It makes one wonder. Should Bill Gates come back to steer the good ship Microsoft? Maybe Microsoft needs a Jerry Yang of Yahoo fame to help out. No matter what your opinion of Microsoft might be, the once mighty corporation is feeling the sting of the Microsoft – Yahoo deal gone sour. In fact we may see more employees leaving the Redmond software company as the head of Windows tries to regain its direction. A direction which includes a bigger presence on the Internet.

But can Microsoft achieve their goal, without buying a piece of Yahoo? I think Microsoft has two problems. First, without Yahoo their search hopes may be damaged and second, they need to make Windows 7 the best Windows yet. In an article from Boomtown it states:

But, most of all, it has zeroed in on Yahoo, which has a share in the mid-20s, in order to give it a better chance to compete with Google, the dominant market leader.

After first trying to buy Yahoo in a bit of a ham-handed manner, it turned to a plan to buy its search business.

That proposal has been rejected by Yahoo twice as not good enough for a variety of reasons, some better than others.

The hubbub sent Yahoo into the arms of Google, with which it struck an outsourcing ad search deal, which has attracted a lot of controversy, but will likely go forward.

Welcome to Microsoft’s nightmare!

So what do you think? Should Microsoft do what it does best and concentrate on Windows 7 development? Or do they need to diversify and catch up with Google?

Comments welcome.


Ballmer’s Memo