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Is Microsoft just Screwing with Yahoo's Mind?

The Narrative Fallacy writes "This week Cringely offers up a speculative piece asserting that Microsoft might not really care if its bid to buy Yahoo succeeds or not — Bill Gates just wants to disrupt Yahoo and poach the company's employees. 'Microsoft's offer for Yahoo has thrown that company and several others into a tizzy. Yahoo can't be getting much work done, that's for sure ... Redmond's real goal may be simply to poach people from Yahoo, and this deal could help them do just that.' Cringley says there is plenty of precedent for Microsoft's behavior — Microsoft's bids for Borland and for Intuit back in the 1990s sent both companies into a tailspin. 'A failed Microsoft bid, even one involving a termination fee, could lead to horrific results for the company. Remember that Yahoo is staggering here while Intuit was at the top of its market and its game.'"

209 comments

  1. Hard to tell what's going on ... by ScrewMaster · · Score: 2, Insightful

    but is Microsoft capable of this? I'd say that's a given.

    --
    The higher the technology, the sharper that two-edged sword.
    1. Re:Hard to tell what's going on ... by blowdart · · Score: 5, Insightful

      See it's weird; I thought that the google proposed partnership was a spoiler and a non-serious offer just made to burn up more of Microsoft's warchest by giving Yahoo a plausible reason to drive the price up. And the goggle thing dissolved away very quickly, whereas the Microsoft offer is still on the table.

    2. Re:Hard to tell what's going on ... by ScrewMaster · · Score: 1

      Like I said, it's hard to tell. Beats me what's really going on ... from the outside looking in, Yahoo doesn't really seem like a good match for Microsoft. Personally I think Ballmer is flying higher than a kite, but we'll see.

      --
      The higher the technology, the sharper that two-edged sword.
    3. Re:Hard to tell what's going on ... by Anonymous Coward · · Score: 0

      > And the goggle thing dissolved away very quickly

      The goggles! They do nothing!

    4. Re:Hard to tell what's going on ... by rucs_hack · · Score: 3, Interesting

      but is Microsoft capable of this? I'd say that's a given.

      Maybe, maybe not. However I'm sick and tired of the Microsoft conspiracy nutbars who trot out evil reasons for everything Microsoft do.

      Ok, perhaps it is true, but if Microsoft were investing so much time and energy being evil in every move they make, don't you think they wouldn't be the #1 company in the field? (profits wise). I'd have thought they'd have slipped a while back.

      And no, they haven't slipped. Point out the failure of the Xbox to turn a buck if you will, or other small change projects. Those are strategic exercises that may well turn south, but they will not 'bring down Microsoft'. Right now no-one comes close to them in terms of overall power and money.

      And that Netscape thing? Even the Netscape CEO admitted that Microsoft were only doing what other companies did at the time. Incidentally, he ended up a billionaire, and most Netscape employees became millionaires. I have trouble equating that with a poor downtrodden company being hounded out of business, seems to me they did ok.

      I get annoyed by a lot of what Microsoft do, but that's because I'm not into their philosophy, not because I think their running around in the shadows constantly. I'm more likely to get annoyed about their implementation of C++ then their latest business dealings.

      And you know what? IBM used to be right evil buggers, and it cost them their lead in a big way, too much time spent hurting the competition, not enough time minding the shop. Now everyone loves them, 'ooh, but they love open source' is trotted out in defence against any slight. They were real gits back a few decades ago. /rant

    5. Re:Hard to tell what's going on ... by osu-neko · · Score: 2, Insightful

      Ok, perhaps it is true, but if Microsoft were investing so much time and energy being evil in every move they make, don't you think they wouldn't be the #1 company in the field? (profits wise). I'd have thought they'd have slipped a while back.

      Err, no. All of the the above would make sense if it were true that being evil is bad for business. Alas, the reason companies usually behave in an evil manner is because it helps them financially. You can't point to financial success as evidence they're not evil. It doesn't necessarily prove they are, either, despite popular perception. Classically, though, the temptation to do evil is almost always because you do better materially when you do, so your contention above flies in the face of classical reasoning on the subject.

      IBM used to be right evil buggers, and it cost them their lead in a big way

      IBM's evil is was sustained it as long as it did. It was IBM's arrogance that brought them down.

      --
      "Convictions are more dangerous enemies of truth than lies."
    6. Re:Hard to tell what's going on ... by kae77 · · Score: 1

      Sure doesn't help Microsoft's perception of a corporate bully.

    7. Re:Hard to tell what's going on ... by kripkenstein · · Score: 5, Interesting

      See it's weird; I thought that the google proposed partnership was a spoiler and a non-serious offer just made to burn up more of Microsoft's warchest by giving Yahoo a plausible reason to drive the price up. And the goggle thing dissolved away very quickly, whereas the Microsoft offer is still on the table. The Google offer dissolved because it wasn't very realistic. But that doesn't prove the Microsoft offer is real.

      Personally I suspected Microsoft's offer might be fake pretty early on. I mean, it can't be 100% fake, because if Yahoo! were to immediately agree, then Microsoft would have to go through with it, or lose face (and a lot of it). So there is some degree of truth in the offer. But Ballmer might think that the deal has a 95% chance of not succeeding (due to Yahoo! dismissing it, regulatory issues, etc.), and that in that 95% case he manages to screw Yahoo! up big time.

      As for why Microsoft would want to screw with Yahoo!, my reasoning as I explained it to someone the other day is this. First, Microsoft would screw with Google if it could, but it can't use this trick there. So Yahoo! is the target, as follows (numbers are made up here, just to make a point): Say Google has 50% market share, Yahoo! has 30% and Microsoft has 10%. If Yahoo is screwed with, it might lose 10% to drop to 20%. In theory 5% might go to Google, 5% to Microsoft, giving us Google 55%, Yahoo! 20%, Microsoft 15%. Note that this helps Google at the same time as it helps Microsoft, but in simple terms, Microsoft has gained 50% market share (10% to 15%). From there Microsoft is at a better vantage point to challenge Google. Or, in other terms: First Microsoft fought with 80% of the market; now it fights with 75% of the market.

      Another way to see it is that Microsoft wants to be #2 instead of #3. Any playing fairly always takes more time.
    8. Re:Hard to tell what's going on ... by SunTzuWarmaster · · Score: 0

      "Evil will always will because Good is dumb"
        - Spaceballs

    9. Re:Hard to tell what's going on ... by Anonymous Coward · · Score: 0

      "Slashdot posters will always use quotes and get them wrong because they feel they are too good to look them up"
      - Anonymous coward

    10. Re:Hard to tell what's going on ... by rdean400 · · Score: 1

      Honestly, I don't know if they're capable of it. "Web 2.0" is characterized by disruptive innovations, and Microsoft's bureaucracy acts against the agility needed to accomplish that.

      If you look at their recent product releases, you'll see a lot of reinventing wheels. Disruptive innovation is characterized by new inventions or new combinations of ideas. They don't have that.

    11. Re:Hard to tell what's going on ... by SL+Baur · · Score: 4, Interesting

      Point out the failure of the Xbox to turn a buck if you will, Maybe it didn't, but you are right - it was huge strategic victory. More than ever, console games and Microsoft Windows are linked. The last time I went to a GameStop I asked for games playable on Macintosh. The salesman immediately said there weren't any. I pointed behind him at the display case with World of Warcraft and told him he was wrong and he said he didn't know it could be played on Macintosh.

      Go Blizzard! They not only run on Macintosh, they run on Linux with Wine too.
    12. Re:Hard to tell what's going on ... by stavros-59 · · Score: 1

      Maybe, maybe not. However I'm sick and tired of the Microsoft conspiracy nutbars who trot out evil reasons for everything Microsoft do.

      The other choice is to believe that they are just incomponent. Like some sort of clumsy 800lb gorilla let loose in the marketplace to tromp unhindered on anything that gets in their way.

      Oh wait....
    13. Re:Hard to tell what's going on ... by Lally+Singh · · Score: 1

      There's something to be said about prior history about MS. As for how diabolical this is, the development of this technique could be simple: they actually intend to buy a company, but eventually discover how much leverage they get just by offering. Eventually the offer becomes a weapon.

      As for why MS isn't #1 in the field, no matter how unscrupulous you methods, you still have to put out good code.

      It'd be nice if they eventually had an IBM-esque transformation. Then it'd be google's turn to go evil :-)

      --
      Care about electronic freedom? Consider donating to the EFF!
    14. Re:Hard to tell what's going on ... by microbee · · Score: 2, Interesting
      In theory 5% might go to Google, 5% to Microsoft, giving us Google 55%, Yahoo! 20%, Microsoft 15%.

      I am sorry but this "theory" is pretty silly. Why wouldn't it be that Google grabs most of it, at least at the 50:10 ratio?

    15. Re:Hard to tell what's going on ... by rbanffy · · Score: 1

      "IBM's evil is was sustained it as long as it did. It was IBM's arrogance that brought them down."

      Wrong. It was two disruptive technologies and two bad decisions that ended IBM's monopoly. The first technology was commodity computer components that enabled small-run computer outfits to compete. The other was the sale of OSs that were not tied exclusively to a specific micro-computer platform (that more or less started with the CP/M family) that created.

      As for the bad decisions, had IBM either successfully launched the PC with a proprietary processor instead of commodity x86 or decided Microsoft should be exclusively tied to IBM on the PC-DOS deal and never sell the OS to third parties, two key events would play out differently - the clone industry would never exist (or would clone something else) and PC-DOS/MS-DOS would not end up being the de-facto standard CP/M never quite got to be.

      Microsoft had MSX as sort of a plan B. It was 8-bit but every MSX made by a bunch of different Japanese and European companies shared the Microsoft built-in software and operating system. It seems MS did bet on two horses - if the PC clone industry failed to materialize, they would try to grow MSX into something to replace it.

    16. Re:Hard to tell what's going on ... by Anonymous Coward · · Score: 0

      Maybe it's just me, but I get the impression that there is a significant difference between IBM's and Microsoft's behavior after they were hit with their respective antitrust suits. Of course, nowadays it looks like losing an antitrust suit hardly matters if one greases the proper wheels in DC.

    17. Re:Hard to tell what's going on ... by dhavleak · · Score: 1

      Personally I suspected Microsoft's offer might be fake pretty early on. I don't know man -- a 44 billion dollar offer isn't something you treat like a game of poker. And MS hasn't backed down yet either. I mean, if you forget the theories of MS having malicious intent etc., the math becomes a lot simpler. Yahoo has 20% of market share and MS want to buy that 20%. Plain and simple.
    18. Re:Hard to tell what's going on ... by _Sprocket_ · · Score: 2, Interesting

      And you know what? IBM used to be right evil buggers, and it cost them their lead in a big way, too much time spent hurting the competition, not enough time minding the shop. Now everyone loves them, 'ooh, but they love open source' is trotted out in defence against any slight. They were real gits back a few decades ago. IBM lost control of the market because they over-valued their mainframe business, lost their R&D focus, and fumbled the microcomputer market. Their evil ways? It was all about keeping their dominance with mainframes. Meanwhile the microcomputer sprang from hobbiest device to must-have decentralized business tool. IBM lost control of their attempt to capture this surprise market (one that they had largely ignored) and, ultimately, set the stage for their own downfall; the rise of inexpensive, commodity computers. Having a bag of "evil" tricks in business is very much like carrying a loaded gun. It doesn't matter that you possess it. You still have to point at and hit the right targets.

      So what about IBM and OSS fanboyism? Fair enough point. People should remember that there's no guarantee the IBM of today will be the IBM of tomorrow. We should remember that it isn't too long since the IBM of the past. But there's an important point that critics who bring up this "IBM used to be evil" meme don't mention or don't understand. IBM's contributions to OSS right now is under OSS licensing. They can't take it back. Even if the IBM of old rears its ugly head once more.
    19. Re:Hard to tell what's going on ... by HartDev · · Score: 1

      I think that MS is just trying to keep it's powerful empire that it built, and it is after what Google has, but it won't make it haha!

      --
      To see a few of my Android apps goto: www.hartwired.com
    20. Re:Hard to tell what's going on ... by Fulcrum+of+Evil · · Score: 4, Insightful

      No, a 44B offer is absolutely a poker bet. Just because the numbers are big doesn't mean that the rules change. Poker is about psychology, and that doesn't vary with the stakes.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    21. Re:Hard to tell what's going on ... by kripkenstein · · Score: 1

      Personally I suspected Microsoft's offer might be fake pretty early on. I don't know man -- a 44 billion dollar offer isn't something you treat like a game of poker. And MS hasn't backed down yet either. Well, why can't it be just like a game of poker? Perhaps Microsoft intends to decline the deal during the lengthy due diligence process, "oh, we didn't realize that [X,Y,Z facts about Yahoo]; never mind, we don't want it."

      That's why some deals of this sort have a 'compensation' clause in which, if the buyer cancels the deal, some fixed sum is paid to the other side. Even a billion dollars for such a clause might be worth it for Microsoft, since it makes that amount (net) in a month.
    22. Re:Hard to tell what's going on ... by Anonymous Coward · · Score: 0

      I don't get it. If some of Yahoo's customers switched because of this offer why would they switch to Microsoft? If they are happy to use Microsoft's services, then why not wait until the deal goes through, then they don't have to do any switching.

    23. Re:Hard to tell what's going on ... by Z00L00K · · Score: 1
      One factor is: Do Microsoft really need Yahoo? Maybe only as a bat against Google.

      For search engines they have already acquired Fast, so they are in the search business.

      In my opinion they are probably out to diminish the smaller actors in online advertising to gain more clients on their own advertisement service before going for Google. That either by buying or by creating confusion. It is possible that they see that there is an end to the incomes generated by Windows and Office and that they need a new area where they can put their leverage in. And don't expect it to go soft - they will do the bandwagon thing by first eliminate the competition and then raise the prices to pay off the investment.

      Combine this with all the FUD they are spreading and chairs thrown and you get a M$-blue future where all needs DirectX and Silverlight on their computer to read mail, search the web or browse /.

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    24. Re:Hard to tell what's going on ... by kripkenstein · · Score: 1

      The point is that during the period of uncertainly things at Yahoo! aren't running normally (and this period of uncertainly might last quite a while, while regulators make their decisions etc.). During this time, Yahoo! services might not be up to par, new features added more slowly, glitches, etc., who knows. Some people might be dissatisfied with the service at Yahoo! and seek other options. Most of those would have no idea about some "Microsoft deal to buy Yahoo!", so they wouldn't even consider waiting until the deal goes through (if it ever does). They'd just check out the other options, mainly Google and Microsoft.

    25. Re:Hard to tell what's going on ... by ScrewMaster · · Score: 1

      Well, I meant "capable of making this offer with the intent of screwing up Yahoo by not buying it", which is what the article was about anyways, not "are they actually capable of buying Yahoo" which is largely irrelevant in that context.

      --
      The higher the technology, the sharper that two-edged sword.
    26. Re:Hard to tell what's going on ... by mabhatter654 · · Score: 1

      you have a point. IBM was targeted right after AT&T was successfully broken up. They pretty much had to let Microsoft have the PC industry or they would have been lost the anti-trust case. It's probably the thing that saved them as the industry changed and new kids were taking over the markets. The EU is starting to treat Microsoft like IBM was treated, but it's not the same.

    27. Re:Hard to tell what's going on ... by dhavleak · · Score: 2, Interesting

      No, a 44B offer is absolutely a poker bet. Just because the numbers are big doesn't mean that the rules change. Poker is about psychology, and that doesn't vary with the stakes. That's more of a universal statement, than something that applies to this topic. When you look at it that way anything/everything/nothing (whatever you prefer) can be looked at as a poker game.

      But I seriously doubt that the acquisition offer began with Ballmer and the other top dogs saying "let's screw with yahoo's mind, because we can, and by our machinations we could actually get yahoo to disintegrate and we'll snap up 5% of the online ad revenue market in the process".

      In any case, going along with your poker anology, keep in mind that poker is not just psychology. It's also got a bit of cold hard math. The online ad revenue martket is projected to reach $80bn/year soon. Yahoo has 20% of this market. Assuming they maintain parity after the merger, that's 16B/year -- a 44B investment is recovered in 3 years.

      Yahoo's been losing market share so maintaining parity isn't a given. Yahoo's brand is stronger than MSN/Windows Live, but nowhere close to Google. And Yahoo has been on the decline. But the synergies can actually be made to work in this case. And I don't mean that in a management-jargon-bs kind of way. If you consider the online properties MS and Yahoo have, you'll notice in terms of just actual presence and features, they are at parity (search, ads, mail, auction, photos, blogging, the list goes on..). Now that's where the synergy comes in -- there are common problems that yahoo and MS have been solving idependantly to offer these services: Cost of storage, fault tolerance, log compression, analytics, indexing, search algorithms, etc. etc. There's bound to be at least an 80% overlap in their technologies for dealing with these issues. The other 20% is where both sides get rapid gains.

      Some of the synergies come even more easily. Maybe they discover that MS's ad-platform is better than yahoo's (or vice-versa). It can be plugged into yahoo's pages without it's users ever noticing a thing. Just the back-end provider changed, but the relevancy (and hence monetization) shot up overnight. Same is possible with search too.

      Some cost-cutting will probably come easily as well. By yahoo's own admission at 16,000 people, the company is quite bloated (and they had layoffs recently to prove it). Some job cuts are almost guaranteed.

      Now the acquisition offer has been rejected by yahoo, so for now this is a moot point. But even if it had been accepted it would be foolish to suggest that the advangates are easy to achieve, or without risk -- no, it would be a hard grind for both parties. Handling Yahoo's brand correctly and delicately is the part MS is most likely to fuck up. But they themselves must surely be aware that they are woefully bad in this department, and yahoo is light-years ahead of them, so it makes sense that they would defer to Yahoo and let them lead the way in this area (otherwise what's the point of this acquisition).

      Bottom line: to suggest that the offer was nothing but a poker bluff intended to mentally disintegrate yahoo and magically pick up 5% when this happens is just nuts! It's a gross oversimplification, and puts too much stock in the "ms always has malicious intent" line of thought.

      Disclaimer: I think most of my numbers are close to the truth in this post, but I didn't really bother to look them up :P
    28. Re:Hard to tell what's going on ... by rdean400 · · Score: 1

      I think their (lack of) capability to successfully integrate Yahoo! is what makes them incapable of screwing with Yahoo! this way. The only thing screwing with Yahoo! does is strengthen Google.

    29. Re:Hard to tell what's going on ... by Fulcrum+of+Evil · · Score: 1

      But I seriously doubt that the acquisition offer began with Ballmer and the other top dogs saying "let's screw with yahoo's mind, because we can, and by our machinations we could actually get yahoo to disintegrate and we'll snap up 5% of the online ad revenue market in the process".

      Well why not? They can work out that yahoo will probably not go for the bait and that this will affect their ability to function. If they balk, use the instability to poach some talent (and don't spend the $44B). If they go for it, you've bought some of your competition, perhaps at a premium, but you now have a big chunk of the market. If it's low probability and you can take the hit, then go for it.

      Yahoo's been losing market share so maintaining parity isn't a given. Yahoo's brand is stronger than MSN/Windows Live, but nowhere close to Google. And Yahoo has been on the decline. But the synergies can actually be made to work in this case.

      This tends to validate my position - Yahoo says yes and you get your money back in a few years (if you do the right things), Yahoo says no and you get to maybe grab some senior guy who's pissed off his stock didn't spike.

      Handling Yahoo's brand correctly and delicately is the part MS is most likely to fuck up. But they themselves must surely be aware that they are woefully bad in this department, and yahoo is light-years ahead of them, so it makes sense that they would defer to Yahoo and let them lead the way in this area (otherwise what's the point of this acquisition).

      Well, they've been buying ad sellers - perhaps they're trying to do the old 'buy the market and squeeze out your competitor' thing they did in the 90s. Dunno if it'll work this time.

      Bottom line: to suggest that the offer was nothing but a poker bluff intended to mentally disintegrate yahoo and magically pick up 5% when this happens is just nuts! It's a gross oversimplification, and puts too much stock in the "ms always has malicious intent" line of thought.

      Not a bluff, but definitely poker. If you can exploit both possible responses, then it's a reasonable thing to try.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    30. Re:Hard to tell what's going on ... by dhavleak · · Score: 1

      Well why not? They can work out that yahoo will probably not go for the bait and that this will affect their ability to function. If they balk, use the instability to poach some talent (and don't spend the $44B). If they go for it, you've bought some of your competition, perhaps at a premium, but you now have a big chunk of the market. If it's low probability and you can take the hit, then go for it. ???

      Sorry if I sound rude, but I honestly find this amusing, and also symptomatic of /. thinking in all matters MS. When you think super-high-level or are just feeling intellectually lazy, a statement like that seems to actually make sense, but when you actually think about it -- it completely falls apart. Let me explain...

      Affecting their ability to function: Mergers/acquisitions cause instability - this is true. But the instability that really matters comes when the deal actually goes through (the 'realizing the synergy' part). Until then, people don't jump ship en-masse. Yahoo might be a bit bloated, but it's still a company, complete with divisions, sub-divisions, hierarchy, etc. and people know their jobs. Their roles didn't change overnight when MS offered 44B. They aren't running helter-skelter not knowing what to do right now.

      Using the instability to poach talent: Even if we assume that this 'instability' causes mass exodus, talent poaching is much more targetted than this. Of the 16,000 working at Yahoo, there's probably 1% of them that have the talent that can help MS in this field (i.e. MS minus Yahoo). The ones who have the vision to know how to develop online presence, or the technical prowess to improve the quality/efficiancy of MS's services. These are the people MS needs, and the odds that they have a knee-jerk reaction to an acquisition offer are fairly low -- people of this quality do a poor headless chicken impression. MS's silicon valley base is very small, so only a fraction of the defectors will go to MS. Just picking up anybody who leaves yahoo for MS achieves nothing. If MS could fix their problems by just making up the numbers they would have already done that.

      If it's low probability and you can take the hit, then go for it.: I don't even know what to say. A $44B bet is basically betting the company. For literally the first time ever, MS will not have surplus cash at its disposal and would have to borrow money to complete an acquisition. For at least a couple of years they won't be able to sink billions into unhealthy units that they expect to turn around in the long run (like say the xbox division) unless they take loans. From what angle does this look like 'a hit they can afford to take'? The fact that MS's stock only lost about 10% since the acquisition news and Yahoo's stock jumped almost 60% indicates that the shareholders (the ones whose money is where their mouth is) think this is nothing but good for yahoo, and risky but workable for MS. MS execs themselves must have shat a mountain before making the offer. Make no mistake: if they acquire yahoo and the integration goes sour, they are foobar'd.

      This is not poker. There are (very valid) analogies you can draw, but this is not a game for MS or Yahoo. MS has realized for a while that their Windows+office business model is slowly getting obsoleted, and they have maybe 2 more release cycles they can safely rely on. They know what they need to shift to, but they've had very little success in getting a foothold. But they are refusing to give up, because they probably realize that if they do not succeed on the web, they will eventually just disappear into the ether. This is a company with a very healthy balance sheet, that has realized the challenges it faces before the balance sheet went south. I don't know how else to convince you that MS is in a fight for its survival, and not a poker game.

    31. Re:Hard to tell what's going on ... by Fulcrum+of+Evil · · Score: 1

      This is not poker. There are (very valid) analogies you can draw, but this is not a game for MS or Yahoo.

      It's still a game. The stakes are survival, but that just means it's a serious game.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    32. Re:Hard to tell what's going on ... by Anonymous Coward · · Score: 0

      Dude, WTF are you talking about? There's a lot of words but no English in what you wrote.

    33. Re:Hard to tell what's going on ... by dhavleak · · Score: 1

      This is not poker. There are (very valid) analogies you can draw, but this is not a game for MS or Yahoo. It's still a game. The stakes are survival, but that just means it's a serious game. Whatever dude. You say game, I say survival - whatever. Original posters point about this being a poker game was:

      Personally I suspected Microsoft's offer might be fake pretty early on. And that's what I was debating (in addition to all the other stuff backing up that claim). I already conceded that your poker analogy is valid and can be applied to just about anything in life. Anything can be called a game. Is that your point? If so, let me repeat - consider it conceded.
  2. Treading Water by wombatmobile · · Score: 4, Insightful

    Yahoo is treading water. Microsoft is treading water. Neither company has innovated to grow new business for the last 5+ years. Meanwhile, Google has created growth. It has built and grown a large, growing advertising business. Now Microsoft has a paw on Yahoo, treading water next to it.

    1. Re:Treading Water by Anonymous Coward · · Score: 2, Insightful

      "Microsoft is treading water."

      That is the trouble right there with discussing Microsoft. You really can't have a serious discussion of the company because there a million Microsoft fans who will flip out and point out that a company that Microsoft has/makes 'billions' and that is 'like an infinite amount of money'.

    2. Re:Treading Water by erroneus · · Score: 4, Insightful

      That's a fact and I'd add more to this by saying that Microsoft is "leadership" and "vision" poor. They are not likely to be short on talented or skilled people. The reality is the decisions and priorities that Microsoft is following are what's leading to its hardships at the moment. They had defined "computing" as we had known it for around 10 straight years but that position has slipped quite a bit and pretty much everyone is doubting Microsoft's vision and wisdom in the industry -- even the end users -- and it would seem Microsoft has yet to realize that they no longer truly wield the power over people's minds that they once had. (Or perhaps they are realizing it and are attempting to compensate in other [failing] ways?)

      Once upon a time, Microsoft made cool stuff and people bought it... a lot of it. Then, for some reason, marketers took control of the company instead of the creative people and now people are wondering why Microsoft is failing.

      It's LEADERSHIP and lack of vision that is dooming this once incredibly influential company. Attempting to poach employees from Yahoo, an equally if not more stagnant company, isn't going to anything but rearrange the deck chairs on their Titanic.

    3. Re:Treading Water by abigor · · Score: 4, Informative

      Microsoft's year over year growth for the fourth quarter of 2007 was 26%. Their quarterly revenues were nearly equal to Google's entire financial year. Such growth can hardly be termed as "treading water", despite their lack of innovation.

    4. Re:Treading Water by webmaster404 · · Score: 5, Insightful

      Once upon a time, Microsoft made cool stuff and people bought it... a lot of it. Then, for some reason, marketers took control of the company instead of the creative people and now people are wondering why Microsoft is failing.

      No, once MS, Bought cool stuff from other companies, rebranded it and made deals with OEMs so people would use it. Just about EVERY thing MS has done has been bought by other companies. If it wasn't for getting lucky with DOS (which they bought from someone else) and IBM they would not be existing right now. All MS survived on is luck and buying companies that do innovate. Now that they managed to monopolize all the OS industry, they have just left the community projects like Linux that can't be bought and Apple which would be highly unwilling to be bought. Everything MS has done was by money, even though they have good coders, all MS has done is buy and buy and now they have scared all the competition from even trying, they have nothing left to buy and are now stagnant. Yahoo innovated slightly but I still think it represents the early '90s on the Web whereas Google represents the present age.
      --
      There is no "disagree" moderation, and troll, flamebait and overrated are not valid substitutes
    5. Re:Treading Water by imsabbel · · Score: 2, Informative

      Well, if it really hurts you that much that people point out the truth to groupthinkers, than its sad.

      otherwise, just to give you a hint "record quarter".

      (Sorry, this kind of fud just doesnt work against microsoft. you really have to actually _do_ something if you want to change the status quo)

      --
      HI O WISE PRINCE. WHT TOOK U SO DAM LONG?
    6. Re:Treading Water by webmaster404 · · Score: 1

      Microsoft's year over year growth for the fourth quarter of 2007 was 26%. Their quarterly revenues were nearly equal to Google's entire financial year. Such growth can hardly be termed as "treading water", despite their lack of innovation.

      How many of that "growth" is in OEM versions if Windows? I'd guess alot, MS could easily have them buy in bulk (such as licenses by the thousands) and give a slight discount and make it seem like MS is alive while that may be the only OEM money they get for the first half of Vista's life. No, MS is going down and even though they can make the numbers say whatever they want the fact is, people perception of MS is different, no longer does OS need to equil Windows with Mac and Linux being just as if not more usable then Vista and unless MS can come out with Windows 7 by 2010, I would say that MS is sinking like the Titanic.
      --
      There is no "disagree" moderation, and troll, flamebait and overrated are not valid substitutes
    7. Re:Treading Water by abigor · · Score: 1

      "Treading water" implies little or no growth. MS continues to grow at an impressive clip. Growth rates are of course relative, not absolute, contrary to what your comment implied (26% quarterly growth is outstanding no matter how big your company is). So, care to enlighten me and everyone else here with your stock valuation "fundementals [sic]", brainiac?

    8. Re:Treading Water by Jarjarthejedi · · Score: 1

      "Get it through your pee brains that the fundementals of stock valuation don't change or go away simply because the numbers are "really big" or "bigger than something impressive"."

      Mind saying what are the fundementals then? Last time I having good quarterly growth and revenue = valuable stock. What exactly is the magical element that Microsoft is missing when it comes to their stock valuation? Before you answer it should be noted that the total value of MSFT (volume*price) is pretty close to GOOG, so while MSFT is trading at $28 and GOOG at $500 there's a lot more MSFT.

      --
      There are two kinds of fool One says 'This is old therefore good' Another says 'This is new therefore better'- Dean Ing
    9. Re:Treading Water by Anonymous Coward · · Score: 0

      "MS continues to grow at an impressive clip."

      http://finance.yahoo.com/q/bc?s=MSFT&t=my&l=on&z=m&q=l&c=

      The stock has been effectively flat for eight years. You don't get any more fundamental than that. And what is even more damning is that flat stock price includes part of the 40 billion dollar buyback program Microsoft is going through to prop up the stock.

      I honestly don't see how anyone could be clueless enough to label Microsoft's growth 'impressive'.

    10. Re:Treading Water by Anonymous Coward · · Score: 0

      In the long term, it can. A lack of innovation may not necessarily hurt your bottom line right now, but in the long run, it's going to come back and bite you in the ass.

      Seriously. Recall the joke about the guy who falls off of a skyscraper and tells himself "everything's been going fine so far" at each floor he passes? Like him, Microsoft may be in for a rude awakening if they really think they can survive forever without innovation.

    11. Re:Treading Water by abigor · · Score: 1

      Oh, I fully agree - I was just responding to the original post regarding the "treading water" comment. MS and Yahoo aren't really comparable in terms of relative growth.

    12. Re:Treading Water by abigor · · Score: 3, Insightful

      Actually, it's flat because MS is transitioning from being a pure growth stock to a blue chip stock, complete with dividend payouts, which are still too small. Successful blue chips generate huge profits and sustain predictable growth year over year, but their stock prices aren't particularly volatile. MS is not paying large enough dividends, causing the stock to flatline (this may have changed recently, as I'm not up to date with their latest actions).

      MS is no longer like a Google-style volatile growth stock. It's more like investing in Johnson and Johnson or something. They need to increase their dividend payouts, if they haven't already.

    13. Re:Treading Water by Anonymous Coward · · Score: 0

      >Just about EVERY thing MS has done has been bought by other companies

      Not insightful.

      Microsoft didn't buy Windows, didn't buy Office,
      didn't buy Visual Basic, didn't buy, etc.

      You're still talking about DOS? Freaking DOS!? Jesus, move on man. They bought something to start DOS with, and then improved on it.
      Just like Apple bought NeXT, the jukebox that became iTunes, Final Cult pro (from macromedia), all the iLife apps, etc.

    14. Re:Treading Water by Anonymous Coward · · Score: 0

      Right... since google doesnt do the same thing huh? :rolleyes: How much has Google bought recently?

    15. Re:Treading Water by rucs_hack · · Score: 4, Insightful

      Purchasing smaller companies that produce products you want to incorporate into your business is standard industry practice...

    16. Re:Treading Water by Anonymous Coward · · Score: 0

      From http://www.microsoft.com/msft/financial/default.mspx

      Income Statements 1985-2008

      http://www.microsoft.com/msft/download/Income%20Statements.xls

      You could argue they had issues from 2001-2005, but can you honestly say they haven't been on a roll lately?

    17. Re:Treading Water by Anonymous Coward · · Score: 0

      too bad for ms that there aren't small companies that produce product they want.

    18. Re:Treading Water by Anonymous Coward · · Score: 0

      I have to dispute this point a bit. Microsoft, from day one, has been anything but truly innovative. BASIC? Not theirs. DOS? Bought. Windows? Controversal for being a platform of theft by Microsoft, in the early years from Apple. (Though I think Apple was more in the wrong in that case, thinking they can control GUIs like that, Macintosh and Lisa notwithstanding.) C#? How many more C derivatives do we really need? Office? Please, like Microsoft invented the word processor, spreadsheets, presentation software, and databases. Shared Source? Microsoft trying to fool idiots into thinking they are also open source. Internet Explorer? Mosaic from Spyglass, one of the many classic examples of Microsoft stabbing its partners in the back. NT? VMS-inspired operating system that was originally going to be a new version of OS/2. The other classic example of back-stabbing on the part of Microsoft.

      For their ~ 30 years of existence, Microsoft has either bought out their "innovations" or outright stole them. Look at Vista right now! How much of Vista was copied straight from Mac OS X or even Linux? And now they're still trying to buy Yahoo! simply because their web services just aren't cutting it anymore. (Live Search? MSN? Give me a fucking break.) I think anyone with half a brain stem sees this is Microsoft trying to cope with the fact that Google is thrashing them on the Web right now, which is probably due to the fact Microsoft was VERY late to the Internet and made the world's most insecure web browser, one *so* horribly bad the US government is begging users NOT to use the damn thing!

      Then there's the fact that Microsoft moved too much like a dinosaur. Internet Explorer 7 took way too fucking long, and I think they even upgraded to IE7 simply because Firefx and Opera were both starting to get popular. And Vista, dear god, Vista. Took them how long to release it and they had how long to work on it and it was *still* a piece of utter and inane shit? Worse than ME, even, if you can imagine!

      At what point did Microsoft ever "innovate?" They never did, and yet they lasted on the long term and secured themselves a proven monopoly they're fighting like all hell to preserve. I don't think Microsoft deserves any defense for churning out garbage and forcing most of the market to eat it.

    19. Re:Treading Water by Anonymous Coward · · Score: 2, Informative

      Go back to playing WoW and stop trying to be an amateur economist. A stock price moves primarily when expectations of future earnings change. That Microsoft's stock has been flat for so long is indicative of the fact that this rate of continual growth was priced into the stock long ago. They've been executing consistently for a long long time.

      You are right in suggesting that new products have not caused that growth rate to accelerate beyond expectations (until recently). But when your earnings grow by a Google every year, it's pretty damn hard to turn the corner yet again.

    20. Re:Treading Water by Anonymous Coward · · Score: 3, Insightful

      Google represents the current age? What exactly has google done that is innovative aside from adsense? Search was already done, it was just an incremental improvement. And then they did what you say Microsoft did, they purchased. They bought maps, blogging sites, on-line office suites. Googles products are driven by acquisition and not innovation.

    21. Re:Treading Water by bigpicture · · Score: 2, Insightful

      I believe you have framed the actual situation very accurately here. The MS leadership didn't actually have a lot of vision, they just bought up cool stuff companies who seemed to be succeeding in the marketplace.

    22. Re:Treading Water by Anonymous Coward · · Score: 0

      Parent talks like Nice Pete. It freaks me out. I put the parent poster's body in my van. And I am the winner.

      http://achewood.com/index.php?date=04092003

    23. Re:Treading Water by andruk · · Score: 1, Interesting

      This is true, but I think the parent meant that the idea that Microsoft has innovated a lot is bullshit. Microsoft has rarely innovated, and while it may be standard practice, if the only thing that can do is buy other companies to look like they are visionaries, then that a fairly thin smoke screen to hide behind. Now that fewer companies are trying to innovate, Microsoft is simply stuck, leaving their marketers to create the next-big-thing (tm), Vista. As far as I know, the only thing Microsoft has done is stuff like the beginnings of AJAX (somebody please prove me wrong) and the XBOX (which was nice, but nothing more than the PS2 or Gamec...PS2). AJAX was fairly fundamental to the whole "Web 2.0" buzzword thing, but the XBOX really was nothing new.

      At this point, the only thing Microsoft has gong for them is marketing, existing mindshare, "intellectual property", vendor lock-in, and proprietary protocols/formats. Except now that the Samba team has the documentation for Samba, it's just a matter of time before other operating systems (read: Linux/Ubuntu) start interoperating with Windows. OpenOffice.org is starting to read and write .doc's fairly well, and OpenOffice.org's price tag is low enough (snicker) to compete with Microsoft Office using a crappier GUI. This is why they are pushing OOXML so hard, because if they don't, that's yet another club that Microsoft cannot use against other vendors.

      Back to the point, while it may be standard industry practice (please note that I am not refuting that claim), Microsoft's marketers are having a more difficult time preaching to the world about the innovations of Microsoft, simply because people are older and wiser than in the '90's.

    24. Re:Treading Water by stonecypher · · Score: 1

      All MS survived on is luck and buying companies that do innovate.
      Yeah! Whereas Google and Yahoo!... oh wait.
      --
      StoneCypher is Full of BS
    25. Re:Treading Water by abigor · · Score: 2, Informative

      What? MS posted 26% growth, as I said. That is impressive. You are conflating revenue growth with stock price, which is wrong. Their stock price is related, instead, to their rates of dividend payouts, which increase as profit increases. The stock becomes more attractive as dividend payouts increase, thus more people buy it, thus the price goes up. That's why MS needs to increase dividend payouts. This is known as "value investing". Since you don't seem to understand what I'm talking about, I'll let you Google it.

      I'm not the one who needs to grow up here, kid. You obviously hold some kind of a misguided grudge against an entire corporation - "stupid human nature" indeed.

    26. Re:Treading Water by Squirmy+McPhee · · Score: 1

      Microsoft's year over year growth for the fourth quarter of 2007 was 26%.

      Whether or not that's "treading water" depends a bit on how you define "treading water." It's been awhile since I checked, but as I recall that's a pretty average growth rate for Microsoft's industry. From an investor's point of view, that could certainly be seen as treading water (depending, of course, on the company's other financial indicators).

      Their quarterly revenues were nearly equal to Google's entire financial year. Such growth can hardly be termed as "treading water", despite their lack of innovation.

      Now that just doesn't make sense. By that criterion, GM is doing really well -- after all, it posted quarterly revenues nearly equal to Microsoft's entire annual earnings last year. GM also posted a net loss of $38 billion, though, which can hardly be called healthy. Revenues alone tell you virtually nothing about whether a company is "treading water."

    27. Re:Treading Water by stonecypher · · Score: 1

      Not to mention that if buying your innovation is the definition of treading water, then Google's pretty much the champ. They haven't done an original thing since PageRank. Google makes its fortune the same way Apple and Sony do: it takes ideas that other people made at modest quality, polishes the hell out of them, then pretends it invented the market.

      Go on, just try to find one Google technology in the last eight years that has a drop of originality to it.

      --
      StoneCypher is Full of BS
    28. Re:Treading Water by harveysburger · · Score: 1

      Mr. "Anonymous Coward"... the type of childish comments and insults your are throwing at people clearly shows your lack of maturity... this is just a forum where people express their opinions and discuss them. There is no need to insult people left right and center like you are doing... way too many of your kind on slashdot I have to admit...

    29. Re:Treading Water by tiffany98121 · · Score: 2, Insightful

      $265 Billion is "pretty close" to $165 Billion? What?

    30. Re:Treading Water by Anonymous Coward · · Score: 0

      MS Basic is different from Visual Basic, you redundant-moderating fools.

    31. Re:Treading Water by stuboogie · · Score: 2, Interesting

      "but the XBOX really was nothing new."

      Really. So the PS2 had a built in hard drive? An online gaming platform for multi-player action?

      Didn't think so. The hard drive was a big decision maker for me. I liked the idea of being able to save my games without having to buy memory cards on top of the console. The drive also allowed you to copy your own music onto the console for use as custom soundtracks in games. I don't recall that option on PS2.

      Online multi-player for a console? There was nothing remotely close to this prior to XBox Live.

      Personally, I liked the controller for the XBox better than the PS2, but that's just my opinion.

      But you're right. It's MS, so nothing new there.

    32. Re:Treading Water by JohnBailey · · Score: 1

      Who did they buy MS BASIC from, that many of us grew up using on our C=64s? Wasn't that a port of an already existing public domain BASIC?
      --
      It is difficult to get a man to understand something when his job depends on not understanding it.
    33. Re:Treading Water by Anonymous Coward · · Score: 0

      You're saying they just copied someone else's public domain 65xx assembly code and didn't get sued? No.

    34. Re:Treading Water by jbengt · · Score: 1

      Porting a public domain programming language invented at Dartmouth http://math.dartmouth.edu/history/TBasic/ to personal computer platforms might not be buying cool stuff from other companies, but it isn't exactly innovating either.

    35. Re:Treading Water by andruk · · Score: 0

      Memory cards really aren't all that bad, IMHO. And their controller is really just a complete ripoff of the Playstation's and the Gamecube's. And the ability to play music from your console, I will admit, is pretty cool. But, by and large, the XBOX really wasn't anything special, as far as I'm concerned. XBOX Live is pretty cool, and Sony, last I heard has yet to do the same thing. Nintendo is kind of trying to do the same thing with their store, but it's probably going to be difficult to convince families to play other families online, especially when the games require balance, control, etc. I see very few people putting in a lot of effort to, say, box people a continent away. If they come out with some good FPS's though, that would be really cool if they were coupled with online gameplay. Time will tell, I suppose. You do bring up some good points, though. I suppose on the XBOX they have innovated a little, with the major innovation being in (a) producing a product that, while it isn't built on Windows, interoperates with it, and (b) XBOX Live.

    36. Re:Treading Water by WilliamSChips · · Score: 1
      --
      Please, for the good of Humanity, vote Obama.
    37. Re:Treading Water by WilliamSChips · · Score: 1

      Really. So the PS2 had a built in hard drive? An online gaming platform for multi-player action? No, but there is a gaming platform that still outsells the PS2, PS3, XBox 360, Wii, 3D0, and every other gaming system combined, has had hard drive storage from the beginning, has had Internet gaming support since the 90s, and has the largest back-catalog of games, period.
      --
      Please, for the good of Humanity, vote Obama.
    38. Re:Treading Water by downix · · Score: 1

      And yet, despite dividends being too small, they are greater than the cash reserve, managing to shrink it by over 30 billion since they began giving them out. Something does not compute when a company turns a profit of $16 billion, hands $7 billion out in dividends, yet looses $8 billion in cash assets....

      --
      Karma Whoring for Fun and Profit.
    39. Re:Treading Water by UnknowingFool · · Score: 1, Interesting

      The Xbox was different in console gaming but realistically what was the Xbox but a modified PC. MS understands PCs. Also while the Xbox and Xbox 360 are successes in terms of market share, they are dismal failures in terms of finances. The Xbox division has never made a profit and has lost $6-7 billion. Now Nintendo has come back with a console that will surpass the Xbox in market share and it is profitable. At some point the share holders will ask when MS is going to do something with the division except lose money.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    40. Re:Treading Water by falsified · · Score: 1

      So, there's a difference between stock price and revenues. Usually if you're doing well in one, you're doing well in the other, but it doesn't have to work that way, and as others have noted, the stock is transitioning. If they're raking in dough, they're raking in dough. Microsoft is doing well. We're not talking about MSFT (which, again, is doing just fine because it's akin to buying a CD or investing in a money market).

      --
      HI, MY NAME IS ISAAC.
    41. Re:Treading Water by Gareshra · · Score: 0

      In their defense, despite all the innovative things Google has done, they've also bought their fair share of things as well. Why does everyone flame Microsoft so harshly? Yeah, they kinda suck lately, but they've also done a lot of good for the computing industry. In the end, though, they're just a business, and all businesses are self-serving in the end.

    42. Re:Treading Water by theonlyaether · · Score: 1

      Microsoft didn't buy Windows, didn't buy Office,
      You're right, Jobs invited Gates to check out the Mac prototypes, and Gates agreed to license software for the mac. Then, at the last minute, threatened to pull the licenses unless Apple licensed some of the GUI over to Microsoft so they could build their own for the PC architecture. So bought? No. Innovated? Most certainly not!
      --
      Graduate students and most professors are no smarter than undergrads.
      They're just older.
    43. Re:Treading Water by Al+Dimond · · Score: 1

      I make no claim about whether Microsoft wrote this version of BASIC or not; I have no idea. But if it was public domain Microsoft would have absolutely had the right to copy it, sell it, keep their source code secret, and enforce copyright on the resulting binaries. That's the whole point of public domain.

    44. Re:Treading Water by westlake · · Score: 3, Informative
      Wasn't that a port of an already existing public domain BASIC?

      In 1974, Paul Allen and Bill Gates wrote the first microcomputer Basic interpreter on a PDP-8 minicomputer for an Intel 8080 microprocessor emulator.
      MITS licensed MBASIC for the Altair in late 1975, and Micro-Soft was born. By the end of 1976, over ten thousand Altair computers were sold with either the original 4K or a newly expanded 8K MBASIC. Micro-Soft's work on the 8K version was spurred by a new player, Commodore Business Machines, and its Personal Electronic Transactor (PET), which debuted in mid-1976 with a licensed version of what was now called MBASIC 2.0. Early in 1978, Tandy Corporation licensed MBASIC 2.0 for its TRS-80 Model 1 Level II and called it Level II BASIC. At the same time, Tandy cross-licensed Level II BASIC to Apple, so the same MBASIC was running on virtually every microcomputer of any significance.
      ComputerSource

    45. Re:Treading Water by westlake · · Score: 1
      Porting a public domain programming language invented at Dartmouth to personal computer platforms might not be buying cool stuff from other companies, but it isn't exactly innovating either.

      Dartmouth BASIC was a compiler. 1964. Punch cards and teletype terminals.

      Microsoft's Altair BASIC was an interpreter for the late 70's micro with 4K of RAM - and marks the beginning of the end of the mainframe era.

    46. Re:Treading Water by that+this+is+not+und · · Score: 1

      I don't see the point in your arguement. Microsoft didn't post a $38B loss. Why did you drag GM into it?

    47. Re:Treading Water by Anonymous Coward · · Score: 0

      "doing just fine because it's akin to buying a CD or investing in a money market"

      A CD or money market fund that allows any drop in principal is a horrifically bad CD or money market fund.

      MSFT is hardly 'doing just fine', as a blue chip equity (which is what it is, and you were so bizarrely trying to say) it has underperformed the market and its peers handily (thanks much to the latest dip due to the Yahoo offer) and its dividend yield is pathetic.

      [I actually get the real point that Microsoft is making record amounts of money hand over fist, but your analogy was so very wrong]

    48. Re:Treading Water by Plutonite · · Score: 1

      Gmail for one. Probably the best use of Ajax I have seen. Also head on to google labs and check out some of the stuff they are working on with search/information retrieval.

    49. Re:Treading Water by TomV · · Score: 2, Informative

      didn't buy Visual Basic

      While that's strictly accurate, they did buy a tool for building task-specific customised Windows shells by dragging controls from a palette and dropping them onto a form, called at various stages, Tripod then Ruby, from Alan Cooper. they then glued a modified version of QuickBasic into it to create version 1 of VB. Cooper's original Tripod/Ruby could have multiple languages plugged into it, and he anticipated C as the main one. So while they didn't buy the VB language, they did buy the concept and the first version of the IDE.

      Here's how Cooper tells the story

    50. Re:Treading Water by Anonymous Coward · · Score: 0

      That's revenue not sales. Much of it is from printing money aka buying and selling their own stock. Pump and dump. Can't be much from sales since that's tied to OEM movement and that's been dry for 10 years. M$ even tried to pay Yahoo with shares instead of real money.

    51. Re:Treading Water by Anonymous Coward · · Score: 0

      No, once MS, Bought weak stuff from troubled companies, rebranded it and made deals with OEMs so people would use it. Just about EVERY thing MS has done has been bought by other companies.

      There fixed that for you. M$ usually scraped the bottom of the barrel for each acquisition, being able to depend on leveraging its desktop monopoly to force sales in spite of the ongoing bad quality.

      Same goes for the urban legend of any good coders working for MS. Not having any good engineers of their own, simply made a bad product worse. However, reviewers, greased by advertising money, always gave a recommendation even if it had to come along side a real product based on that "MS look and feel"

      One of the few exceptions was FoxPro, which MS purchased because of its quality, not to build on it but to bury it.

    52. Re:Treading Water by enjo13 · · Score: 1

      Nuh-uh.

      Google develops everything in house from start to finish. Especially Google Docs, maps, Android, and Google Analytics.

      --
      Turn s60 photos into awesome videos with mScrapbook for all S60 3rd edition phones!
    53. Re:Treading Water by rucs_hack · · Score: 1

      Wrong, Google have purchased companies to get their technology/market share as well.

    54. Re:Treading Water by Anonymous Coward · · Score: 0

      I'm a different party, posting anon because I really don't want to get involved in your little pissing match here, other than to point out that stock price is not really much related to dividend payouts, and certainly not for a tech stock with a very short history of making any dividend payments at all.

      Your point about Microsoft being in transition from exciting and volatile to a mature company on a path to becoming "blue chip" might be valid, but the jury is still out. Microsoft's revenue is largely generated in a market where the barrier to entry that keeps competitors at bay is difficult to maintain. Two PhDs in a coffee shop took internet search away from them before they realized they wanted it. Their office franchise is under assault from open source. Microsoft has not proven able to produce in a mature fashion, with regular releases and steady advancement. One of their competitors, Apple, has been doing this since about 1998 now. Microsoft is no longer a sure bet. Their long term prospects are are tied to their declining ability to maintain a monopoly in the desktop computing operating system market. That market is under assault from a new direction -- the importance of desktop computers flatlined a while back, and is now declining as the importance of mobile computers rises. The dominance of Nokia, and the ascendency of Apple indicates that Microsoft might wind up as a bit player in the mobile market. It won't be long and you'll see more volatility in MSFT, but not because their fortunes are rising.

    55. Re:Treading Water by Squirmy+McPhee · · Score: 1

      I don't see the point in your arguement. Microsoft didn't post a $38B loss. Why did you drag GM into it?

      The point is that revenues have nothing to do with whether a company is treading water. The post I responded to said Microsoft was doing much better than treading water by virtue of its high revenues. I used GM as an existence proof that high revenues do not equal financial health.

    56. Re:Treading Water by Phat_Tony · · Score: 1

      All MS survived on is luck

      Luck had very little to do with it.

      I'll concede that Microsoft has written very little good software, and that they acquired a lot of their key assets by buying them out.

      But Bill Gates isn't the richest man in the world because he was lucky to be in the right place at the right time, he's the richest man in the world because he had a critical and profound insight into the inevitable future of software and firmly went about placing himself in the business of profiting from that.

      Of many important things he saw coming, he saw the standardized software platform. Previously, every operating system and program was written for a specific hardware platform, and by "hardware platform" I don't mean something like x86, I mean each individual model of computer. Buy a new computer, write a new operating system for it. Bill saw the future; the abstraction layers, the SDK's, the compatibility, the standards. And he had a vision to create and profit from the creation of the first cross-platform software. Not really cross-platform, but the idea of having a platform at all.

      Listen to this Bill Gates speech from 1989, and you'll see the grasp he had on the future of the computer industry, and how he put himself in the middle of it. I'm sure dozens or hundreds of other computer users and especially researchers at universities saw all of this compatibility coming too, but they didn't take action to place themselves at the commercial center of this transformation.

      There was luck, of course. I think the biggest streak of luck Microsoft had was the incompetence of their competitors. Commodore insanely mismanaged Amiga. IBM practically intentionally killed OS2, an operating system Bill Gates had already concluded was going to become the default standard until he saw IBM botching it and came in and swept the market out from under them with the radically inferior early Windows. Apple's products were always on-again off-again, alternatively brilliant and then disappointing, and always expensive. So Gates had help from the incompetence and mistakes of the competition. But by no means did he stumble into the right place at the right time; he saw exactly what it was the right time for, and aggressively put himself in the right place.
      --
      Can anyone tell me how to set my sig on Slashdot?
    57. Re:Treading Water by JohnBailey · · Score: 1

      Wasn't that a port of an already existing public domain BASIC?

      In 1974, Paul Allen and Bill Gates wrote the first microcomputer Basic interpreter on a PDP-8 minicomputer for an Intel 8080 microprocessor emulator.
      MITS licensed MBASIC for the Altair in late 1975, and Micro-Soft was born. By the end of 1976, over ten thousand Altair computers were sold with either the original 4K or a newly expanded 8K MBASIC. Micro-Soft's work on the 8K version was spurred by a new player, Commodore Business Machines, and its Personal Electronic Transactor (PET), which debuted in mid-1976 with a licensed version of what was now called MBASIC 2.0. Early in 1978, Tandy Corporation licensed MBASIC 2.0 for its TRS-80 Model 1 Level II and called it Level II BASIC. At the same time, Tandy cross-licensed Level II BASIC to Apple, so the same MBASIC was running on virtually every microcomputer of any significance. ComputerSource So thats a yes then..
      --
      It is difficult to get a man to understand something when his job depends on not understanding it.
    58. Re:Treading Water by JohnBailey · · Score: 1

      You're saying they just copied someone else's public domain 65xx assembly code and didn't get sued? No. If something is public domain, you can't get sued for copying it.
      --
      It is difficult to get a man to understand something when his job depends on not understanding it.
  3. Really? REALLY? by HackNack · · Score: 1

    Has Cringely FINALLY gotten something right?

    1. Re:Really? REALLY? by 3vi1 · · Score: 1

      8-ball says: Ask again later.

      Just kidding: No.

    2. Re:Really? REALLY? by Anonymous Coward · · Score: 0

      Speculation for speculation: Microsoft PR trying to make the most out of the failed yahoo buyout attempt.

  4. Since when was business in the USA... by zappepcs · · Score: 5, Insightful

    anything like fair?
    Sure, all MS has to do is either make their products better than anyone else's or scare everyone from investing in a competitor's business and products. Either one will result in Microsoft's favor.

    Business-wise, since Google isn't going to suddenly lose market-share it is necessary to gain market share, either by purchasing it, or causing your own product to gain market share.

    Some very large corporations in North America have been found guilty of this same type of practice. With all the MS bashing on /. this should come as no surprise AT ALL.

    Whether they actually buy Yahoo or not, MS wins in the business side.

    Sure, to the average joe it is hard to see the win, but if Yahoo loses revenues MS will begin to take them (what Google doesn't get anyway). In the business of becoming the largest in your field of endeavor having better products/services than your competition is only marginally more important (if at all) than your competitor being worse than you at the game of business. We all know that MS is very successful at business, not so much so at creating innovative products and services.

    1. Re:Since when was business in the USA... by webmaster404 · · Score: 4, Interesting

      Sure, to the average joe it is hard to see the win, but if Yahoo loses revenues MS will begin to take them (what Google doesn't get anyway). In the business of becoming the largest in your field of endeavor having better products/services than your competition is only marginally more important (if at all) than your competitor being worse than you at the game of business.

      I know a lot of people who use Google as their primary search engine, I know lots of people who use Yahoo for searching and mail, I even know people who prefer to use Ask. Even still there are some who use some hijacked browser page to search. However I have not met one person who really uses Live/MSN to search. I don't think for most people Yahoo is going away soon, most have mail accounts there and of course will use it to check their mail, and unless MS's search engine has new and different features then Yahoo and Google I doubt they will gain marketshare. For most people, they choose search engines from convience not features and Google and Yahoo are rooted in their minds and browser's homepage more then MSN/Live.
      --
      There is no "disagree" moderation, and troll, flamebait and overrated are not valid substitutes
    2. Re:Since when was business in the USA... by Hucko · · Score: 2, Informative

      Australians. If they aren't using Google, they seem to use Msn via ninemsn. Nine is one of our Big4 free to air channels who did some dodgy deal with Microsoft way back. As far as I know we only have five national f.t.a.

      --
      Semi-automatic amateur armchair Australian philosopher; conjecture ready at any moment...
    3. Re:Since when was business in the USA... by Anonymous Coward · · Score: 0

      Figures. Not only are you upside-down, but you're also backwards.

    4. Re:Since when was business in the USA... by falconwolf · · Score: 1

      Sure, to the average joe it is hard to see the win, but if Yahoo loses revenues MS will begin to take them (what Google doesn't get anyway).

      However it's Google that Microsoft, er Balmer, wants to kill and with MS acquiring Yahoo! Google could gain market share not lose any.

      Falcon
    5. Re:Since when was business in the USA... by falconwolf · · Score: 1

      I know a lot of people who use Google as their primary search engine, I know lots of people who use Yahoo for searching and mail, I even know people who prefer to use Ask.

      I use Google as my primary search engine, but it's not the only one. For some searches I go to About.com first now. What's ironic is that that's because of Google, some searches I did Google led me to About.com, an About.com page was one of if not Google's first result. And when Google fails to provide me with what I'm looking for I use either Teoma, now Ask.com, or Mooter, they will return what I look for if Google doesn't.

      I however use Yahoo! mail, but if MS acquires it I will switch. I am also a member of some Yahoo! groups I'll leave as well.

      Falcon
    6. Re:Since when was business in the USA... by Anonymous Coward · · Score: 0

      Nah. Its just to keep the world guessing. Who knows what we'll do next? Who else sacks the bloke supposedly responsible for their "economic success"?

  5. Who by bvimo · · Score: 1

    Who are Intuit?

    --
    In either case, here at Microsoft, we feel standards are important. And we have fun, too. Doug Mahugh, Microsoft
    1. Re:Who by Anonymous Coward · · Score: 5, Funny

      Who are Intuit?
      A small tribe near the Arctic Circle.
    2. Re:Who by Anonymous Coward · · Score: 5, Funny

      The QuickBooks guys. But ten seconds of Google could have told you that.

    3. Re:Who by Anonymous Coward · · Score: 0

      Yeah I'm Intuit. (though not like some people)
      But that girl Amy, I heard she's really Intuit.

    4. Re:Who by Cigarra · · Score: 1
      --
      I don't have a sig.
    5. Re:Who by Warll · · Score: 2, Funny
      Odd, according to Google it only took 0.12 seconds.

      Results 1 - 10 of about 12,000,000 for Intuit [definition]. (0.12 seconds)
    6. Re:Who by that+this+is+not+und · · Score: 1

      I thought Intuit was the TurboTax Spyware guys.

      And this is a good time of the year to bring that up.

  6. I wish MSFT would screw with me, like that. by mosch · · Score: 1, Troll

    I'm pretty sure I could stay focused on my tasks at hand just fine, especially if some idiotic behemoth came in and made an offer that caused the market to instantly re-evaluate all my stock and options at a significantly higher price.

    The idea that Yahoo is going to be bewildered and knocked astray by this is absurd. But that said, consider the source. He's a twit who makes his living by purposefully trolling people into discussions. He's not a serious analyst, nor does he offer any interesting insight.

    It's a shame slashdot got trolled again. You'd think people would learn to stop linking to the tard, but time and time again he makes front page. Pathetic.

    1. Re:I wish MSFT would screw with me, like that. by mritunjai · · Score: 3, Insightful

      Please keep in mind that stock price inflation is due to "premium" put up MS and speculators have driven up the price which *would* fall down if the deal doesn't go through.

      I'd expect a lot of speculators to actually short the stock.

      All in all, for a serious business, it's *not* a good thing to be in this situation. Even in best case it'd rock the boat and cause heart-burns and unrest whether the deal goes through or not.

      --
      - mritunjai
    2. Re:I wish MSFT would screw with me, like that. by Anonymous Coward · · Score: 0

      The deal didn't go through. The stock is still up.

      That fact alone proves that you're a fucking retard who missed the point.

      The rest of your post does more to prove that there is no fucking point discussing anything with you. Not only are you a fucking retard, you're too fucking stupid to realize how much shit you don't understand.

  7. Stock price by Tom9729 · · Score: 5, Interesting

    Didn't Yahoo's stock price go up from this, while the price of MSFT stock went down? Isn't Microsoft doing more harm to themselves?

    Besides, I thought Balmer was in charge now. What's with all this talk about Bill?

    1. Re:Stock price by Mex · · Score: 1, Informative

      Why are you even posting about something that is easily searchable? Is this not slashdot?

      http://finance.yahoo.com/q?s=YHOO

      Yahoo has gone down a bit since the announcement.

    2. Re:Stock price by Anonymous Coward · · Score: 0

      It's natural for the stock price of a company to rise when an offer to purchase is put forward. You'll notice that as soon as it happened, the stock price rose to just under what the offer was. This is because investors with lots of $ are buying a lot just under the offer price and are hoping Microsoft's bid gets accepted.

      A few days after the offer, the stock price of Yahoo! went above the offer price. Again, this was based on speculation by the investors that MS might increase their bid.

      A similar thing happened when the minority shares of Shell Canada Limited (on the Toronto Stock Exchange - TSX) was bought out by Royal Dutch Shell.

    3. Re:Stock price by DannyO152 · · Score: 1

      So I went and looked. Microsoft closed at $28.42 per share on 2/15, down from its 52 week high of 37.50 on 12/25. Yahoo closed at 29.66. A share of Yahoo had more value than a share of Microsoft, yesterday, at the end of the day. Microsoft, though it was up on Wednesday, gave back most of the increase to end the week essentially flat. Yahoo was down for the week.

      So, back to the original question, looking at how much market cap Microsoft has lost, despite the announcement of great quarterly results at the end of January, isn't this pursuit of Yahoo, so far, hurting Microsoft shareholders?

    4. Re:Stock price by jbengt · · Score: 2, Informative

      Try the 3-month trend.
      http://finance.yahoo.com/q/bc?s=YHOO&t=3m/
      Yahoo had a sharp spike up at the takeover announcement and Microsoft went down

    5. Re:Stock price by Anonymous Coward · · Score: 0

      This is because there are a shocking number of people unable to separate Bill Gates from Microsoft. The man is the largest individual shareholder, yes, but he does not control the day-to-day operations (or even much else) anymore. He's largely ceded his duties to Steve Balmer.

    6. Re:Stock price by MickDownUnder · · Score: 1

      Yes Bill has retired. As you can see from the following video...

      http://on10.net/blogs/larry/Bills-Last-Day-CES-2008-Keynote-Video/Default.aspx ...the pressure from Google, Apple and others has finally taken it's toll.
      He remains now only as chairman of the board.

    7. Re:Stock price by Tom9729 · · Score: 1

      Probably the most informative reply to my post.

      For obvious reasons I can't mod you up though, sorry.

    8. Re:Stock price by Quixote · · Score: 1

      Sigh... Take a look at this chart: http://finance.yahoo.com/q/bc?s=YHOO&t=3m See that huge (60%) jump on Friday, 02/01 ? That was the day Microsoft made the offer.

    9. Re:Stock price by Anonymous Coward · · Score: 0
  8. You Know You're In Trouble When... by Anonymous Coward · · Score: 1, Funny

    You know your business plan is in trouble when columnists start making 'this plan is so crazy it might just work' type articles.

  9. Why do you persist in linking to Cringley? by Reality+Master+201 · · Score: 0, Flamebait

    Seriously. The guy talks out his ass so much he'd be more profitably employed as a ventriloquist.

  10. Yes more rampant speculation! by UnknowingFool · · Score: 1

    It appears to me that MS is serious. It may have been a planned side benefit that Yahoo is distracted if the buyout does not happen. Unfortunately MS is also distracted. I mean how many MS employees started looking for new jobs when this was announced? There was also a shakeup in leadership last week too so MS is not clearly focused either.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  11. secondary, not primary goal by globaljustin · · Score: 4, Interesting

    TFA is being hyperbolic to claim that the purchase bid "alone has some value for Microsoft." Not quite. We're definitely in "a little bit of both" territory here

    MS was serious about its announcement about buying yahoo. If yahoo had been openly amenable to the idea, then the deal would be moving forward right now.

    The secondary effect (since yahoo was NOT amenable) was to destabilize yahoo, who is a competitor.

    So, MS did a cost/benefit actuarial analysis and found that if they bought yahoo for a certain price, then they would benefit. Yahoo doesn't want to sell, but MS still gains b/c of the uncertainty that the bid caused. It was a win/win situation for them. This is how big business works.

    --
    Thank you Dave Raggett
  12. Why its not a repeat of Intuit or Borland ... by tomhudson · · Score: 5, Interesting

    Remember that Yahoo is staggering here while Intuit was at the top of its market and its game.'

    Being at the "top of its market" is a liability - it forces you to look beyond your core business in hopes of continuing to expand. This is what happened to Borland - at one point, Borland owned the programming languagess market, with a 66% market share - more than Microsoft and everyone else combined. Then they went nuts. "Desktop / Professional / Enterprise" versions of compilers were one fo the first signs that rot was setting in. So was the buying and selling of WordPerfect and dBase. The dBase acquisition made sense - it let them compete directly with CA-Clipper. Dumping it later on didn't.

    Apple didn't get smart until it had it' near-death experience.

    So if Yahoo! isn't at the "top of their game" they can afford to concentrate on what they're doing. Microsoft, on the other hand, has nowhere to go bud down - their #1 competitor is themselves (see Vista vs. XP as a good example).

    1. Re:Why its not a repeat of Intuit or Borland ... by Main+Gauche · · Score: 1

      "Being at the "top of its market" is a liability...Microsoft, on the other hand, has nowhere to go but down"

      That's why I never want to be the world's wealthiest person. My rank could only get worse from there!

    2. Re:Why its not a repeat of Intuit or Borland ... by tomhudson · · Score: 1

      "Being at the "top of its market" is a liability...Microsoft, on the other hand, has nowhere to go but down"
      That's why I never want to be the world's wealthiest person. My rank could only get worse from there!

      Gates is now #3 http://www.stockmarketsview.com/mukesh-ambani-becomes-worlds-richest-man/22/

    3. Re:Why its not a repeat of Intuit or Borland ... by FlyingGuy · · Score: 5, Informative

      . This is what happened to Borland - at one point, Borland owned the programming languagess market, with a 66% market share - more than Microsoft and everyone else combined. Then they went nuts. "Desktop / Professional / Enterprise" versions of compilers were one fo the first signs that rot was setting in. So was the buying and selling of WordPerfect and dBase. The dBase acquisition made sense - it let them compete directly with CA-Clipper. Dumping it later on didn't.

      Borland's demise began on two very distinct and different fronts. The cause of one of them rests squarely on their shoulders, the second was pure MS evil.

      1. Borland deciding to get into the applications market was the most supremely stupid move it ever made. Paradox with its obscure and somewhat strange "Answer Table" model broke down on large data sets and was generally to strange for a lot of people to deal with. Other then that it was a pretty good database. It's main competition at the time were two dBase from Ashton-Tate and DataEase. dBase had a great language but had a pretty low end database engine. Indexes were not dynamic, and if you packed a datafile, you were in re-index hell. DataEase had a built in screen builder, a sreaming fast databse engine, a very SQL like language, a report writer that was pretty damn nice, easy to use and would crank out reports like mad. Unfortunately they bet everything on OS/2 and Presentation Manager because at the time that was where the MS/IBM strategy was heading, then MS pulled the plug and well the rest as they say is history.

      Quatro was an insanely wonderful spreadsheet product that was eating both Lotus's and Excel's lunch. It had a native GUI mode, perfect WYSIWYG and was lighting fast. It could handle multiple large spreadsheets, linking, all the fun stuff we enjoy today, and then Jim Manzy, that fuckwad from Lotus Development decided that the only way he could stave off the Quatro juggernaut was to go to court. The infamous look and feel lawsuit that came within a breath of putting Borland out of business. The filed suit in Boston and it looked like Borland was done for, then in the end Borland prevailed, but not until it had spent almost everything defending the suit. To this day I still want to find Jim Manzy in a dark alley and have a chat with him,

      2. So anyone remember OWL??? The Object Windows Library? Pretty much up until then if you wanted to write windows programs you had to deal with the bare Windows API. If you had ever used it you knew it was a miserable experience. Many of the calls were very difficult to deal with, at best, and you had to re-invent a lot of things just to make your software work, Borland realized this and did something that changed windows development forever. They took the windows API and wrapped up in a very neat, clean, object based interface. Suddenly writing windows programs became some that was no longer am arcane bith of magic, and pure dumb luck. Microsoft, instead of going WOW, this company is driving TONS of programmers to windows they decided to counter with MFC and of course they really shit the bed. The first versions of MFC were simply awful, bordering on unusable, hell no one at SM would even use them. Meanwhile Borland kept refining OWL, they even had a CUI counterpart called turbo-vision, now called FreeVision as it was open sourced. OWL was being adopted by everyone and their grandmother. Borlands Language products were being used to drive windows development. The integrated IDE, all that stuff you take for granted today was ALL Borland. Up until this time Borland had licensed all the right bits from MS to handle things like integrated debugging, software profiling, really cool stuff within windows and they were flying high. Turbo C, Turbo C++, Turbo Pascal for windows were just climbing the charts. The reviews were rave and Borland was making money hand over fist and developers, for probably the first time ever, had really GREAT integrated tools to create grea

      --
      Hey KID! Yeah you, get the fuck off my lawn!
    4. Re:Why its not a repeat of Intuit or Borland ... by tomhudson · · Score: 1

      Yep, its sad to remember how much FUN using Borland's stuff was. I was given turbo C (complete with install disks and manuals) to write an app, and the rest was history. Years later, I bought BCC 3.1, which was just an amazing product, picked up TurboVision with Turbo Pascal 7 when I had to modify some pascal code on another project, etc.

      Instead of using OWL, I wrote a few classes that encapsulated windows, menus, etc. - it wasn't that hard. And when Delphi came out, it was a total winner product.

      I still think they mishandled the marketing of dBase. Sure, they managed to get the mouse working, and combined it with the TurboVision libraries, but then they let it wilt after version 5. And they didn't bundle the runtime "compiler" - another mistake. So people stuck with Clipper, and when CA came out with DB-Fast, people bought it instead of Borlands' dBase for Windows.

      And then there was the cluster**** known as Kylix. I would have happily paid a grand or two for a decent *real* "Delphi / C++ Builder" for linux, instead of that unusable POS. I'm sure I wasn't alone.

    5. Re:Why its not a repeat of Intuit or Borland ... by Anonymous Coward · · Score: 0

      Your facts are wrong on many points.

      MFC predates OWL. Also, OWL was not C++ standard, it used a non-standard C++ extensions to specify message mapping (instead of macros like MFC) and developers were critical of it. This was only fixed in Borland C++ 4.0, which was a product that was very late and buggy (their first Windows-hosted IDE), and by that time everyone had moved on Visual C++ 1.0.

      Borland was in a turmoil after Borland C++ 3.1 and the Borland Pascal. Read all about it in the book "In Search Of Stupidity". Delphi, and VCL, was YEARS after this, after they lost the fight in C++. And then they dropped that, too.

      Finally Turbo Vision, a DOS app framework from Borland, of course PREDATES OWL by years, and is TOTALLY UNRELATED to OWL. It has nothing in common. I know, I use them both!

      The huge failure that was Borland C++ 4.0 is what killed their app frameworks. It was very slow, buggy, the IDE was a pain (ram+bugs), and the product was late by a year. THAT was the problem. Microsoft never asked them to stop making OWL.

    6. Re:Why its not a repeat of Intuit or Borland ... by FlyingGuy · · Score: 3, Informative

      'That so? Read on please... OWL

      --
      Hey KID! Yeah you, get the fuck off my lawn!
    7. Re:Why its not a repeat of Intuit or Borland ... by FlyingGuy · · Score: 1

      Thousands of us would have paid a nice sum for the actuality that Kylix promised. Complete X-Platform and screaming fast.

      I have a copy of Kylix 3 Enterprise which I got off ebay, in the shrink Wrap no less. It actually installs on Suse and works! Unfortunately the IDE is unstable, but if you save often enough you crak out some stuff when you really need it.

      --
      Hey KID! Yeah you, get the fuck off my lawn!
    8. Re:Why its not a repeat of Intuit or Borland ... by tomhudson · · Score: 1

      That's just it - the product is crap. Even wxWidgets is better - linux, mac, windows all supported. LGPL'd, with an exception allowing you to distribute your own closed-source binaries if you want. A bit of history.

  13. Google by Zayin · · Score: 5, Interesting

    "Redmond's real goal may be simply to poach people from Yahoo, and this deal could help them do just that.'"

    I think not. It's more likely that Google would do so, I expect that their recruiters are quite busy calling Yahoo employees at the moment. If this is Microsoft's goal they've just aimed a double-barreled shotgun at their feet and pulled the trigger. They just gave their no. 1 competitor a huge opportunity. Where would you, as a brilliant Yahoo employee, work next? Google or Microsoft?

    --
    "I'd rather have a full bottle in front of me than a full frontal lobotomy"
    1. Re:Google by bonkeroo+buzzeye · · Score: 2, Interesting

      Microsoft - for many employees who decide they'd be a very small extraneous fish in a very large pond at Google or the cavalry to the rescue at Microsoft. At Google, everyone higher up would be better than them; nowhere to go. At Microsoft, obviously no one knows anything about search or the web - nowhere to go but up.

      There are a million arguments against this viewpoint and I'm not sure I'd want to hire anyone who adopted it but some people would see it that way and they'd apparently be Microsoft's kind of people.

      Basically, MS has no mindshare or momentum at all, as far as I can see. Making a few key acquisitions (individual people or entire companies), rolling out any marginally successful product, *getting talked about in the media*, doing *anything* towards getting to at least #2 first, will make becoming #1 easier than just being stuck in the mire.

      But I will grant that it had earlier occurred to me that some of the best Yahoo people, faced with a disrupted Yahoo or working at MS, would jump to Google, as you say. I just don't think it's quite the slamdunk it might seem.

    2. Re:Google by ucblockhead · · Score: 1

      Exactly. Why would you move to another part of the company to a company with a flat stock when you can work for another company within commute distance with better perks and a rising stock?

      Yahoo employees are likely used to their free lattes and their free gym. There's another company that offers those sorts of benefits, and it ain't Microsoft.

      --
      The cake is a pie
  14. Fixes by Wowsers · · Score: 0, Troll

    If only Microsoft found so much energy and effort to fix it's own products first!

    --
    Take Nobody's Word For It.
    1. Re:Fixes by tomhudson · · Score: 4, Funny

      If only Microsoft found so much energy and effort to fix it's own products first!

      You mean Fear, Uncertainty and Doubt aren't Microsofts' 3 main products?

      With SCO possibly going private, welcome to FUD 3.11.

    2. Re:Fixes by hairyfeet · · Score: 4, Insightful
      Actually I think that if MSFT can't get Windows 7 out the door quick enough,or if it does and it carries the Vista stink of failure(yes,I know some folks like it.But enough folks have been burned that the WinMEII label won't be going away) I really wouldn't be surprised if they took one out of Apples playbook and bought a Linux or BSD to use as their next OS.It really wouldn't be hard for them to bolt a proprietary GUI on top of a Linux or BSD kernel and simply add a parallels style "compatibility layer" using the .dlls from WinXP and Win98.


      I am just glad that the Asus EEE has taken off,since it would make buying Xandros more expensive than some of the other Linux Distros out there(I like my Xandros just the way it is,thank you very much).If I had to bet,it would be Novell or one of the older Linux or BSDs.I also think that moves like trying to buy Yahoo shows that they have no direction at the top,which is going to make it that much harder to make a decent OS,as design by committee is never good.

      I think the era of a company pounding out an entire OS from scratch is coming to an end. It is just too risky and too costly an operation for even someone like MSFT,and the rise of the low end markets where they simply can't compete(and where they are shooting themselves in the foot by not keeping WinXP) is simply going to make it harder for them as time marches on.You really have to give Steve Jobs credit for seeing the writing on the wall and building OSX out of BSD.It minimizes his costs while giving him a rock solid base to work from.Anyway my .02c on the subject,YMMV.

      --
      ACs don't waste your time replying, your posts are never seen by me.
  15. If true... by grasshoppa · · Score: 0

    If that's true, that'd give me a whole new respect for MS. They are certainly capable of it, that's a given.

    ( Note: I am an asshole, and I approve of this message )

    --
    Mod me down with all of your hatred and your journey towards the dark side will be complete!
  16. Must be the 10th article that I see by Anonymous Coward · · Score: 1, Insightful

    ...where someone writes about some random theory in an attempt to milk the MSFT+YHOO story without having any new facts to report.

  17. Micro$oft Exploder - Tenacious Gates by bobmarleypeople · · Score: 2, Funny

    (Sing to the tune of Master Exploder by Tenacious D)

    Ahhhhh, ahhhhhh, ahhhhhhh, ahhhhhh, ahh ahhh ahhh ahhh
    ahh ahh ahh ahhhh AAAAAARRRRRGGGGHHHHH YEAH!!

    I do not need, (he does not need)
    The Yahoo Bid (the yahoo bid)
    Our Company is freakin, (freakin)
    POWERFUL!
    Aaaaaah yeah!

    Arghhhaaaaaaaaaaaaaaaa!
    [Yahoo explodes]
    Sorry
    I did not mean, (he did not mean)
    To screw your mind (to screw your mind)
    But that stuff happens to us,
    All the time!

    Now take a look (take a look)
    In to heaven? (In to heaven)
    It's coming soon, WINDOWS SEVEEEEEENNNNNNNN!

    AAAH! ArghhhAAAAAAAAAAAAAAAAAAA!

    Lyrics copyright to bobmarleypeople. w00t!

  18. Cringley's an idiot by kabdib · · Score: 3, Funny

    Cringley's an idiot. There are far cheaper ways to do this. BillG could stand on the sidewalk in front of Yahoo and hand out hire-on-bonus checks if all that MS wanted was employees, and MS would have been far, far ahead, stock-price-wise.

    --
    Any sufficiently advanced technology is insufficiently documented.
    1. Re:Cringley's an idiot by Anonymous Coward · · Score: 5, Funny

      And Frodo could have hopped on the back of a freakin' Eagle, flown the 2 hour trip in to Mount Doom, and dunked the ring and been home in time for dinner.

      But where's the adventure in that?

    2. Re:Cringley's an idiot by martin_henry · · Score: 5, Funny

      And Frodo could have hopped on the back of a freakin' Eagle, flown the 2 hour trip in to Mount Doom, and dunked the ring and been home in time for dinner.

      But where's the adventure in that?
      No homoerotic overtones?
      --
      www.purevolume.com/martyd
    3. Re:Cringley's an idiot by joshuaobrien · · Score: 1

      No homoerotic overtones? Dunking the ring, oo-err.

  19. Not realistic, here's why... by Anonymous Coward · · Score: 0

    It wouldn't solve their problem. They need market share at all costs, _destroying_ Yahoo wouldn't help because most users would turn to Google anyway. I think they'll raise their bid to 50 billion dollars and try again. If this gets through, it will be so unfortunate for Yahoo because they did so much for the web and FOSS in general. You can buy pretty much anything, but you can't buy good karma. 40 billion dollars even less so.

  20. ..it might be ...... by gadget+junkie · · Score: 2, Insightful

    ... that Microsoft's business acumen in providing a better product over the years has overflowed into their Corporate Finance department.....

    Jokes apart, there is a possible explanation which implies no wickedness on the part of MS: MS investments in his search engine + ad seller has been less effective than Yahoo's. MS would never be allowed to bid for Google, so it must settle for second best, which is not a bad place to be if you are much lower in the totem pole.

    Given the cash pile burning a hole in MS pocket the cash pile burning a hole in MS pocket, the pressure to put the money to work somewhere, or return it to shareholders, is enormous, and they cannot or would not invest it in making a better product overall.

    --
    "If a boss demands loyalty, give him integrity. But if he demands integrity, give him loyalty." (John Boyd, 1927-1997)
  21. That's just about the single stupidest idea... by Etherwalk · · Score: 5, Insightful

    I've ever heard. And I've played catch with rock hammers.

    MS did it because they wanted to consolidate a larger advertising and search engine position, and a major internet portal. It was probably still a bad decision, but who can really say what the results would have been ten years down the line?

    Look at what MS Stock did. It had broken out of a major rut--a rut not justified by its earnings--for the first time in years following an earnings report last year. Now it's down 24% off its high. Twenty-Four percent. Balmer has lost $3.6 Billion, Gates has lost twice that, and even employees who've only lost twenty or fifty or seventy thousand aren't happy about it--because that is a big chunk of their savings. Now that price change isn't all yahoo, by any stretch of the imagination. But a big chunk of is it from the Yahoo offer.

    You don't take that hit for an offer you aren't interested in following through on.

    1. Re:That's just about the single stupidest idea... by gadget+junkie · · Score: 1

      MS did it because they wanted to consolidate a larger advertising and search engine position, and a major internet portal. It was probably still a bad decision, but who can really say what the results would have been ten years down the line?

      Frankly, having been an investment professional for 20 years, I do not see the difference between what I said and what you said. IMHO, if that had been true as a major driver MS would have bought out IBM's share in OS2 years back.

      --
      "If a boss demands loyalty, give him integrity. But if he demands integrity, give him loyalty." (John Boyd, 1927-1997)
    2. Re:That's just about the single stupidest idea... by karl+marx+is+my+hero · · Score: 1

      Of course. But this is typical Cringley bullshit. He has to write tripe like this to drive up hits to his irrelevant blog in hopes of getting people to watch his irrelevant TV show. This isn't the first time Cringley has pontificated on things he has no clue about.

    3. Re:That's just about the single stupidest idea... by Anomolous+Cowturd · · Score: 1

      Microsoft will simply buy up their own stock while it's down, then sell more when it's up, further boosting the "war chest".

      --
      Software patents delenda est.
  22. Businesses as usual for the grunts by Anonymous Coward · · Score: 0

    Consensus in our group is that anything MS does will be 3-6 months before a sale closes, then 3-6 months (minimum) before any technology changes. Putting things at 6-12 months before any major (technology) changes related to a MS bid occur. Definitely not "ZOMG, I must quit immediately".

    You've got tons of speculation about Yahoo! ramping up frequency of releases ... I assure you projects like those have been in the works for a while, you don't just do a yahoo-scale project in 3 weeks.

    Look at it this way - Yahoo! just had layoffs (all apologies to those affected). Even apart from MS, the types of smart people who don't like being in a company going through layoffs are going to be looking around. The types of smart (or dumb) people who don't like working with MS technologies, or MS business practices might also now be looking around.

    While the MS offer is a significant event, in my opinion, most things are just business as usual. Stay on top of your kick-ass projects, push out improvements, new things, etc. Don't do crappy work if you can avoid it. With some of the changes in focus / structure, I'm optimistic about Yahoo's future. I might be opening myself up for criticism, but point me to a *bad* Yahoo product (and ask.yahoo.com doesn't count).

    The biggest criticisms you can level against most yahoo products are: 1 - the advertising ... 2 - checkbox featuritis (adding features just because market competitors have them, not because it's what the users need). 3 - general lack of inspiration ... it's different when a startup builds a product that scales from 10-100-1,000-10,000 users. Yahoo builds crap that starts at 10,000 users and the minimal feature set needed at that level is kindof staggering (leading to development by checkboxes rather than organic growth ... a lack of inspiration).

    --A.Yahoo

  23. Here's what I think... by Anonymous Coward · · Score: 0

    Don't forget SAP.... MSFT really sent them into a tizzy, right?! What absolute rubbish! yahoo's value is in it's websites and the traffic that it commands. Not in it's employees. Yes, there is a relationship between the two, but Yahoo's most valuable assets are its sites! A few missing employees won't send those sites into a tailspin.

    msft doesn't *have* to do anything. They can just wait and buy them for $25 this time next year... if they're willing to wait. There were rumors of Msft buying out Yahoo within 12 months ago... stock went up to $35. This time stock price only went to $30. The problem with waiting though, is that Goog just keeps pumping along and continues to build out value for their own sites, blanketting anything that Yahoo and Msft can possibly put together.

    keep any eye on Google's Finance pages. Already, it's allowing developers to pull in more information and data than Yahoo finance. It doesn't get quite the same number of eyeballs as yahoo finance, but it's a good product. Google finance can overtake Yahoo finance in 2 years.

    Same with flickr vs. picasa. Picasa is a good, solid product. I can put a thousand images for free, unlike flickr which only shows 200 for free. Right now, I prefer Flickr, but with the right decisions, Picasa can overtake Flickr in 2-4 years too. Flickr team is much more responsive than the rest of Yahoo though, so this may not happen. I don't get the feeling that Flickr is resting on their laurels. Notice that when Yahoo Photos closed last year, they didn't give users a choice to migrate photos to picasa?

    Msft has to make themselves more developer friendly... but they don't have *anything* worth giving out like Google (apart from their OS, which we know won't happen). In this web2.0 world, that's what we developers want, isn't it? Data and resources? Collecting it ourselves is way too time consuming. By the time that we amass enough datapoints, Google is already there giving it out for free. With Yahoo NOW and freeing up some of their resources with some good decisions, they might be able to create something pretty amazing. Yahoo won't be able to do it themselves - if they give everything out, they can be left with nothing of their own.

  24. Nonsense by sjbe · · Score: 4, Insightful

    Nobody makes a $40B+ offer just to screw with another company. That's WAY too much money. While business disruption might be a desirable side effect, especially if the merger doesn't go through, it isn't why MS made the offer. When MS tried to buy Intuit, it was because they wanted to dominate personal finance software, not because they wanted to screw with Intuit. If memory serves they were blocked from the merger by the government due to the effective monopoly the merger would cause.

    If I was a shareholder (I'm not) and it ever came out that MS was doing that with their cash hoard instead of finding market beating investment opportunities, I'd have my lawyer on the phone faster than you could say "class action lawsuit".

    1. Re:Nonsense by Aidtopia · · Score: 1

      The MSFT/INTU deal was not blocked by regulators. The regulators said they would have to investigate. Microsoft said they didn't want to deal with the delay of an investigation and the risk that it might be blocked, so they paid to terminate the deal.

      In the mean time, they had learned a lot about how Intuit's products worked and how Intuit set up their development processes. They (re?)launched MS Money shortly thereafter.

      While it did throw things off course for Intuit for a while, it also helped them indirectly. Intuit had been trying to meet with financial institutions to jump-start online banking, but the big banks had never heard of Intuit or cared to talk to them. After the exposure Microsoft brought, the banks started begging to work with Intuit.

  25. Nonsense indeed by Cannelloni · · Score: 1

    I don't know what's gotten into Cringely. He seems to have lost his touch. There is nothing refined, intelligent, clever about Microsoft's attempts to take over Yahoo: it's just a simple hostile takeover attempt, and that's it. No hidden agenda, just a desire to get back at Google. And it will fail of course.

    --
    Beauty is in the beholder of the eye.
  26. Re:welcome to FUD 3.11 by Anonymous Coward · · Score: 0

    Our *three* weapons are fear, uncertainty, and doubt... and an almost fanatical devotion to blue screen....
    Our *four* ...

  27. It's the geek who is out over his head by westlake · · Score: 4, Interesting
    Microsoft is treading water.

    Perhaps you can't forgive the pun. But...

    There seems to be nothing that can pull the Geek out of denial.

    Microsoft posted breathtaking results in its first and second quarters. 15-20% growth in Windows. In Office. In servers. In home entertainment.

    That kind of growth isn't fueled by massive "upgrades" to Win XP.

    67 cents of every new retail dollar spent on PC software goes to Microsoft Office.

    Microsoft gambled on "the ribbon" and won.

    For the quarter, Microsoft sales increased 30 percent in emerging markets, 20 percent in established markets like Europe and 15 percent in the United States. Microsoft has become very well insulated from a recession in the states.

    Online services are still posting a loss, but ad revenues are up damn near 40% from fiscal 2007 to $623 million.

    There are 427 million Windows Live IDs.

    Which suggests that estimates of one billion Windows users world-wide are on the money.

    Microsoft has been paying dividends, buying back stock. It holds $20 billion in liquid reserves and doesn't owe a dime to anyone.

    Microsoft Q2 2008 By The Numbers

    1. Re:It's the geek who is out over his head by thealsir · · Score: 1

      Yeah, this is slashdot, where facts about MS get pretty easily distorted.

      --
      Do not downmod posts "overrated" simply because you disagree with them.
    2. Re:It's the geek who is out over his head by Anonymous Coward · · Score: 0

      Granted that US Dollar has fallen around 20% in 2007, just about every international company posting 10-15% growth scored no growth at all. This kind of illusion is now used by all american megacorps. Dollar has gain back at least SOME of its lost value or it will lose latest remains of its credibility and many critical markets trading currently in dollars will switch to Euro or something other. Many oil markets are already mumbling about this. All these megacorps will have to score real growths bigger than what they'll report. I'm curious what happens then.

    3. Re:It's the geek who is out over his head by westlake · · Score: 1
      Granted that US Dollar has fallen around 20% in 2007, just about every international company posting 10-15% growth scored no growth at all.

      Microsoft is reporting 20% growth each quarter.

      Take a look at the numbers Microsoft Watch posts for fiscal 2007-2008. Numbers so big they are difficult to grasp. Microsoft draws 60% of its revenues from outside the U.S.

  28. The Solution: by UnanimousCoward · · Score: 1
    Let's expose the deal for what it really is:

    If M$ is truly interested in Yahoo! to strengthen its ad play, then they should just buy Yahoo!'s ad business. M$ should agree to that, right?

    Yahoo! can then outsource their ads to somebody else. There's been speculation that they would do it to Google, but at that point, the market is much more competitive since M$ has strengthened its ad play--M$ and Google (and anyone else) can compete for ad Yahoo!'s business.

    Thus everyone supposedly wins:
    • M$ strengthens its ad biz.
    • Yahoo! realizes a immediate gain by selling its ad biz and immediately realizes an increase in revenue by outsourcing its ads.
    • Can't see the threat of antitrust blocking these deals since Yahoo! has made the ad market more competitive.
    • Google wins because, whether they like it or not, the added competition is good for them :-)


    --
    Twelve-and-three-quarter inches. Unyielding. This wand belonged to Bellatrix Lestrange.
  29. My biggest fear by pavera · · Score: 4, Interesting

    If MS buys Yahoo, what happens to Zimbra? Yahoo just bought them, and I'm 100% sure MS will kill that project the day they take over, they don't want any competition for exchange, and certainly not open source competition.

    Zimbra might not be the greatest software, but it is in my opinion the best open source collaboration/email software out there. It is the only serious competitor to exchange in the open source world. And it will be gone if MS completes this takeover.

    1. Re:My biggest fear by robizzle · · Score: 2, Informative

      I don't know anything about Zimbra but if it is really open source, then there is nothing Microsoft would be able to do. The license allows other groups to take the code and continue development. Assuming Yahoo is paying employees to develop Zimbra (I have no idea, are they?) the worst Microsoft could do is lay off those employees or make them start working on a different project. However, the open source is still out there with its license in tact and if it really is a good project, someone will start up a sourceforge project in no time.

    2. Re:My biggest fear by Anonymous Coward · · Score: 1, Interesting

      It will go the same place that internal Microsoft efforts went: nowhere.

        You see, it's not that Microsoft engineers are so stupid that they can't make a Zimbra themselves. In fact, they have made the equivalent more than once.

        What happens is that internal politics kills it. As Steve would say "blah blah blah blah blah" happens. People start talking and worrying. Unfortunately Steve believes in fiefdoms and lets the little projects get taken outside and beaten senseless by the big projects. Even if they really aren't related.

        So yeah, Zimbra folks I hope you all got good equity from Yahoo that vests on takeover. Take the money and run. Your hopes and dreams will stay intact.

    3. Re:My biggest fear by pavera · · Score: 1

      I'm not sure if it is "real" open source, IE, the source is available, however the license is the Zimbra Public License (now the Yahoo Public License). I don't know if that license is actually OSI certified, but it seems much more restrictive than the GPL or BSD license. To me it seems much more like the Sugar CRM license, which I know I've read/heard is not truly an open source license because of the restrictions it puts on the user/contributor when accessing or modifying the source.

      Zimbra is a for profit company and they have real revenues, and a set of engineers working full time on the product, as well as a bunch of service/support engineers that help companies deploy zimbra. I am sure that this continues now that the company is owned by Yahoo.

      The real challenge comes from the piece that actually makes zimbra competitive, and that is the closed source/proprietary outlook connector which lets you use outlook with a zimbra server just like it were an exchange server. This will be gone and is not open source as soon as MS takes over.

  30. screwing with history, too by epine · · Score: 1
    This is more or less off topic, but I just happen to stumble onto it via the 14 Greatest Engineering Challenges.

    Computer History 5 - Personal Computers by William H. Gates III, (C) 2008 by National Academy of Engineering.

    Emphasis, mine. Interjections, mine. Brackets, mine.

    After the Intel 8080 microprocessor was chosen for the Altair, two young computer buffs from Seattle, Bill Gates and Paul Allen, won the job of writing software that would allow it to be programmed in BASIC. The weedy buffs win again, no fair.

    Nowhere was interest in personal computing more intense than in the vicinity of Palo Alto, California, a place known as Silicon Valley because of the presence of many big semiconductor firms. Electronics hobbyists abounded there, and two of them--Steve Jobs and Steve Wozniak--turned their tinkering into a highly appealing consumer product: the Apple II, a plastic-encased computer with a keyboard, screen, and cassette tape for storage. Holy Tinker Bell, Batman. Pass the duct tape, Robin.

    Among them were three kinds of applications that made this desktop device a truly valuable tool for business--word processing, spreadsheets [VisiCalc], and databases. The market for personal computers exploded, especially after IBM weighed in with a crap product in 1981. Its crap offering used a crap operating system from Microsoft, MS-DOS, but due to a truly superior keyboard was quickly adopted by other manufacturers, allowing any given program to run on a wide variety of machines. Nothing clacked quite like the original IBM PC.

    Hardware like the [Xerox] mouse made the computer easier to control; operating systems allowed the [Xerox] screen to be divided into independently managed [Xerox] windows; applications programs steadily widened the range of what computers could do; and processors were lashed together--thousands of them in some cases-in order to solve pieces of a problem in parallel. Meanwhile, new communications standards [Xerox, AT&T, Berkeley] enabled computers to be joined in private networks or the incomprehensibly intricate global weave of the Internet. To be fair, Xerox gets its due in the timeline section.

    1970 Palo Alto Research Center (PARC)

    Xerox Corporation assembles a team of researchers in information and physical sciences in Palo Alto, California, with the goal of creating "the architecture of information." Over the next 30 years innovations emerging from the Palo Alto Research Center (PARC) include the concept of windows (1972), the first real personal computer (Alto in 1973), laser printers (1973), the concept of WYSIWYG (what you see is what you get) word processors (1974), and EtherNet (1974). In 2002 Xerox PARC incorporates as an independent company--Palo Alto Research Center, Inc. Here he finds a fancy way to explain he still lives in his parent's basement:

    1975 First home computer is marketed to hobbyists

    The Altair 8800, widely considered the first home computer, is marketed to hobbyists by Micro Instrumentation Telemetry Systems. The build-it-yourself kit doesn't have a keyboard, monitor, or its own programming language; data are input with a series of switches and lights. But it includes an Intel microprocessor and costs less than $400. Seizing an opportunity, fledgling entrepreneurs Bill Gates and Paul Allen propose writing a version of BASIC for the new computer. They start the project by forming a partnership called Microsoft. A fledgling is a young bird that has recently left its nest (it has fledged) but is still dependent upon parental care and feeding.

    Speaking of which, the other history-rewriting seizure-in-residence, Darl McBride, appears to have finally come to the end of his feather.
  31. Not really accurate by Anonymous Coward · · Score: 3, Interesting

    MS and YAHOO and complete different services than google.

    Google is a fiscal service for advertisers with free user services to get viewers to the add content.

    MS and Yahoo are user services that use advertising since they already have the users there. The motivation is cleary and entirely different between these companies. Google is all ads, MS wants you on their platform and subscriptions with some ads on the side. Yahoo must have a mountain of email accounts that perhaps MS wants to eat up in order to integrate them with the new MS email/office combination.

    I must say, google and the rest of the world are slacking on getting onlnie apps out. At this rate MS is going to eat them alive and google is going to have some shitty plain Ajax wordprocessor to pretend to be competative against Word online.

    MS having ported to .NET is positioning themselves to go all out, all online, even all crossplatform if they have to. They've basically aligned the entire Win32 development army to produce the most portable rapid developemnt environment around.

    Who cares about Vista, the right move was .NET. It's taken awhile and too many version and code changes, but they will have the most awesome integrated framework for making any apps. I think you'll see that more and more with online apps and web pages. The fact is, the non MS development community has dropped the ball on a full featured devlopment suite such as .Net and the power and support it has and they are going to pay in yet another decade of MS rule.

    It's funny because of all the platforms, MS needs development tools the least, because they have the most, yet they know where their strength is and have expanded their lead their.

    The difference is that Yahoo and MS are sustainable, and Google is reliant on ad revene. Though, you could say Yahoo isn't all that susnstainable in the long run, but google is BY FAR not sustainable.

    As soon as ad spending goes down, so does Google's revenue with it.
    Google's is a more opportunistic model and the only reason it's good is because it's realiable. Yahoo and MS have unclear reasons for doing things while Google's reasoning is pretty much always fiscal based. You can bet on Google to piling up services to draw more revenue and you can count on them to stick with that same basic strategy.

    Google is being more and more exploited everyday and in time it's highly unlikely it can keep it's good reputation and without a doubt it's search results aren't as good as they used to be.

    Google's business model is unsustainable because it relies on completely immoral ad revenue. No matter how good the serice, in time, the force of profitablity will erode google because the HEART of google is generating money through ads. That's just a very shaky place to draw the majority of your revenue. Look what happened to TV, the news. These services started out with a much more individualistic and unbaised position and over time as profitability proved more powerful than morality these servies lost integrity.

    Google, at it's current rate, will do the same and the plethora of rip off artists using it are a sign of this.

    You're probably not going to be able to rely on one search engine in the long term any more than you can rely on one news source to provide you the truth.

    Perhaps MS just want to buy Yahoo's user base, statistics, logs and such from them.

    MS might also be suspecting the fall of Yahoo and trying to buy the equity of the company at a relative loss to yahoo and gain to MS.
    I certainly don't see that it's worth 45 billion though, since yahoo is the new lycos.

    Yahoo will die on their own because like so many web services, they forgot to make money. Perhaps yahoo has patents on online apps that MS wants also since they will be going full force with office online soon.

    I think whoever buys yahoo is bound to take a loss on the investment, so with that in mind News Corp can have them. Yahoo had the edge, lost it, and failed to innovate. Yahoo answers is about the only new buzz they have going on.

    1. Re:Not really accurate by Mongoose+Disciple · · Score: 1

      Who cares about Vista, the right move was .NET. It's taken awhile and too many version and code changes, but they will have the most awesome integrated framework for making any apps. I think you'll see that more and more with online apps and web pages. The fact is, the non MS development community has dropped the ball on a full featured devlopment suite such as .Net and the power and support it has and they are going to pay in yet another decade of MS rule.

      I agree with this 100%, although I think it'll still be years yet before most of the development world starts to "get it."

      In a lot of ways Microsoft's business strategy isn't all that far off from, say, a Blizzard's. One part innovation to ten parts "let someone else do the hard thinking, then come up with basically the same thing and polish the hell out of it." It's hard to argue that .NET started off as anything but a copy of Java and the assorted technologies that orbit Java, but given a couple versions they polished the hell out of it. A lot of what Team System does is blatantly copied from the free software world, and polished and polished in ways that people with ten years of Java (or whatever) experience couldn't give a damn about but a lot of other people have and will.

      (Equally, a lot of the best additions in recent versions of Java have been driven by 'competition' of .NET going back the other way, but that's a different tangent.)

      They started with mimic and polish to catch up in the development world, and have now pushed on to solving problems that other technologies aren't going to be taking seriously until it's too late.

  32. "defined computing"? I don't theeenk so! by toby · · Score: 1

    "Defined crappy computing" - now that's accurate.

    --
    you had me at #!
  33. No, it's logical. by Anonymous Coward · · Score: 1, Interesting

    > Ok, perhaps it is true, but if Microsoft were investing so
    > much time and energy being evil in every move they make,
    > don't you think they wouldn't be the #1 company in the field?
    > (profits wise). I'd have thought they'd have slipped a while back.

    Your logic is flawed. Microsoft is #1 precisely *because* they make evil moves. Being ruthless in business is good for your company as long as it does not push any of your customers away. And in this case the average consumer could not care less what is going on between two giant companies, and as such Microsoft will lose nothing, while putting their opponent out of balance. So being evil is the logical move, as long as it does not generate too much bad press for themselves. Had they not done this because of "ethics", they would not have reaped the benefits of the move, and would be in a worse position.

    Ethics is not mentioned in the rulebook of Capitalism chess.

  34. Messing with their minds by Anonymous Coward · · Score: 1, Funny

    That would be just too cool.

  35. Who on earth would mark you Insightful? by LibertineR · · Score: 3, Insightful
    What product makes Microsoft their greatest profit? Answer = MS Office.

    Which department decided to bundle Microsoft's desktop apps into what is known as MS Office? Answer = Microsoft's Marketing Dept.

    You must be very young to believe Microsoft simply BOUGHT all of their products, or that everything successful is simply the result of their money.(Did I mention MS Office?)

    Love them or hate them, but you would be foolish to think Microsoft never built anything on their own towards their success. They didn't buy Excel, they didn't buy Exchange Server, which spawned Active Directory, so give them their due.

    Nobody told the folks at Lotus or Netscape that they got beat by money, rather than products that kicked theirs in the teeth. Who did they buy Visual Studio or the .NET Framework from? Something tells me, Microsoft will be just fine for the long term.

    1. Re:Who on earth would mark you Insightful? by Anonymous Coward · · Score: 0

      But... he said mean things about MS. So... that's insightful.

    2. Re:Who on earth would mark you Insightful? by LibertineR · · Score: 1

      Right, my bad. For a sec, I forgot where I was posting.

    3. Re:Who on earth would mark you Insightful? by falconwolf · · Score: 2, Insightful

      You must be very young to believe Microsoft simply BOUGHT all of their products, or that everything successful is simply the result of their money.(Did I mention MS Office?)

      This could be turned around on you, you must be very young to believe MS Office was innovative or the first office suite. All MS did was bundle different apps together. And even then though my memory is rusty I believe WordPerfect bundled an office suite before MS did... Yeap, whereas MS Office was first created in 1989, for the Mac, WordPerfect Library/Office was created in 1986.

      Love them or hate them, but you would be foolish to think Microsoft never built anything on their own towards their success. They didn't buy Excel, they didn't buy Exchange Server, which spawned Active Directory, so give them their due.

      MS did nothing innovative, as far as software is concerned or hardware either, though.

      Falcon
    4. Re:Who on earth would mark you Insightful? by alpharoid · · Score: 1

      You must be very young to believe Microsoft simply BOUGHT all of their products, or that everything successful is simply the result of their money.(Did I mention MS Office?)
      They did buy Powerpoint for the Office suite. Not a single successful product that came out of MS is free of large chunks of purchased products and/or companies.

      Nobody told the folks at Lotus or Netscape that they got beat by money, rather than products that kicked theirs in the teeth.
      Netscape indeed got beat by money, but not just that. They also used dishonest bundling tactics for which they were convicted in court.

      And to put the cherry on top of the argument: even Internet Explorer was bought from another company. Quoting Wikipedia:

      "The Internet Explorer project was started in the summer of 1994 by Thomas Reardon and subsequently led by Benjamin Slivka, leveraging source code from Spyglass, Inc.

      Microsoft might not have bought all of their products, but 98% of the ones that weren't bought are money-losers.
  36. Daily Two Minutes Hate by Anonymous Coward · · Score: 0

    ... right on time.

    Hey guys ! I heard Microsoft dumped babies out of incubators in Iraq!!

    We should invade them!!!

  37. On the other hand, the ARE similar. by Futurepower(R) · · Score: 2, Funny

    "Yahoo doesn't really seem like a good match for Microsoft."

    Yes, but they are a bit similar: Microsoft has proven, over many years, that it does not know how to run a search engine. Yahoo has proven, over many years, that...

  38. Anders' common reply to posts like yours.... by LibertineR · · Score: 1
    "So what does MS do then? They go back to the old trick of "We cant compete with their products, so lets just start hijacking their engineers". MS had the money so they just started writing VERY big checks to Borland's best and brightest. And the rest as they say is history."

    "So what? I'm RICH, Bitch! Borland didn't pay me, baby!"

    1. Re:Anders' common reply to posts like yours.... by FlyingGuy · · Score: 2, Insightful

      Anders is the Darth Vader of the software industry.

      Ever wonder why so much of .Net looks just like stuff that Borland came out with, except that it sucks? Seduced by the dark side he was.

      Anders is brilliant, he could have created his own software company and did something like .Net that actually was light weight, fast and X-Platform, but instead, .net is .Garbage because it is done the "Microsoft Way".

      --
      Hey KID! Yeah you, get the fuck off my lawn!
  39. Luck favors the prepared by westlake · · Score: 2, Insightful
    If it wasn't for getting lucky with DOS (which they bought from someone else) and IBM they would not be existing right now.

    It amazes me that the geek still fantasies about MS-DOS.

    Microsoft was incorporated in 1975 and by 1980 was dominant in languages for the microcomputer. Microsoft was moving up and moving fast.

    There would be an MBASIC for the IBM PC and much, much more to come.

    Gates promised to deliver a cheap, serviceable, OS in time for the projected launch of the IBM PC, an OS that would sell for about 1/6 the price of CP/M 86.

    That was all IBM needed to know, that was all IBM wanted to know.

    But it was Bill Gates who had the imagination to see the enormous potential for growth and profit in the MS-DOS PC that was almost - but not in its beginning - an IBM PC-clone.

  40. This story wouldn't be complete... by TheSHAD0W · · Score: 1

    ...without Iliad's take.

  41. WHY? Just so that Google gains share? by WoTG · · Score: 1

    No, this was a real offer. They don't care if they "screw" with Yahoo. Yahoo isn't a real threat to Microsoft. The biggest threat to Microsoft is Google. So who in their right mind would mess up Yahoo so that Google slides in and gains another 10% share of search and advertising?

  42. Microsoft offer to buyb Yahoo! by falconwolf · · Score: 1

    I mean, if you forget the theories of MS having malicious intent etc., the math becomes a lot simpler. Yahoo has 20% of market share and MS want to buy that 20%. Plain and simple.

    However MS has to know it won't get all of Yahoo!'s market share. Sure it will get some but others who use Yahoo! will switch if MS acquires it.

    Falcon
  43. Why Search Engines. by thomasw_lrd · · Score: 1

    Does Microsoft not make enough money? Why do they need a search engine so bad? Can anybody please explain that to me. They can't make that much more money off of simple web advertising, or can they?

  44. If this is failure, what is the measure of succes? by westlake · · Score: 0, Flamebait
    the Vista stink of failure

    It was the Intel exec that gave Linux 0.8% of the desktop.

    In the January W3 Schools OS Platfrorm Stats Vista is poised to overtake OSX and Linux combined in a month or two.

    Not a bad showing for an OS whose greatest strength in 2007 was in the high end of the OEM consumer market, where the Vista Premium and Ultimate PC competes directly against the Mac system bundle.

    the rise of the low end markets where they simply can't compete

    Microsoft's $3 "Student Innovation Suite" bundles Learning Essentials for MS Office, Microsoft Math, Office Home and Student 2007, Windows Live Mail, and XP Starter Edition.

    The Vista Starter Edition will arrive somewhere down the road.

    At first glance, the pricing is shockingly low considering the broader value of the software. For example, in the United States, Office Home and Student 2007 retails for about $150. But further examination reveals pricing not so out of line with what college students might see in the United States. It's fairly typical for universities to provide students with Microsoft software for as little as $5 or $10 a copy under a Microsoft Campus License. It's a bit out-of-box thinking. It is very clever," said Clive Longbottom, service director of Business Process Analysis for Quocirca. "We wouldn't see millions of licenses sold through educational institutions in established markets. You will see thousands."

    But in markets like China, "you will see millions."

    What is Microsoft's Unlimited Potential?

  45. Microsoft made cool stuff and people bought it by falconwolf · · Score: 1

    What did Microsoft make that was cool or innovative? That is other than Atari BASIC?

    Falcon
  46. Yahoo and Microsoft by falconwolf · · Score: 1

    Yahoo must have a mountain of email accounts that perhaps MS wants to eat up in order to integrate them with the new MS email/office combination.

    And Yahoo! will lose one of them, mine, and I bet others will switch as well if Microsoft acquires Yahoo!.

    I must say, google and the rest of the world are slacking on getting onlnie apps out. At this rate MS is going to eat them alive and google is going to have some shitty plain Ajax wordprocessor to pretend to be competative against Word online.

    I couldn't care less if Google, MS, or anyone else wins with online apps. To tell the truth this kind of puzzles me. Personal computers became such a big market, taking market share away from mainframes and minis, because people wanted to run software and store data locally. Now they want to go back to timesharing. Me, I still want to run my apps locally and to have my data local as well, unless I'm traveling but then I can use my laptop and vpn into my home server if I need to.

    The difference is that Yahoo and MS are sustainable, and Google is reliant on ad revene. Though, you could say Yahoo isn't all that susnstainable in the long run, but google is BY FAR not sustainable.

    Shouldn't you let all those financial analysts know what they're doing wrong?

    As soon as ad spending goes down, so does Google's revenue with it.

    And when ad revenue goes back up so will Google's.

    Google is being more and more exploited everyday and in time it's highly unlikely it can keep it's good reputation and without a doubt it's search results aren't as good as they used to be.

    Yea, as tyme goes by I use Teoma, now ask.com, and Mooter more for searches. However Google isn't totally dependent on searches, with adwords Google places a lot of ads on blogs as well as other websites.

    Falcon
  47. Who are Intuit? by falconwolf · · Score: 1

    A small tribe near the Arctic Circle.

    No, they are the Inuit, living in Nunavut. That is the Canadian Inuits, others live in Iceland while related groups live in northern Europe. Such as the Sami and Lapps.

    Falcon
    1. Re: Who are Intuit? by ScrewMaster · · Score: 1

      Yes, I believe the Inuit make accounting software, or something like that.

      --
      The higher the technology, the sharper that two-edged sword.
  48. Re:If this is failure, what is the measure of succ by hairyfeet · · Score: 1
    XP starter is not for the US,and if you are not a student an OEM of Vista is $100+.Why would I pay that when the machine is $199?Not to mention the girl from OLPC left to form a startup to sell less than $200 laptops.The simple fact is that Vista runs like crap on less than 2Gb(I've even had MSDN Technet guys tell me not to bother with less) and the ONLY reason Vista is selling is MSFT is stuffing it down the OEMs throats.Do you really think anyone actually WANTS Home Basic? That is what most machines under $500 I've seen at Best Buy have.Have you tried it? Vista Home Basic on 512Mb of ram could be used as torture(Don't Home Basic me bro!)


    OTOH,I have Xandros 4.01 running with full 3d effects on 512Mb of ram and multiple apps running and it isn't even breaking a sweat.The Asus EEE purrs like a kitten.With the economy in the toilet folks want affordable and reliable.They are also hanging on to their machines longer since the majority of home users(and working fixing Windows machines for 10+ years I know this to be true) are rarely doing anything that takes more than a 1.0-2.0Ghz machine.So what does MSFT do? Gets rid of Win2K(which EVERY business I've had contact with simply loves)and is now trying to phase out WinXP. All for an OS that for the first time since WinME has folks coming to me asking "can you PLEASE put XP on this? I really hate Vista."


    MSFT made an OS that is simply not made to run on the sub $500 machines with any kind of speed.And with prices at sub $400 for laptops and sub $300 for desktops there just isn't a way for OEMs(even if MSFT gave the Vista for free,which they don't) to stuff the hardware Vista needs into a sub$400 pc and make any profit.As someone who has bought every MSFT OEM over the years(And I'm still waiting for my apology for WinME,Mr. Gates!) this is the first time I am going to avoid a new MSFT OS.There simply isn't enough value to make up for the hassles and bloat.And from what I have dealt with when it comes to customers I'm not alone.


    If MSFT really wants to treat their customers right they will keep WinXP alive at least until sub $300 machines come with 2Gb of ram standard.Until then sell XP on all the sub $500 machines and keep Vista for the new quad core 4Gb of ram "elite" machines.And Home Basic really needs to be taken out back and put down.It is just painful to deal with.


    But if you want to keep believing that is your thing.I suggest you take a non-student in to buy Office+Vista at your local pc store and see if it doesn't end up costing you MORE than a new Everex.Most folks are going to look at the price and go with what is cheapest,and for the sub $300 market MSFT can't even compete.But as I said in my earlier post,My 02c YMMV.

    --
    ACs don't waste your time replying, your posts are never seen by me.
  49. Moron by Anonymous Coward · · Score: 0

    This column has been a piece of crap from day one and this is no different. Anyone with any semblence of a clue knows that no one with a brain at Yahoo! would work for Microsoft unless they'd exhausted all of their (very generous in California) unemployment benefits. "Cringely" shows once more what a clueless bastard he/she is. Gods I wish I could get paid to be a moron like this.

  50. enron by Anonymous Coward · · Score: 0

    One word for you: enron

  51. Re:If this is failure, what is the measure of succ by westlake · · Score: 1
    XP starter is not for the US,and if you are not a student an OEM of Vista is $100+

    That is the Vista Premium System Builder price from Newegg.com. Microsoft Windows Vista 32-Bit Home Premium for System Builders Single Pack DVD - OEM No bundled hardware.

    The fully assembled Acer dual core Vista Premium desktop with 2 GB of RAM is $500 at Newegg.com Let me know how many people you think build their own laptops.

  52. Re:If this is failure, what is the measure of succ by hairyfeet · · Score: 1
    Thank you for proving my point.You are talking about a $500 pc,whereas the market is moving towards sub $200.The pc,with the exception of the gamers and those with lots of money burning a hole in their pocket,is going to end up an appliance,just like DVD players are now.When the laptops are selling for $300 or less,and the desktops are selling for $250 or less,and are more than capable of the tasks that the majority are using them for(email,web,document creation and editing) it is insanity to pay $100+ for the OS.MSFT could easily sell WinXP or even Win2K on the low end machines,but instead insist on pushing the horror than is Vista Home Basic,which runs like a slug on less than 2Gb(just like any other Vista).


    So as far as I see it half of the reason Vista has become so hated is because of MSFT pushing it onto machines that simply aren't able to run it instead of using a less resource hungry OS like Win2K or XP. This is where the Linux builds are going to take off.An OEM instead of paying 20-25% of the MSRP of the low end machines for Vista can instead pay a greatly reduced price and have a custom branded OS(Like the Xandros OS made for the Asus EEE) or they can use one of the multitude of free distros and either support it in house or through the community.And as more and more of the things we use computers for move onto the web(I have customers that wouldn't give a damn what OS they had as long as they can get to Facebook) there simply isn't a need in most households for the 2Gb+ Dual Core rig.


    In the end I think it is MSFT that will lose,simply because of mismanagement and lack of long term vision.The reason that Vista became such an overblown resource hog was MSFT trying to "outbling" Apple.Same for all the DRM,which was put in there to try to get everyone to hook their pc to the tv and watch whatever format MSFT and the studios want to push,hoping to become the video version of iTunes.But instead we are going to end up with light and cheap desktops and laptops all over the place,to which MSFTs answer is Vista Home Basic(yuck).And of course the big money spenders will go to Apple for the "cool" factor and the lack of hassles.


    MSFT still has a chance to turn this around,but the attempt to buy Yahoo tells me that Ballmer thinks he can buy his way out.Which I just don't see working.Not as long as they are pushing Vista onto machines like they sell at Wal Mart and Best Buy.BTW,I am not a "fanboi" of any OS.I have bought 95-XP and beta tested for Vista. But as the margins for the OEMs get ever tighter the "MSFT tax",both on the amount of hardware required to give a decent Vista experience as well as the price paid for the OS,will become more of a factor for the OEM builders who will be looking for any way they can to cut costs.And the web looks just as nice on my Xandros laptop with 512Mb of ram as it does on a 4Gb Vista rig. Anyway my 02c YMMV.

    --
    ACs don't waste your time replying, your posts are never seen by me.
  53. Re:If this is failure, what is the measure of succ by westlake · · Score: 1
    Thank you for proving my point. You are talking about a $500 pc, whereas the market is moving towards sub $200.

    The history of the web appliance is crash and burn.

    There is always something more that makes the full-featured PC the better value.

    I have yet to see hard numbers for sales of the gPC at Walmart.

    The gPC shipped with a non-functional modem. Walmart has a lot of customers in rural areas and small towns who can afford AOL Essentials at $10/mo but can't get broadband at any price.

    BTW the Everex Vista Basic Desktop is $278.

  54. Re:If this is failure, what is the measure of succ by hairyfeet · · Score: 1
    Thanks for proving my point again.Did you SEE the specs of what you pointed out?For nearly an extra $100 you get a to try to run Vista on 1Gb of ram.Oh,and did I happen to read Vista Home Basic?Yep,I did.Have you ever set down and actually ran Vista Home Basic for any length of time?There is not a single redeeming feature.Unless you count slow and bloated as features.I got the privilege of changing a Best Buy special with almost the exact same features into a dual boot PCLinuxOS and XP.Last time I talked to the girl she hasn't booted into XP yet since PCLinuxOS loads her Facebook page just fine,which is what she bought the machine for.


    Point is,Vista Home Basic has NONE of the features that your average user will care about,and is JUST AS SLOW on low end hardware as premium.That poor pc thrashed like mad when you would boot it up and averaged 75-90% ram usage constantly.That is of course with default settings,becasue as we know the non-tech users rarely change from default.THIS is why Vista has left a bad taste in everyones mouth.If you buy a new machine with 2Gb+ that was built for Vista,then yes it runs just fine.I have worked on a few of those myself and can attest to the fact.But on low end hardware,like the type that Joe Average finds at Best Buy,Wal Mart,Circuit City,etc it runs like a total dog.And nobody wants to bring home a new pc and have to go make dinner while they wait on the thing to quit thrashing.


    As I said in an earlier post WinXP runs wonderfully on weaker hardware such as this,and if MSFT were to keep selling it(along with lowering the license for XP Home for OEMs) they would win simply by inertia.Folks will stick with what they know if they can.But Ballmer is determined that you will take Vista on EVERY pc whether it will run it or not.This is what is hurting Vista more than anything else.And unlike previous versions XP has no major show stopping bugs to make folks give it up for a slower machine.Even Bill gates said Vista would be designed for 4Ghz machines with 4Gb of ram,because that is where they thought the market was heading.I don't believe we will get to that point for a number of years.And I don't believe we will end up with Web appliances either.Because folks like to think they can use their machine for anything,even if all the do is go to Youtube,Facebook,etc.


    Anyway this is why I think Vista is a mistake for the sub $500 market,if you actually like Vista Home Basic then congratulations! You are the first person I ever met who does.Of course as always my 02c,YMMV.

    --
    ACs don't waste your time replying, your posts are never seen by me.
  55. But does not work for MS by EmbeddedJanitor · · Score: 1
    MS have acquired many compnaies http://www.microsoft.com/msft/investments/default.mspx . Only very few of these have actually turned into profitable business units.

    No folks, Ballmer is Google Obsessed. Making money and core business no longer seem to matter for him. Attacking Google (profitably or not) is all he cared about. He'll spend 40-odd bn for Yahoo, but put 5bn into developing Vista (core business). He's just bought Danger (a deliberate attempt at Google Android).

    The dumb thing though is that Yahoo is a sinking ship and buying them would only give a small cosmetic market share.

    --
    Engineering is the art of compromise.
  56. Microsoft is not screwing anything... by Chris+Shannon · · Score: 1

    ... just look at their name.

    --
    "Follow me" the wise man said, but he walked behind.