12 October 2005

"Interconnection" of Instant Message

The collaboration between Microsoft and Yahoo in Instant Message can bring convenience for users and decrease hassles of multiple Instant Massage accounts. There is no obligatory regulations to force ISPs working together for this service, I believe the cooperation is pure strategic consideration. The alliance (Microsoft and Yahoo) can create some negotiation niches for Microsoft to bargain with the market leader (AOL) for its possible joint venture, besides the network externality of new alliance can deter the development of Google’s service.

2 comments:

Martin Weiss said...

There has been some speculation that this might be a precursor to voice messaging, which would position MS and Yahoo as providers of VoIP service to a very large pool of subscribers.

KuangChiu Huang said...

Instant Message could be a portal of communication services with text, photo, voice video, and social group. If broadband adoption rate is increasing as usual, IM could be a strong opponent to compete with VoIP and conventional telephone service. Maybe Vonage, one of VoIP service provider, have to reconsider its strategy, to build partnership with strong IM players and convert itself as IM plus VoIP service provider, to garner an edge for future development. (Vonage could offer a new IM handset and its subscribers could enjoy not only IM service but also telephone service without connecting with PC.)

There is coming up news, http://news.yahoo.com/s/usatoday/aolswingsfromdyingrelictocovetedpartner , which mentions about the rationale of AOL’s valuation. It also can provide some hints why Microsoft, Yahoo and Google are competing with each other for this "dial-up" based ISP.