Blodget: ‘Microsoft’s Colossal Strategic Mistake: Getting Into Advertising’
Henry Blodget has an interesting analysis on Silicon Alley Insider of the motivations behind Microsoft‘s approach to buy Yahoo! He says that Microsoft have misunderstood the opportunity that cloud-computing offers and that a B2B company shouldn’t be trying to make money through ad-sales. He says:
Microsoft’s Misconception: “Cloud Computing” = Software Supported By Advertising
The problem is the way Microsoft has always framed the “cloud computing” transition: paid desktop software licenses giving way to free web-based software supported by advertising.