Microsoft bid to buy Yahoo

It has been in the rumor mill for a while now that Microsoft was seeking to buy Yahoo. When there is sufficient smoke there seems to be fire and now the deal is officially proceeding. There are reasons for it and reasons against it. Apparently Live has not pulled in the traction that Microsoft wants and the desire for ad revenue and internet traffic control as a business model is

Google brings up some interesting points on the combination having more webmail and portal traffic than anyone else and Microsofts track record of following the path of Embrace, Extend, Exterminate when it comes to competition. But that input from a competitor is unlikely to bring about any sort of block of the deal. In fact some reports are even suggesting that the deal could be good for competition.

I am not 100% decided on the deal and it's positive or negative effects. Microsoft has a long record of proven execution and when they really set their eyes on something they can make it happen. There is a wide range of incredibly bright people there that when unified to a cause can deliver. The big change that I see though is in release management. Microsoft has a history of classical software development with releases taking years and subsequent patches taking months. In the internet world, and Google is a great example of this, change is constant, the ability to roll out new versions and try new approaches every week is key to success. This will be a big change from the default Microsoft dev approach. Will this Agile development change cross over into Microsoft's standard products? Another one of those much discussed items, SAAS Software As A Service suddenly becomes a lot more of a potential reality. To me this is the real reason for the desired purchase. Ads and Eyeballs are great to monetize and transform what Microsoft has done for a long time.

No matter what finally happens, this aught to be fun to watch.