the resources to perform its *illegal* predatory business tactics.
Sam
"Is AOL the Key to Microsoft Killing Google?"
"Killing Google"? I think you misspelled "not competing effectively with Google, by purchasing a struggling enterprise with massive consumer illwill that adds to Microsoft's bloat and lack of focused direction."
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
And, MSN Inc. would have to compete fairly with its competition from Yahoo and Google
You misspelled "go bankrupt within a month of it not being the default homepage."
Mod me down and I will become more powerful than you can possibly imagine!
Yes, Google makes money. Sure, money is good, and everyone want more. But for crying out loud, just because someone else has success in an area of business doesn't mean you have to squash them. Microsoft should focus on making Windows better. The reason Google is good is because they spend their effort trying to be the best search engine, not the only search engine.
I'm not saying companies shouldn't aggressively pursue their competitors, but this just reeks of jealousy. I know that Google has a lot of new services (and likely more on the way) which compete with Microsoft (GMail vs. Hotmail, Google Search vs. MSN Search, GTalk vs. Messenger, Google Earth vs. Terraserver) but still...
It would be different if I thought MS was going to build a product which would "kill" Google by simply being better, but I suspect the plan is more to cripple Google as much as possible, and bring everyone down to a "well, it could be better but this is good enough" level.
WTF is this, what happened to the Microsoft I knew that delivered products and listened to feedback and invented little things like reusable components and even kinda sorta slew the mighty ogre of IBM? How did it get infected with the belief that manipulating the market and brand is it's core business? How did it forget how to create software and listen to users, and learn to focus on strategic acquisition and shit?
Oh, wait, it was Ballmer. And being big. But mainly Ballmer.
Hey, in 10 year's time, when MS is in recievership, I wonder who the Ballmer of Google will be?
Whence? Hence. Whither? Thither.
Parent is on the right track: Google has forward momentum, a positive Karma of the internet. Google does what you want it to do (find stuff) and stays out of the way. That's a big plus when you just want to get things done. Outside of search, Google seems to be one place where fresh ideas originate in rapid succession, even if a lot of those ideas never materialize. These new ideas, good or bad, still don't get in the way of their core product, which is still fast and stays out of the way.
Microsoft is in the opposite situtation. They've stalled and in many ways, are slipping backwards. They are widely seen as the behemoth, to the point that you don't have to even read the latest security warning to know that it's from another "Buffer Overflow" problem. Office hasn't done anything inventive in years, except for Clippy. Business users (the ones who actually pay for it) are getting the idea that new versions of Office don't do anything new but do screw up the UI enough that it's not worth the trouble to upgrade. These paying users are steadfastly not paying anymore by sticking with the 2k generation of products. New sales of MS Windows and Office are driven mostly by new computer sales, but some businesses are just moving the software and licenses over from retired systems.
XBox has done well, but it has a different appeal and is becoming its own division, anyway.
AOL is another old behemoth, and if AOL and Microsoft want to hold on for dear life together, so be it. It won't help either one.
Art Makers Just an excuse to show photos of naked women !!
According to today's NYT, Time Warner says that AOL is their future. So the MS buying AOL scenario seems less likely. http://www.nytimes.com/2005/09/22/business/media/2 2warner.html
------ How can making people laugh lead to bad karma?
This isn't Linux, where an open source project can't be killed. Google is a busniness, subject to business pressures. I don't rule out the possibility that Microsoft may actually find a way to buy Google one day. At the very least, Google will end up like Lotus, Apple, Wordperfect; profitable, with a dedicated fanbase, but small and irrelavent compared to the MS juggernaut. Worse, they could end up like Netscape. There was a lot of brainpower in that company too. It didn't save them.
Life is hard, and the world is cruel
Namely, that people are growing smarter and that smarter (by this faction's definition) means people will see Microsoft and AOL for being shams and suddenly see the light and adopt the (sadomasochistic) ways of Linux.
Excuse me while I open a window and laugh.
Car manuals that put the New York Yellow Pages to shame for size and are competitive with sets of encyclopedias have been on the shelves of libraries for years. People know less and less every year about their cars. They know less and less every year about most things because the people who know more and more tend to be doing their jobs correctly: they make it work, and they make it work transparently to the user as to the guts of the process.
You don't need to know how a mainframe works to do your banking, you need not know how a cash register works to buy something. You need not know what an unsigned integer is to compose a letter on a word processor. Windows is easy to use. AOL is easy to use. Put them together and you have the all around ease of use killer setup for home users.
Once again, the tail does not wag the dog. Your kids at school do not control your PC buying decisions and if they did Apple would be the only brand in the USA and there'd be NO Internet as it back then DID NOT fit into Apple's (Job's) worldview. Your average anti-corporate anti-conformity geek in the IT department does not control the corporate PC buying decisions and if they did, we'd all be using BSD command line only boxes. The general "I don't care how it works, I just want it to work" public controls the market.
Sorry to burst your fanciful bubbles, but the Tyranny of the Masses has been the rule and not the exception since before Hannibal crossed the Alps. We can just bring it to you faster and more efficiently than the Roman populace ever could to their wrongly pontificating intellectuals.
If my grammar and spelling are off, I am [distracted/tired/careless] (take your pick)
Microsoft has proved an absolute zero at thinking up anything to do with computers.
Innovation is definitely not their bag. They have bought or stolen everything in their OS, beginning with QDOS and ending with Vista (which is strange considering the number of people on their payroll.)
Microsoft has proved unbeatable at reacting. They don't think of anything but but that. They have their antennas out feeling/looking for any financially successful product out there and seeing how they can take it away.
Its very depressing to witness such stullifying behavior.
MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
are you kidding? 10% might not sound like much if it's in the form of a coupon for 10% off a gallon of milk. but 10% of your revenue from one customer? that's substantial, and not something a company just shrugs off if it happens to dry up. no, losing aol ca$h money wouldn't kill google in one fell swoop, but it wouldn't be trivial, either.
Is so Microsoft can own ICQ and AIM. They don't want Google winning IM, so this kills two birds with one stone: present a credible competitor for anti-trust monitors while taking over most of the IM market. I'm not sure Microsoft won't ruin the advantage they gain with this, however. Turning everything into MSN isn't everyone's idea of IM heaven. Who cares about the subscribers? It's the network infrastructure and IM audience they want for Microsoft Internet.
insecurity asks the wrong question irritation gives the wrong answer
This is like if Target wanted to "kill" Saks Fifth Avenue. So they buy Kmart.
Seriously, Microsoft is primarily concerned with Google because I think deep down they fear that Google will decide to hop into their much more lucrative fields (i.e. Operating Systems and Office Suites). Microsoft is fighting a losing battle online. They got a late jump on the internet. Everything they have tried online, from webmail, to messenging to internet service started too late and could not compete with AOL (as much as I hate saying that) and now losing to broadband.
Look at sights used for web searches and of the major ones, MSN has to be one of the least used. I am sure some people do not mind the clunky and overloaded website design, but most people I know prefer the cleaner google, or heck even Yahoo is typically cleaner in appearance then MSN.
MSN Messenger is quite seriously a joke. Here is a service that few people really use. AOL IM stills has the majority share here as well since they were one of the original IM services. They also bought up another "original", ICQ. Yahoo, I believe is probably 2nd in the IM race and has a strong support base from its e-mail service and people who use Yahoo as a primary search tool.
I think Microsoft needs to stop worrying about trying to make too much money off of their web-based applications and continue to focus on their bread-winners, Microsoft Windows (TM) and the Office series. Quite simply these bring in more money, and there is no real foreseeable end to the need for Operating Systems and Office suites. But in typical fashion, they will try to buy their way into a market and be the anti-thesis to innovators.
"Some days you just can't get rid of a bomb."
Both of these would be invisible to the user, very difficult for Google to spot, but visible to advertisers and sponsors, which would potentially cripple Google's revenue stream. (This is why advertising is a lousy business model - anything that exists only on a logical level is totally mutable, making it easy for people to steal.)
It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
http://www.ntk.net/media/dancemonkeyboy.mpg
My favorite part has always been when he actually hurts himself in the middle of it.
And now, for a sig that's a complete copout.
They can't. This is the power of Open Source - once you've sent it out into the world, you can't call it back. Very handy in situations like this.
For the love of God, please learn to spell "ridiculous"!!!
Moving MSN into Products and Platforms means, they are now under direct supervision of Bill. MS has aggressive work culture while AOL is packed with laid-back typical corporate Americans. Bill will first fire Ballmer if he bought AOL or they will buy AOL minus it's lousy employees.
'cus the way google is going, buying up dark fibre and installing wifi access, it's pretty obvious that they want to provide services direct to users and bypass the ISPs entirely.
MS may end up buying AOL just at the time when it becomes irrelevant.
So much as the implementation. At its core, Netflix isn't doing anything other than what libraries and rental shops have been doing for decades. What makes Netflix different is their execution of the business model: good selection, prompt service, decent price.
Yes, it was Compaq's 386, and IBM's poor strategy, that benefited Microsoft. IBM made many mistakes, for great reading see Robert X. Cringley's Accidental Empires book. Among the problems - IBM underpowered the original IBM PC, and then was slow bringing out the 386. They tried to make the hardware proprietary, by using the 'Microchannel' architecture, the market didn't buy it and went with Compaq's 386 architecture instead.
So the whole innovation deal, that open source just copies, but doesn't innovate, is baloney, one only needs to look at Microsoft. Which came first, Turbo Pascal or Visual Basic? Mosaic or Internet Explorer? Java or C#? ln -s or Microsoft's smart links? etc etc.
But this whole innovation argument is annoying Microsoft FUD. Rather, Microsoft seems to follow the kaizen model, i.e. constant improvement - look at Windows 3.1 to Win 95 to Win XP. And Visual Studio is a great IDE. And this is exactly the situation with Google. I think we'll see Microsoft improve, just as Windows has improved with Linux competition, and C# is an improvement on VB with Java competition, however just like these apps won't be destroyed, neither will Google, since it's outside the realm of MSFTs desktop realm.
Personally I don't care if Microsoft or Googles dies/wins/{insert melodramatic verb here}. But this could be very interesting. Google has been able to take an unusual business tactic of promoting lots of disparate innovations and then trying to find ways to monetize them. To be honest, it hasn't really worked all that well -- yet. Their lack of monetary success on these fronts has been easily hidden by their massive success in their "old" business: search related advertising. That old business brings in billions that fund all the new businesses, that don't bring in much money (yet.) So what happens if Google has a down quarter where their revenues slipped significantly. Their revenues have generally gone up every quarter since their IPO, so that would be a huge change. It would be interesting to see if they would try to cut costs if their revenues were slipping. They might mean less Google Labs projects. Or maybe they would stick with their same business model, even though that might mean a huge drop in their stock price. Either way, it would be interesting to see how they "grow up" in the face of real adversity.
Not just "abusive marketing practices". Huge numbers of abusive practices of all kinds, so many that it might be impossible for one person to document them. Here is just a hint: Microsoft has never been a trust-based company.
Windows 98 had a memory management scheme which would cause it to crash if too many programs were opened. Resellers are required to disclose the names of their customers. Microsoft invented new protocols for connecting to the internet, which, predictably, were found to have security vulnerabilities. With the introduction of Windows XP, Microsoft began integrating its own computers with those of its customers. Microsoft's Internet Explorer browser is amazingly buggy.
Here was an early attempt of mine to document the problems: Windows XP Shows the Direction Microsoft is Going. I only began to scratch the surface of the abuses.