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Yahoo poised for a comeback?

Posted 5 October 2007 at 8:45AM by Simon Dickson in Website development

Younger readers may be surprised to learn that Google haven't always owned internet search. Before Google, a search engine called AltaVista ruled the roost. And before that, it was Yahoo - or as it was initially known, 'Jerry's Guide to the World Wide Web'. Yes kids, back in 1994, the web was small enough for one guy to maintain the leading guide - at the same time as doing a PhD in electrical engineering.

Fast-forward a dozen years: from being 'the internet's number one website' Yahoo has lost its crown and, arguably, has lost its way too. It remains the no2 player in search, but with only 8% market share, compared with Google's near 80% (based on Hitwise UK data for April 2007). It hasn't lacked for new features and services, but too many have been mediocre or just 'me too' launches. Despite a steady stream of acquisitions, including 'web 2.0' darlings Flickr and del.icio.us, plus a number of less inspiring names, an overall strategy hasn't been immediately obvious. A leaked memo acknowledged that the company had spread itself too thinly, and lacked 'a focused, cohesive vision'. And all the time, Google pushes ever onwards.

In June this year, the eponymous Jerry - specifically, Jerry Yang - returned to the helm, taking over as Chief Executive Officer. He promised 'a Yahoo! that executes with speed, clarity and discipline... that increases its focus on differentiating its products and investing in creativity and innovation.' Comparisons with Steve Jobs's return to Apple were inevitable: but in truth, most weren't favourable, not least because Yang had never actually gone away.

But things are starting to happen. Yahoo Photos is finally being wound down in favour of Flickr, still the gold standard for photo sharing (and much more). In recent days, they have unveiled 'Mash', a new social network based on the lessons of Facebook, MySpace et al. There's also a new network just for teachers, which seems to have a struck a chord with its intended audience, even if it leaves the wider world cold. Recent changes to Yahoo Mail have been extremely well received. Flickr is expected to add video sharing shortly; there's a new look to del.icio.us on the way. And now they've acquired Zimbra, a specialist in 'next-generation collaboration and messaging' which suddenly puts it in a position to rival Google Docs.

They have a lot of ground to make up - in terms of metrics, and in terms of credibility. That leaked memo hit various nails on the head, and the appointment of Jerry Yang is - at least - a symbolic return to the company's roots. But many expected great things when they bought Flickr and del.icio.us, and were ultimately disappointed. However it turns out, there are plenty of good reasons to keep an eye on Yahoo again.

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Comments

1. At October 9, 2007 12:47 PM, Bernard Jacob wrote:

9th October 2007
I have got bt's broadband home package as well as this.

Based on what you say above I am surpised you have taken a minority partner (Yahoo 8%!) for the home broadband/email setup.

Regards
Bernard Jacob

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