There is a lot of talk lately on Microsoft’s bid to take over Yahoo. This bid has subsequently been denied by Yahoo, however the consensus on the street is that Microsoft with all its money reserves will eventually take over Yahoo. The question is, why would Microsoft, the world’s #3 search engine, want to take over Yahoo, the world’s #2 search engine?

It can be argued that by taking over Yahoo, Microsoft will instantaneously become the number one contender in Google’s search world. I for one don’t believe that this is the only reason for Microsoft’s run at Yahoo. It would be too risky, in my opinion, to compete with Google in its own niche. There has to be something else that we may have overlooked.

Key Points:

• Microsoft has done a lot of work on voice recognition and handwriting recognition software and advanced very well in those fields.
• The trend in computer usage over the years is the use of smaller and smaller machines. From huge vacuum tube computers, to desktops, then laptops, and now cell phones and PDAs, the normal usage of a computer is becoming more portable and more convenient.
• Cell phones are getting more and more powerful and feature-rich. The download speeds are also getting better all the time.
• There is a huge market in cell phones and their services.

My Prediction:

It is my opinion that Microsoft will be taking advantage of Yahoo’s search technology and incorporate it into their windows mobile systems. They can get a much larger chunk of the search market if they come out with cell phone software that is more intuitive, easier to use, and has more features than the competition. This can be accomplished with highly developed voice recognition and handwriting recognition software. Imagine having a hand-held computer and cell phone that does exactly what you tell it to do! Everyone’s productivity would skyrocket. Instead of pointing, clicking, loading, typing, tapping, and keying, you could just as easily say “Email Frank. Make the subject line ‘invoice’ and tell him that the first payment is due in 30 days”. Of course we are nowhere near that kind of technology right now, but if there is any company who would be closing in on this level of recognition it would be Microsoft.

The Opportunity:

If my prediction is true and Microsoft does come out with very intuitive software for cell phones, the next thing to happen will be the development of the same type of software on an open source platform. If the right open source software is developed in this area, the opportunity for businesses to develop their own personalized software specific to their industry will be possible and the costs associated with that development will be greatly reduced.