Today the technology world was rocked by the news that IE 7 is vulnerable to attacks. Oh wait, most of us already new this and switched browsers long ago! While this isn’t really big news, it does highlight how important it is for the average internet user to make sure they are vigil while surfing the net. Microsoft have said that the vulnerability is present in all version of IE, but state that moving to another browser is risky in itself.
While most users will not switch, experts are indicating that now is a good time to experiment with alternatives. Firefox, Safari, Opera and Chrome are not vulnerable to the IE threat, but each browser does have their own flaws. One thing is for sure, most browser attacks are aimed at IE. This is because IE users (are generally) less sophisticated surfers and are therefore more suseptible to viruses. I would therefore recommend users to “upgrade” to an alternative browser. I use firefox myself and find it great.
As a mac user, I should be using safari, but firefox’s pluggins make it a more useful browser, if not a tad slower. I would live to try Chrome, but google have not released a mac version yet.
After securing further funding last week ($15 million raised valuing the company at $80million), speculation has grown over what direction twitter takes now to make it into a profitable company.
Many commentators argue that any commercial model risks alienating its users, yet a commercial business needs to generate income.
A subscription model is out of the question, so advertising revenue seems to be the only avenue available to them. I think the most likely outcome will be a buy out, with google and Microsoft no doubt willing to do battle for a micro blogging site that is rapidly growing in popularity. I would imagine that ads will be displayed down the side of your twitter page similar to ads on search engines, this being the case, google would be a natural buyer, given their history with other blogging sites and their interest in social networking. Of course, MS could always integrate it with their Live service and MSN. Either way, twitter as a technology is sound, even if their business model is not.
I wonder about big business and let's face it, there's no bigger business than microsoft. So naturally the entire world has been transfixed by msoft's attempt to buy the web. The redwood company have announced that they're not going to pursue yahoo (yeah? well we'll see!) so what now? I've stated in the past it wasn't a good idea for either company, but for yahoo's stockholders will not be happy as their stock is bound to drop and as for msoft they still have their cash piles.
Jerry yang has gambled his companies future by teaming up with google and admitting that their search model is superior. That being the case, what makes yahoo a viable acquisition? Without the search model yahoo will offer nothing to microsoft. Yahoo are committing themselves to a more open web, they are aligning themselves with their competitors, which all in all means that in my opinion microsoft should walk away entirely. Why spend your cash on a company that might not last the distance, or even another year or two?
So after weeks of nothing, Microsoft sent yahoo a letter at the weekend detailing their continued desire to buy yahoo. Naturally, yahoo have now replied declining the Redmonds offer yet again.
So what’s going on?
Basically, yahoo are holding out for more money, but that’s not the whole story. Yahoo’s board have an obligation to deliver long term growth prospects to its shareholders. If Microsoft buy yahoo what does that mean for yahoo? Their stockholders will get a payday, but the future of yahoo will be put in jeopardy. Yahoo as a brand may even die. Yet this will be of no interest to current yahoo stockholders as they will have sold out. So what is the problem you may well ask? Essentially yahoo believe there is more to the MS deal than meets the eye. No one wants to sell their company to anyone for a below market valuation, and no one wants to sell their company if they think the company buying it will run it into the ground. Now I’m not speculating that MS will integrate yahoo into MSN but it would be the logical next step. Look at how hard google has been working to integrate their acquisitions into its growing portfolio.
This is the main reason for the MS approach. Microsoft are falling behind in the online stakes, they are loosing ground to google and yahoo in the online ad business and there are many companies trying to steal a march on MS by releasing traditional desktop software as an online resource, thereby directly competing with MS Office. There is a growing dislike of the way MS dominates operating systems and office applications (much in the same the music business dislikes the strength of itunes) and consumers are moving away from the desktop application. In fact, I predict that in a few years desktops will be a thing of the past, or at least only used in the office place. Ultra portable laptops such as the Asus EEE will change how people connect to the internet at home, mobile phones will become even smarter and people will use them to stay connected with friends via email and social networking sites. So, with this in mind, how does microsoft maintain its current revenue streams in the next decade? If MS office takes a back seat and alternative operating systems eat into windows market share, MS revenue drops, their share price falls, and well, dare I say that they could become a relic of the 20th century?
This is the real danger for yahoo’s board. Do they recommend a sale to MS, only for MS to become debt laden and uncompetitive in a market that they already have proven not to understand?
A Microsoft executive, Kevin Johnson sent an email on Friday to placate Yahoo! staff on their proposal. He defended Microsoft’s recruitment policies and highlighted the Redmond companies offices in Silicon Valley and stressed the need to retain knowledge.
At this stage it’s looking like the takeover will be hostile and not amicable as was first thought. This means that things could get nasty with each companies board issuing sniping statements which both parties will ultimately regret.
Further analysis on the deal highlights Microsoft’s lack of skill in the online area and inability to launch new products all on its own. Yahoo! on the other hand has proved that it cannot cope with the strength of googles online presence both as a search engine and as an ad agency. How then will the two combine to effectively challenge google?
Maybe it’s time Microsoft concentrated on its operating system business and stopped trying to be something its not.