Yahoo vs Google
2004-02-25 15:30
Washington - Yahoo's decision to break away from Google and use its own internet search technology signals a new 'search engine war' in an increasingly lucrative segment of cyberspace.
The move marks a new direction for Yahoo, which had previously relied on Google, the new powerhouse, for many of its web searches.
"Everybody had thought of Yahoo as the web, and they kind of lost a bit of that," said Brett Tabke, founder of WebmasterWorld.com, a news and discussion forum for internet professionals.
Google is the direct website used for searching by 39% of US internet users, compared with 30% for Yahoo, according to Nielsen/Netratings.
Yet because Google is an underlying engine for Yahoo, AOL and others, it powers some 79% of all searches, according to Searchenginewatch.com.
Netratings analyst Jason Levin said Google's no-frills design does not detract from its search power.
"People want results quickly and accurately," he said. "Cool design and popular content is not important to the general public" for search engines.
Yahoo, which will gradually roll out its own search engine, said its technology will soon power about half of all online searches in the US.
The new Yahoo technology "will deliver against our mission of providing the highest quality search experience on the web," said Yahoo senior vice president Jeff Weiner.
Tabke said Yahoo's new search engine "is very close to Google ... most people would have trouble making a distinction between the two."
He added that Yahoo's move to break off with Google "means good things for Yahoo; they look like a complete package player now."
But he added that the move is good for Google as well, which can broaden its position as a Web "portal" with e-mail and other services.
Still, the two Silicon Valley firms, only a few kilometres apart from each other, will be fierce competitors in what is becoming a lucrative field of internet search.
A big question mark now is if and when Microsoft - which now uses Yahoo's Inktomi search engine - will roll out its own search technology.
Analysts say Google is also looking over its shoulder at Microsoft, but Halloran said it would not immediately dominate the market.
"They will be a major player because they're Microsoft, but they don't win all ballgames," he said.
Jonathan Rosenberg, vice president of Google products, said Yahoo would remain a partner in some areas and that Google would uphold its contractual obligations to its rival. He added that he did not see a major impact on his firm from Yahoo's decision.
Rosenberg declined to comment on Google's future plans, but said the firm would focus on its own search technology.