Several news agencies are reporting that Jerry Yang is out as CEO and taking on the role of Yahoo Chief (whatever that means). Including: Financial Times, CNBC, Fortune.
You had to see this one coming.
Yahoo's failed strategy is not only an inability to compete in the ad revenue laden search engine business, it was also a lack of vision when it comes to new potential revenue streams (i.e. the cloud). In fact, Martin Pyykkonen from Wunderlich Securities was interviewed on CNBC stating that Yahoo! has several good assets but needed to put those technologies to work and better monetize their assets.
I agree. Although search ad revenue is good, but is it enough anymore? The Internet isn't a research tool, it's a business medium. Yahoo! has the tools and people to make their business the place where business is conducted. Here are some steps that Yahoo! needs to make to compete in their market:
- Offer cloud services: In the same vein that Google and Salesforce have offered software and application platforms as a service, Yahoo can do the same. And I'm not just talking about about email. Yahoo! should enable a developer network to build applications and run them in Yahoo's environment (of course, they may not have the data centers to drive such a model).
- Offer data services: Yahoo has to start using their search engine to reveal more than just what a simple search can tell. While they do this today (top searches for XYZ), they should use their data services to help solve larger problems such as predict flu outbreaks (ala Google) based on search locations; in other words use the data to solve big problems and they'll drive business their way.
- Partner with key players: Microsoft would have been a good start. Could Yahoo! offer Microsoft Azure in their data center? Could Yahoo! partner with AT&T to offer phones, or with Dell to offer music? One might argue that because Yahoo! is cash poor (compared to Google), they have to partner to stay competitive. Yahoo! doesn't have the cash to do it all.
Now the burning question on everyone's mind is does this reopen the path toward a Microsoft acquisition? Time will tell.
[posted by: Drue Reeves]
Yahoo! needs a new leader that will Disrupt and use White Space to chart a new course. Someone who will compete with Google and improve the web for all of us. Certainly not Microsoft - a new leader wtih the moxie to compete. Read more at http://www.thephoenixprinciple.com
Posted by: adam hartung | November 17, 2008 at 09:58 PM
Why should he be replaced? What's the point?
Posted by: busby seo test | November 17, 2008 at 11:58 PM
In a sign of how things are going at Yahoo, I'm betting his email to employees didn't make it past the Yahoo spam filter and now sits in everyone's junk mail folder along with ads for hair restoration creams.
Posted by: Cris Cohen | November 18, 2008 at 06:47 AM
Very informative tips..
Posted by: Hectic Capiznon Bloggers 2009 | March 09, 2009 at 02:35 AM