Microsoft-Yahoo approved: Now the heavy lifting starts

Microsoft-Yahoo approved: Now the heavy lifting starts

Summary: Microsoft and Yahoo have received clearance from regulators in the U.S. and EU to proceed with their search agreement. Now the real fun---integrating people, technology and processes---begins.

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Microsoft and Yahoo have received clearance from regulators in the U.S. and EU to proceed with their search agreement. Now the real fun---integrating people, technology and processes---begins.

Here's the to-do list for the two parties as they implement this deal (statement, Techmeme):

  • Transition Yahoo's paid search and algorithm platforms to Microsoft;
  • Yahoo becomes sales force for premium search advertisers of both companies;
  • Move people, systems and processes around as needed;
  • Innovate, monetize better and get more scale to compete with Google;
  • And do it in a way where Yahoo search users won't notice much and flee to Google.

Also: Microsoft-Yahoo partnership gets U.S. and EU antitrust clearance

In a blog post, Yahoo outlined what the user will see (hopefully not much different):

Managing the user disruption is probably the easy part. Dealing with partners is where the revenue risk lies.

Folks, this is a big project. The companies hope to have the integration complete in the U.S. by the end of the year. Meanwhile, advertisers and publishers are expected to be migrated over before the 2010 fourth quarter holiday push. That deadline could slip to 2011. All customers globally will be transitioned to Microsoft's platform by early 2012.

Will these two be all smiles after the systems integration?

Will these two be all smiles after the systems integration?

As noted previously, implementing this partnership has three primary hurdles:

  • People;
  • Data sharing processes;
  • Systems integration;
  • And culture.

Microsoft-Yahoo: Gauging the IT integration risks

To hear Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer tell it the partnership is all about innovation and focus.

The rub: Big projects like this can take away both the innovation and the focus and given the timelines proposed by Microsoft and Yahoo there isn't much room for slippage.

The challenge for Bartz and Ballmer: Avoid the inevitable distractions that are going to arise and execute the plan.

Microsoft and Yahoo have a pretty well thought out plan. The aim for both parties is to migrate advertisers, publishers and developers. One wrinkle to note: Microsoft and Yahoo said that they will work with big partners on a customized migration plan. Customization takes time and can lead to complications. Bottom line: Congrats to Yahoo and Microsoft for getting approval from regulators. What happens in the months ahead will determine the success of Microhoo.

Background: It's official: Microsoft-Yahoo ink 10-year search pact; Regulator scrum begins

Topics: Microsoft, Banking, Enterprise Software, Software, Social Enterprise

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15 comments
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  • Bad day for Google

    and their complaints.
    No_Ax_to_Grind
  • Hello, broker? I want to sell all my Yahoo

    Partnership of death. Does anyone not believe at the end of the day Yahoo will be dead and buried?
    HollywoodDog
  • RE: Microsoft-Yahoo approved: Now the heavy lifting starts

    Now, Google will take over the world. As MS & Yahoo struggle to get a product out for the next several years & change it many tiems over, Google will keep getting the benifits of frustrated searchers defecting to them.
    tgschmidt
  • RE: Microsoft-Yahoo approved: Now the heavy lifting starts

    I think this will work out well for both companies. Those who say Yahoo will be dead obviously just don't like Microsoft. Too bad. I used to think Microsoft was the worst, but you know what, they're not so bad. They are a multi-national company that is trying to make money, just like Google and Apple which so many people seem to think are so wonderful. They aren't any better people. Especially Apple who has a strangle hold on everything they produce and distribute. I personally love the Bing search engine, and start my day by getting the basics of my news, etc. from Yahoo as do millions upon millions of others. I say go get'em, I would love to see Google really sweat.
    natespapa09
  • Bad day for Yahoo, I like others will leave it

    and its services, Google provides all that faster
    leaner and on my cellphone.

    Yahoo joined forces with MS, that was a big NO NO.
    Considering Yahoo's roots.

    Oh well.. like all previous companies that MS
    bought, they get bloat real fast, so time to say
    good bye Yahoo.
    Uralbas
    • Just sign here in blood...

      Yeah, I know I have a bad reputation for making deals for peoples souls, but trust me I'm on your side. I love you Yahoo, I wouldn't lie to you. Sign here and you'll be rich.
      HollywoodDog
  • RE: Bottom Line

    "Bottom line: Congrats to Yahoo and Microsoft for getting approval from regulators. What happens in the months ahead will determine the success of Microhoo."

    Surely you mean "Congrats to Google for wtfpwning search to the extent that regulators are forced to allow MS and Yahoo to work together in an effort to provide any sort of meaningful competition"?
    Tom-Tech
    • Sounds more like it..

      I've noticed that if I can't find it on Google, I can at least get a clue on Bing, that will focus my Google search and allow me to continue using Google.

      Bottom line = This merger, or what ever you call it, is just a Google enhancement.

      I must admit that MSN is my all time favorite web page, too bad I'm too busy to use it. Google rules!

      Yahoo! and its invasive tactics have just been an irritation to me; this doesn't bode well for customer relations. It will be interesting to see how Microsoft can increase or decrease this irritation! HA!
      JCitizen
  • RE: Microsoft-Yahoo approved: Now the heavy lifting starts

    The hardest pat will be the culture clash between the companies. If they can get past that, it should be very successful. But also watch in the future for Yahoo to get swallowed up by google.

    Still waiting for that google killer to come. Arrogance is what kills companies. And google is full of it now.
    Albee_Freeoneday
  • Still waiting for that google killer to come.

    There are people working on it.

    I personally have a couple of ideas that could serious traffic away from Google, and of course, Bing.

    It's not a search engine, but it could take away a lot of the need for search in the areas of news and information, and as we know, news and information comprise a lot of what people search for on the internet.

    But, search engines wouldn't be the only ones that would get hurt. The news and information industry, i.e., the news sites and blogs would also suffer.
    adornoe
  • RE: Microsoft-Yahoo approved: Now the heavy lifting starts

    They just need a good name... ooyahsoft

    ooyahsoft has less chance of nicking market-share from Google than Apple does from MS.

    Google won that market by doing an outstanding job of providing innovation, quality and value.

    And microsoft got their market-share by bullying all competitors and smoke and mirrors on some pretty crappy OSes.

    This is great news for Google as ooyahsoft will be about as capable of innovation as the KKK.
    akayani@...
    • Interesting!? So, in other words..

      now Google can finally breath a sigh of relief as all competition has finally evaporated!
      JCitizen
  • Immoral Wedding

    I can not understand how anybody can enter in a
    relationship with a "criminal" company that sells
    wastrels intentionally and cheats milliards people...
    drleos
  • Here come YaSoft !

    The two giants can buy out the small guy who currently owns this name.
    Techtoo
  • RE: Microsoft-Yahoo approved: Now the heavy lifting starts

    gwsrba,good post!
    makrejktt76-24353638158692958746802268407746