Yahoo still most trafficked site on Internet
Despite declining revenues, Yahoo is still the most trafficked site on the Internet. Couple that with the impact of the consumer Web on the enterprise-which is largely responsible for the Web 2.0 phenomenon-and Microsoft could dramatically increase its "cloud computing" footprint by offering its enterprise services in the Yahoo environment. "Look at Yahoo's business user of consumer-based enterprises, especially financial services, where they all have Yahoo home pages," Murphy said. "There could be more impact as Microsoft offers services or software via advertising.""...So it shouldn't affect that side of Microsoft's business, with two possible exceptions. Firstly, Microsoft will have to decide what to do with Zimbra; our guess is that it will let it whither and die, rather than spin it off and leave it as a threat to Exchange. Secondly, it will potentially have an effect on Microsoft's still-nascent move into line productivity apps. Note that Webmail aside, Yahoo hasn't tried to get into this business," Patience said in the statement. In a call with press and analysts Feb. 1, Microsoft CEO Steve Ballmer hinted at the impact to Web computing for businesses. "We have great respect for Yahoo and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," Ballmer said. "We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners." Microsoft officials said during the call that it would offer serious retention packages to Yahoo's engineering staff.
But the marriage between the two companies would not be all smooth sailing. Nick Patience, an analyst with The 451 Group, said in a statement that Yahoo has tried and failed in the past to sell enterprise software through its September acquisition of Zimbra.