Tag: business

Destroying LiveJournal

Back in December of the last year, when the Russian company SUP bought LiveJournal, I wrote this post, in which, among other things, I said that it wasn’t a very good thing for LiveJournal.  A few things happened since then, which confirmed my worries.  But the biggest of them is unfolding right now.

SUP removed basic (free) accounts from the registration form.  They have also introduced plenty of annoying advertising to existing free accounts.  Lots and lots of people got really annoyed with that.  In fact, there even was a boycott with some users not updating their diaries for 24 hours, while others going as far as deleting their diaries (no worries yet, since there is a way to restore the diary).

If you missed this whole story, here is a CNews article in English and here is a Lenta.ru article in Russian which cover the basic story.  For more, check numerous posts on the blogosphere.

Most of the people I know, saw it coming.  And this is surely not the last incident in this story.

How often do you change your mobile vendor?

I was reading this post about Mobile World Congress over at Web Worker Daily.  This paragraph got me thinking:

At January’s Macworld show, Apple CEO Steve Jobs cited data from NPD showing that the iPhone already has 20 percent of the smartphone market after one year, and that Apple is selling 20,000 iPhones per day.

How often do you change your mobile?  And how often do you change your mobile phone vendor?  Are you a fan of one particular brand or do you like trying each and every one of them?

Mobile market is measured in billions of users.  And these users can be pretty dynamic about their devices and the choice of vendors.  Mobile phone is something very easily replaceable.  It’s not like a house, or a car, or even a laptop computer. The thought of how dynamic the market is boggles the mind.  One day you the king of the mountain, and the a couple of months later they don’t know your name. But then again you can get it back before the end of the year…

Follow-up on Yahoo and Microsoft

The other day I wrote a post about possible Yahoo acquisition by Microsoft. There have been some developments to the story. If you haven’t followed it elsewhere, here is a brief summary for you:

  • Microsoft decided to buy Yahoo (again)
  • Yahoo said “No” (again)
  • Microsoft insists in very aggressive ways

There are a couple of posts at Mashable (one and two) which tell how the story unfolds in more details.

What Microsoft does this time, is what they have always been doing. This time it’s just on a slighter bigger scale. And if you ever had any fantasies about how Microsoft cares about you as a customer or partner, take a closer look at what happens now. If they don’t give a flying fork about major players on the Web, who are creating an ecosystem, what do they care about you as an end user?

My extremism years are long over, but I still get to hear “Boycott Microsoft!” scream in my head once in a while. Whatever the case, I believe in natural balance and the equilibrium of all things. I think that Microsoft has been rocking the technology boat for far too long and that things are slowly turning to where they should be. It will take a few more years to make them more obvious to general public, but the trend is there.

In regard to this particular situation, there is a slight chance of Yahoo getting away from this acquisition through an alliance with Google. It’s not as good as if they could just be, but it’s by far better than if they get acquired by Microsoft.

Yahoo + Microsoft vs. Google et al

The big news of last week were of yet another attempt by Microsoft to buy Yahoo.  If you missed all the buzz, Web Worker Daily has a really nice round-up with separate links to facts (read: press releases) and opinions (read: speculations).  If that’s not enough for you, you can always find more with Google, Slashdot, and Digg.

Many online news sources continue to be completely dominated by discussion of Microsoft’s hostile bid to acquire Yahoo! And no wonder: a deal of this magnitude has the potential to touch the lives of pretty much everyone living and working online. It’s a rare web worker indeed who doesn’t use something from one or another of those two companies in their daily lives.

So, first, can it affect me personally?  Yes.  I don’t use any Microsoft/MSN/Live services, but I can’t live without Flickr and del.icio.us, both of which belong to Yahoo now.  Also, I do occasionally use Upcoming.

Now, what do I think about this whole thing?  Well, I think it shows how desperate Microsoft is.  The general trend is towards the web, not the desktop, where they still rule.  Most of their own web services turned out to be pretty lousy.  They want to get online, and they are willing to pay a lot of money to get their fast.  Mostly, of course, this is a war for a place under the advertising sun.

From the Microsoft view point (I think), Yahoo looks to be online.  More than so.  Yahoo is the second most important company online after Google.  And Google is giving Yahoo some rough time.  And Microsoft realizes it clearly, that Google is partially to blame for this whole trend towards the web.  And it also realizes that if it is serious about moving online, it’ll have to compete with Google in one area or another.  So it makes even more sense to acquire Yahoo.  From the Microsoft point of view (again, I think), Yahoo appears to know what they are doing.

And that’s where I see their biggest mistake.  Yahoo is indeed the second most important company on the web after Google.  But it struggles to be there, and it struggles even more to keep Google in sight.  Because it is falling pretty far behind.

A little side note: I think there is a war of concepts between Google and Yahoo. It’s bigger than just advertising space or anything else.

  • Yahoo started off with a directory of links, which was better than many at a time because it was moderated by humans.  Google started off with bringing huge improvements to machine based indexing and searching.  Yahoo:Google – 0:1.
  • Google brought this whole concept of clean user interfaces and simplicity for the end user.  Yahoo stayed and expanded on the old idea of portals, which bring all possible and impossible to the front page of the site.  Yahoo:Google – 0:2.
  • Google made a stake on the brilliance of its people – if the service is properly done, it’ll grow by itself and bring in more users.  Yahoo played it safe, trying to purchase web services that already have momentum.  Yahoo:Google – 1:2.

End of side note.

Overall, I think that this is a bad move on Microsoft part.  If the acquisition will happen, I think, it’ll damage both companies, and, maybe even, drive at least one of them into the ground (eventually, not immediately).  Yahoo, being at the position it is now, needs more flexibility.  The online space is getting more and more competitive.  That’s where you need to move fast.  Yahoo made some really good acquisitions before, and I’d say that they have some sense in this area, but they need more speed with integration of their acquisitions into their backbone.  With Microsoft on board, I’m afraid, everything will get a lot slower.

Also, I think that Yahoo won’t win much from this acquisition.  Surely, some money will come their way, but it’s not always a good thing.  And I don’t think that it’s good in this particular case and at this particular time.   I believe it would do much more good for Yahoo to get smaller, faster, and “hungrier”.  Hunger (think: limited resources) makes one’s mind sharper.  That’s exactly what they need now.  Not more “fat”.

As for Microsoft, I think there strategy should be more directed towards entertainment.  If they really want to buy something, they should buy some entertainment companies.  Those that produce content.  Disney studios maybe? Or some sort of a deal with AOL/Time Warner (they had a few frictions in the past, but they seem to managed to work out a solution together).  With more and easily accessible content they can reinforce end users interest in their Windows desktop, as well as their gaming platform (Xbox thing), and their mobile platform (Windows Mobile).  And, entertainment content by itself is a rather popular thing among the end users, which makes advertising much easier.  And rich advertising too – not just text-based relevant web ads, but audio and video media.

What do you think about all this?