Could Yahoo's 'openness' be another anti-Microsoft poison pill?

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Integration issues

This merger is an integration disaster waiting to happen because of that reason. With Yahoo's reliance on open source, the opening of it's infrastructure and APIs, as well as it's own open source development (including Zimbra), it seems any kind of integration with Microsoft will be a long drawn out process that will include many failures and headaches for both Microsoft and users of the various Yahoo properties. These possible failures, along with ongoing integration costs, may also upset investors, causing a Wall Street backlash of sorts.

Microsoft does have one option that may work, and that is to treat Yahoo as more of a "hands-off" or "at arms length" type subsidiary. In this way, it allows Yahoo to operate similar to how it does now, and only integrate services and properties when it is appropriate and feasible to do so with minimal to no disruptions. This would also minimize the impact of the different "openness" models by keeping them separated. Again, this makes integration a (very) long and drawn out procedure, but may allow Microsoft to mitigate up-front integration losses and make the merger look more successful.

Posted by: jheine   Posted on: 03/14/08 You are currently: a Guest | Members login | Terms of Use

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