[nylug-talk] The future of Zimbra after Microsoft's bid for Yahoo!

[Ron Guerin]

Ajai Khattri wrote:
> On Mon, 4 Feb 2008, Ron Guerin wrote:
> 
>> I question that it makes any sense for Microsoft to be in the search 
>> business at all, let alone needing to be the king.  I think Microsoft's 
>> Google obsession has finally driven them insane, and that after Google 
>> makes this purchase as expensive and inconvenient as possible for 
>> Microsoft, Yahoo will be like a cinder block around the neck of 
>> Microhoo.
> 
> And at the end of the day, they will still have less market share than 
> Google. Seems pointless to me. 

I think that consummation, they sum to less than the parts, because 
there has to be some customers of Yahoo who can't or won't do business 
with Microsoft.  Granted it's probably negligible, but in terms of 
market share, I agree this shouldn't be causing any genuine heartburn 
over in Mt. View.

> Maybe they are hoping it'll be like the Xbox?, i.e. bring out a product
> that loses money but keep going anyway until the market changes or they
> manage to bring out the next generation product that actually works pretty
> well.
> 
> But they have deep pockets: the Xbox lost $4bn in four years and 
> even the 360 makes loss (slightly less of a loss but a loss all the same).

I would however, cite Xbox as a success for them.  Admittedly I don't 
know if it generates income or is a drag on the bottom line, but it's 
about the only Microsoft product I can think of at the moment that 
someone I know has gone out willingly to buy and remains happy about it 
now that he owns it.  I think they should spend a bit more time getting 
the rest of their house in such order, and less eating Google's dust.

- Ron