A discussion about the software industry and their coders

Continued from Microsoft Surprises -- withdraws Yahoo! acquisition bid

End winner of a *No* Microhoo -- is Google in the short and mid-term.

Google is becoming the next Microsoft in its power and control over consumers. Power corrupts there is no question about that. (Companies are aggregates of people. We deal with people who run companies and they are controlled by egos and emotions.)

There are two main frontiers where the next battle will rise: Social Networking and Mobile Internet. Combined Social Networking traffic of YouTube and Facebook has already become larger than Google and Yahoo! Mobile Web has been on the rise since last few years (more in BRIC countries).

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Microsoft obviously was under pressure from its own stockholders and employees not to dilute its own stock value in the short to mid-term by buying Yahoo! (YHOO) at an overly aggressive price. Because even after the acquisition, getting value out of the combine would have taken Microhoo! atleast 12 to 18 months if not more.

What next for Yahoo!?

Going alone down the way there is little hope for Yahoo! If Yahoo! tries using Google's Search Advertising platform to monetize its own traffic, it may face anti-trust review and an erosion of its own investments in Panama.

Y! isnt a leader in Social Networking also. In Mobile Y! has some traction with Y! Go but the money isnt yet big enough.

The guessing game begins...For once, just this once, my sympathy is with Microsoft. Atleast a 2nd strong player is required in the ecosystem to counter Google and drive innovation. Facebook isnt there yet.