Yahoo! built on Acquisitions

Yahoo! was founded by Stanford University graduate students Jerry Yang and David Filo in January of 1994 and incorporated on March 1, 1995.

Yahoo provides a range of products and services including a web portal, a search engine, Yahoo! Directory, Yahoo! Mail. It has grown through continuous innovation and acquisitions. Here is the list of acquisitions which helped Yahoo! grow.

1997
Net Controls, Web search engine which helped Yahoo develop Yahoo! Search
Four11, Web-based email which helped Yahoo develop Yahoo! Mail
1998
Classic Games, Online game, which helped Yahoo develop Yahoo! Games
Sportasy , Fantasy sport, which helped Yahoo develop Yahoo! Fantasy Sports
Viaweb ,Web application which helped Yahoo develop Yahoo! Store
Webcal , Calendaring software which helped Yahoo develop Yahoo Calendar
Yoyodyne,Direct marketing which helped Yahoo develop Yahoo! Search Marketing
Hyperparallel, Data analysis which helped Yahoo develop Yahoo! Search
1999
Log-Me-On, Digital identity which helped Yahoo develop Yahoo!
Broadcast.com, Internet radio which helped Yahoo develop LAUNCHcast
Encompass, Internet service provider which helped Yahoo develop Yahoo!
GeoCities , Web hosting service which helped Yahoo develop Yahoo! GeoCities
Online Anywhere , Content delivery network which helped Yahoo develop Yahoo! TV
2000
Arthas.com, E-commerce payment systems which helped Yahoo develop Yahoo! Store
MyQuest , Internet service provider which helped Yahoo develop Yahoo!
eGroups , Electronic mailing list which helped Yahoo develop Yahoo! Groups
Kimo, Web portal which helped Yahoo develop Yahoo!
2001
Sold.com, Online auction tools which helped Yahoo develop Yahoo! Shopping
LAUNCH Media , Online music store which helped Yahoo develop Yahoo! Music
2002
Hotjobs.com , Job search engine which helped Yahoo develop Yahoo! HotJobs
Inktomi Corporation , Internet service provider which helped Yahoo develop Yahoo! Search
2003
Overture Services, Inc., Search engine marketing which helped Yahoo develop Yahoo! Search Marketing
2004
3721 Internet Assistant , Browser Helper Object which helped Yahoo develop Yahoo! Assistant
Kelkoo, Price comparison service which helped Yahoo develop Kelkoo
Oddpost , Web-based email which helped Yahoo develop Yahoo! Mail
Musicmatch Jukebox , Audio player which helped Yahoo develop Yahoo! Music
The All-Seeing Eye, Game server browser which helped Yahoo develop Yahoo! Games
Stata Labs, Web-based email which helped Yahoo develop Yahoo! Mail
WUF Networks, Mobile media which helped Yahoo develop Yahoo! Mobile
2005
Verdisoft, Computer software which helped Yahoo develop Yahoo! Mobile
Stadeon , Online game which helped Yahoo develop Yahoo! Games
Ludicorp, Image hosting service which helped Yahoo develop Flickr
TeRespondo , Advertising network which helped Yahoo develop Yahoo! Search Marketing
Dialpad, Voice over Internet Protocol which helped Yahoo develop Yahoo! Voice
blo.gs, Weblog software which helped Yahoo develop Yahoo! 360°
Konfabulator , Widget engine which helped Yahoo develop Yahoo! Widgets
Upcoming.org, Calendaring software which helped Yahoo develop Yahoo! Local
Whereonearth, Web mapping which helped Yahoo develop Yahoo! Maps
del.icio.us, Social bookmarking which helped Yahoo develop del.icio.us
2006
Webjay, Online music store which helped Yahoo develop Yahoo! Music
SearchFox, Web search engine which helped Yahoo develop Yahoo! Search
Meedio, Digital video recorder which helped Yahoo develop Yahoo! Go
Jumpcut.com, Online video editing which helped Yahoo develop Yahoo! Video
AdInterax, Online advertising which helped Yahoo develop Yahoo! Search Marketing
Bix.com , Social media which helped Yahoo develop Bix
Kenet Works, Mobile software which helped Yahoo develop Yahoo! Mobile
Wretch, Virtual community which helped Yahoo develop Wretch
2007
MyBlogLog, Social network service which helped Yahoo develop MyBlogLog
Right Media, Online advertising which helped Yahoo develop Yahoo! Search Marketing
Rivals.com, College football which helped Yahoo develop Yahoo! Sports
BlueLithium, Advertising network which helped Yahoo develop Yahoo! Search Marketing
BuzzTracker, News site which helped Yahoo develop Yahoo! News
Zimbra, Collaborative software which helped Yahoo develop Zimbra
2008
FoxyTunes, Browser extension which helped Yahoo develop FoxyTunes
Maven Networks , Video on demand which helped Yahoo develop Yahoo! Video
Inquisitor, Browser extension which helped Yahoo develop Inquisitor

The growth of the Yahoo is function of acquisition or innovation or innovation backed by acquisition is matter of debate.

Source: http://en.wikipedia.org

Microsoft built on Acquisition

Microsoft is yet another company which is built on series of acquisitions. Microsoft not only bought companies but also bought their technology to enhance the product portfolio. Historically, Microsoft has focused on smaller deals to acquire technology. Microsoft’s largest acquisition is the purchase of aQuantive, a digital marketing company for $6 billion. Microsoft before acquisition of aQuantive never focused on established businesses. Microsoft is, of course, eying a multibillion dollar Yahoo.

1986
Dynamical Systems Research , Operating system which helped Microsoft develop Microsoft Windows

1987
Forethought , Graphics software which helped Microsoft develop Microsoft PowerPoint

1991
Consumers Software , Computer networking which helped Microsoft develop E-mail service provider

1992
Fox Software , Database which helped Microsoft develop Visual FoxPro

1994
Softimage , 3D computer graphics software which helped Microsoft develop DirectX
One Tree Software , Revision control which helped Microsoft develop Microsoft Visual SourceSafe

1995
NextBase , Route planning software which helped Microsoft develop Microsoft Streets & Trips
RenderMorphics , Reality Lab which helped Microsoft develop Direct3D
Blue Ribbon Soundworks , Digital audio editor which helped Microsoft develop DirectSound
Bruce Artwick Organization , Personal computer game which helped Microsoft develop Microsoft Space Simulator

1996
Vermeer Technologies Incorporated , HTML editor which helped Microsoft develop Microsoft FrontPage
Colusa Software , Object-oriented programming which helped Microsoft develop ActiveX
EXOS , Video game which helped Microsoft develop Microsoft Game Studios
eShop , Electronic commerce which helped Microsoft develop MSN Shopping
ResNova Software , Web server which helped Microsoft develop MSN
NetCarta , Content management system which helped Microsoft develop Microsoft FrontPage

1997
Intersé , Web analytics which helped Microsoft develop Microsoft BackOffice Server
WebTV Networks , Internet television which helped Microsoft develop MSN TV
Dimension X , Multimedia which helped Microsoft develop DirectX
Cooper & Peters , Software framework which helped Microsoft develop Application Foundation Classes
LinkAge Software , E-mail which helped Microsoft develop Microsoft Exchange Server
Vxtreme , Streaming media which helped Microsoft develop Windows Media Player
Hotmail , Web-based email which helped Microsoft develop Hotmail

1998
Flash Communications , Instant messaging client which helped Microsoft develop MSN Messenger
Firefly Network , Recommender system which helped Microsoft develop Windows Live ID
MESA Group , Instant messaging client which helped Microsoft develop Microsoft Exchange Server
Valence Research , Computer cluster which helped Microsoft develop Windows NT
LinkExchange , Advertising network which helped Microsoft develop Microsoft adCenter

1999
FASA Interactive , Video game which helped Microsoft develop Microsoft Game Studios
CompareNet , Price comparison service which helped Microsoft develop MSN Shopping
Numinous Technology , Computer graphics which helped Microsoft develop Microsoft Game Studios
Indie Built , Game development which helped Microsoft develop Microsoft Game Studios
Jump Networks , Calendaring software which helped Microsoft develop Microsoft Outlook
ShadowFactor Software , Voice over Internet Protocol which helped Microsoft develop Microsoft Game Studios
OmniBrowse , Mobile software which helped Microsoft develop MSN Mobile
Sendit , Mobile Web which helped Microsoft develop MSN Mobile
ZOOMIT , Identity management which helped Microsoft develop Microsoft Identity Integration Server
STNC Enterprises , Mobile Web which helped Microsoft develop MSN Mobile
Visio Corporation , Diagramming software which helped Microsoft develop Microsoft Visio
Softway Systems , Customer relationship management which helped Microsoft develop Interix
Entropic Research Laboratory , Speech recognition which helped Microsoft develop Windows Speech Recognition

2000
Peach Network , Interactive television which helped Microsoft develop Microsoft TV
Driveoff.Com , Online Car Shopping which helped Microsoft develop MSN
Bungie , Video game developer which helped Microsoft develop Microsoft Game Studios
NetGames USA , Online game which helped Microsoft develop MSN Games
MongoMusic , Media player which helped Microsoft develop MSN Music
Pacific Microsonics , Media player which helped Microsoft develop Windows Media Player
Digital Anvil , Video game developer which helped Microsoft develop Microsoft Game Studios
Great Plains Software , Accounting software which helped Microsoft develop Microsoft Dynamics GP

2001
Maximal Innovative Intelligence , Information management which helped Microsoft develop Microsoft Outlook
NCompass Labs , Content management system which helped Microsoft develop .NET Framework
iCommunicate , Customer relationship management which helped Microsoft develop Microsoft Dynamics CRM
Ensemble Studios , Video game developer which helped Microsoft develop Microsoft Game Studios

2002
Navision Software A/S , Enterprise resource planning which helped Microsoft develop Microsoft Dynamics NAV
Sales Management Systems , Point of sale which helped Microsoft develop Microsoft Dynamics GP
Rare , Video game developer which helped Microsoft develop Microsoft Game Studios
Vicinity , Internet marketing which helped Microsoft develop Microsoft MapPoint

2003
Connectix , Virtualization which helped Microsoft develop Microsoft Virtual PC
PlaceWare , Web conferencing which helped Microsoft develop Microsoft Office Live Meeting
RAV Antivirus , Antivirus software which helped Microsoft develop Microsoft Anti-Virus
Creature House , Graphics software which helped Microsoft develop Creature House Expression

2004
ActiveViews , Analytical software which helped Microsoft develop SQL Server Reporting Services
Encore Business Solutions , Accounting software which helped Microsoft develop Microsoft Dynamics
Lookout Software , Desktop search which helped Microsoft develop Windows Search
GIANT Company Software , Anti-spyware which helped Microsoft develop Windows Defender

2005
Sybari Software , Antivirus software which helped Microsoft develop Microsoft Anti-Virus
En’tegrate Software , Enterprise resource planning which helped Microsoft develop Microsoft Dynamics AX
Groove Networks , Collaborative software which helped Microsoft develop Microsoft Groove
ContentGuard , Digital rights management which helped Microsoft develop PlayReady
MessageCast , Instant messaging client which helped Microsoft develop MSN Messenger
FrontBridge , E-mail service provider which helped Microsoft develop Microsoft Exchange Hosted Services
Teleo , Voice over Internet Protocol which helped Microsoft develop MSN Messenger
Alacris , Identity and Access Management which helped Microsoft develop Active Directory
Unveil Technologies , Speech recognition which helped Microsoft develop Microsoft Speech Server
media-streams.com , Voice over Internet Protocol which helped Microsoft develop Microsoft Office
FolderShare , File sharing which helped Microsoft develop Windows Live FolderShare
GeoTango , Web mapping which helped Microsoft develop Microsoft MapPoint

2006
UMT , Project management software which helped Microsoft develop Microsoft Office Project Portfolio Server
MotionBridge , Search engine technology which helped Microsoft develop Live Search Mobile
String Bean Software , iSCSI which helped Microsoft develop Windows Server 2003
Onfolio , Information management which helped Microsoft develop Windows Live Toolbar
Apptimum , Software migration which helped Microsoft develop Microsoft Windows
ProClarity Corporation , Business intelligence software which helped Microsoft develop Microsoft SQL Server
Lionhead Studios , Video game developer which helped Microsoft develop Microsoft Game Studios
AssetMetrix , Business intelligence software which helped Microsoft develop Microsoft Systems Management Server
Vexcel , Satellite imagery which helped Microsoft develop Microsoft MapPoint
Massive Incorporated , In-game advertising which helped Microsoft develop Xbox Live
DeepMetrix , Web analytics which helped Microsoft develop Microsoft adCenter
Whale Communications , Virtual private network which helped Microsoft develop Microsoft Intelligent Application Gateway
iView Media , Digital asset management which helped Microsoft develop Microsoft Expression Media
Softricity , Application Virtualization which helped Microsoft develop Microsoft Application Virtualization
Winternals , Utility software which helped Microsoft develop Microsoft Windows
Azyxxi , Medical software which helped Microsoft develop Microsoft Amalga
Gteko , Utility software which helped Microsoft develop Microsoft Research
DesktopStandard , Group Policy which helped Microsoft develop Group Policy
Colloquis , Instant messaging which helped Microsoft develop Windows Live Agents

2007
Secured Dimensions , Computer security which helped Microsoft develop Windows Live OneCare
Medstory , Medical software which helped Microsoft develop Live Search Health
Tellme Networks , Voice over Internet Protocol which helped Microsoft develop Windows Mobile
devBiz , Web application which helped Microsoft develop Visual Studio Team System
ScreenTonic , Mobile advertising which helped Microsoft develop Microsoft adCenter
SoftArtisans , Reporting software which helped Microsoft develop Microsoft Office
aQuantive , Digital marketing which helped Microsoft develop Microsoft adCenter
Engyro , Interoperability which helped Microsoft develop System Center Operations Manager
Dundas Data Visualization , Database which helped Microsoft develop SQL Server Reporting Services
Stratature , Database management system which helped Microsoft develop Bulldog
AdECN , Online advertising which helped Microsoft develop Microsoft adCenter
Parlano , Instant messaging which helped Microsoft develop Microsoft Office Communications Server
Jellyfish.com , Reverse auction which helped Microsoft develop Live Search
Global Care Solutions , Medical software which helped Microsoft develop Microsoft Amalga
Multimap.com , Location-based service which helped Microsoft develop Live Search Maps

2008
Fast Search & Transfer , Enterprise search which helped Microsoft develop Microsoft SharePoint
Calista Technologies , Virtual device which helped Microsoft develop Microsoft Application Virtualization
Caligari , 3D computer graphics which helped Microsoft develop Microsoft Virtual Earth
Danger , Mobile software which helped Microsoft develop MSN Mobile
YaData , Online advertising which helped Microsoft develop Microsoft adCenter
Kidaro , Desktop Virtualization (VDI) which helped Microsoft develop Microsoft Virtual PC
Komoku , Computer security which helped Microsoft develop Windows Live OneCare
Farecast , Computer reservations system which helped Microsoft develop —
Powerset Search engine which helped Microsoft develop Live Search

The majority of the companies acquired by Microsoft are based in the United States. Microsoft till date have acquired close to 120 companies.

Source: http://en.wikipedia.org

Google built on Acquisition

It is a popular believes that Google is born and built on innovations, which is true. The making of Google is not only based on innovation but acquisitions also play a critical role. Google bought companies and worked on their properties to develop better product. The end goal of acquiring a company may be aligned with Google’s overall mission. Google bought companies to grab global database, make that data useful and accessible, attract users attention and loyalty towards the database, and most importantly to increase profit from ads displayed with the data.

2001
Deja , Usenet which helped Google develop Google Groups
Outride , Web search engine which helped Google develop Google Personalized Search

2003
Pyra Labs , Weblog software which helped Google develop Blogger
Neotonic Software , Customer relationship management which helped Google develop Google Groups, Gmail
Applied Semantics , Online advertising which helped Google develop AdSense, AdWords
Kaltix , Web search engine which helped Google develop iGoogle
Sprinks(a division of Primedia) , Online advertising which helped Google develop AdSense, AdWords
Genius Labs , Blogging which helped Google develop Blogger

2004
Ignite Logic , HTML editor which helped Google develop Google Page Creator
BaiduA , Chinese language search engine which helped Google develop
Picasa , Image organizer which helped Google develop Picasa, Blogger
ZipDash , Traffic analysis which helped Google develop Google Ride Finder
Where2 , Map analysis which helped Google develop Google Maps
Keyhole, Inc , Map analysis which helped Google develop Google Maps, Google Earth

2005
Urchin Software Corporation , Web analytics which helped Google develop Google Analytics
Dodgeball , Social networking service which helped Google develop Google Mobile, Google SMS
Reqwireless , Mobile browser which helped Google develop Google Mobile
Current Communications Group , Broadband internet access which helped Google develop Internet backbone
Android , Mobile software which helped Google develop Android
Skia , Graphics software which helped Google develop Android
Akwan Information Technologies , Search Engines which helped Google develop Internet backbone
AOLB , Broadband internet access which helped Google develop
Phatbits , Widget engine which helped Google develop Google Desktop
allPAY GmbH , Mobile software which helped Google develop Google Mobile
bruNET GmbH , Mobile software which helped Google develop Google Mobile

2006
dMarc Broadcasting , Advertising which helped Google develop AdSense
Measure Map , Weblog software which helped Google develop Google Analytics
Upstartle , Word processor which helped Google develop Google Documents
@Last Software , 3D modeling software which helped Google develop Google Sketchup
Orion , Web search engine which helped Google develop Google Search
2Web Technologies , Online spreadsheets which helped Google develop Google Spreadsheet
Neven Vision , Computer vision which helped Google develop Google Maps
YouTube , Video sharing which helped Google develop YouTube
JotSpot , Web application which helped Google develop Google Sites
Endoxon , Mapping which helped Google develop Google Maps

2007
XunleiC , File sharing which helped Google develop
Adscape , In-game advertising which helped Google develop AdSense
Trendalyzer , Statistical software which helped Google develop Google Analytics
Tonic Systems , Presentation program which helped Google develop Google Documents
Marratech , Videoconferencing which helped Google develop Google Talk
DoubleClick , Online advertising which helped Google develop AdSense
GreenBorder , Computer security which helped Google develop Internal use
Panoramio , Photo sharing which helped Google develop Blogger, Maps
FeedBurner , Web feed which helped Google develop Google Reader
PeakStream , Parallel processing which helped Google develop Server (computing)
Zenter , Presentation program which helped Google develop Google Documents
GrandCentral , Voice over Internet Protocol which helped Google develop Google Mobile
Image America , Aerial photography which helped Google develop Google Maps
Postini , Communications security which helped Google develop Gmail
Zingku , Social network service which helped Google develop Google Mobile
Jaiku , Micro-blogging which helped Google develop Google Mobile

2008
DoubleClick , an online advertising

Historically, the focus of Google while acquisition is on technology and data acquisitions, which helped it emerge as the Power brand.

Source: http://en.wikipedia.org

The Google Economy

Google has come a long way; from one of the Internet search engine to the worlds most popular search engine. It is preferred over search engines which are one among the pioneers of the search engine such as AltaVista, Infoseek, Netscape and Lycos.

Google piggyback on its innovative strategy to generate revenue by placing advertisements on sites which contain information related to those ads has indeed made Google highly profitable. The revenue model, almost since beginning, has been successful in giving its competitors a run for their money. In a short span of time, Google has become the best search engine by eating into the market share of Yahoo AltaVista, Infoseek, Netscape and Lycos.

Google always focused on product development which is user friendly and offers great customer experience. No wonder, Google, since inception came up with innovative ideas like Blogs, AdWords, video search and many other features on its search engine, which offered great user experience. It also helped, Google developed an emotional character that transcends cultural, geographical and language barriers. This inherent strength of Google in initial days helped survive in industry which was dominated by industry power house like Yahoo and Microsoft and later on helped it emerge as the winner. Google has focused on its strength by constantly projecting solutions to problems first rather than making money.
Google has
The Birth
The beginning of the story, Google started when Sergey Brin and Larry Page were doing their Ph.D. at Stanford University in computer science, as a part of research group called MIDAS (Mining Data at Stanford). Sergey Brin, with his Professor Rajiv Motwani started experimenting on finding ways to extract information from large chunks of data. Larry Page, at the same time spent time with the search engines (Altavista, Yahoo etc.) on Digital Libraries Project to find how they analyzed data.

Sergey Brin and Larry Page, after teaming up started downloading the web onto his desktop and even devised a method he called PageRank that would assign priority to websites with quality links. The PageRank, going forward would be backbone of the search engine Google.

In 1997, Page developed a primitive search engine called BackRub which was later renamed Google. The duo left Stanford University in the fall of 1998 moving their search engine to a nearby garage. On September 07, 1998, they established the Google Inc. The duo started experimenting on the Google’s web design to make it look more polished with high speed.

The Early Days
The search engine became quite popular through word-of-mouth, e-mails and instant messages. In 1998, PC Magazine had chosen Google as the top 100 web sites. By 2001, Google was on its way to become a lexicon in the dictionary continuing to offer 100 million searches per day making it one of the top notch quality services to people across the world.

Google started with difference and positioned it as no-nonsense search engine. Google, unlike traditional search engines which place search ads mixing them with search results to make money, started delivering accurate results to the keywords placed in search. They found the idea of placing ads in the site more commercialized and will ultimately dilute the main purpose of the search engines.

In Search of Revenue Model
The duo realized that only great product will not generate revenue they have to work on the revenue model. But at the cost of revenue generation they were not in favor of compromising on the search results quality. The duo after much brainstorming with Google team finds out a source to earn revenues. Google develop its business around two revenue streams – online advertising and search services. Google has been generating enough revenue from its AdWords, AdSense and Gmail service. The revenue model was well received by the viewers and the users.

The difference between Google and Yahoo is the revenue factor. Yahoo gets its revenue from Yahoo mail, ads, and some other features where as Google gets almost 85% of its revenue from ads. Google’s success has incited Microsoft, AOL and Yahoo to develope their own commercial search offerings

Google – More than a Search Engine

In early days of search engine growth when most of the online search engine companies spent a lot of money on marketing to build their brands, Google, focused solely on building a ‘better’ search engine. Everything Google did from the development of advanced technology to the design of user interface was focused on delivering the best search results. The effort to develop a better search engine help Google develop a brand.

When Google entered the online search market, Yahoo was the market leader. Their persistent efforts towards that objective proved fruitful as, in a span of five years, Google placed itself ahead of Yahoo in the search engine market. In 2002, Google pioneered the concept of AdWords and AdSense, and thus created a sensation in the field of online advertising.

Now, Google is much more than a search engine, it offers various other features for its users. List of the services which Google offers to its users apart from the search engine are:

Google Desktop : Search and personalize your computer
Google Earth : Explore the world from your computer
Google Finance : Business info, news, and interactive charts
iGoogle : Add news, games and more to the Google homepage
Images : Search for images on the web
Google Maps : View maps and directions
Google News – now with archive search; Search thousands of news stories
Google Scholar : Search scholarly papers
Google Video : Search for videos on Google Video and YouTube
Gmail : Fast, searchable email with less spam
Groups : Create mailing lists and discussion groups
Orkut : Meet new people and stay in touch with friends
Picasa : Find, edit and share your photos
Reader : Get all your blogs and news feeds fast
Sites : Create websites and secure group wikis
Google Talk : IM and call your friends through your computer
Google Translate : View web pages in other languages
Google YouTube : Watch, upload and share videos

Google is increasing its revenues with introduction of new features.

Google – growing with Strategic Partnerships and Acquisition
Google has served various strategic partnerships with companies like Yahoo!, AOL, Earthlink, and Ask Jeeves. The strategic partnership in place, its ad business was showing signs of good growth.

Read: Google built on Acquisition to know more about Google Acquisitions in past.

Google grew to such an extent that it was very tough replicating its network or business for its competitors. The constant innovation at Google is the real motive for its services.

Conclusion
Google will remain the best and popular company both electronically and emotionally. The company employs brilliant mathematicians, engineers and technologists to tackle all the problems. The Google team, have developed a firm that doesn’t need any introduction or promotion. It has replaced Microsoft with its rapid pace of innovation and mantle of leadership. Google has placed itself in a special position in the hearts and minds of many people throughout the world.