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Should Google Power Yahoo Again?

Posted on Tuesday, Jan 2nd 2007

Here’s a superb post from Rich Skrenta on Google, the third wave of computing, and how Yahoo should go back to its original model of licensing Google’s technology for Search, Adwords and AdSense.

Whether or not you agree with that last conclusion, you must read the post.

And then, ponder the question on the future of Yahoo, upon which much of the Internet industry’s future rests. Is the Internet going to become a monopoly, with Google dominating sans competition? Or is it going to continue to be a duopoly (with Yahoo as the challenger), an oligopoly (with further challenges from Microsoft, Ask, etc.), and such which include certain competitive pressures?

Microsoft’s age of total dominance of the PC era had a constant nagging factor : Apple. Not only did Apple continue to provide the ideas and innovation into Microsoft, which the latter happily copied, time and again, but in the end, Apple also came up with the iPod, a leapfrog event in the industry that most effectively combined the PC’s powers with those of the internet, simplified with absolute mastery, and designed to perfection via Steve Jobs’ immaculate vision.

The difference in Google is that they not only lead the industry in terms of revenue and market share, they also are a substantial R&D force, having accumulated a great percentage of the world’s computer science talent under one umbrella.

What role then does Yahoo play? It is no R&D powerhouse. Neither is it the revenue / market share leader. In fact, mired by hairy management challenges, saddled by non-cutting-edge technology, Yahoo, yet-again, is in a turn-around situation.

Terry Semel had been the knight in shining armour, who had delivered Yahoo 5 years back. Who will do it this time?

Susan Decker?

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