(4 votes, average: 10 out of 10)
Loading ...Trying to Throw the Brick through the Cloud – Microsoft/Yahoo vs. Google
There has been much press and discussion about the potential merger between Microsoft and Yahoo (the brick) in an attempt to become a formidable force against Google (the cloud). Yahoo management does not want to be taken over and they have recommended rejection of the offer, turning this into a potential hostile takeover. The hostile takeover of Yahoo seems to be somewhat probable based upon market reaction and the premiums offered by Microsoft to Yahoo shareholders. Microsoft certainly has the capability, with its’ multibillion dollar ‘war chest’ for huge acquisitions. I am sure Yahoo will put up quite a fight. There are reports that Yahoo is trying to align with AOL and even Google to fend off the Microsoft bid.
Whether the deal does go through or not, as would be expected, Microsoft is laying plans to integrate Yahoo effectively. The word is out that Microsoft’s executive and product teams are mandated to do the integration/mash-up between Yahoo and Microsoft quickly. The integration will be a challenge because Microsoft and Yahoo have very different styles and very different philosophies. Let’s take a moment to explore just how different they are.
Microsoft invented software for the PC as an engine for empowerment. Microsoft enabled the next step in ‘islands of automation’ beyond the glass house of the datacenters. They went on to dominance of the shrink wrapped products (bricks) selling operating systems and suites. Along the way, Microsoft built a reputation for a style of slow development with security loopholes – something that does not work in the security sensitive and integrity sensitive world. Microsoft admits it was late to see the vision of the PC being really more trivial than the power of the network or ‘cloud’. The cloud is really the power of the network connecting all those PC resources and media together into the collective of the web and more importantly Web 2.0.
Yahoo really defined the meaning of the internet portal as a landing and jumping off place to the web and has built a large following for instant messaging, as has Microsoft. Yahoo has not been able to get unstuck from where it was and is not as innovative or creative as Google. So in fact Google is not a leader in Web 2.0 either. Let’s look at Google for a point of comparison. Google’s philosophy works for the impact on People, not for money. That is one of the reasons why Google is so successful. Google has been able to keep up with the redefined web to stay on the curve. There is a great write up about this at: Google - Our Philosophy ‘Never settle for the best’ - http://www.google.com/corporate/tenthings.html . They have also published “Ten Things Google has found to be true” which are:
1. ‘Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There’s always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10. Great just isn’t good enough.’
This Google mantra is great, but how does it really fit into the enterprise computing world, is this just another security threat or way to defeat the integrity of our information assets?
So what we see is a binary with Microsoft and Yahoo on one side and Google on the other. What about the customer here? It is the CEOs, COOs, CFOs, CIOs and CTOs who are ultimately going to pay the freight for this acquisition. They are going to ask the Microsoft account people, if the deal goes through, ‘what are the new solutions?’
Based on my experience those senior IT people will be asking: ‘How does this fit to my enterprise IT operation?’ How will these merger ‘mash-ups’ fit back into our operations and large complex enterprise databases which we rely on? How does this empower my users and employees, while still integrating into the greater whole of our enterprise safely with integrity? How will Yahoo/Microsoft/Google applications or portals talk to my enterprise platforms? What is empowerment anyway? Is it really a codeword for lax security and impulsive undisciplined behaviour or real breakthrough creativity? Will this end up like herding cats? Does this belong in the enterprise?
If these questions are not answered correctly, Microsoft will be facing a cool reception and that high per share price for the hostile takeover will be a great misstep. The result could be as impactful as throwing a brick though a cloud.
