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Thursday, September 22, 2005

How Microsoft can 'kill' Google | The Register

How Microsoft can 'kill' Google | The Register: "When Steve Ballmer yelled at a departing Microsoft employee that he would �kill Google� we had no idea just how direct a method he had in mind. Buying all or part of AOL may be the first part of the master plan, as Google relies heavily on the advertising pages that come from Yahoo!, since it now syndicates its search to Google.
One estimate suggested that Google would lose as much as $380m of advertising revenue if AOL dropped its search engine and took on MSN's. That would cut Google�s profit by something like 25 per cent, potentially giving its huge share price something of a tumble. No wonder Google is thought to be entering the bidding to partner with Time Warner on AOL instead of Microsoft.
However, the move by Microsoft could still potentially backfire, although with its cash mountain you would expect it to win the day. Google only chance is to paint a sufficiently rosy future picture to Time Warner�s management about what kind of outcome there would be for an AOL partnering Google, then perhaps a lot more than that $380m could be saved.
For instance the new physical fiber network that Google is believed to be in the process of putting together, be used to transport more than just voice, advertising and wi-fi traffic. This could also become a conduit for video services, providing another route to market for the remainder of Time Warner�s content? Could the Google Video search capability index all of Time Warner�s precious content and give it another lease of life?
It�s too late for the Google Talk VoIP service to go out to all the AOL customers because AOL has launched its own complete VoIP package service. The AOL Time Warner merger had some original logic and perhaps a company as imaginative as Google could make that logic work.
On the other hand Microsoft in June 20"

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