Google increases it's share of search revenue almost 5%.
comScore's January report of internet searches for January 2008 further confirms what the rest of us already know. Google yes, Yahoo, doubt it, and a company like Microsoft can do just about anything and stay flat in 3rd place for searched.
Yahoo and Microsoft, in my opinion, have approached the internet in similar fashion to IBM handling the advent of the personal computer, or the way the Big 3 automakers approached the 4 cylinder engine in the 70's. Honda, Dell and Google looked at the problems facing their industries and said, "How can I make this better? or What's wrong with this picture?" Ford, IBM, and Microsoft said, "Why am I losing market share, what do I have in my current bag of tricks that can compete?" The good news is Ford and IBM had legs long enough to either change their niche or walk away from the product (IBM) or take enough kicks at the can to eventually get back in the game (Ford).
Microsoft should abandon search entirely. It's a drain, period. Walking away from Yahoo is entirely the right move. Focus on things you do well Bill and Steve. Don't try to diversify out of your zone unless you can stand far enough away from the problem to look at it with entirely fresh eyes. Can someone out-Google Google? Damn right, just a matter of time. But in the meantime, Google is a few steps away from further consolidating the local search market, integrating local search with search, and possibly with a mobile product and dominating for this stage of the game. The next Google will look into the future of search and see the right combination of technology and application and cut this ever-growing giant off at the knees. History, in this fashion, will repeat itself long into the future. Microsoft needs to stick with portals and software. Get Jerry Yang to peel off those two core pieces of Yahoo and Microsoft further cements its position. MSNBC is not about to lose share to iGoogle in my opinion, certainly not if Yahoo's portals and social network are combined. Yahoo can then break off Overture's terribly lacking product, give over to Google, and get ready for Baidu to enter the English speaking market. Google and Microsoft get to live to their strengths and Yahoo achieved maximum shareholder return.
Gentlemen, please let me just highlight common sense to the matter at hand in this fashion and all 3 companies win along with, God forbid, the shareholders.