Vijay Anand | The Startup Guy.

So What is Yahoo! Planning? A Theory.

Posted on: April 28, 2008

Disclaimer: This is just a theory. Not the fact.

The war between the giants, Microsoft and Yahoo continues. But none of the threats, nor the position that Yahoo is in, seems to be putting a brake on the companies they are going around acquiring, nor the services they are releasing. Life is as normal, infact on a fresh new lease – one that is quite agressive for Yahoo!.

So here’s a theory that I have, and time will tell how much of this is true.

The following things seem to be happening:

1. Yahoo is very pissed off at Microsoft.

2. Yahoo has been for the longest time wanting to get into what Facebook is doing. And now it does. – the open platform shabang.

3. Yahoo is working on a whole new ad delivery platform.

4. Yahoo has an amazing advantage of close to 5 million new email signups every month in India alone – which is actually ahead of what Google has, followed by I believe either Indiatimes or Rediff.

5. Imagining combining point 4, with the fact that you can convert each of these email users into identities using Yahoo OpenID

6. As if all of this wasnt enough, imagine being able to put a geo-tagging perspective to all things using the Fire Eagle Platform.

7. If the Search Monkey is a sample of things to come, oi vey, Google is going to get a run for its money!

8. Realize the fact that YUI has been one of the most useful web UI toolkits, Yahoo! Pipes, one of the most easiest and simplest, yet powerful tools built.

9. Yahoo for small businesses, essentially means that not just consumers and individuals, but also businesses will be part of this strategy.

10. Yahoo has a proven track record for being able to support developers build mashups using their toolkits – compared to Google’s case where I hear nightmare stories for Android support (maybe, and hopefully things have changed now)

11. Google is slowly turning evil. Microsoft has an unfair advantage over Yahoo, and Yahoo is the damsel in distress having the sympathy of a lot of web users and its support. Someone smart will factor that into the power play equation.

If you put all of this together, it puts together one hell of an ammunition power on the hands of Yahoo. Imagine if they could put all those social and community tools that they had acquired over the years to good use, and let uses mash them as will. This is what I see happening.

Yahoo’s OpenID will challenge OpenSocial openly. The only missing link in all these puzzle pieces are the ways and means to do the relations between identities, and with projects such as Dataportability, that shouldnt be too hard to fix.

So imagine the possibility of not having to worry about customers. Yep, not at all having to worry about customers. Yahoo has the brand, the power and the muscle to go far and wide to do the campaigning it needs to drive users into their site and create new accounts AKA Profiles Also known as identities. Once that is done, all they have to do is, push different services developed by third party developers, and just as Facebook showcases “applications”, they will showcase Services, and provide all the toolkits they can to create a unparalleled world of new services – obviously, all of this will be powered by Yahoo Ads.

The CTO of Yahoo, Ari Balogh, is to be in India tomorrow talking about the future of the Web, in Bangalore. I really wanted to be there, but unfortunately wouldnt be able to. I wonder how much of my guess would be right – if they do choose to talk about it openly tomorrow.

PS: From What Ari Balogh spoke at the Web 2.0 Expo in San Francisco, this might not be a far off theory.

1 Response to "So What is Yahoo! Planning? A Theory."

Yep, I agree , Yahoo is pushing very much to the open Strategy, and with there new release of “Search Monkey”.

OpenID, i am not sure in this much,being myself on the developent front, i see huge challeges coming in the way of OpenID, with 20-30 apps each from Google and Yahoo, they might very well have there on OpenID’s and its been working fine with them now.

If you have a sneak look at Google strategy with release of App engine [heard of Yahoo doing the same],it supports the business as well as the consumers with there own apps [Docs,mails,analytics,now salesforce also], but the 3rd party application plays a vital role for satisfying the users need.

What do you think will happen this week?

Would MS acquire Yahoo?

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